Alabama 2024 Regular Session

Alabama House Bill HB230 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	~~HB230ENROLLED~~
	1	+	HB230ENGROSSED
2	2		Page 0
3	3		HB230
4		-	C459QQW-3
	4	+	C459QQW-2
5	5		By Representatives Wilcox, Underwood
6	6		RFD: State Government
7	7		First Read: 27-Feb-24
8	8		1
9	9		2
10	10		3
11	11		4
12		-	5 HB230 ~~Enrolled~~
	12	+	5 HB230 Engrossed
13	13		Page 1
14	14		First Read: 27-Feb-24
15		-	Enrolled, An Act,
16		-	Relating to corporations; to amend Section 10A-1-7.12, Section
17		-	10A-2A-1.40, as last amended by Act 2023-503, 2023 Regular
18		-	Session, and Sections 10A-2A-1.41 and 10A-2A-16.01, Code of
19		-	Alabama 1975, and repeal Section 10A-2A-16.11, Code of Alabama
20		-	1975, to remove the requirement that corporations file an
21		-	annual report with the Secretary of State and remove any
	15	+	A BILL
	16	+	TO BE ENTITLED
	17	+	AN ACT
	18	+	Relating to corporations; to amend Section 10A-1-7.12,
	19	+	Section 10A-2A-1.40, as last amended by Act 2023-503, 2023
	20	+	Regular Session, and Sections 10A-2A-1.41 and 10A-2A-16.01,
	21	+	Code of Alabama 1975, and repeal Section 10A-2A-16.11, Code of
	22	+	Alabama 1975, to remove the requirement that corporations file
	23	+	an annual report with the Secretary of State and remove any
22	24		reference to an annual report.
23	25		BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
24	26		Section 1. Section 10A-1-7.12, Section 10A-2A-1.40, as
25	27		last amended by Act 2023-503, 2023 Regular Session, and
26	28		Sections 10A-2A-1.41 and 10A-2A-16.01, Code of Alabama 1975,
27	29		are amended to read as follows:
28	30		"§10A-1-7.12
29	31		The Secretary of State may commence a proceeding under
30	32		Section 10A-1-7.13 to revoke the registration of a foreign
31	33		entity authorized to transact business in this state if:
32	34		(1) the foreign entity does not deliver its annual
33	35		report, if required by law, to the Secretary of State within
34	36		180 days after it is due;
35	37		(2)(1) the foreign entity does not pay within 180 days
36		-	after they are due any applicable privilege or corporation
37		-	share tax, qualification fee or admission tax, or interest or
38		-	penalties imposed by this title or other law;
39		-	(3)(2) the foreign entity is without a registered agent
40		-	or registered office in this state for 60 days or more;
41		-	(4)(3) the foreign entity does not file a statement of
42		-	change of registered agent or registered office with the
43	38		1
44	39		2
45	40		3
46	41		4
47	42		5
48	43		6
49	44		7
50	45		8
51	46		9
52	47		10
53	48		11
54	49		12
55	50		13
56	51		14
57	52		15
58	53		16
59	54		17
60	55		18
61	56		19
62	57		20
63	58		21
64	59		22
65	60		23
66	61		24
67	62		25
68	63		26
69	64		27
70		-	28 HB230 ~~Enrolled~~
	65	+	28 HB230 Engrossed
71	66		Page 2
	67	+	(2)(1) the foreign entity does not pay within 180 days
	68	+	after they are due any applicable privilege or corporation
	69	+	share tax, qualification fee or admission tax, or interest or
	70	+	penalties imposed by this title or other law;
	71	+	(3)(2) the foreign entity is without a registered agent
	72	+	or registered office in this state for 60 days or more;
	73	+	(4)(3) the foreign entity does not file a statement of
72	74		change of registered agent or registered office with the
73	75		Secretary of State under Section 10A-1-5.32 within 60 days of
74	76		the change or its registered agent does not file a change of
75	77		name or change of address of the registered office with the
76	78		Secretary of State under Section 10A-1-5.33 within 60 days of
77	79		the change;
78	80		(5)(4) an organizer, governing person, or agent of the
79	81		foreign entity signed a document he or she knew was false in
80	82		any material respect with intent that the document be
81	83		delivered to the Secretary of State for filing; or
82	84		(6)(5) the Secretary of State receives a duly
83	85		authenticated certificate from the Secretary of State or other
84	86		official having custody of entity records in the state or
85	87		country under whose laws the foreign entity is formed or is
86	88		governed stating that the foreign entity has been terminated."
87	89		"§10A-2A-1.40
88	90		As used in this chapter, unless otherwise specified or
89	91		unless the context otherwise requires, the following terms
90	92		have the following meanings:
91	93		(1) AUTHORIZED STOCK means the stock of all classes and
92	94		series a corporation or foreign corporation is authorized to
93	95		issue.
94		-	(2) BENEFICIAL STOCKHOLDER means a person who owns the
95		-	beneficial interest in stock, which is either a record
96		-	stockholder or a person on whose behalf shares of stock are
97		-	registered in the name of an intermediary or nominee.
98		-	(3) CERTIFICATE OF INCORPORATION means the certificate
99		-	of incorporation described in Section 10A-2A-2.02, all
100		-	amendments to the certificate of incorporation, and any other
101	96		29
102	97		30
103	98		31
104	99		32
105	100		33
106	101		34
107	102		35
108	103		36
109	104		37
110	105		38
111	106		39
112	107		40
113	108		41
114	109		42
115	110		43
116	111		44
117	112		45
118	113		46
119	114		47
120	115		48
121	116		49
122	117		50
123	118		51
124	119		52
125	120		53
126	121		54
127	122		55
128		-	56 HB230 ~~Enrolled~~
	123	+	56 HB230 Engrossed
129	124		Page 3
	125	+	issue.
	126	+	(2) BENEFICIAL STOCKHOLDER means a person who owns the
	127	+	beneficial interest in stock, which is either a record
	128	+	stockholder or a person on whose behalf shares of stock are
	129	+	registered in the name of an intermediary or nominee.
	130	+	(3) CERTIFICATE OF INCORPORATION means the certificate
	131	+	of incorporation described in Section 10A-2A-2.02, all
130	132		amendments to the certificate of incorporation, and any other
131	133		documents permitted or required to be delivered for filing by
132	134		a corporation with the Secretary of State under this chapter
133	135		or Chapter 1 that modify, amend, supplement, restate, or
134	136		replace the certificate of incorporation. After an amendment
135	137		of the certificate of incorporation or any other document
136	138		filed under this chapter or Chapter 1 that restates the
137	139		certificate of incorporation in its entirety, the certificate
138	140		of incorporation shall not include any prior documents. When
139	141		used with respect to a corporation incorporated and existing
140	142		on December 31, 2019, under a predecessor law of this state,
141	143		the term "certificate of incorporation" means articles of
142	144		incorporation, charter, or similar incorporating document, and
143	145		all amendments and restatements to the certificate of
144	146		incorporation, charter, or similar incorporating document.
145	147		When used with respect to a foreign corporation, a nonprofit
146	148		corporation, or a foreign nonprofit corporation, the
147	149		"certificate of incorporation" of such an entity means the
148	150		document of such entity that is equivalent to the certificate
149	151		of incorporation of a corporation. The term "certificate of
150	152		incorporation" as used in this chapter is synonymous to the
151	153		term "certificate of formation" used in Chapter 1.
152		-	(4) CORPORATION, except in the phrase foreign
153		-	corporation, means an entity incorporated or existing under
154		-	this chapter.
155		-	(5) DELIVER or DELIVERY means any method of delivery
156		-	used in conventional commercial practice, including delivery
157		-	by hand, mail, commercial delivery, and, if authorized in
158		-	accordance with Section 10A-2A-1.41, by electronic
159	154		57
160	155		58
161	156		59
162	157		60
163	158		61
164	159		62
165	160		63
166	161		64
167	162		65
168	163		66
169	164		67
170	165		68
171	166		69
172	167		70
173	168		71
174	169		72
175	170		73
176	171		74
177	172		75
178	173		76
179	174		77
180	175		78
181	176		79
182	177		80
183	178		81
184	179		82
185	180		83
186		-	84 HB230 ~~Enrolled~~
	181	+	84 HB230 Engrossed
187	182		Page 4
	183	+	term "certificate of formation" used in Chapter 1.
	184	+	(4) CORPORATION, except in the phrase foreign
	185	+	corporation, means an entity incorporated or existing under
	186	+	this chapter.
	187	+	(5) DELIVER or DELIVERY means any method of delivery
	188	+	used in conventional commercial practice, including delivery
	189	+	by hand, mail, commercial delivery, and, if authorized in
188	190		accordance with Section 10A-2A-1.41, by electronic
189	191		transmission.
190	192		(6) DISTRIBUTION means a direct or indirect transfer of
191	193		cash or other property (except a corporation's own stock) or
192	194		incurrence of indebtedness by a corporation to or for the
193	195		benefit of its stockholders in respect of any of its stock. A
194	196		distribution may be in the form of a payment of a dividend; a
195	197		purchase, redemption, or other acquisition of stock; a
196	198		distribution of indebtedness; a distribution in liquidation;
197	199		or otherwise.
198	200		(7) DOCUMENT means a writing as defined in Chapter 1.
199	201		(8) EFFECTIVE DATE, when referring to a document
200	202		accepted for filing by the Secretary of State, means the time
201	203		and date determined in accordance with Article 4 of Chapter 1.
202	204		(9) ELECTRONIC MAIL means an electronic transmission
203	205		directed to a unique electronic mail address.
204	206		(10) ELECTRONIC MAIL ADDRESS means a destination,
205	207		commonly expressed as a string of characters, consisting of a
206	208		unique user name or mailbox (commonly referred to as the
207	209		"local part" of the address) and a reference to an internet
208	210		domain (commonly referred to as the "domain part" of the
209	211		address), whether or not displayed, to which electronic mail
210		-	can be sent or delivered.
211		-	(11) ELIGIBLE ENTITY means an unincorporated entity,
212		-	foreign unincorporated entity, nonprofit corporation, or
213		-	foreign nonprofit corporation.
214		-	(12) ELIGIBLE INTERESTS means interests or memberships.
215		-	(13) EMPLOYEE includes an officer, but not a director.
216		-	A director may accept duties that make the director also an
217	212		85
218	213		86
219	214		87
220	215		88
221	216		89
222	217		90
223	218		91
224	219		92
225	220		93
226	221		94
227	222		95
228	223		96
229	224		97
230	225		98
231	226		99
232	227		100
233	228		101
234	229		102
235	230		103
236	231		104
237	232		105
238	233		106
239	234		107
240	235		108
241	236		109
242	237		110
243	238		111
244		-	112 HB230 ~~Enrolled~~
	239	+	112 HB230 Engrossed
245	240		Page 5
	241	+	address), whether or not displayed, to which electronic mail
	242	+	can be sent or delivered.
	243	+	(11) ELIGIBLE ENTITY means an unincorporated entity,
	244	+	foreign unincorporated entity, nonprofit corporation, or
	245	+	foreign nonprofit corporation.
	246	+	(12) ELIGIBLE INTERESTS means interests or memberships.
	247	+	(13) EMPLOYEE includes an officer, but not a director.
246	248		A director may accept duties that make the director also an
247	249		employee.
248	250		(14) ENTITY includes corporation; foreign corporation;
249	251		nonprofit corporation; foreign nonprofit corporation; estate;
250	252		trust; unincorporated entity; foreign unincorporated entity;
251	253		and state, United States, and foreign government.
252	254		(15) EXPENSES means reasonable expenses of any kind
253	255		that are incurred in connection with a matter.
254	256		(16) FILING ENTITY means an unincorporated entity,
255	257		other than a limited liability partnership, that is of a type
256	258		that is created by filing a public organic record or is
257	259		required to file a public organic record that evidences its
258	260		creation.
259	261		(17) FOREIGN CORPORATION means a corporation
260	262		incorporated under a law other than the law of this state
261	263		which would be a corporation if incorporated under the law of
262	264		this state.
263	265		(18) FOREIGN NONPROFIT CORPORATION means a corporation
264	266		incorporated under a law other than the law of this state
265	267		which would be a nonprofit corporation if incorporated under
266	268		the law of this state.
267	269		(19) GOVERNING STATUTE means the statute governing the
268		-	internal affairs of a corporation, foreign corporation,
269		-	nonprofit corporation, foreign nonprofit corporation,
270		-	unincorporated entity, or foreign unincorporated entity.
271		-	(20) GOVERNMENTAL SUBDIVISION includes authority,
272		-	county, district, and municipality.
273		-	(21) INCLUDES and INCLUDING denote a partial definition
274		-	or a nonexclusive list.
275	270		113
276	271		114
277	272		115
278	273		116
279	274		117
280	275		118
281	276		119
282	277		120
283	278		121
284	279		122
285	280		123
286	281		124
287	282		125
288	283		126
289	284		127
290	285		128
291	286		129
292	287		130
293	288		131
294	289		132
295	290		133
296	291		134
297	292		135
298	293		136
299	294		137
300	295		138
301	296		139
302		-	140 HB230 ~~Enrolled~~
	297	+	140 HB230 Engrossed
303	298		Page 6
	299	+	(19) GOVERNING STATUTE means the statute governing the
	300	+	internal affairs of a corporation, foreign corporation,
	301	+	nonprofit corporation, foreign nonprofit corporation,
	302	+	unincorporated entity, or foreign unincorporated entity.
	303	+	(20) GOVERNMENTAL SUBDIVISION includes authority,
	304	+	county, district, and municipality.
	305	+	(21) INCLUDES and INCLUDING denote a partial definition
304	306		or a nonexclusive list.
305	307		(22) INTEREST means either or both of the following
306	308		rights under the governing statute governing an unincorporated
307	309		entity:
308	310		(i) the right to receive distributions from the entity
309	311		either in the ordinary course or upon liquidation; or
310	312		(ii) the right to receive notice or vote on issues
311	313		involving its internal affairs, other than as an agent,
312	314		assignee, proxy, or person responsible for managing its
313	315		business and affairs.
314	316		(23) INTEREST HOLDER means a person who holds of record
315	317		an interest.
316	318		(24) KNOWLEDGE is determined as follows:
317	319		(a) A person knows a fact when the person:
318	320		(1) has actual knowledge of it; or
319	321		(2) is deemed to know it under law other than this
320	322		chapter.
321	323		(b) A person has notice of a fact when the person:
322	324		(1) knows of it;
323	325		(2) receives notification of it in accordance with
324	326		Section 10A-2A-1.41;
325	327		(3) has reason to know the fact from all of the facts
326		-	known to the person at the time in question; or
327		-	(4) is deemed to have notice of the fact under
328		-	subsection (d).
329		-	(c) A person notifies another of a fact by taking steps
330		-	reasonably required to inform the other person in ordinary
331		-	course in accordance with Section 10A-2A-1.41, whether or not
332		-	the other person knows the fact.
333	328		141
334	329		142
335	330		143
336	331		144
337	332		145
338	333		146
339	334		147
340	335		148
341	336		149
342	337		150
343	338		151
344	339		152
345	340		153
346	341		154
347	342		155
348	343		156
349	344		157
350	345		158
351	346		159
352	347		160
353	348		161
354	349		162
355	350		163
356	351		164
357	352		165
358	353		166
359	354		167
360		-	168 HB230 ~~Enrolled~~
	355	+	168 HB230 Engrossed
361	356		Page 7
	357	+	(3) has reason to know the fact from all of the facts
	358	+	known to the person at the time in question; or
	359	+	(4) is deemed to have notice of the fact under
	360	+	subsection (d).
	361	+	(c) A person notifies another of a fact by taking steps
	362	+	reasonably required to inform the other person in ordinary
	363	+	course in accordance with Section 10A-2A-1.41, whether or not
362	364		the other person knows the fact.
363	365		(d) A person is deemed to have notice of a
364	366		corporation's:
365	367		(1) matters included in the certificate of
366	368		incorporation upon filing;
367	369		(2) dissolution, 90 days after a certificate of
368	370		dissolution under Section 10A-2A-14.03 becomes effective;
369	371		(3) conversion, merger, or interest exchange under
370	372		Article 9 or Article 11, 90 days after a statement of
371	373		conversion, or statement of merger or interest exchange
372	374		becomes effective;
373	375		(4) conversion or merger under Article 8 of Chapter 1,
374	376		90 days after a statement of conversion or statement of merger
375	377		becomes effective; and
376	378		(5) revocation of dissolution and reinstatement, 90
377	379		days after certificate of revocation of dissolution and
378	380		reinstatement under Section 10A-2A-14.04 becomes effective.
379	381		(e) A stockholder's knowledge, notice, or receipt of a
380	382		notification of a fact relating to the corporation is not
381	383		knowledge, notice, or receipt of a notification of a fact by
382	384		the corporation solely by reason of the stockholder's capacity
383	385		as a stockholder.
384		-	(f) The date and time of the effectiveness of a notice
385		-	delivered in accordance with Section 10A-2A-1.41, is
386		-	determined by Section 10A-2A-1.41.
387		-	(25) MEANS denotes an exhaustive definition.
388		-	(26) MEMBERSHIP means the rights of a member in a
389		-	nonprofit corporation or foreign nonprofit corporation.
390		-	(27) ORGANIZATIONAL DOCUMENTS means the public organic
391	386		169
392	387		170
393	388		171
394	389		172
395	390		173
396	391		174
397	392		175
398	393		176
399	394		177
400	395		178
401	396		179
402	397		180
403	398		181
404	399		182
405	400		183
406	401		184
407	402		185
408	403		186
409	404		187
410	405		188
411	406		189
412	407		190
413	408		191
414	409		192
415	410		193
416	411		194
417	412		195
418		-	196 HB230 ~~Enrolled~~
	413	+	196 HB230 Engrossed
419	414		Page 8
	415	+	as a stockholder.
	416	+	(f) The date and time of the effectiveness of a notice
	417	+	delivered in accordance with Section 10A-2A-1.41, is
	418	+	determined by Section 10A-2A-1.41.
	419	+	(25) MEANS denotes an exhaustive definition.
	420	+	(26) MEMBERSHIP means the rights of a member in a
	421	+	nonprofit corporation or foreign nonprofit corporation.
420	422		(27) ORGANIZATIONAL DOCUMENTS means the public organic
421	423		record and private organizational documents of a corporation,
422	424		foreign corporation, or eligible entity.
423	425		(28) PRINCIPAL OFFICE means the office (in or out of
424	426		this state) so designated in the annual report where the
425	427		principal executive offices of a thecorporation or foreign
426	428		corporation are located.
427	429		(29) PRIVATE ORGANIZATIONAL DOCUMENTS means (i) the
428	430		bylaws of a corporation, foreign corporation, nonprofit
429	431		corporation, or foreign nonprofit corporation, or (ii) the
430	432		rules, regardless of whether in writing, that govern the
431	433		internal affairs of an unincorporated entity or foreign
432	434		unincorporated entity, are binding on all its interest
433	435		holders, and are not part of its public organic record, if
434	436		any. Where private organizational documents have been amended
435	437		or restated, the term means the private organizational
436	438		documents as last amended or restated.
437	439		(30) PROCEEDING includes any civil suit and criminal,
438	440		administrative, and investigatory action.
439	441		(31) PUBLIC ORGANIC RECORD means (i) the certificate of
440	442		incorporation of a corporation, foreign corporation, nonprofit
441	443		corporation, or foreign nonprofit corporation, or (ii) the
442		-	document, if any, the filing of which is required to create an
443		-	unincorporated entity or foreign unincorporated entity, or
444		-	which creates the unincorporated entity or foreign
445		-	unincorporated entity and is required to be filed. Where a
446		-	public organic record has been amended or restated, the term
447		-	means the public organic record as last amended or restated.
448		-	(32) RECORD DATE means the date fixed for determining
449	444		197
450	445		198
451	446		199
452	447		200
453	448		201
454	449		202
455	450		203
456	451		204
457	452		205
458	453		206
459	454		207
460	455		208
461	456		209
462	457		210
463	458		211
464	459		212
465	460		213
466	461		214
467	462		215
468	463		216
469	464		217
470	465		218
471	466		219
472	467		220
473	468		221
474	469		222
475	470		223
476		-	224 HB230 ~~Enrolled~~
	471	+	224 HB230 Engrossed
477	472		Page 9
	473	+	corporation, or foreign nonprofit corporation, or (ii) the
	474	+	document, if any, the filing of which is required to create an
	475	+	unincorporated entity or foreign unincorporated entity, or
	476	+	which creates the unincorporated entity or foreign
	477	+	unincorporated entity and is required to be filed. Where a
	478	+	public organic record has been amended or restated, the term
	479	+	means the public organic record as last amended or restated.
478	480		(32) RECORD DATE means the date fixed for determining
479	481		the identity of the corporation's stockholders and their
480	482		stockholdings for purposes of this chapter. Unless another
481	483		time is specified when the record date is fixed, the
482	484		determination shall be made as of the close of business at the
483	485		principal office of the corporation on the date so fixed.
484	486		(33) RECORD STOCKHOLDER means (i) the person in whose
485	487		name shares of stock are registered in the records of the
486	488		corporation, or (ii) the person identified as the beneficial
487	489		owner of stock in a beneficial ownership certificate pursuant
488	490		to Section 10A-2A-7.23 on file with the corporation to the
489	491		extent of the rights granted by such certificate.
490	492		(34) SECRETARY means the corporate officer to whom the
491	493		board of directors has delegated responsibility under Section
492	494		10A-2A-8.40(c) to maintain the minutes of the meetings of the
493	495		board of directors and of the stockholders and for
494	496		authenticating records of the corporation.
495	497		(35) STOCK EXCHANGE means a transaction pursuant to
496	498		Section 10A-2A-11.03.
497	499		(36) STOCKHOLDER means a record stockholder.
498	500		(37) STOCK means the units into which the proprietary
499	501		interests in a corporation or foreign corporation are divided.
500		-	(38) TYPE OF ENTITY means a generic form of entity: (i)
501		-	recognized at common law; or (ii) formed under a governing
502		-	statute, regardless of whether some entities formed under that
503		-	law are subject to provisions of that law that create
504		-	different categories of the form of entity.
505		-	(39) UNINCORPORATED ENTITY means an organization or
506		-	artificial legal person that either has a separate legal
507	502		225
508	503		226
509	504		227
510	505		228
511	506		229
512	507		230
513	508		231
514	509		232
515	510		233
516	511		234
517	512		235
518	513		236
519	514		237
520	515		238
521	516		239
522	517		240
523	518		241
524	519		242
525	520		243
526	521		244
527	522		245
528	523		246
529	524		247
530	525		248
531	526		249
532	527		250
533	528		251
534		-	252 HB230 ~~Enrolled~~
	529	+	252 HB230 Engrossed
535	530		Page 10
	531	+	interests in a corporation or foreign corporation are divided.
	532	+	(38) TYPE OF ENTITY means a generic form of entity: (i)
	533	+	recognized at common law; or (ii) formed under a governing
	534	+	statute, regardless of whether some entities formed under that
	535	+	law are subject to provisions of that law that create
	536	+	different categories of the form of entity.
	537	+	(39) UNINCORPORATED ENTITY means an organization or
536	538		artificial legal person that either has a separate legal
537	539		existence or has the power to acquire an estate in real
538	540		property in its own name and that is not any of the following:
539	541		a corporation, foreign corporation, nonprofit corporation,
540	542		foreign nonprofit corporation, a series of a limited liability
541	543		company or of another type of entity, an estate, a trust, a
542	544		state, United States, or foreign government. The term includes
543	545		a general partnership, limited liability company, limited
544	546		partnership, business trust, joint stock association, and
545	547		unincorporated nonprofit association.
546	548		(40) UNITED STATES includes any district, authority,
547	549		bureau, commission, department, and any other agency of the
548	550		United States.
549	551		(41) UNRESTRICTED VOTING TRUST BENEFICIAL OWNER means,
550	552		with respect to any stockholder rights, a voting trust
551	553		beneficial owner whose entitlement to exercise the stockholder
552	554		right in question is not inconsistent with the voting trust
553	555		agreement.
554	556		(42) VOTING GROUP means all stock of one or more
555	557		classes or series that under the certificate of incorporation
556	558		or this chapter are entitled to vote and be counted together
557	559		collectively on a matter at a meeting of stockholders. All
558		-	stock entitled by the certificate of incorporation or this
559		-	chapter to vote generally on the matter is for that purpose a
560		-	single voting group.
561		-	(43) VOTING POWER means the current power to vote in
562		-	the election of directors.
563		-	(44) VOTING TRUST BENEFICIAL OWNER means an owner of a
564		-	beneficial interest in stock of the corporation held in a
565	560		253
566	561		254
567	562		255
568	563		256
569	564		257
570	565		258
571	566		259
572	567		260
573	568		261
574	569		262
575	570		263
576	571		264
577	572		265
578	573		266
579	574		267
580	575		268
581	576		269
582	577		270
583	578		271
584	579		272
585	580		273
586	581		274
587	582		275
588	583		276
589	584		277
590	585		278
591	586		279
592		-	280 HB230 ~~Enrolled~~
	587	+	280 HB230 Engrossed
593	588		Page 11
	589	+	collectively on a matter at a meeting of stockholders. All
	590	+	stock entitled by the certificate of incorporation or this
	591	+	chapter to vote generally on the matter is for that purpose a
	592	+	single voting group.
	593	+	(43) VOTING POWER means the current power to vote in
	594	+	the election of directors.
	595	+	(44) VOTING TRUST BENEFICIAL OWNER means an owner of a
594	596		beneficial interest in stock of the corporation held in a
595	597		voting trust established pursuant to Section 10A-2A-7.30(a)."
596	598		"§10A-2A-1.41
597	599		(a) A notice under this chapter must be in writing
598	600		unless oral notice is reasonable in the circumstances. Unless
599	601		otherwise agreed between the sender and the recipient, words
600	602		in a notice or other communication under this chapter must be
601	603		in English.
602	604		(b) A notice or other communication may be given by any
603	605		method of delivery, except that notice or other communication
604	606		by electronic transmission must be in accordance with this
605	607		section. If the methods of delivery are impracticable, a
606	608		notice or other communication from the corporation may be
607	609		given by means of a broad non-exclusionary distribution to the
608	610		public (which may include a newspaper of general circulation
609	611		in the area where published; radio, television, or other form
610	612		of public broadcast communication; or other methods of
611	613		distribution that the corporation has previously identified to
612	614		its stockholders).
613	615		(c) A notice or other communication to a corporation or
614	616		to a foreign corporation registered to transact business in
615	617		this state may be delivered to the corporation's registered
616		-	agent at its registered office or to the secretary at the
617		-	corporation's principal office shown in its most recent annual
618		-	report or, in the case of a foreign corporation that has not
619		-	yet delivered an annual report , in its foreign registration
620		-	under Chapter 1.
621		-	(d) A notice or other communications from the
622		-	corporation to a stockholder may be delivered by electronic
623	618		281
624	619		282
625	620		283
626	621		284
627	622		285
628	623		286
629	624		287
630	625		288
631	626		289
632	627		290
633	628		291
634	629		292
635	630		293
636	631		294
637	632		295
638	633		296
639	634		297
640	635		298
641	636		299
642	637		300
643	638		301
644	639		302
645	640		303
646	641		304
647	642		305
648	643		306
649	644		307
650		-	308 HB230 ~~Enrolled~~
	645	+	308 HB230 Engrossed
651	646		Page 12
	647	+	this state may be delivered to the corporation's registered
	648	+	agent at its registered office or to the secretary at the
	649	+	corporation's principal office shown in its most recent annual
	650	+	report or, in the case of a foreign corporation that has not
	651	+	yet delivered an annual report , in its foreign registration
	652	+	under Chapter 1.
	653	+	(d) A notice or other communications from the
652	654		corporation to a stockholder may be delivered by electronic
653	655		mail to the electronic mail address for that stockholder
654	656		required to be included in the record of stockholders
655	657		maintained pursuant to Section 10A-2A-16.01(d), unless that
656	658		stockholder has previously notified the corporation in writing
657	659		that the stockholder objects to receiving notices and other
658	660		communications by electronic mail. Any notice or communication
659	661		may be delivered by another form of electronic transmission if
660	662		consented to by the stockholder or if authorized by subsection
661	663		(j). Any notice or other communication from the corporation to
662	664		any other person may be delivered by electronic transmission
663	665		if consented to by the recipient or if authorized by
664	666		subsection (j). Any consent given under this subsection or
665	667		subsection (j) may be revoked with respect to future notices
666	668		or communications by the person who consented by written
667	669		notice to the person to whom the consent was delivered.
668	670		(e) A notice or other communication may no longer be
669	671		delivered to an electronic mail address or other electronic
670	672		transmission address pursuant to subsection (d) if (i) the
671	673		corporation receives notice from the information processing
672	674		system into which the notice or other communication was
673	675		entered that two consecutive notices or other communications
674		-	given by electronic transmissions have not been delivered to
675		-	the electronic mail address or other electronic transmission
676		-	address to which the notice or other communication was
677		-	directed, and (ii) the notice of non-delivery becomes known to
678		-	the secretary or an assistant secretary or to the transfer
679		-	agent, or another person responsible for the giving of notices
680		-	or other communications for the corporation; provided,
681	676		309
682	677		310
683	678		311
684	679		312
685	680		313
686	681		314
687	682		315
688	683		316
689	684		317
690	685		318
691	686		319
692	687		320
693	688		321
694	689		322
695	690		323
696	691		324
697	692		325
698	693		326
699	694		327
700	695		328
701	696		329
702	697		330
703	698		331
704	699		332
705	700		333
706	701		334
707	702		335
708		-	336 HB230 ~~Enrolled~~
	703	+	336 HB230 Engrossed
709	704		Page 13
	705	+	entered that two consecutive notices or other communications
	706	+	given by electronic transmissions have not been delivered to
	707	+	the electronic mail address or other electronic transmission
	708	+	address to which the notice or other communication was
	709	+	directed, and (ii) the notice of non-delivery becomes known to
	710	+	the secretary or an assistant secretary or to the transfer
	711	+	agent, or another person responsible for the giving of notices
710	712		or other communications for the corporation; provided,
711	713		however, the inadvertent failure to recognize the notice of
712	714		non-delivery as a cessation of authority to provide a
713	715		stockholder with notice by electronic mail or other electronic
714	716		transmission shall not invalidate any meeting or other action.
715	717		(f) Unless otherwise agreed between the sender and the
716	718		recipient, a notice or other communication by electronic
717	719		transmission is received when:
718	720		(1) it enters an information processing system directed
719	721		to (i) in the case of a stockholder, the electronic mail
720	722		address for the stockholder required to be included in the
721	723		record of stockholders maintained pursuant to Section
722	724		10A-2A-16.01(d) or other electronic transmission address at
723	725		which the stockholder has consented to receive notice or other
724	726		communications by electronic transmission, or (ii) in the case
725	727		of any other recipient, the electronic transmission address at
726	728		which the recipient has consented to receive notice or other
727	729		communications by electronic transmission; and
728	730		(2) it is in a form capable of being processed by that
729	731		system.
730	732		(g) Receipt of an electronic acknowledgement from an
731	733		information processing system described in subsection (f)(1)
732		-	establishes that an electronic transmission was received but,
733		-	by itself, does not establish that the content sent
734		-	corresponds to the content received.
735		-	(h) An electronic transmission is received under this
736		-	section even if no person is aware of its receipt.
737		-	(i) A notice or other communication, if in a
738		-	comprehensible form or manner, is effective at the earliest of
739	734		337
740	735		338
741	736		339
742	737		340
743	738		341
744	739		342
745	740		343
746	741		344
747	742		345
748	743		346
749	744		347
750	745		348
751	746		349
752	747		350
753	748		351
754	749		352
755	750		353
756	751		354
757	752		355
758	753		356
759	754		357
760	755		358
761	756		359
762	757		360
763	758		361
764	759		362
765	760		363
766		-	364 HB230 ~~Enrolled~~
	761	+	364 HB230 Engrossed
767	762		Page 14
	763	+	information processing system described in subsection (f)(1)
	764	+	establishes that an electronic transmission was received but,
	765	+	by itself, does not establish that the content sent
	766	+	corresponds to the content received.
	767	+	(h) An electronic transmission is received under this
	768	+	section even if no person is aware of its receipt.
	769	+	(i) A notice or other communication, if in a
768	770		comprehensible form or manner, is effective at the earliest of
769	771		the following:
770	772		(1) if in a physical form, the earliest of when it is
771	773		actually received, or when it is left at:
772	774		(i) a stockholder's address included in the record of
773	775		stockholders maintained pursuant to Section 10A-2A-16.01(d);
774	776		(ii) a director's residence or usual place of business;
775	777		or
776	778		(iii) the corporation's principal office;
777	779		(2) if mailed by United States mail postage prepaid and
778	780		addressed to a stockholder at the stockholder's address
779	781		included in the record of stockholders maintained pursuant to
780	782		Section 10A-2A-16.01(d), upon deposit in the mail;
781	783		(3) if mailed by United States mail postage prepaid and
782	784		addressed to a recipient other than a stockholder at the
783	785		address included in the corporation's records, the earliest of
784	786		when it is actually received, or:
785	787		(i) if sent by registered or certified mail, return
786	788		receipt requested, the date shown on the return receipt signed
787	789		by or on behalf of the addressee; or
788	790		(ii) five days after it is deposited in the United
789	791		States mail;
790		-	(4) if sent by a nationally recognized commercial
791		-	carrier that issues a receipt or other confirmation of
792		-	delivery, the earliest of when it is actually received or the
793		-	date shown on the receipt or other confirmation of delivery
794		-	issued by the commercial carrier;
795		-	(5) if an electronic transmission, when it is received
796		-	as provided in subsection (f); and
797	792		365
798	793		366
799	794		367
800	795		368
801	796		369
802	797		370
803	798		371
804	799		372
805	800		373
806	801		374
807	802		375
808	803		376
809	804		377
810	805		378
811	806		379
812	807		380
813	808		381
814	809		382
815	810		383
816	811		384
817	812		385
818	813		386
819	814		387
820	815		388
821	816		389
822	817		390
823	818		391
824		-	392 HB230 ~~Enrolled~~
	819	+	392 HB230 Engrossed
825	820		Page 15
	821	+	States mail;
	822	+	(4) if sent by a nationally recognized commercial
	823	+	carrier that issues a receipt or other confirmation of
	824	+	delivery, the earliest of when it is actually received or the
	825	+	date shown on the receipt or other confirmation of delivery
	826	+	issued by the commercial carrier;
	827	+	(5) if an electronic transmission, when it is received
826	828		as provided in subsection (f); and
827	829		(6) if oral, when communicated.
828	830		(j) A notice or other communication may be in the form
829	831		of an electronic transmission that cannot be directly
830	832		reproduced in paper form by the recipient through an automated
831	833		process used in conventional commercial practice only if (i)
832	834		the electronic transmission is otherwise retrievable in
833	835		perceivable form, and (ii) the sender and the recipient have
834	836		consented in writing to the use of such form of electronic
835	837		transmission.
836	838		(k) If this chapter prescribes requirements for notices
837	839		or other communications in particular circumstances, those
838	840		requirements govern. If the certificate of incorporation or
839	841		bylaws prescribe requirements for notices or other
840	842		communications, not inconsistent with this section or other
841	843		provisions of this chapter, those requirements govern. The
842	844		certificate of incorporation or bylaws may authorize or
843	845		require delivery of notices of meetings of directors by
844	846		electronic transmission.
845	847		(l) In the event that any provisions of this chapter
846	848		are deemed to modify, limit, or supersede the federal
847	849		Electronic Signatures in Global and National Commerce Act, 15
848		-	U.S.C. §§7001 et seq., the provisions of this chapter shall
849		-	control to the maximum extent permitted by Section 102(a)(2)
850		-	of that federal act.
851		-	(m) Whenever a notice or communication would otherwise
852		-	be required to be given under this chapter to a stockholder,
853		-	the notice or communication need not be given if the
854		-	corporation is not permitted to deliver the notice or
855	850		393
856	851		394
857	852		395
858	853		396
859	854		397
860	855		398
861	856		399
862	857		400
863	858		401
864	859		402
865	860		403
866	861		404
867	862		405
868	863		406
869	864		407
870	865		408
871	866		409
872	867		410
873	868		411
874	869		412
875	870		413
876	871		414
877	872		415
878	873		416
879	874		417
880	875		418
881	876		419
882		-	420 HB230 ~~Enrolled~~
	877	+	420 HB230 Engrossed
883	878		Page 16
	879	+	Electronic Signatures in Global and National Commerce Act, 15
	880	+	U.S.C. §§7001 et seq., the provisions of this chapter shall
	881	+	control to the maximum extent permitted by Section 102(a)(2)
	882	+	of that federal act.
	883	+	(m) Whenever a notice or communication would otherwise
	884	+	be required to be given under this chapter to a stockholder,
	885	+	the notice or communication need not be given if the
884	886		corporation is not permitted to deliver the notice or
885	887		communication by electronic transmission pursuant to
886	888		subsections (d) and (e) and:
887	889		(1) notices and communications to stockholders of two
888	890		consecutive annual meetings, and all notices and
889	891		communications of meetings during the period between those two
890	892		consecutive annual meetings, have been sent to that
891	893		stockholder at that stockholder's address included in the
892	894		record of stockholders maintained pursuant to Section
893	895		10A-2A-16.01(d) and have been returned undeliverable or could
894	896		not be delivered; or
895	897		(2) all, but not less than two, distributions to
896	898		stockholders during a 12-month period, or two consecutive
897	899		distributions to stockholders during a period of more than 12
898	900		months, have been sent to that stockholder at that
899	901		stockholder's address included in the record of stockholders
900	902		maintained pursuant to Section 10A-2A-16.01(d) and have been
901	903		returned undeliverable or could not be delivered; or
902	904		(3) no address has been provided to the corporation by
903	905		or on behalf of a stockholder and the corporation has not
904	906		otherwise obtained an address for that stockholder it believes
905	907		to be reliable.
906		-	In addition, if any stockholder to which this
907		-	subsection (m) applies delivers to the corporation a written
908		-	notice or communication setting forth that stockholder's
909		-	then-current address, the requirement that notice and
910		-	communication be given to that stockholder shall be
911		-	reinstated.
912		-	(n) Whenever a notice or communication is required to
913	908		421
914	909		422
915	910		423
916	911		424
917	912		425
918	913		426
919	914		427
920	915		428
921	916		429
922	917		430
923	918		431
924	919		432
925	920		433
926	921		434
927	922		435
928	923		436
929	924		437
930	925		438
931	926		439
932	927		440
933	928		441
934	929		442
935	930		443
936	931		444
937	932		445
938	933		446
939	934		447
940		-	448 HB230 ~~Enrolled~~
	935	+	448 HB230 Engrossed
941	936		Page 17
	937	+	to be reliable.
	938	+	In addition, if any stockholder to which this
	939	+	subsection (m) applies delivers to the corporation a written
	940	+	notice or communication setting forth that stockholder's
	941	+	then-current address, the requirement that notice and
	942	+	communication be given to that stockholder shall be
	943	+	reinstated.
942	944		(n) Whenever a notice or communication is required to
943	945		be given, under this chapter or the certificate of
944	946		incorporation or bylaws of any corporation, to any person with
945	947		whom notice to or communication with is unlawful, the giving
946	948		of the notice or communication to that person shall not be
947	949		required and there shall be no duty to apply to any
948	950		governmental authority or agency for a license or permit to
949	951		give the notice or communication to that person. Any action or
950	952		meeting which shall be taken or held without notice or
951	953		communication to the person with whom notice to or
952	954		communication with is unlawful shall have the same force and
953	955		effect as if the notice or communication had been duly given.
954	956		In the event that the action taken by the corporation is such
955	957		as to require the filing of a certificate or other filing
956	958		instrument under any other sections of this chapter, the
957	959		certificate or other filing instrument shall state, if that is
958	960		the fact and if notice or communication is required, that
959	961		notice or communication was given to all persons entitled to
960	962		receive notice or communication except those persons with whom
961	963		notice to or communication with is unlawful."
962	964		"§10A-2A-16.01
963	965		(a) A corporation shall maintain the following records:
964		-	(1) its certificate of incorporation as currently in
965		-	effect;
966		-	(2) any notices to stockholders referred to in Section
967		-	10A-2A-1.20(c)(5) specifying facts on which a filed document
968		-	is dependent if those facts are not included in the
969		-	certificate of incorporation or otherwise available as
970		-	specified in Section 10A-2A-1.20(c)(5);
971	966		449
972	967		450
973	968		451
974	969		452
975	970		453
976	971		454
977	972		455
978	973		456
979	974		457
980	975		458
981	976		459
982	977		460
983	978		461
984	979		462
985	980		463
986	981		464
987	982		465
988	983		466
989	984		467
990	985		468
991	986		469
992	987		470
993	988		471
994	989		472
995	990		473
996	991		474
997	992		475
998		-	476 HB230 ~~Enrolled~~
	993	+	476 HB230 Engrossed
999	994		Page 18
	995	+	(a) A corporation shall maintain the following records:
	996	+	(1) its certificate of incorporation as currently in
	997	+	effect;
	998	+	(2) any notices to stockholders referred to in Section
	999	+	10A-2A-1.20(c)(5) specifying facts on which a filed document
	1000	+	is dependent if those facts are not included in the
	1001	+	certificate of incorporation or otherwise available as
1000	1002		specified in Section 10A-2A-1.20(c)(5);
1001	1003		(3) its bylaws as currently in effect;
1002	1004		(4) all written communications within the past three
1003	1005		years to stockholders generally;
1004	1006		(5) minutes of all meetings of, and records of all
1005	1007		actions taken without a meeting by, its stockholders, its
1006	1008		board of directors, and board committees established under
1007	1009		Section 10A-2A-8.25; and
1008	1010		(6) a list of the names and business addresses of its
1009	1011		current directors and officers ; and
1010	1012		(7) its most recent annual report delivered to the
1011	1013		Secretary of State under Section 10A-2A-16.11 .
1012	1014		(b) A corporation shall maintain all annual financial
1013	1015		statements prepared for the corporation for its last three
1014	1016		fiscal years (or any shorter period of existence) and any
1015	1017		audit or other reports with respect to those financial
1016	1018		statements.
1017	1019		(c) A corporation shall maintain accounting records in
1018	1020		a form that permits preparation of its financial statements.
1019	1021		(d) A corporation shall maintain a record of its
1020	1022		current stockholders in alphabetical order by class or series
1021	1023		of stock showing the address of each stockholder to which
1022		-	notices and other communications from the corporation are to
1023		-	be sent, and which shall include the number and class or
1024		-	series of stock held by each stockholder. In addition, if a
1025		-	stockholder has provided an electronic mail address to the
1026		-	corporation or has consented to receive notices or other
1027		-	communications by electronic mail or other electronic
1028		-	transmission, the record of stockholders shall include the
1029	1024		477
1030	1025		478
1031	1026		479
1032	1027		480
1033	1028		481
1034	1029		482
1035	1030		483
1036	1031		484
1037	1032		485
1038	1033		486
1039	1034		487
1040	1035		488
1041	1036		489
1042	1037		490
1043	1038		491
1044	1039		492
1045	1040		493
1046	1041		494
1047	1042		495
1048	1043		496
1049	1044		497
1050	1045		498
1051	1046		499
1052	1047		500
1053	1048		501
1054	1049		502
1055	1050		503
1056		-	504 HB230 ~~Enrolled~~
	1051	+	504 HB230 Engrossed
1057	1052		Page 19
	1053	+	of stock showing the address of each stockholder to which
	1054	+	notices and other communications from the corporation are to
	1055	+	be sent, and which shall include the number and class or
	1056	+	series of stock held by each stockholder. In addition, if a
	1057	+	stockholder has provided an electronic mail address to the
	1058	+	corporation or has consented to receive notices or other
	1059	+	communications by electronic mail or other electronic
1058	1060		transmission, the record of stockholders shall include the
1059	1061		electronic mail or other electronic transmission address of
1060	1062		the stockholder if notices or other communications are being
1061	1063		delivered by the corporation to the stockholder at that
1062	1064		electronic mail or other electronic transmission address
1063	1065		pursuant to Section 10A-2A-1.41(d). An electronic mail address
1064	1066		of a stockholder shall be deemed to be provided by a
1065	1067		stockholder if it is contained in a communication to the
1066	1068		corporation by or on behalf of the stockholder, unless the
1067	1069		communication expressly indicates that the electronic mail
1068	1070		address may not be used to deliver notices or other
1069	1071		communications.
1070	1072		(e) A corporation shall maintain the records specified
1071	1073		in this section in a manner so that they may be made available
1072	1074		for inspection within a reasonable time."
1073	1075		Section 2. Section 10A-2A-16.11 of the Code of Alabama
1074	1076		1975, requiring each corporation, including foreign
1075	1077		corporations authorized to transact business in this state, to
1076	1078		file an annual report with the Secretary of State, is
1077	1079		repealed.
1078	1080		Section 3. This act shall become effective on October
1079	1081		1, 2024.
1080	1082		505
1081	1083		506
1082	1084		507
1083	1085		508
1084	1086		509
1085	1087		510
1086	1088		511
1087	1089		512
1088	1090		513
1089	1091		514
1090	1092		515
1091	1093		516
1092	1094		517
1093	1095		518
1094	1096		519
1095	1097		520
1096	1098		521
1097	1099		522
1098	1100		523
1099	1101		524
1100		-	525 HB230 Enrolled
1101		-	Page 20
1102		-	1, 2024.
1103		-	________________________________________________
1104		-	Speaker of the House of Representatives
1105		-	________________________________________________
1106		-	President and Presiding Officer of the Senate
1107		-	House of Representatives
1108		-	I hereby certify that the within Act originated in and
1109		-	was passed by the House 19-Mar-24,as amended.
1110		-	John Treadwell
1111		-	Clerk
1112		-	Senate 25-Apr-24 Passed
	1102	+	525
1113	1103		526
1114	1104		527
1115	1105		528
1116	1106		529
1117	1107		530
1118	1108		531
1119		-	532
	1109	+	532 HB230 Engrossed
	1110	+	Page 20
	1111	+	1, 2024.
	1112	+	House of Representatives
	1113	+	Read for the first time and referred
	1114	+	to the House of Representatives
	1115	+	committee on State Government
	1116	+	................27-Feb-24
	1117	+	Read for the second time and placed
	1118	+	on the calendar:
	1119	+	1 amendment
	1120	+	................06-Mar-24
	1121	+	Read for the third time and passed
	1122	+	as amended
	1123	+	Yeas 100
	1124	+	Nays 0
	1125	+	Abstains 0
	1126	+	................19-Mar-24
	1127	+	John Treadwell
	1128	+	Clerk
1120	1129		533
1121	1130		534
1122	1131		535
1123	1132		536
1124	1133		537
1125	1134		538
1126	1135		539
1127	1136		540
1128	1137		541
1129	1138		542
1130	1139		543
1131	1140		544
1132	1141		545
1133	1142		546
1134	1143		547
1135	1144		548
1136	1145		549
1137	1146		550
1138	1147		551
1139	1148		552
1140	1149		553
1141		-	554
1142		-	555
1143		-	556