EXHIBIT 3(ii)
BYLAWS
OF
DIVERSIFIED RESOURCES, INC.
ARTICLE I
OFFICES
Section l. Offices:
The principal office of the Corporation shall be determined by the Board of
Directors, and the Corporation shall have other offices at such places as the
Board of Directors may from time to time determine.
ARTICLE II
STOCKHOLDERS' MEETINGS
Section l. Place:
The place of stockholders' meetings shall be the principal office of the
Corporation unless another location shall be determined and designated from time
to time by the Board of Directors.
Section 2. Annual Meeting:
The annual meeting of the stockholders of the Corporation for the election
of directors to succeed those whose terms expire, and for the transaction of
such other business as may properly come before the meeting, shall be held no
later than one year after the end of the Corporation's fiscal year on a date to
be determined by the Board of Directors.
Section 3. Special Meetings:
Special meetings of the stockholders for any purpose or purposes may be
called only by the Chairman by the giving of notice in writing as hereinafter
described.
Section 4. Voting:
At all meetings of stockholders, voting may be viva voce; but any qualified
voter may demand a stock vote, whereupon such vote shall be taken by ballot and
the Secretary shall record the name of the stockholder voting, the number of
shares voted, and, if such vote shall be by proxy, the name of the proxy holder.
Voting may be in person or by proxy appointed in writing, manually signed by the
stockholder or his duly authorized attorney-in-fact. No proxy shall be valid
after eleven months from the date of its execution, unless otherwise provided
therein.
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Each stockholder shall have such rights to vote as the Articles of
Incorporation provide for each share of stock registered in his name on the
books of the Corporation. The Corporation may establish a record date, not to
exceed, in any case, sixty (60) days preceding the meeting, for the
determination of stockholders entitled to vote. The Secretary of the Corporation
shall make, at least ten (l0) days before each meeting of stockholders, a
complete list of the stockholders entitled to vote at such meeting or any
adjournment thereof, arranged in alphabetical order, with the address of and the
number of shares held by each, which list, for a period of ten (l0) days prior
to such meeting, shall be kept on file at the principal office of the
Corporation and shall be subject to inspection by any stockholder at any time
during usual business hours. Such list shall also be produced and kept open at
the time and place of the meeting and shall be subject to the inspection of any
stockholder during the whole time of the meeting.
Section 5. Order of Business:
The order of business at any meeting of stockholders shall be as follows:
l. Calling the meeting to order.
2. Calling of roll.
3. Proof of notice of meeting.
4. Report of the Secretary of the stock represented at the meeting and the
existence or lack of a quorum.
5. Reading of minutes of last previous meeting and disposal of any
unapproved minutes.
6. Reports of officers.
7. Reports of committees.
8. Election of directors, if appropriate.
9. Unfinished business.
10 New business.
11. Adjournment.
12. To the extent that these Bylaws do not apply, Roberts' Rules of Order
shall prevail.
Section 6. Notices:
Written or printed notice stating the place, day, and hour of the meeting
and, in case of a special meeting, the purpose or purposes for which the meeting
is called, shall be delivered not less than l0 nor more than 60 days before the
date of the meeting, either personally or by mail, by or at the direction of the
President, the Secretary, or the officer or persons calling the meeting, to each
stockholder of record entitled to vote at such meeting. If mailed, such notice
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shall be deemed to be delivered when deposited in the United States mail
addressed to the shareholder at his address as it appears on the stock transfer
books of the Corporation, with postage thereon prepaid.
Section 7. Quorum:
A quorum at any annual or special meeting shall consist of the
representation in person or by proxy of 33 1/3% of the issued and outstanding
capital stock of the Corporation entitled to vote at such meeting. In the event
a quorum be not present, the meeting may be adjourned by those present for a
period not to exceed sixty (60) days at any one adjournment; and no further
notice of the meeting or its adjournment shall be required.
ARTICLE III
BOARD OF DIRECTORS
Section l. Organization and Powers:
The Board of Directors shall constitute the policy-making or legislative
authority of the Corporation. Management of the affairs, property, and business
of the Corporation shall be vested in the Board of Directors. The number of
directors shall not be less than three and will be established from time-to-time
by a resolution of the directors. Directors standing for election shall be
elected at the annual meeting of stockholders by a plurality vote.
The directors shall be classified by dividing them into three classes, to
be known as "Class I," "Class II" and "Class III". All directors, regardless of
which class, shall be elected at the first annual meeting of this Corporation's
shareholder following the adoption of these bylaws. The term of the initial
Class I directors shall terminate on the date of the 2016 annual meeting of
shareholders, the term of the initial Class II directors shall terminate on the
date of the 2017 annual meeting of shareholders and the term of the initial
Class III directors shall terminate on the date of the 2018 annual meeting of
shareholders. At each annual meeting of shareholders beginning in 2016,
successors to the class of directors whose term expires at that annual meeting
shall be elected for a three-year term. The following chart illustrates the year
which each class of directors will be elected:
Class 2015 2016 2017 2018
----- ---- ---- ---- ----
I X X
II X X
III X X
X = Directors in this class stand for election in year indicated
Prior to the first annual meeting of this Corporation's shareholders
following the adoption of these bylaws, the directors of this Corporation shall
determine which persons will be nominated for election of each class.
If the number of directors is changed, any increase or decrease shall be
apportioned among the classes so as to maintain the number of directors in each
class as nearly equal as possible, and any additional directors of any class
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elected to fill a vacancy resulting from an increase in such class shall hold
office for a term that shall coincide with the remaining term of that class, but
in no case will a decrease in the number of directors shorten the term of any
incumbent director.
Notwithstanding the above, at least one-fourth of the total number of
directors (or such other fraction as required by the Nevada Revised Statutes)
must be elected at each annual meeting.
A director shall hold office until the annual meeting for the year in which
his term expires and until his successor shall be elected and shall qualify,
subject, however, to prior death, resignation, retirement, disqualification or
removal from office.
Directors need not be stockholders. Directors shall have all powers with
respect to the management, control, and determination of policies of the
Corporation that are not limited by these Bylaws, the Articles of Incorporation,
or by statute, and the enumeration of any power shall not be considered a
limitation thereof.
Section 2. Vacancies:
Any vacancy on the Board of Directors, however resulting, may be filed by a
majority of the directors then in office, even if less than a quorum, or by a
sole remaining officer, or at a special meeting of the stockholders called for
that purpose. Any director elected or appointed to fill a vacancy shall hold
office for a term that shall coincide with the term of the class to which such
director shall have been elected or appointed.
Section 3. Regular Meetings:
A regular meeting of the Board of Directors shall be held, without other
notice than this Bylaw, immediately after and at the same place as the annual
meeting of stockholders or any special meeting of stockholders at which a
director or directors shall have been elected. The Board of Directors will meet
quarterly.
Section 4. Special Meetings:
Special meetings of the Board of Directors may be held at the principal
office of the Corporation, or such other place as may be fixed, at any time on
call only by the Chairman. A resolution in writing signed by all the directors
shall be as valid and effectual as if it had been passed at a meeting of the
directors duly called, constituted, and held.
Section 5. Notices:
Notices of both regular and special meetings, save when held by unanimous
consent or participation, shall be mailed by the Chairman to each member of the
Board not less than three days before any such meeting and notices of special
meetings may state the purposes thereof. No failure or irregularity of notice of
any regular meeting shall invalidate such meeting or any proceeding thereat.
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Section 6. Quorum and Manner of Acting:
A quorum for any meeting of the Board of Directors shall be a majority of
the Board of Directors as then constituted. Any act of the majority of the
directors present at a meeting at which a quorum is present shall be the act of
the Board of Directors. Any action of such majority, although not at a regularly
called meeting, and the record thereof, if assented to in writing by all of the
other members of the Board, shall always be as valid and effective in all
respects as if otherwise duly taken by the Board of Directors.
Section 7. Executive Committee:
The Board of Directors may by resolution of a majority of the Board
designate two (2) or more directors to constitute an executive committee, which
committee, to the extent provided in such resolution, shall have and may
exercise all of the authority of the Board of Directors in the management of the
Corporation; but the designation of such committee and the delegation of
authority thereto shall not operate to relieve the Board of Directors, or any
member thereof, of any responsibility imposed on it or him by law.
Section 8. Order of Business:
The order of business at any regular or special meeting of the Board of
Directors, unless otherwise prescribed for any meeting by the Board, shall be as
follows:
l. Reading and disposal of any unapproved minutes.
2. Reports of officers and committees.
3. Unfinished business.
4. New business.
5. Adjournment.
6. To the extent that these Bylaws do not apply, Roberts' Rules of Order
shall prevail.
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ARTICLE IV
OFFICERS
Section 1. Officers:
The Corporation shall have a President, a Secretary and a Treasurer, or
officers having he equivalent thereof. The officers of the Corporation shall be
those designated by the Board of Directors. The officers shall have the powers,
responsibilities and duties as may be designated by the Board or the
Corporation's Chief Executive Officer. In the discretion of the Board, one
person may hold more than one office and two or more persons may serve in any
one office.
Notwithstanding the above, the Chief Executive Officer or the Secretary
will have responsibility for the preparation and maintenance of minutes of the
directors' and shareholders' meetings and other records and information required
to be kept by the Corporation and for authenticating records of the Corporation.
Section 2. Vacancies or Absences:
If a vacancy in any office arises in any manner, the directors then in
office may choose, by a majority vote, a successor to hold office for the
unexpired term of the officer. If any officer shall be absent or unable for any
reason to perform his duties, the Board of Directors, to the extent not
otherwise inconsistent with these Bylaws, may direct that the duties of such
officer during such absence or inability shall be performed by such other
officer or subordinate officer as seems advisable to the Board.
ARTICLE V
STOCK
Section 1. Regulations:
The Board of Directors shall have power and authority to take all such
rules and regulations as they deem expedient concerning the issue, transfer, and
registration of certificates for shares of the capital stock of the Corporation.
The Board of Directors may appoint a Transfer Agent and/or a Registrar and may
require all stock certificates to bear the signature of such Transfer Agent
and/or Registrar.
Section 2. Restrictions on Stock:
The Board of Directors may restrict any stock issued by giving the
Corporation or any stockholder "first right of refusal to purchase" the stock,
by making the stock redeemable or by restricting the transfer of the stock,
under such terms and in such manner as the directors may deem necessary and as
are not inconsistent with the Articles of Incorporation or by statute. Any stock
so restricted must carry a stamped legend setting out the restriction or
conspicuously noting the restriction and stating where it may be found in the
records of the Corporation.
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ARTICLE VI
DIVIDENDS AND FINANCES
Section l. Dividends:
Dividends may be declared by the directors and paid out of any funds
legally available therefor, as may be deemed advisable from time to time by the
Board of Directors of the Corporation. Before declaring any dividends, the Board
of Directors may set aside out of net profits or earned or other surplus such
sums as the Board may think proper as a reserve fund to meet contingencies or
for other purposes deemed proper and to the best interests of the Corporation.
Section 2. Monies:
The monies, securities, and other valuable effects of the Corporation shall
be deposited in the name of the Corporation in such banks or trust companies as
the Board of Directors shall designate and shall be drawn out or removed only as
may be authorized by the Board of Directors from time to time.
Section 3. Fiscal Year:
The Board of Directors by resolution shall determine the fiscal year of the
Corporation.
ARTICLE VII
AMENDMENTS
These Bylaws may be altered, amended, or repealed by the Board of Directors
by resolution of a majority of the Board.
ARTICLE VIII
INDEMNIFICATION
The Corporation shall indemnify any and all of its directors or officers,
or former directors or officers, or any person who may have served at its
request as a director or officer of another corporation in which this
Corporation owns shares of capital stock or of which it is a creditor and the
personal representatives of all such persons, against expenses actually and
necessarily incurred in connection with the defense of any action, suit, or
proceeding in which they, or any of them, were made parties, or a party, by
reason of being or having been directors or officers or a director or officer of
the Corporation, or of such other corporation, to the fullest provided by law.
ARTICLE IX
CONFLICTS OF INTEREST
No contract or other transaction of the Corporation with any other persons,
firms or corporations, or in which the Corporation is interested, shall be
affected or invalidated by the fact that any one or more of the directors or
officers of the Corporation is interested in or is a director or officer of such
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other firm or corporation; or by the fact that any director or officer of the
Corporation, individually or jointly with others, may be a party to or may be
interested in any such contract or transaction.
ARTICLE X
SHAREHOLDER CLAIMS
In the event that any shareholder initiates or asserts a claim against the
Corporation, or any officer or director of the Corporation, including any
derivative claim or claim purportedly filed on behalf of the Corporation, and
the shareholder does not obtain a judgment on the merits that substantially
achieves, in substance and amount, the full remedy sought, then such shareholder
shall be obligated (jointly and severally in the event the claim us brought by
more than one shareholder) to reimburse the Corporation and any officer or
director of the Corporation for all fees, costs and expenses of every kind and
description (including, but not limited to, all reasonable attorney's fees and
other litigation expenses) that the Corporation or its officers or directors may
incur in connection with such claim.