84-8-506. A securities intermediary shall exercise rights with respect to a financial asset if directed to do so by an entitlement holder. A securities intermediary satisfies the duty if:
(a) The securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary; or
(b) in the absence of agreement, the securities intermediary either places the entitlement holder in a position to exercise the rights directly or exercises due care in accordance with reasonable commercial standards to follow the direction of the entitlement holder.
History: L. 1996, ch. 202, ยง 73; July 1.
KANSAS COMMENT, 1996
This section is new and is identical to the 1995 Official Text. The section establishes the duty of the intermediary to follow the directions of the entitlement holder in exercising such rights as voting, responding to proxies and exercising conversion rights. The intermediary can meet the obligation imposed by this section in accordance with an agreement with the entitlement holder, if there is an agreement, or, if there is not, in accordance with reasonable commercial standards. Such agreements may direct the intermediary to vote regarding proxies and management. The intermediary may also satisfy the duty to the holder, where the intermediary does not wish to become involved, by placing the holder in a position to exercise a right, such as becoming involved in a shareholder law suit. The intermediary's compliance with governing statutes, regulations or rules satisfies the duty under 84-8-509(a).
LEGISLATIVE COORDINATING COUNCIL
11/14/2024
Meeting Notice
10/23/2024 Meeting Notice Agenda 09/09/2024 Meeting Notice Agenda 08/21/2024 Meeting Notice Agenda LCC Policies REVISOR OF STATUTES
Chapter 72 Statute Transfer List
Kansas School Equity & Enhancement Act Gannon v. State A Summary of Special Sessions in Kansas Bill Brief for Senate Bill No. 1 Bill Brief for House Bill No. 2001 2024 New, Amended & Repealed Statutes By Bill 2024 New, Amended & Repealed Statutes By KSA 2023 New, Amended & Repealed Statutes By Bill 2023 New, Amended & Repealed Statutes By KSA USEFUL LINKS
Session Laws
OTHER LEGISLATIVE SITES
Kansas LegislatureAdministrative Services Division of Post Audit Research Department |