Bill > SB197

This bill makes technical changes and corrections to Alabama's Business and Nonprofit Entity Code, focusing on several key areas of corporate and business entity law. Specifically, the bill revises multiple sections of the Alabama Code related to electronic filing, name reservations, mergers, conversions, and other business entity transactions across different types of organizations including corporations, nonprofit corporations, limited liability companies, partnerships, and limited partnerships. Some of the notable changes include: 1. Expanding provisions related to name reservations and registrations for various types of business entities. 2. Adding provisions that allow plans of merger and conversion to omit certain disclosure documents at the time of approval. 3. Introducing language that permits more flexibility in how business entities can take actions, including a provision that actions validly taken under one section are not automatically invalidated if they could have been taken under another section with slightly different requirements. 4. Clarifying and standardizing procedures for mergers, conversions, and transfers of ownership interests across different types of business entities. 5. Updating technical language and references throughout the business entity code to improve consistency and clarity. 6. Adding new sections related to board approvals of agreements and instruments, allowing for more flexible interpretations of "final" or "substantially final" forms. The bill is set to become effective on August 1, 2025, and will apply to contracts, agreements, and plans made or approved on or after that date, with specific provisions about how it will impact pending legal proceedings. The changes are primarily technical in nature and aim to modernize and streamline Alabama's business entity regulations.

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https://alison.legislature.state.al.us/bill-search