(3) The corporation does not affect the proposed action and does not return the deposited certificates within 60 days after the date set for demanding payment. (b) A dissenter waives the right to demand payment under this section unless the dissenter notifies the corporation of the dissenter’s demand in writing under subsection (a) of this section within 30 days after the corporation made or offered payment for the dissenter’s shares. Legislative History-Enacted, 5/19/03, Resolu. 2003-337; Readopted 8/01/06, Resolu. 2006-524. 35-7.09 Court Action. (a) If a demand for payment under Section 35-7.08 of this Code remains unsettled, the corporation shall commence a proceeding within 60 days after receiving the payment demand and petition the court to determine the fair value of the shares and accrued interest. (1) If the corporation does not commence the proceeding within the 60 day period, it shall pay each dissenter whose demand remains unsettled the amount demanded. (b) The corporation shall commence the proceeding in the court. (c) (1) The court may appoint 1 or more persons as appraisers to receive evidence and recommend, a fair valuation to the court. The appraisers have the powers described in the order appointing them or in any amendment to it. The dissenters are entitled to the same discovery rights as parties in other civil proceedings (d) which the court finds the fair value of the dissenter’s shares, plus interest, exceeds the amount paid by the corporation. . Legislative History-Enacted, 5/19/03, Resolu. 2003-337; Readopted 8/01/06, Resolu. 2006-524. 35-7.10 Court Costs and Counsel Fees. (a) The court in a proceeding commenced under Section 35-7.09 of this Code shall determine all costs of the proceeding, including the reasonable compensation and expenses of appraisers appointed by the court. (1) The court shall assess the costs against the corporation, except that the court may assess the costs against all or some of the dissenters, in amounts the court finds equitable, to the extent the court finds the dissenters acted arbitrarily, vexatiously, or not in good faith in demanding payment under Section 35-7.08 of this Code. (b) The court may also assess the fees and expenses of counsel and experts for the respective parties in amounts the court finds equitable: (1) Against the corporation and in favor of any or all dissenters if the court finds the corporation did not substantially comply with the requirements of this Code. (2) Against either the corporation or a dissenter, in favor of any other party, if the court finds that the party against whom the fees and expenses are assessed acted arbitrarily, vexatiously, or not in good faith with respect to the rights provided herein. Legislative History-Enacted, 5/19/03, Resolu. 2003-337; Readopted 8/01/06, Resolu. 2006-524. Section 35-8 Dissolution 35-8.01 Dissolution By Board of Directors and Shareholders. (a) A corporation’s Board of Directors may propose dissolution for submission to the shareholders. (b) For a proposal to dissolve to be adopted: (1) The Board of Directors must recommend dissolution to the shareholders unless the Board of Directors determines that because of conflict of interest or other special circumstances it should make no recommendation and communicates the basis for its determination to the shareholders; and (2) The shareholders entitled to vote must approve the proposal to dissolve as provided in subsection (e) of this section. (c) The Board of Directors may condition its submission of the proposal for dissolution on any basis. (d) The corporation shall notify each shareholder, whether or not entitled to vote, of the proposed shareholders’ meeting in accordance with Section 35-3.09 of this Code. (1) The notice also must state that the purpose, or 1 of the purposes, of the meeting is to consider dissolving the corporation. 323 Revised Spokane Law & Order Code, 5/14/2013

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