---
title: O.C.G.A. § 14-3-861. Transactions not subject to being enjoined, set aside, or other sanctions.
collection: code
id: 14-3-861
cite_as: O.C.G.A. § 14-3-861 (2025)
canonical_url: https://georgiacommons.org/code/14-3-861
md_url: https://georgiacommons.org/code/14-3-861.md
text_url: https://georgiacommons.org/code/14-3-861/text
source_url: https://www.legis.ga.gov/api/document/docs/default-source/joint-features-document-library/t14-(v12)-pdf.pdf?sfvrsn=82868bd8_0#page=140
date: 2025
status: active
corpus_version: 2025-supplement-89aa39ab3c68
license: CC0-1.0
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
up: https://georgiacommons.org/code/14-3.md
previous: https://georgiacommons.org/code/14-3-860.md
next: https://georgiacommons.org/code/14-3-862.md
index: https://georgiacommons.org/code/index.md
version: the only printed version
in_force: true
current_through: Including Acts of the 2025 Regular Session of the General Assembly
heading_path: CORPORATIONS, PARTNERSHIPS, AND ASSOCIATIONS / NONPROFIT CORPORATIONS / DIRECTORS AND OFFICERS / CONFLICTING INTEREST TRANSACTIONS
---

# O.C.G.A. § 14-3-861. Transactions not subject to being enjoined, set aside, or other sanctions.

(a) A transaction effected or proposed to be effected by a corporation (or by a subsidiary of the corporation or by any other entity in which the corporation has a controlling interest) that is not a director’s conflicting interest transaction may not be enjoined, set aside, or give rise to an award of damages or other sanctions, in an action under the laws of this state by a member or by or in the right of the corporation or any other person who otherwise has standing, on the ground of an interest in the transaction of a director or any person with whom or which he or she has a personal, economic, or other association.

(b) A director’s conflicting interest transaction may not be enjoined, set aside, or give rise to an award of damages or other sanctions, in an action under the laws of this state by a member or by or in the right of the corporation or by any other person who otherwise has standing, on the ground of an interest in the transaction of the director or any person with whom or which he or she has a personal, economic, or other association, if:

(1) Directors’ action respecting the transaction was at any time taken in compliance with Code Section 14-3-862;

(2) Members’ action respecting the transaction was at any time taken in compliance with Code Section 14-3-863;

(3) Action by the superior court respecting the transaction was at any time taken in compliance with Code Section 14-3-864; or

(4) The transaction, judged in the circumstances at the time of commitment, is established to have been fair to the corporation.

## History

Code 1981, § 14-3-861, enacted by Ga. L. 1991, p. 465, § 1; Ga. L. 2004, p. 508, § 66; Ga. L. 2023, p. 419, § 1-1/SB 148, effective July 1, 2023.

## Amendments

The 2023 amendment, effective July 1, 2023, inserted “by” following “right of the corporation or” in subsection (b).