Written by attorneys · grounded in primary & secondary sources — see below
An act of taking part in an activity, proceeding, or transaction. The concept requires active involvement that contributes to the outcome or decision at issue.
Sources & Authorities· 34 primary sources
Select any source to read its text and confirm it supports the definition.
Cases
Statutes
Federal Rules
Uniform Acts
Model Codes
Restatements
How it applies
Common Examples
6
Conflicted Director Excluded from Vote
Perry Pratt served as a director of Peak Performance when the board considered a contract with a company Pratt partly owned. The remaining qualified directors met separately, discussed the terms, and cast their votes without Pratt present or involved in any way. Because Pratt took no part in the deliberation or decision, the transaction received valid authorization under the statute.
Screened Former Government Lawyer
Patricia Patel previously worked at a federal agency and learned confidential information about a regulated company. Her new firm accepted representation adverse to that company. The firm immediately isolated Patel from all files, meetings, and communications concerning the matter and gave her no share of any fees. Patel therefore took no part in the representation.
Organization Sues Without Member Testimony
Prime Logistics, a trade association, sued a federal agency on behalf of its member carriers. The carriers would have standing individually, the suit advanced the association's core mission, and the requested relief required no testimony or other involvement from any individual carrier. The association therefore satisfied the test for standing.
Non-Party Aiding Injunction Violation
A court enjoined Platinum Partners from selling certain software. Paula Pierce, who was not a party, knowingly assisted the company by hosting the software on her servers and processing customer payments. Because Pierce acted in active concert with the enjoined party, the injunction bound her as well.
Remote Shareholder Meeting Notice
Patriot Insurance scheduled its annual shareholders meeting and authorized remote participation for all classes of stock. The notice sent to shareholders described the video platform to be used, the record date, and the time and access instructions. Shareholders who joined through the remote system thereby took part in the meeting.
Aggregate Settlement Without Consent
Parker Phillips represented two clients with separate claims against the same defendant. The defendant offered a single payment to settle both claims. Phillips presented the offer to the clients but did not obtain written informed consent from either before accepting the aggregate amount. Phillips therefore could not lawfully take part in finalizing the settlement.
Common questions
Frequently Asked
6
When does a director's participation invalidate board action on a conflicting-interest transaction?+
A director's participation invalidates the action only if the director is not a qualified director and the remaining qualified directors fail to deliberate and vote outside that director's presence. The statute requires that qualified directors act without any participation by the interested director.
Supporting sources
What screening measures prevent a lawyer from participating in a matter under Rule 1.11?+
The lawyer must be isolated from all files, meetings, and communications, and must receive no portion of fees generated by the matter. Timely screening and written notice to the government agency satisfy the rule.
When does associational standing fail because of required member participation?+
Associational standing fails when either the claim or the requested relief would require individual members to participate as parties or witnesses. If the suit can proceed on the basis of the organization's own evidence and the relief benefits members without individual adjudication, standing exists.
Supporting sources
Who is bound by an injunction under Rule 65(d)(2)(C)?+
Non-parties who are in active concert or participation with an enjoined party are bound. Active assistance that furthers the enjoined conduct satisfies the participation requirement.
Supporting sources
Does remote participation require special notice under the Model Business Corporation Act?+
Yes. When the board authorizes remote communication, the meeting notice must describe the means of remote participation and the record date. Shareholders who use the authorized remote system thereby participate in the meeting.
Supporting sources
What disclosure is required before a lawyer may participate in an aggregate settlement?+
The lawyer must obtain each client's informed consent in a signed writing that discloses the existence and nature of all claims and the participation of each person in the settlement. Without that consent the lawyer may not take part in finalizing the aggregate settlement.
Supporting sources
participation
in the execution of the laws. The legislative veto is a constitutional means by which Congress can ensure that the Executive Branch does not exceed its authority. I respectfully dissent.…
in the common fund. Whether or not further notice to beneficiaries should supplement the notice and representation here provided is properly within the discretion of the State. The Federal…
in the Coastal Zone Management Act (CZMA) program, the State must "exercise effectively [its] responsibilities in the coastal zone through the development and implementation of management…
in a political campaign for election to public office.” Ibid. Citing the portion of Buckley that invalidated the federal independent expenditure ban, 424 U. S., at 46, and a law review…
Business Associations Agency and PartnershipCreation of partnerships · General partnershipsUBEIntermediate