Bill > HB530

This bill introduces a comprehensive framework for the domestication of various business entities in Montana, including limited liability companies (LLCs), professional LLCs, limited liability partnerships, benefit corporations, and nonprofit corporations. The bill provides a detailed process by which domestic entities can become entities in foreign jurisdictions, and foreign entities can become domestic entities in Montana, through a carefully structured domestication procedure. Key provisions include requirements for creating a plan of domestication, which must specify details such as the entity's name, jurisdiction, how interests will be converted, and proposed organizational rules. The bill outlines specific approval processes, requiring consent from interest holders and addressing potential changes or abandonment of the domestication plan. Importantly, when a domestication becomes effective, the new entity maintains continuity with the original entity, preserving its property, debts, rights, and obligations. The legislation ensures that interest holder liabilities are clearly defined and transferred appropriately, and provides flexibility by allowing entities to reference external facts in their domestication plans. The bill's purpose is to provide a clear, comprehensive legal mechanism for businesses to change their jurisdictional status while maintaining operational consistency and protecting the interests of stakeholders.

Business and Industry

https://bills.legmt.gov/#/laws/bill/2/LC0195