Operation of close corporation as partnership

17-7214. Operation of close corporation as partnership. No written agreement among stockholders of a close corporation, nor any provision of the articles of incorporation or of the bylaws of the corporation, which agreement or provision relates to any phase of the affairs of such corporation, including but not limited to the management of its business or declaration and payment of dividends, or other division of profits, or the election of directors or officers, or the employment of stockholders by the corporation, or the arbitration of disputes, shall be invalid on the ground that it is an attempt by the parties to the agreement or by the stockholders of the corporation to treat the corporation as if it were a partnership, or to arrange relations among the stockholders or between the stockholders and the corporation in a manner that would be appropriate only among partners. History: L. 1972, ch. 52, § 138; July 1. Source or Prior Law: 8 Del. C. § 354. Cross References to Related Sections: Contents of articles of incorporation, see 17-6002. Bylaws, see 17-6009. Declaration and payment of dividends, see 17-6420 through 17-6424. Dissolution, see 17-6803 through 17-6806. Stockholders' agreement concerning management of close corporation, see 17-7210. Provisions in articles of incorporation concerning management of close corporation, see 17-7211. Law Review and Bar Journal References: "The Kansas Corporation Code of 1972," William E. Treadway, 40 J.B.A.K. 301, 349 (1971). "Statutory Treatment of the Kansas Close Corporation," 13 W.L.J. 494, 505 (1974). "Shareholder Duties in Closely Held Kansas Corporations After Hunt v. Data Management Resources," Robert Drumm, 49 K.L.R. 1159 (2001). Previous | Next LEGISLATIVE COORDINATING COUNCIL General Policies 2026 Archived LCC Documents Archived LCC Meetings REVISOR OF STATUTES Archived Session Documents Archived School Finance Documents USEFUL LINKS Session Laws Kansas Administrative Regulations OTHER LEGISLATIVE SITES Kansas Legislature Administrative Services Division of Post Audit Research Department Contact Us PDF Help www.ksrevisor.gov 2026