Alabama 2024 Regular Session

Alabama Senate Bill SB112 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	~~SB112ENROLLED~~
	1	+	SB112ENGROSSED
2	2		Page 0
3	3		SB112
4		-	~~QMC2554~~-2
	4	+	1JVA3ZL-2
5	5		By Senators Givhan, Smitherman
6	6		RFD: Fiscal Responsibility and Economic Development
7	7		First Read: 20-Feb-24
8	8		1
9	9		2
10	10		3
11	11		4
12		-	5 SB112 ~~Enrolled~~
	12	+	5 SB112 Engrossed
13	13		Page 1
14	14		First Read: 20-Feb-24
15		-	Enrolled, An Act,
	15	+	A BILL
	16	+	TO BE ENTITLED
	17	+	AN ACT
16	18		Relating to the Alabama Business and Nonprofit Entities
17	19		Code; to amend Sections 10A-1-1.03, 10A-1-1.08, and
18	20		10A-1-3.32, as amended by Act 2023-503; 10A-1-5.31;
19	21		10A-2A-1.40, as amended by Act 2023-503; 10A-2A-1.48;
20	22		10A-2A-1.51 and 10A-2A-2.02, as amended by Act 2023-503;
21	23		10A-2A-6.21, 10A-2A-6.24, and 10A-2A-6.31; 10A-2A-7.04, as
22	24		amended by Act 2023-503; 10A-2A-7.05 and 10A-2A-10.05;
23	25		10A-2A-10.07 and 10A-2A-10.08, as amended by Act 2023-503;
24	26		10A-2A-12.01, 10A-2A-13.02, and 10A-2A-14.05; 10A-3A-1.02,
25	27		10A-3A-1.23, 10A-3A-1.26, 10A-3A-2.02, 10A-3A-7.04,
26	28		10A-3A-7.05, 10A-3A-9.05, 10A-3A-9.07, 10A-3A-10.01,
27	29		10A-3A-10.03, 10A-3A-10.04, and 10A-3A-11.07, as added by Act
28	30		2023-503; 10A-4-1.03, 10A-4-2.01, 10A-4-2.02, 10A-4-2.03,
29	31		10A-4-2.04, 10A-4-3.01, 10A-4-3.02, 10A-4-3.03, 10A-4-3.05,
30	32		10A-4-3.06, 10A-4-4.01, 10A-4-4.02, 10A-4-5.01, 10A-4-5.02,
31	33		10A-4-5.03, 10A-4-5.04, 10A-4-5.05, 10A-4-5.06, 10A-4-5.08,
32	34		10A-5A-1.08, 10A-5A-2.01, 10A-5A-2.02, 10A-5A-3.02,
33	35		10A-5A-8.01, 10A-8A-1.08, 10A-8A-10.02, 10A-9A-1.08, and
34	36		10A-9A-2.01; and 10A-9A-2.02, as amended by Act 2023-503, Code
35	37		of Alabama 1975; to eliminate references to the old Alabama
36		-	Nonprofit Corporation Law; to clarify that the address of
37		-	registered agents must be in this state, that the certificate
38		-	of formation must set forth the county of the registered agent
39		-	in accordance with current practice, and to streamline and
40		-	clarify the ratification process of certain actions in
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68		-	28 SB112 ~~Enrolled~~
	65	+	28 SB112 Engrossed
69	66		Page 2
	67	+	of Alabama 1975; to eliminate references to the old Alabama
	68	+	Nonprofit Corporation Law; to clarify that the address of
	69	+	registered agents must be in this state, that the certificate
	70	+	of formation must set forth the county of the registered agent
	71	+	in accordance with current practice, and to streamline and
70	72		clarify the ratification process of certain actions in
71	73		accordance with Delaware law changes; to provide that business
72	74		and nonprofit corporations may provide for exculpation of
73	75		certain officers for certain actions in accordance with
74	76		changes to Delaware law and the Model Business Corporation
75	77		Act; to clarify the amendment and restatement process; to
76	78		clarify the provisions regarding the sale of property by
77	79		business and nonprofit corporations in accordance with changes
78	80		to Delaware law; to conform the professional corporation law
79	81		to recent changes in the business and nonprofit corporation
80	82		laws; to add Sections 10A-5A-1.11, 10A-8A-1.14, and
81	83		10A-9A-1.15 to the Code of Alabama 1975; to provide a process
82	84		for ratification of certain actions and transactions for
83	85		limited liability companies, limited partnerships, and
84	86		partnerships; to add Chapter 18 to Title 10A to the Code of
85	87		Alabama 1975, providing for the Alabama Statewide Trade
86	88		Association Law; and in connection therewith would have as its
87	89		purpose or effect the requirement of a new or increased
88	90		expenditure of local funds within the meaning of Section
89	91		111.05 of the Constitution of Alabama of 2022.
90	92		BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
91	93		Section 1. Sections 10A-1-1.03, 10A-1-1.08, and
92	94		10A-1-3.32, as amended by Act 2023-503; 10A-1-5.31;
93	95		10A-2A-1.40, as amended by Act 2023-503; 10A-2A-1.48;
94		-	10A-2A-1.51 and 10A-2A-2.02, as amended by Act 2023-503;
95		-	10A-2A-6.21, 10A-2A-6.24, and 10A-2A-6.31; 10A-2A-7.04, as
96		-	amended by Act 2023-503; 10A-2A-7.05 and 10A-2A-10.05;
97		-	10A-2A-10.07 and 10A-2A-10.08, as amended by Act 2023-503;
98		-	10A-2A-12.01, 10A-2A-13.02, and 10A-2A-14.05; 10A-3A-1.02,
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125	122		55
126		-	56 SB112 ~~Enrolled~~
	123	+	56 SB112 Engrossed
127	124		Page 3
	125	+	10A-2A-1.40, as amended by Act 2023-503; 10A-2A-1.48;
	126	+	10A-2A-1.51 and 10A-2A-2.02, as amended by Act 2023-503;
	127	+	10A-2A-6.21, 10A-2A-6.24, and 10A-2A-6.31; 10A-2A-7.04, as
	128	+	amended by Act 2023-503; 10A-2A-7.05 and 10A-2A-10.05;
	129	+	10A-2A-10.07 and 10A-2A-10.08, as amended by Act 2023-503;
128	130		10A-2A-12.01, 10A-2A-13.02, and 10A-2A-14.05; 10A-3A-1.02,
129	131		10A-3A-1.23, 10A-3A-1.26, 10A-3A-2.02, 10A-3A-7.04,
130	132		10A-3A-7.05, 10A-3A-9.05, 10A-3A-9.07, 10A-3A-10.01,
131	133		10A-3A-10.03, 10A-3A-10.04, and 10A-3A-11.07, as added by Act
132	134		2023-503; 10A-4-1.03, 10A-4-2.01, 10A-4-2.02, 10A-4-2.03,
133	135		10A-4-2.04, 10A-4-3.01, 10A-4-3.02, 10A-4-3.03, 10A-4-3.05,
134	136		10A-4-3.06, 10A-4-4.01, 10A-4-4.02, 10A-4-5.01, 10A-4-5.02,
135	137		10A-4-5.03, 10A-4-5.04, 10A-4-5.05, 10A-4-5.06, 10A-4-5.08,
136	138		10A-5A-1.08, 10A-5A-2.01, 10A-5A-2.02, 10A-5A-3.02,
137	139		10A-5A-8.01, 10A-8A-1.08, 10A-8A-10.02, 10A-9A-1.08,
138	140		10A-9A-2.01, and 10A-9A-2.02 of the Code of Alabama 1975, are
139	141		amended to read as follows:
140	142		"§10A-1-1.03
141	143		(a) If a term, including a term that is defined in
142	144		subsection (b), is defined in a chapter of this title, then,
143	145		when used in that chapter, the term shall have the meaning set
144	146		forth in that chapter.
145	147		(b) As used in this title, except as provided in
146	148		subsection (a) or where the context otherwise requires, the
147	149		following terms mean:
148	150		(1) AFFILIATE. A person who controls, is controlled by,
149	151		or is under common control with another person. An affiliate
150	152		of an individual includes the spouse, or a parent or sibling
151	153		thereof, of the individual, or a child, grandchild, sibling,
152		-	parent, or spouse of any thereof, of the individual, or an
153		-	individual having the same home as the individual, or a trust
154		-	or estate of which an individual specified in this sentence is
155		-	a substantial beneficiary; a trust, estate, incompetent,
156		-	conservatee, protected person, or minor of which the
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184		-	84 SB112 ~~Enrolled~~
	181	+	84 SB112 Engrossed
185	182		Page 4
	183	+	thereof, of the individual, or a child, grandchild, sibling,
	184	+	parent, or spouse of any thereof, of the individual, or an
	185	+	individual having the same home as the individual, or a trust
	186	+	or estate of which an individual specified in this sentence is
	187	+	a substantial beneficiary; a trust, estate, incompetent,
186	188		conservatee, protected person, or minor of which the
187	189		individual is a fiduciary; or an entity of which the
188	190		individual is director, general partner, agent, employee or
189	191		the governing authority or member of the governing authority.
190	192		(2) ASSOCIATE. When used to indicate a relationship
191	193		with:
192	194		(A) a domestic or foreign entity for which the person
193	195		is:
194	196		(i) an officer or governing person; or
195	197		(ii) a beneficial owner of 10 percent or more of a
196	198		class of voting ownership interests or similar securities of
197	199		the entity;
198	200		(B) a trust or estate in which the person has a
199	201		substantial beneficial interest or for which the person serves
200	202		as trustee or in a similar fiduciary capacity;
201	203		(C) the person's spouse or a relative of the person
202	204		related by consanguinity or affinity within the fifth degree
203	205		who resides with the person; or
204	206		(D) a governing person or an affiliate or officer of
205	207		the person.
206	208		(3) ASSOCIATION. Includes, but is not limited to, an
207	209		unincorporated nonprofit association as defined in Chapter 17
208	210		and an unincorporated professional association as defined in
209	211		Article 1 of Chapter 30.
210		-	(4) BENEFIT CORPORATION. A benefit corporation as
211		-	defined in Chapter 2A.
212		-	(5) BUSINESS CORPORATION. A corporation or foreign
213		-	corporation as defined in Chapter 2A. The term includes a
214		-	benefit corporation as defined in Chapter 2A.
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242		-	112 SB112 ~~Enrolled~~
	239	+	112 SB112 Engrossed
243	240		Page 5
	241	+	Article 1 of Chapter 30.
	242	+	(4) BENEFIT CORPORATION. A benefit corporation as
	243	+	defined in Chapter 2A.
	244	+	(5) BUSINESS CORPORATION. A corporation or foreign
	245	+	corporation as defined in Chapter 2A. The term includes a
244	246		benefit corporation as defined in Chapter 2A.
245	247		(6) BUSINESS TRUST. A business trust as defined in
246	248		Chapter 16.
247	249		(7) CERTIFICATE OF DISSOLUTION. Any document such as a
248	250		certificate of dissolution, statement of dissolution, or
249	251		articles of dissolution, required or permitted to be filed
250	252		publicly with respect to an entity's dissolution and winding
251	253		up of its business, activity, activities, not for profit
252	254		activity, or affairs.
253	255		(8) CERTIFICATE OF FORMATION.
254	256		(A) The document required to be filed publicly under
255	257		this title to form a filing entity; and
256	258		(B) if appropriate, a restated certificate of formation
257	259		and all amendments of an original or restated certificate of
258	260		formation; provided that a restated certificate of formation
259	261		and an amendment of an original or restated certificate of
260	262		formation shall not be deemed to be a certificate of formation
261	263		for purposes of Section 10A-1-4.31.
262	264		(9) CERTIFICATE OF OWNERSHIP. An instrument evidencing
263	265		an ownership interest or membership interest in an entity.
264	266		(10) CERTIFICATED OWNERSHIP INTEREST. An ownership
265	267		interest of a domestic entity represented by a certificate.
266	268		(11) CERTIFICATION or CERTIFIED. Duly authenticated by
267	269		the proper officer or filing officer of the jurisdiction the
268		-	laws of which govern the internal affairs of an entity.
269		-	(12) CONTRIBUTION. A tangible or intangible benefit
270		-	that a person transfers to an entity in consideration for an
271		-	ownership interest in the entity or otherwise in the person's
272		-	capacity as an owner or a member. A benefit that may
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300		-	140 SB112 ~~Enrolled~~
	297	+	140 SB112 Engrossed
301	298		Page 6
	299	+	the proper officer or filing officer of the jurisdiction the
	300	+	laws of which govern the internal affairs of an entity.
	301	+	(12) CONTRIBUTION. A tangible or intangible benefit
	302	+	that a person transfers to an entity in consideration for an
	303	+	ownership interest in the entity or otherwise in the person's
302	304		capacity as an owner or a member. A benefit that may
303	305		constitute a contribution transferred in exchange for an
304	306		ownership interest or transferred in the transferor's capacity
305	307		as an owner or member may include cash, property, services
306	308		rendered, a contract for services to be performed, a
307	309		promissory note or other obligation of a person to pay cash or
308	310		transfer property to the entity, or securities or other
309	311		interests in or obligations of an entity. In either case, the
310	312		benefit does not include cash or property received by the
311	313		entity:
312	314		(A) with respect to a promissory note or other
313	315		obligation to the extent that the agreed value of the note or
314	316		obligation has previously been included as a contribution; or
315	317		(B) that the person intends to be a loan to the entity.
316	318		(13) CONVERSION. A conversion, whether referred to as a
317	319		conversion, domestication, or otherwise, means:
318	320		(A) the continuance of a domestic entity as a foreign
319	321		entity of any type;
320	322		(B) the continuance of a foreign entity as a domestic
321	323		entity of any type; or
322	324		(C) the continuance of a domestic entity of one type as
323	325		a domestic entity of another type.
324	326		(14) CONVERTED ENTITY. An entity resulting from a
325	327		conversion.
326		-	(15) CONVERTING ENTITY. An entity as the entity existed
327		-	before the entity's conversion.
328		-	(16) COOPERATIVE. Includes an employee cooperative as
329		-	defined in Chapter 11.
330		-	(17) CORPORATION. Includes a domestic or foreign
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358		-	168 SB112 ~~Enrolled~~
	355	+	168 SB112 Engrossed
359	356		Page 7
	357	+	conversion.
	358	+	(15) CONVERTING ENTITY. An entity as the entity existed
	359	+	before the entity's conversion.
	360	+	(16) COOPERATIVE. Includes an employee cooperative as
	361	+	defined in Chapter 11.
360	362		(17) CORPORATION. Includes a domestic or foreign
361	363		business corporation, including a benefit corporation, as
362	364		defined in Chapter 2A, a domestic or foreign nonprofit
363	365		corporation as defined in Chapter 3 or Chapter 3A, a domestic
364	366		or foreign professional corporation as defined in Chapter 4,
365	367		and those entities specified in Chapter 20 as corporate.
366	368		(18) COURT. The designated court, and if none, the
367	369		circuit court specifically set forth in this title, and if
368	370		none, any other court having jurisdiction in a case.
369	371		(19) DAY. When used in the computation of time,
370	372		excludes the first day and includes the last day of the period
371	373		so computed, unless the last day is a Saturday, Sunday, or
372	374		legal holiday, in which event the period runs until the end of
373	375		the next day that is not a Saturday, a Sunday, or a legal
374	376		holiday. When the period of time to be computed is less than 7
375	377		days, intermediate Saturdays, Sundays, and legal holidays
376	378		shall be excluded.
377	379		(20) DEBTOR IN BANKRUPTCY. A person who is the subject
378	380		of:
379	381		(A) an order for relief under the United States
380	382		bankruptcy laws, Title 11, United States Code, or comparable
381	383		order under a successor statute of general application; or
382	384		(B) a comparable order under federal, state, or foreign
383	385		law governing insolvency.
384		-	(21) DESIGNATED COURT. The court or courts that are
385		-	designated in the (i) certificate of incorporation or bylaws
386		-	of a corporation as authorized by Chapter 2A, (ii) certificate
387		-	of incorporation or bylaws of a nonprofit corporation as
388		-	authorized by Chapter 3A, (iii) limited liability company
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416		-	196 SB112 ~~Enrolled~~
	413	+	196 SB112 Engrossed
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	415	+	law governing insolvency.
	416	+	(21) DESIGNATED COURT. The court or courts that are
	417	+	designated in the (i) certificate of incorporation or bylaws
	418	+	of a corporation as authorized by Chapter 2A, (ii) certificate
	419	+	of incorporation or bylaws of a nonprofit corporation as
418	420		authorized by Chapter 3A, (iii) limited liability company
419	421		agreement of a limited liability company formed pursuant to or
420	422		governed by Chapter 5A, (iv) partnership agreement of a
421	423		partnership formed pursuant to or governed by Chapter 8A, or
422	424		(v) limited partnership agreement of a limited partnership
423	425		formed pursuant to or governed by Chapter 9A.
424	426		(22) DIRECTOR. An individual who serves on the board of
425	427		directors, by whatever name known, of a foreign or domestic
426	428		corporation.
427	429		(23) DISTRIBUTION. A transfer of property, including
428	430		cash, from an entity to an owner or member of the entity in
429	431		the owner's or member's capacity as an owner or member. The
430	432		term includes a dividend, a redemption or purchase of an
431	433		ownership interest, or a liquidating distribution.
432	434		(24) DOMESTIC. With respect to an entity, means
433	435		governed as to its internal affairs by this title.
434	436		(25) DOMESTIC ENTITY. An entity governed as to its
435	437		internal affairs by this title.
436	438		(26) EFFECTIVE DATE OF THIS TITLE. January 1, 2011.
437	439		(27) ELECTRONIC. Relating to technology having
438	440		electrical, digital, magnetic, wireless, optical,
439	441		electromagnetic, or similar capabilities.
440	442		(28) ELECTRONIC SIGNATURE. An electronic signature as
441	443		that term is defined in the Uniform Electronic Transactions
442		-	Act, Chapter 1A of Title 8, or any successor statute.
443		-	(29) ELECTRONIC TRANSMISSION or ELECTRONICALLY
444		-	TRANSMITTED. Any form or process of communication not directly
445		-	involving the physical transfer of paper or another tangible
446		-	medium, which (i) is suitable for the retention, retrieval,
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474		-	224 SB112 ~~Enrolled~~
	471	+	224 SB112 Engrossed
475	472		Page 9
	473	+	that term is defined in the Uniform Electronic Transactions
	474	+	Act, Chapter 1A of Title 8, or any successor statute.
	475	+	(29) ELECTRONIC TRANSMISSION or ELECTRONICALLY
	476	+	TRANSMITTED. Any form or process of communication not directly
	477	+	involving the physical transfer of paper or another tangible
476	478		medium, which (i) is suitable for the retention, retrieval,
477	479		and reproduction of information by the recipient, and (ii) is
478	480		retrievable in paper form by the recipient through an
479	481		automated process used in conventional commercial practice.
480	482		(30) ELECTRONIC WRITING. Information that is stored in
481	483		an electronic or other nontangible medium and is retrievable
482	484		in paper form through an automated process used in
483	485		conventional commercial practice.
484	486		(31) ENTITY. A domestic or foreign organization.
485	487		(32) FILING ENTITY. A domestic entity that is a
486	488		corporation, limited partnership, limited liability limited
487	489		partnership, limited liability company, professional
488	490		association, employee cooperative corporation, or real estate
489	491		investment trust.
490	492		(33) FILING INSTRUMENT. An instrument, document, or
491	493		statement that is required or permitted by this title to be
492	494		delivered for filing by or for an entity to a filing officer.
493	495		(34) FILING OFFICER. An officer of this state with whom
494	496		a filing instrument is required or permitted to be delivered
495	497		for filing pursuant to this title.
496	498		(35) FOREIGN. With respect to an entity, means governed
497	499		as to its internal affairs by the laws of a jurisdiction other
498	500		than this state.
499	501		(36) FOREIGN ENTITY. An entity governed as to its
500		-	internal affairs by the laws of a jurisdiction other than this
501		-	state.
502		-	(37) FOREIGN FILING ENTITY. A foreign entity that
503		-	registers or is required to register as a foreign entity under
504		-	Article 7.
505	502		225
506	503		226
507	504		227
508	505		228
509	506		229
510	507		230
511	508		231
512	509		232
513	510		233
514	511		234
515	512		235
516	513		236
517	514		237
518	515		238
519	516		239
520	517		240
521	518		241
522	519		242
523	520		243
524	521		244
525	522		245
526	523		246
527	524		247
528	525		248
529	526		249
530	527		250
531	528		251
532		-	252 SB112 ~~Enrolled~~
	529	+	252 SB112 Engrossed
533	530		Page 10
	531	+	(36) FOREIGN ENTITY. An entity governed as to its
	532	+	internal affairs by the laws of a jurisdiction other than this
	533	+	state.
	534	+	(37) FOREIGN FILING ENTITY. A foreign entity that
	535	+	registers or is required to register as a foreign entity under
534	536		Article 7.
535	537		(38) FOREIGN GOVERNMENTAL AUTHORITY. A governmental
536	538		official, agency, or instrumentality of a jurisdiction other
537	539		than this state.
538	540		(39) FOREIGN NONFILING ENTITY. A foreign entity that is
539	541		not a foreign filing entity.
540	542		(40) GENERAL PARTNER.
541	543		(A) Each partner in a general partnership; or
542	544		(B) a person who is admitted to a limited partnership
543	545		as a general partner in accordance with the governing
544	546		documents of the limited partnership.
545	547		(41) GENERAL PARTNERSHIP. A partnership as defined in
546	548		Chapter 8A. The term includes a limited liability partnership
547	549		as defined in Chapter 8A.
548	550		(42) GOVERNING AUTHORITY. A person or group of persons
549	551		who are entitled to manage and direct the affairs of an entity
550	552		pursuant to this title and the governing documents of the
551	553		entity, except that if the governing documents of the entity
552	554		or this title divide the authority to manage and direct the
553	555		affairs of the entity among different persons or groups of
554	556		persons according to different matters, governing authority
555	557		means the person or group of persons entitled to manage and
556	558		direct the affairs of the entity with respect to a matter
557	559		under the governing documents of the entity or this title. The
558		-	term includes the board of directors of a corporation, by
559		-	whatever name known, or other persons authorized to perform
560		-	the functions of the board of directors of a corporation, the
561		-	general partners of a general partnership or limited
562		-	partnership, the persons who have direction and oversight of a
563	560		253
564	561		254
565	562		255
566	563		256
567	564		257
568	565		258
569	566		259
570	567		260
571	568		261
572	569		262
573	570		263
574	571		264
575	572		265
576	573		266
577	574		267
578	575		268
579	576		269
580	577		270
581	578		271
582	579		272
583	580		273
584	581		274
585	582		275
586	583		276
587	584		277
588	585		278
589	586		279
590		-	280 SB112 ~~Enrolled~~
	587	+	280 SB112 Engrossed
591	588		Page 11
	589	+	under the governing documents of the entity or this title. The
	590	+	term includes the board of directors of a corporation, by
	591	+	whatever name known, or other persons authorized to perform
	592	+	the functions of the board of directors of a corporation, the
	593	+	general partners of a general partnership or limited
592	594		partnership, the persons who have direction and oversight of a
593	595		limited liability company, and the trust managers of a real
594	596		estate investment trust. The term does not include an officer
595	597		who is acting in the capacity of an officer.
596	598		(43) GOVERNING DOCUMENTS.
597	599		(A) In the case of a domestic entity:
598	600		(i) the certificate of formation for a filing entity or
599	601		the document or agreement under which a nonfiling entity is
600	602		formed; and
601	603		(ii) the other documents or agreements, including
602	604		bylaws, partnership agreements of partnerships, limited
603	605		liability company agreements of limited liability companies,
604	606		or similar documents, adopted by the entity pursuant to this
605	607		title to govern the formation or the internal affairs of the
606	608		entity; or
607	609		(B) in the case of a foreign entity, the instruments,
608	610		documents, or agreements adopted under the law of its
609	611		jurisdiction of formation to govern the formation or the
610	612		internal affairs of the entity.
611	613		(44) GOVERNING PERSON. A person serving as part of the
612	614		governing authority of an entity.
613	615		(45) INDIVIDUAL. A natural person and the estate of an
614	616		incompetent or deceased natural person.
615		-	(46) INSOLVENCY. The inability of a person to pay the
616		-	person's debts as they become due in the usual course of
617		-	business or affairs.
618		-	(47) INSOLVENT. A person who is unable to pay the
619		-	person's debts as they become due in the usual course of
620	617		281
621	618		282
622	619		283
623	620		284
624	621		285
625	622		286
626	623		287
627	624		288
628	625		289
629	626		290
630	627		291
631	628		292
632	629		293
633	630		294
634	631		295
635	632		296
636	633		297
637	634		298
638	635		299
639	636		300
640	637		301
641	638		302
642	639		303
643	640		304
644	641		305
645	642		306
646		-	307 SB112 ~~Enrolled~~
	643	+	307 SB112 Engrossed
647	644		Page 12
	645	+	incompetent or deceased natural person.
	646	+	(46) INSOLVENCY. The inability of a person to pay the
	647	+	person's debts as they become due in the usual course of
	648	+	business or affairs.
	649	+	(47) INSOLVENT. A person who is unable to pay the
648	650		person's debts as they become due in the usual course of
649	651		business or affairs.
650	652		(48) JUDGE OF PROBATE. The judge of probate of the
651	653		county in which an entity is required or permitted to deliver
652	654		a filing instrument for filing pursuant to this title.
653	655		(49) JURISDICTION OF FORMATION.
654	656		(A) In the case of a filing entity, this state;
655	657		(B) in the case of a foreign entity, the jurisdiction
656	658		in which the entity's certificate of formation or similar
657	659		organizational instrument is filed, or if no certificate of
658	660		formation or similar organizational instrument is filed, then
659	661		the laws of the jurisdiction which govern the internal affairs
660	662		of the foreign entity;
661	663		(C) in the case of a general partnership which has
662	664		filed a statement of partnership, a statement of not for
663	665		profit partnership, or a statement of limited liability
664	666		partnership in accordance with Chapter 8A, in this state;
665	667		(D) in the case of a foreign limited liability
666	668		partnership, the laws of the jurisdiction which govern the
667	669		filing of the foreign limited liability partnership's
668	670		statement of limited liability partnership or such filing in
669	671		that jurisdiction; and
670	672		(E) in the case of a foreign or domestic nonfiling
671	673		entity other than those entities described in subsection (C)
672		-	or (D):
673		-	(i) the jurisdiction the laws of which are chosen in
674		-	the entity's governing documents to govern its internal
675		-	affairs if that jurisdiction bears a reasonable relation to
676		-	the owners or members or to the domestic or foreign nonfiling
677	674		308
678	675		309
679	676		310
680	677		311
681	678		312
682	679		313
683	680		314
684	681		315
685	682		316
686	683		317
687	684		318
688	685		319
689	686		320
690	687		321
691	688		322
692	689		323
693	690		324
694	691		325
695	692		326
696	693		327
697	694		328
698	695		329
699	696		330
700	697		331
701	698		332
702	699		333
703	700		334
704		-	335 SB112 ~~Enrolled~~
	701	+	335 SB112 Engrossed
705	702		Page 13
	703	+	entity other than those entities described in subsection (C)
	704	+	or (D):
	705	+	(i) the jurisdiction the laws of which are chosen in
	706	+	the entity's governing documents to govern its internal
	707	+	affairs if that jurisdiction bears a reasonable relation to
706	708		the owners or members or to the domestic or foreign nonfiling
707	709		entity's business, activities, and affairs under the
708	710		principles of this state that otherwise would apply to a
709	711		contract among the owners or members; or
710	712		(ii) if subparagraph (i) does not apply, the
711	713		jurisdiction in which the entity has its principal office.
712	714		(50) LAW. Unless the context requires otherwise, both
713	715		statutory and common law.
714	716		(51) LICENSE. A license, certificate of registration,
715	717		or other legal authorization.
716	718		(52) LICENSING AUTHORITY. The state court, state
717	719		regulatory licensing board, or other like agency which has the
718	720		power to issue a license or other legal authorization to
719	721		render professional services.
720	722		(53) LIMITED LIABILITY COMPANY. A limited liability
721	723		company as defined in Chapter 5A.
722	724		(54) LIMITED LIABILITY LIMITED PARTNERSHIP. A limited
723	725		liability limited partnership as defined in Chapter 9A.
724	726		(55) LIMITED LIABILITY PARTNERSHIP. A limited liability
725	727		partnership as defined in Chapter 8A.
726	728		(56) LIMITED PARTNER. A person who has been admitted to
727	729		a limited partnership as a limited partner as provided by:
728	730		(A) in the case of a domestic limited partnership,
729	731		Chapter 9A; or
730		-	(B) in the case of a foreign limited partnership, the
731		-	laws of its jurisdiction of formation.
732		-	(57) LIMITED PARTNERSHIP. A limited partnership as
733		-	defined in Chapter 9A. The term includes a limited liability
734		-	limited partnership as defined in Chapter 9A.
735	732		336
736	733		337
737	734		338
738	735		339
739	736		340
740	737		341
741	738		342
742	739		343
743	740		344
744	741		345
745	742		346
746	743		347
747	744		348
748	745		349
749	746		350
750	747		351
751	748		352
752	749		353
753	750		354
754	751		355
755	752		356
756	753		357
757	754		358
758	755		359
759	756		360
760	757		361
761	758		362
762		-	363 SB112 ~~Enrolled~~
	759	+	363 SB112 Engrossed
763	760		Page 14
	761	+	Chapter 9A; or
	762	+	(B) in the case of a foreign limited partnership, the
	763	+	laws of its jurisdiction of formation.
	764	+	(57) LIMITED PARTNERSHIP. A limited partnership as
	765	+	defined in Chapter 9A. The term includes a limited liability
764	766		limited partnership as defined in Chapter 9A.
765	767		(58) MANAGERIAL OFFICIAL. An officer or a governing
766	768		person.
767	769		(59) MEMBER.
768	770		(A) A person defined as a member under Chapter 5A;
769	771		(B) in the case of a nonprofit corporation formed
770	772		pursuant to or governed by Chapter 3, a person having
771	773		membership rights in the nonprofit corporation in accordance
772	774		with its governing documents as provided in Chapter 3, and in
773	775		the case of a nonprofit corporation formed pursuant to or
774	776		governed by Chapter 3A, a person defined as a member under
775	777		Chapter 3A;
776	778		(C) in the case of an employee cooperative corporation
777	779		formed pursuant to or governed by Chapter 11, a natural person
778	780		who, as provided in Chapter 11, has been accepted for
779	781		membership in and owns a membership share in an employee
780	782		cooperative;
781	783		(D) in the case of a nonprofit association, a person
782	784		who, as provided in Chapter 17, may participate in the
783	785		selection of persons authorized to manage the affairs of the
784	786		nonprofit association or in the development of its policy.
785	787		(60) MERGER. The combination of one or more domestic
786	788		entities with one or more domestic entities or foreign
787	789		entities resulting in:
788		-	(A) one or more surviving domestic entities or foreign
789		-	entities;
790		-	(B) the creation of one or more new domestic entities
791		-	or foreign entities, or one or more surviving domestic
792		-	entities or foreign entities; or
793	790		364
794	791		365
795	792		366
796	793		367
797	794		368
798	795		369
799	796		370
800	797		371
801	798		372
802	799		373
803	800		374
804	801		375
805	802		376
806	803		377
807	804		378
808	805		379
809	806		380
810	807		381
811	808		382
812	809		383
813	810		384
814	811		385
815	812		386
816	813		387
817	814		388
818	815		389
819	816		390
820		-	391 SB112 ~~Enrolled~~
	817	+	391 SB112 Engrossed
821	818		Page 15
	819	+	entities resulting in:
	820	+	(A) one or more surviving domestic entities or foreign
	821	+	entities;
	822	+	(B) the creation of one or more new domestic entities
	823	+	or foreign entities, or one or more surviving domestic
822	824		entities or foreign entities; or
823	825		(C) one or more surviving domestic entities or foreign
824	826		entities and the creation of one or more new domestic entities
825	827		or foreign entities.
826	828		(61) NONFILING ENTITY. A domestic entity that is not a
827	829		filing entity. The term includes a domestic general
828	830		partnership, a limited liability partnership, and a nonprofit
829	831		association.
830	832		(62) NONPROFIT ASSOCIATION. An unincorporated nonprofit
831	833		association as defined in Chapter 17. The term does not
832	834		include a general partnership which has filed a statement of
833	835		not for profit partnership in accordance with Chapter 8A, a
834	836		limited partnership which is carrying on a not for profit
835	837		purpose, or a limited liability company which is carrying on a
836	838		not for profit purpose.
837	839		(63) NONPROFIT CORPORATION. A domestic or foreign
838	840		nonprofit corporation as defined in Chapter 3 or Chapter 3A.
839	841		(64) NONPROFIT ENTITY. An entity that is a nonprofit
840	842		corporation, nonprofit association, or other entity that is
841	843		organized solely for one or more nonprofit purposes.
842	844		(65) OFFICER. An individual elected, appointed, or
843	845		designated as an officer of an entity by the entity's
844	846		governing authority or under the entity's governing documents.
845	847		(66) ORGANIZATION. A corporation, limited partnership,
846		-	general partnership, limited liability company, business
847		-	trust, real estate investment trust, joint venture, joint
848		-	stock company, cooperative, association, or other
849		-	organization, including, regardless of its organizational
850		-	form, a bank, insurance company, credit union, and savings and
851	848		392
852	849		393
853	850		394
854	851		395
855	852		396
856	853		397
857	854		398
858	855		399
859	856		400
860	857		401
861	858		402
862	859		403
863	860		404
864	861		405
865	862		406
866	863		407
867	864		408
868	865		409
869	866		410
870	867		411
871	868		412
872	869		413
873	870		414
874	871		415
875	872		416
876	873		417
877	874		418
878		-	419 SB112 ~~Enrolled~~
	875	+	419 SB112 Engrossed
879	876		Page 16
	877	+	(66) ORGANIZATION. A corporation, limited partnership,
	878	+	general partnership, limited liability company, business
	879	+	trust, real estate investment trust, joint venture, joint
	880	+	stock company, cooperative, association, or other
	881	+	organization, including, regardless of its organizational
880	882		form, a bank, insurance company, credit union, and savings and
881	883		loan association, whether for profit, not for profit,
882	884		nonprofit, domestic, or foreign.
883	885		(67) ORGANIZER. A person, who need not be an owner or
884	886		member of the entity, who, having the capacity to contract, is
885	887		authorized to execute documents in connection with the
886	888		formation of the entity. The term includes an incorporator.
887	889		(68) OWNER.
888	890		(A) With respect to a foreign or domestic business
889	891		corporation or real estate investment trust, a stockholder or
890	892		a shareholder;
891	893		(B) with respect to a foreign or domestic partnership,
892	894		a partner;
893	895		(C) with respect to a foreign or domestic limited
894	896		liability company or association, a member; and
895	897		(D) with respect to another foreign or domestic entity,
896	898		an owner of an equity interest in that entity.
897	899		(69) OWNERSHIP INTEREST. An owner's interest in an
898	900		entity. The term includes the owner's share of profits and
899	901		losses or similar items and the right to receive
900	902		distributions. The term does not include an owner's right to
901	903		participate in management or participate in the direction or
902	904		oversight of the entity. An ownership interest is personal
903	905		property.
904		-	(70) PARENT or PARENT ENTITY. An entity that:
905		-	(A) owns at least 50 percent of the ownership or
906		-	membership interest of a subsidiary; or
907		-	(B) possesses at least 50 percent of the voting power
908		-	of the owners or members of a subsidiary.
909	906		420
910	907		421
911	908		422
912	909		423
913	910		424
914	911		425
915	912		426
916	913		427
917	914		428
918	915		429
919	916		430
920	917		431
921	918		432
922	919		433
923	920		434
924	921		435
925	922		436
926	923		437
927	924		438
928	925		439
929	926		440
930	927		441
931	928		442
932	929		443
933	930		444
934	931		445
935	932		446
936		-	447 SB112 ~~Enrolled~~
	933	+	447 SB112 Engrossed
937	934		Page 17
	935	+	property.
	936	+	(70) PARENT or PARENT ENTITY. An entity that:
	937	+	(A) owns at least 50 percent of the ownership or
	938	+	membership interest of a subsidiary; or
	939	+	(B) possesses at least 50 percent of the voting power
938	940		of the owners or members of a subsidiary.
939	941		(71) PARTNER. A limited partner or general partner.
940	942		(72) PARTNERSHIP. Includes a general partnership, a
941	943		limited liability partnership, a foreign limited liability
942	944		partnership, a limited partnership, a foreign limited
943	945		partnership, a limited liability limited partnership, and a
944	946		foreign limited liability limited partnership.
945	947		(73) PARTNERSHIP AGREEMENT. Any agreement (whether
946	948		referred to as a partnership agreement or otherwise), written,
947	949		oral or implied, of the partners as to the activities and
948	950		affairs of a general partnership or a limited partnership. The
949	951		partnership agreement includes any amendments to the
950	952		partnership agreement. In the case of limited partnerships
951	953		formed prior to October 1, 1998, partnership agreement
952	954		includes the certificate of partnership.
953	955		(74) PARTY TO THE MERGER. A domestic entity or foreign
954	956		entity that under a plan of merger is combined by a merger.
955	957		The term does not include a domestic entity or foreign entity
956	958		that is not to be combined into or with one or more domestic
957	959		entities or foreign entities, regardless of whether ownership
958	960		interests of the entity are to be issued under the plan of
959	961		merger.
960	962		(75) PERSON. An individual, including the estate of an
961	963		incompetent or deceased individual, or an entity, whether
962		-	created by the laws of this state or another state or foreign
963		-	country, including, without limitation, a general partnership,
964		-	limited liability partnership, limited partnership, limited
965		-	liability limited partnership, limited liability company,
966		-	corporation, professional corporation, nonprofit corporation,
967	964		448
968	965		449
969	966		450
970	967		451
971	968		452
972	969		453
973	970		454
974	971		455
975	972		456
976	973		457
977	974		458
978	975		459
979	976		460
980	977		461
981	978		462
982	979		463
983	980		464
984	981		465
985	982		466
986	983		467
987	984		468
988	985		469
989	986		470
990	987		471
991	988		472
992	989		473
993	990		474
994		-	475 SB112 ~~Enrolled~~
	991	+	475 SB112 Engrossed
995	992		Page 18
	993	+	incompetent or deceased individual, or an entity, whether
	994	+	created by the laws of this state or another state or foreign
	995	+	country, including, without limitation, a general partnership,
	996	+	limited liability partnership, limited partnership, limited
	997	+	liability limited partnership, limited liability company,
996	998		corporation, professional corporation, nonprofit corporation,
997	999		professional association, trustee, personal representative,
998	1000		fiduciary, as defined in Section 19-3-150 or person performing
999	1001		in any similar capacity, business trust, estate, trust,
1000	1002		association, joint venture, government, governmental
1001	1003		subdivision, agency, or instrumentality, or any other legal or
1002	1004		commercial entity.
1003	1005		(76) PRESIDENT.
1004	1006		(A) The individual designated as president of an entity
1005	1007		under the entity's governing documents; or
1006	1008		(B) the officer or committee of persons authorized to
1007	1009		perform the functions of the principal executive officer of an
1008	1010		entity without regard to the designated name of the officer or
1009	1011		committee.
1010	1012		(77) PRINCIPAL OFFICE. The office, in or out of this
1011	1013		state, where the principal executive office, whether referred
1012	1014		to as the principal executive office, chief executive office,
1013	1015		or otherwise, of an entity is located.
1014	1016		(78) PROFESSIONAL ASSOCIATION. A professional
1015	1017		association as defined in Chapter 30.
1016	1018		(79) PROFESSIONAL CORPORATION. A domestic or foreign
1017	1019		professional corporation as defined in Chapter 4.
1018	1020		(80) PROFESSIONAL ENTITY. A professional association
1019	1021		and a professional corporation.
1020		-	(81) PROFESSIONAL SERVICE. Any type of service that may
1021		-	lawfully be performed only pursuant to a license issued by a
1022		-	state court, state regulatory licensing board, or other like
1023		-	agency pursuant to state laws.
1024		-	(82) PROPERTY. Includes all property, whether real,
1025	1022		476
1026	1023		477
1027	1024		478
1028	1025		479
1029	1026		480
1030	1027		481
1031	1028		482
1032	1029		483
1033	1030		484
1034	1031		485
1035	1032		486
1036	1033		487
1037	1034		488
1038	1035		489
1039	1036		490
1040	1037		491
1041	1038		492
1042	1039		493
1043	1040		494
1044	1041		495
1045	1042		496
1046	1043		497
1047	1044		498
1048	1045		499
1049	1046		500
1050	1047		501
1051	1048		502
1052		-	503 SB112 ~~Enrolled~~
	1049	+	503 SB112 Engrossed
1053	1050		Page 19
	1051	+	and a professional corporation.
	1052	+	(81) PROFESSIONAL SERVICE. Any type of service that may
	1053	+	lawfully be performed only pursuant to a license issued by a
	1054	+	state court, state regulatory licensing board, or other like
	1055	+	agency pursuant to state laws.
1054	1056		(82) PROPERTY. Includes all property, whether real,
1055	1057		personal, or mixed, or tangible or intangible, or any right or
1056	1058		interest therein.
1057	1059		(83) REAL ESTATE INVESTMENT TRUST. An unincorporated
1058	1060		trust, association, or other entity as defined in Chapter 10.
1059	1061		(84) SECRETARY.
1060	1062		(A) The individual designated as secretary of an entity
1061	1063		under the entity's governing documents; or
1062	1064		(B) the officer or committee of persons authorized to
1063	1065		perform the functions of secretary of an entity without regard
1064	1066		to the designated name of the officer or committee.
1065	1067		(85) SECRETARY OF STATE. The Secretary of State of the
1066	1068		State of Alabama.
1067	1069		(86) SIGN or SIGNATURE. With the present intent to
1068	1070		authenticate or adopt a writing:
1069	1071		(A) to execute or adopt a tangible symbol to a writing,
1070	1072		and includes any manual, facsimile, or conformed signature; or
1071	1073		(B) to attach to or logically associate with an
1072	1074		electronic transmission an electronic sound, symbol, or
1073	1075		process, and includes an electronic signature in an electronic
1074	1076		transmission.
1075	1077		(87) STATE. Includes, when referring to a part of the
1076	1078		United States, a state or commonwealth, and its agencies and
1077	1079		governmental subdivisions, and a territory or possession, and
1078		-	its agencies and governmental subdivisions, of the United
1079		-	States.
1080		-	(88) SUBSCRIBER. A person who agrees with or makes an
1081		-	offer to an entity to purchase by subscription an ownership
1082		-	interest in the entity.
1083	1080		504
1084	1081		505
1085	1082		506
1086	1083		507
1087	1084		508
1088	1085		509
1089	1086		510
1090	1087		511
1091	1088		512
1092	1089		513
1093	1090		514
1094	1091		515
1095	1092		516
1096	1093		517
1097	1094		518
1098	1095		519
1099	1096		520
1100	1097		521
1101	1098		522
1102	1099		523
1103	1100		524
1104	1101		525
1105	1102		526
1106	1103		527
1107	1104		528
1108	1105		529
1109	1106		530
1110		-	531 SB112 ~~Enrolled~~
	1107	+	531 SB112 Engrossed
1111	1108		Page 20
	1109	+	governmental subdivisions, and a territory or possession, and
	1110	+	its agencies and governmental subdivisions, of the United
	1111	+	States.
	1112	+	(88) SUBSCRIBER. A person who agrees with or makes an
	1113	+	offer to an entity to purchase by subscription an ownership
1112	1114		interest in the entity.
1113	1115		(89) SUBSCRIPTION. An agreement between a subscriber
1114	1116		and an entity, or a written offer made by a subscriber to an
1115	1117		entity before or after the entity's formation, in which the
1116	1118		subscriber agrees or offers to purchase a specified ownership
1117	1119		interest in the entity.
1118	1120		(90) SUBSIDIARY. An entity at least 50 percent of:
1119	1121		(A) the ownership or membership interest of which is
1120	1122		owned by a parent entity; or
1121	1123		(B) the voting power of which is possessed by a parent
1122	1124		entity.
1123	1125		(91) TREASURER.
1124	1126		(A) The individual designated as treasurer of an entity
1125	1127		under the entity's governing documents; or
1126	1128		(B) the officer or committee of persons authorized to
1127	1129		perform the functions of treasurer of an entity without regard
1128	1130		to the designated name of the officer or committee.
1129	1131		(92) TRUSTEE. A person who serves as a trustee of a
1130	1132		trust, including a real estate investment trust.
1131	1133		(93) UNCERTIFICATED OWNERSHIP INTEREST. An ownership
1132	1134		interest in a domestic entity that is not represented by a
1133	1135		certificate.
1134	1136		(94) VICE PRESIDENT.
1135	1137		(A) The individual designated as vice president of an
1136		-	entity under the governing documents of the entity; or
1137		-	(B) the officer or committee of persons authorized to
1138		-	perform the functions of the president of the entity on the
1139		-	death, absence, or resignation of the president or on the
1140		-	inability of the president to perform the functions of office
1141	1138		532
1142	1139		533
1143	1140		534
1144	1141		535
1145	1142		536
1146	1143		537
1147	1144		538
1148	1145		539
1149	1146		540
1150	1147		541
1151	1148		542
1152	1149		543
1153	1150		544
1154	1151		545
1155	1152		546
1156	1153		547
1157	1154		548
1158	1155		549
1159	1156		550
1160	1157		551
1161	1158		552
1162	1159		553
1163	1160		554
1164	1161		555
1165	1162		556
1166	1163		557
1167	1164		558
1168		-	559 SB112 ~~Enrolled~~
	1165	+	559 SB112 Engrossed
1169	1166		Page 21
	1167	+	(A) The individual designated as vice president of an
	1168	+	entity under the governing documents of the entity; or
	1169	+	(B) the officer or committee of persons authorized to
	1170	+	perform the functions of the president of the entity on the
	1171	+	death, absence, or resignation of the president or on the
1170	1172		inability of the president to perform the functions of office
1171	1173		without regard to the designated name of the officer or
1172	1174		committee.
1173	1175		(95) WRITING or WRITTEN. Information that is inscribed
1174	1176		on a tangible medium or that is stored in an electronic or
1175	1177		other medium and is retrievable in perceivable form."
1176	1178		"§10A-1-1.08
1177	1179		(a) The provisions of this title as described by this
1178	1180		section may be cited as provided by this section.
1179	1181		(b) Chapter 2A and the provisions of Chapter 1 to the
1180	1182		extent applicable to business corporations may be cited as the
1181	1183		Alabama Business Corporation Law.
1182	1184		(c) Chapter 3 or Chapter 3A and the provisions of
1183	1185		Chapter 1 to the extent applicable to nonprofit corporations
1184	1186		may be cited as the Alabama Nonprofit Corporation Law.
1185	1187		(d) Chapter 4 and the provisions of Chapter 1 to the
1186	1188		extent applicable to professional corporations may be cited as
1187	1189		the Alabama Professional Corporation Law.
1188	1190		(e) Chapter 5A and the provisions of Chapter 1 to the
1189	1191		extent applicable to limited liability companies may be cited
1190	1192		as the Alabama Limited Liability Company Law.
1191	1193		(f) Chapter 8A and the provisions of Chapter 1 to the
1192	1194		extent applicable to general partnerships may be cited as the
1193	1195		Alabama Partnership Law.
1194		-	(g) Chapter 9A and the provisions of Chapter 1 to the
1195		-	extent applicable to limited partnerships may be cited as the
1196		-	Alabama Limited Partnership Law.
1197		-	(h) Chapter 10 and the provisions of Chapter 1 to the
1198		-	extent applicable to real estate investment trusts may be
1199	1196		560
1200	1197		561
1201	1198		562
1202	1199		563
1203	1200		564
1204	1201		565
1205	1202		566
1206	1203		567
1207	1204		568
1208	1205		569
1209	1206		570
1210	1207		571
1211	1208		572
1212	1209		573
1213	1210		574
1214	1211		575
1215	1212		576
1216	1213		577
1217	1214		578
1218	1215		579
1219	1216		580
1220	1217		581
1221	1218		582
1222	1219		583
1223	1220		584
1224	1221		585
1225	1222		586
1226		-	587 SB112 ~~Enrolled~~
	1223	+	587 SB112 Engrossed
1227	1224		Page 22
	1225	+	Alabama Partnership Law.
	1226	+	(g) Chapter 9A and the provisions of Chapter 1 to the
	1227	+	extent applicable to limited partnerships may be cited as the
	1228	+	Alabama Limited Partnership Law.
	1229	+	(h) Chapter 10 and the provisions of Chapter 1 to the
1228	1230		extent applicable to real estate investment trusts may be
1229	1231		cited as the Alabama Real Estate Investment Trust Law.
1230	1232		(i) Chapter 11 and the provisions of Chapter 1 and
1231	1233		Chapter 2A to the extent applicable to employee cooperative
1232	1234		corporations may be cited as the Alabama Employee Cooperative
1233	1235		Corporations Law.
1234	1236		(j) Chapter 17 and the provisions of Chapter 1 to the
1235	1237		extent applicable to unincorporated nonprofit associations may
1236	1238		be cited as the Alabama Unincorporated Nonprofit Association
1237	1239		Law."
1238	1240		"§10A-1-3.32
1239	1241		(a) This section applies to domestic entities other
1240	1242		than (i) corporations formed pursuant to or governed by
1241	1243		Chapter 2A or Chapter 4, and real estate investment trusts
1242	1244		formed pursuant to or governed by Chapter 10, each of which is
1243	1245		governed by the separate recordkeeping requirements and record
1244	1246		inspections provisions of Chapter 2A and (ii) nonprofit
1245	1247		corporations formed pursuant to or governed by Chapter 3 or
1246	1248		Chapter 3A, limited liability companies formed pursuant to or
1247	1249		governed by Chapter 5A, general partnerships formed pursuant
1248	1250		to or governed by Chapter 8A, and limited partnerships formed
1249	1251		pursuant to or governed by Chapter 9A, each of which are
1250	1252		governed by the separate recordkeeping requirements and record
1251	1253		inspection provisions set forth in each entity's respective
1252		-	chapter governing that entity.
1253		-	(b) With respect to a domestic entity covered by this
1254		-	section, the books and records maintained under the chapter of
1255		-	this title applicable to that entity and any other books and
1256		-	records of that entity, wherever situated, are subject to
1257	1254		588
1258	1255		589
1259	1256		590
1260	1257		591
1261	1258		592
1262	1259		593
1263	1260		594
1264	1261		595
1265	1262		596
1266	1263		597
1267	1264		598
1268	1265		599
1269	1266		600
1270	1267		601
1271	1268		602
1272	1269		603
1273	1270		604
1274	1271		605
1275	1272		606
1276	1273		607
1277	1274		608
1278	1275		609
1279	1276		610
1280	1277		611
1281	1278		612
1282	1279		613
1283	1280		614
1284		-	615 SB112 ~~Enrolled~~
	1281	+	615 SB112 Engrossed
1285	1282		Page 23
	1283	+	inspection provisions set forth in each entity's respective
	1284	+	chapter governing that entity.
	1285	+	(b) With respect to a domestic entity covered by this
	1286	+	section, the books and records maintained under the chapter of
	1287	+	this title applicable to that entity and any other books and
1286	1288		records of that entity, wherever situated, are subject to
1287	1289		inspection and copying at the reasonable request, and at the
1288	1290		expense of, any owner or member or the owner's or member's
1289	1291		agent or attorney during regular business hours. The right of
1290	1292		access extends to the legal representative of a deceased owner
1291	1293		or member or owner or member under legal disability. The
1292	1294		entity shall also provide former owners and members with
1293	1295		access to its books and records pertaining to the period
1294	1296		during which they were owners or members.
1295	1297		(c) The governing documents of a domestic entity may
1296	1298		not unreasonably restrict an owner's or member's right to
1297	1299		information or access to books and records.
1298	1300		(d) Any agent or governing person of a domestic entity
1299	1301		who, without reasonable cause, refuses to allow any owner or
1300	1302		member or the owner's or member's agent or legal counsel to
1301	1303		inspect any books or records of that entity shall be
1302	1304		personally liable to the agent or member for a penalty in an
1303	1305		amount not to exceed 10 percent of the fair market value of
1304	1306		the ownership interest of the owner or member, in addition to
1305	1307		any other damages or remedy."
1306	1308		"§10A-1-5.31
1307	1309		(a) Each filing entity and each foreign filing entity
1308	1310		with a registration under Article 7, and each general
1309	1311		partnership that has an effective statement of partnership,
1310		-	statement of not for profit partnership, or statement of
1311		-	limited liability partnership on file with the Secretary of
1312		-	State in accordance with Chapter 8A, shall designate and
1313		-	continuously maintain in this state:
1314		-	(1) a registered agent; and
1315	1312		616
1316	1313		617
1317	1314		618
1318	1315		619
1319	1316		620
1320	1317		621
1321	1318		622
1322	1319		623
1323	1320		624
1324	1321		625
1325	1322		626
1326	1323		627
1327	1324		628
1328	1325		629
1329	1326		630
1330	1327		631
1331	1328		632
1332	1329		633
1333	1330		634
1334	1331		635
1335	1332		636
1336	1333		637
1337	1334		638
1338	1335		639
1339	1336		640
1340	1337		641
1341	1338		642
1342		-	643 SB112 ~~Enrolled~~
	1339	+	643 SB112 Engrossed
1343	1340		Page 24
	1341	+	partnership that has an effective statement of partnership,
	1342	+	statement of not for profit partnership, or statement of
	1343	+	limited liability partnership on file with the Secretary of
	1344	+	State in accordance with Chapter 8A, shall designate and
	1345	+	continuously maintain in this state:
1344	1346		(1) a registered agent; and
1345	1347		(2) a registered office.
1346	1348		(b) A registered agent:
1347	1349		(1) is an agent of the entity on which may be served
1348	1350		any process, notice, or demand required or permitted by law to
1349	1351		be served on the entity;
1350	1352		(2) may be:
1351	1353		(A) an individual who is a resident of this state; or
1352	1354		(B) a domestic entity or a foreign entity that is
1353	1355		registered to transact business in this state; and
1354	1356		(3) must maintain a business office at the same address
1355	1357		as the entity's registered office.
1356	1358		(c) The registered office:
1357	1359		(1) must be located at a street address in this state
1358	1360		where process may be personally served on the entity's
1359	1361		registered agent;
1360	1362		(2) is not required to be a place of business of the
1361	1363		filing entity or foreign filing entity; and
1362	1364		(3) may not be solely a mailbox service or a telephone
1363	1365		answering service."
1364	1366		"§10A-2A-1.40
1365	1367		As used in this chapter, unless otherwise specified or
1366	1368		unless the context otherwise requires, the following terms
1367	1369		have the following meanings:
1368		-	(1) AUTHORIZED STOCK means the stock of all classes and
1369		-	series a corporation or foreign corporation is authorized to
1370		-	issue.
1371		-	(2) BENEFICIAL STOCKHOLDER means a person who owns the
1372		-	beneficial interest in stock, which is either a record
1373	1370		644
1374	1371		645
1375	1372		646
1376	1373		647
1377	1374		648
1378	1375		649
1379	1376		650
1380	1377		651
1381	1378		652
1382	1379		653
1383	1380		654
1384	1381		655
1385	1382		656
1386	1383		657
1387	1384		658
1388	1385		659
1389	1386		660
1390	1387		661
1391	1388		662
1392	1389		663
1393	1390		664
1394	1391		665
1395	1392		666
1396	1393		667
1397	1394		668
1398	1395		669
1399	1396		670
1400		-	671 SB112 ~~Enrolled~~
	1397	+	671 SB112 Engrossed
1401	1398		Page 25
	1399	+	have the following meanings:
	1400	+	(1) AUTHORIZED STOCK means the stock of all classes and
	1401	+	series a corporation or foreign corporation is authorized to
	1402	+	issue.
	1403	+	(2) BENEFICIAL STOCKHOLDER means a person who owns the
1402	1404		beneficial interest in stock, which is either a record
1403	1405		stockholder or a person on whose behalf shares of stock are
1404	1406		registered in the name of an intermediary or nominee.
1405	1407		(3) CERTIFICATE OF INCORPORATION means the certificate
1406	1408		of incorporation described in Section 10A-2A-2.02, all
1407	1409		amendments to the certificate of incorporation, and any other
1408	1410		documents permitted or required to be delivered for filing by
1409	1411		a corporation with the Secretary of State under this chapter
1410	1412		or Chapter 1 that modify, amend, supplement, restate, or
1411	1413		replace the certificate of incorporation. After an amendment
1412	1414		of the certificate of incorporation or any other document
1413	1415		filed the filing of a filing instrument under this chapter or
1414	1416		Chapter 1 that restates or amends and restates the certificate
1415	1417		of incorporation in its entirety, the certificate of
1416	1418		incorporation shall not include any prior documents , but the
1417	1419		original date of incorporation shall remain unchanged . When
1418	1420		used with respect to a corporation incorporated and existing
1419	1421		on December 31, 2019, under a predecessor law of this state,
1420	1422		the term "certificate of incorporation" means articles of
1421	1423		incorporation, charter, or similar incorporating document, and
1422	1424		all amendments and restatements to the certificate of
1423	1425		incorporation, charter, or similar incorporating document.
1424	1426		When used with respect to a foreign corporation, a nonprofit
1425	1427		corporation, or a foreign nonprofit corporation, the
1426		-	"certificate of incorporation" of such an entity means the
1427		-	document of such entity that is equivalent to the certificate
1428		-	of incorporation of a corporation. The term "certificate of
1429		-	incorporation" as used in this chapter is synonymous to the
1430		-	term "certificate of formation" used in Chapter 1.
1431	1428		672
1432	1429		673
1433	1430		674
1434	1431		675
1435	1432		676
1436	1433		677
1437	1434		678
1438	1435		679
1439	1436		680
1440	1437		681
1441	1438		682
1442	1439		683
1443	1440		684
1444	1441		685
1445	1442		686
1446	1443		687
1447	1444		688
1448	1445		689
1449	1446		690
1450	1447		691
1451	1448		692
1452	1449		693
1453	1450		694
1454	1451		695
1455	1452		696
1456	1453		697
1457	1454		698
1458		-	699 SB112 ~~Enrolled~~
	1455	+	699 SB112 Engrossed
1459	1456		Page 26
	1457	+	corporation, or a foreign nonprofit corporation, the
	1458	+	"certificate of incorporation" of such an entity means the
	1459	+	document of such entity that is equivalent to the certificate
	1460	+	of incorporation of a corporation. The term "certificate of
	1461	+	incorporation" as used in this chapter is synonymous to the
1460	1462		term "certificate of formation" used in Chapter 1.
1461	1463		(4) CORPORATION, except in the phrase foreign
1462	1464		corporation, means an entity incorporated or existing under
1463	1465		this chapter.
1464	1466		(5) DELIVER or DELIVERY means any method of delivery
1465	1467		used in conventional commercial practice, including delivery
1466	1468		by hand, mail, commercial delivery, and, if authorized in
1467	1469		accordance with Section 10A-2A-1.41, by electronic
1468	1470		transmission.
1469	1471		(6) DISTRIBUTION means a direct or indirect transfer of
1470	1472		cash or other property (except a corporation's own stock) or
1471	1473		incurrence of indebtedness by a corporation to or for the
1472	1474		benefit of its stockholders in respect of any of its stock. A
1473	1475		distribution may be in the form of a payment of a dividend; a
1474	1476		purchase, redemption, or other acquisition of stock; a
1475	1477		distribution of indebtedness; a distribution in liquidation;
1476	1478		or otherwise.
1477	1479		(7) DOCUMENT means a writing as defined in Chapter 1.
1478	1480		(8) EFFECTIVE DATE, when referring to a document
1479	1481		accepted for filing by the Secretary of State, means the time
1480	1482		and date determined in accordance with Article 4 of Chapter 1.
1481	1483		(9) ELECTRONIC MAIL means an electronic transmission
1482	1484		directed to a unique electronic mail address.
1483	1485		(10) ELECTRONIC MAIL ADDRESS means a destination,
1484		-	commonly expressed as a string of characters, consisting of a
1485		-	unique user name or mailbox (commonly referred to as the
1486		-	"local part" of the address) and a reference to an internet
1487		-	domain (commonly referred to as the "domain part" of the
1488		-	address), whether or not displayed, to which electronic mail
1489	1486		700
1490	1487		701
1491	1488		702
1492	1489		703
1493	1490		704
1494	1491		705
1495	1492		706
1496	1493		707
1497	1494		708
1498	1495		709
1499	1496		710
1500	1497		711
1501	1498		712
1502	1499		713
1503	1500		714
1504	1501		715
1505	1502		716
1506	1503		717
1507	1504		718
1508	1505		719
1509	1506		720
1510	1507		721
1511	1508		722
1512	1509		723
1513	1510		724
1514	1511		725
1515	1512		726
1516		-	727 SB112 ~~Enrolled~~
	1513	+	727 SB112 Engrossed
1517	1514		Page 27
	1515	+	(10) ELECTRONIC MAIL ADDRESS means a destination,
	1516	+	commonly expressed as a string of characters, consisting of a
	1517	+	unique user name or mailbox (commonly referred to as the
	1518	+	"local part" of the address) and a reference to an internet
	1519	+	domain (commonly referred to as the "domain part" of the
1518	1520		address), whether or not displayed, to which electronic mail
1519	1521		can be sent or delivered.
1520	1522		(11) ELIGIBLE ENTITY means an unincorporated entity,
1521	1523		foreign unincorporated entity, nonprofit corporation, or
1522	1524		foreign nonprofit corporation.
1523	1525		(12) ELIGIBLE INTERESTS means interests or memberships.
1524	1526		(13) EMPLOYEE includes an officer, but not a director.
1525	1527		A director may accept duties that make the director also an
1526	1528		employee.
1527	1529		(14) ENTITY includes corporation; foreign corporation;
1528	1530		nonprofit corporation; foreign nonprofit corporation; estate;
1529	1531		trust; unincorporated entity; foreign unincorporated entity;
1530	1532		and state, United States, and foreign government.
1531	1533		(15) EXPENSES means reasonable expenses of any kind
1532	1534		that are incurred in connection with a matter.
1533	1535		(16) FILING ENTITY means an unincorporated entity,
1534	1536		other than a limited liability partnership, that is of a type
1535	1537		that is created by filing a public organic record or is
1536	1538		required to file a public organic record that evidences its
1537	1539		creation.
1538	1540		(17) FOREIGN CORPORATION means a corporation
1539	1541		incorporated under a law other than the law of this state
1540	1542		which would be a corporation if incorporated under the law of
1541	1543		this state.
1542		-	(18) FOREIGN NONPROFIT CORPORATION means a corporation
1543		-	incorporated under a law other than the law of this state
1544		-	which would be a nonprofit corporation if incorporated under
1545		-	the law of this state.
1546		-	(19) GOVERNING STATUTE means the statute governing the
1547	1544		728
1548	1545		729
1549	1546		730
1550	1547		731
1551	1548		732
1552	1549		733
1553	1550		734
1554	1551		735
1555	1552		736
1556	1553		737
1557	1554		738
1558	1555		739
1559	1556		740
1560	1557		741
1561	1558		742
1562	1559		743
1563	1560		744
1564	1561		745
1565	1562		746
1566	1563		747
1567	1564		748
1568	1565		749
1569	1566		750
1570	1567		751
1571	1568		752
1572	1569		753
1573	1570		754
1574		-	755 SB112 ~~Enrolled~~
	1571	+	755 SB112 Engrossed
1575	1572		Page 28
	1573	+	this state.
	1574	+	(18) FOREIGN NONPROFIT CORPORATION means a corporation
	1575	+	incorporated under a law other than the law of this state
	1576	+	which would be a nonprofit corporation if incorporated under
	1577	+	the law of this state.
1576	1578		(19) GOVERNING STATUTE means the statute governing the
1577	1579		internal affairs of a corporation, foreign corporation,
1578	1580		nonprofit corporation, foreign nonprofit corporation,
1579	1581		unincorporated entity, or foreign unincorporated entity.
1580	1582		(20) GOVERNMENTAL SUBDIVISION includes authority,
1581	1583		county, district, and municipality.
1582	1584		(21) INCLUDES and INCLUDING denote a partial definition
1583	1585		or a nonexclusive list.
1584	1586		(22) INTEREST means either or both of the following
1585	1587		rights under the governing statute governing an unincorporated
1586	1588		entity:
1587	1589		(i) the right to receive distributions from the entity
1588	1590		either in the ordinary course or upon liquidation; or
1589	1591		(ii) the right to receive notice or vote on issues
1590	1592		involving its internal affairs, other than as an agent,
1591	1593		assignee, proxy, or person responsible for managing its
1592	1594		business and affairs.
1593	1595		(23) INTEREST HOLDER means a person who holds of record
1594	1596		an interest.
1595	1597		(24) KNOWLEDGE is determined as follows:
1596	1598		(a) A person knows a fact when the person:
1597	1599		(1) has actual knowledge of it; or
1598	1600		(2) is deemed to know it under law other than this
1599	1601		chapter.
1600		-	(b) A person has notice of a fact when the person:
1601		-	(1) knows of it;
1602		-	(2) receives notification of it in accordance with
1603		-	Section 10A-2A-1.41;
1604		-	(3) has reason to know the fact from all of the facts
1605	1602		756
1606	1603		757
1607	1604		758
1608	1605		759
1609	1606		760
1610	1607		761
1611	1608		762
1612	1609		763
1613	1610		764
1614	1611		765
1615	1612		766
1616	1613		767
1617	1614		768
1618	1615		769
1619	1616		770
1620	1617		771
1621	1618		772
1622	1619		773
1623	1620		774
1624	1621		775
1625	1622		776
1626	1623		777
1627	1624		778
1628	1625		779
1629	1626		780
1630	1627		781
1631	1628		782
1632		-	783 SB112 ~~Enrolled~~
	1629	+	783 SB112 Engrossed
1633	1630		Page 29
	1631	+	chapter.
	1632	+	(b) A person has notice of a fact when the person:
	1633	+	(1) knows of it;
	1634	+	(2) receives notification of it in accordance with
	1635	+	Section 10A-2A-1.41;
1634	1636		(3) has reason to know the fact from all of the facts
1635	1637		known to the person at the time in question; or
1636	1638		(4) is deemed to have notice of the fact under
1637	1639		subsection (d).
1638	1640		(c) A person notifies another of a fact by taking steps
1639	1641		reasonably required to inform the other person in ordinary
1640	1642		course in accordance with Section 10A-2A-1.41, whether or not
1641	1643		the other person knows the fact.
1642	1644		(d) A person is deemed to have notice of a
1643	1645		corporation's:
1644	1646		(1) matters included in the certificate of
1645	1647		incorporation upon filing;
1646	1648		(2) dissolution, 90 days after a certificate of
1647	1649		dissolution under Section 10A-2A-14.03 becomes effective;
1648	1650		(3) conversion, merger, or interest exchange under
1649	1651		Article 9 or Article 11, 90 days after a statement of
1650	1652		conversion, or statement of merger or interest exchange
1651	1653		becomes effective;
1652	1654		(4) conversion or merger under Article 8 of Chapter 1,
1653	1655		90 days after a statement of conversion or statement of merger
1654	1656		becomes effective; and
1655	1657		(5) revocation of dissolution and reinstatement, 90
1656	1658		days after certificate of revocation of dissolution and
1657	1659		reinstatement under Section 10A-2A-14.04 becomes effective.
1658		-	(e) A stockholder's knowledge, notice, or receipt of a
1659		-	notification of a fact relating to the corporation is not
1660		-	knowledge, notice, or receipt of a notification of a fact by
1661		-	the corporation solely by reason of the stockholder's capacity
1662		-	as a stockholder.
1663	1660		784
1664	1661		785
1665	1662		786
1666	1663		787
1667	1664		788
1668	1665		789
1669	1666		790
1670	1667		791
1671	1668		792
1672	1669		793
1673	1670		794
1674	1671		795
1675	1672		796
1676	1673		797
1677	1674		798
1678	1675		799
1679	1676		800
1680	1677		801
1681	1678		802
1682	1679		803
1683	1680		804
1684	1681		805
1685	1682		806
1686	1683		807
1687	1684		808
1688	1685		809
1689	1686		810
1690		-	811 SB112 ~~Enrolled~~
	1687	+	811 SB112 Engrossed
1691	1688		Page 30
	1689	+	reinstatement under Section 10A-2A-14.04 becomes effective.
	1690	+	(e) A stockholder's knowledge, notice, or receipt of a
	1691	+	notification of a fact relating to the corporation is not
	1692	+	knowledge, notice, or receipt of a notification of a fact by
	1693	+	the corporation solely by reason of the stockholder's capacity
1692	1694		as a stockholder.
1693	1695		(f) The date and time of the effectiveness of a notice
1694	1696		delivered in accordance with Section 10A-2A-1.41, is
1695	1697		determined by Section 10A-2A-1.41.
1696	1698		(25) MEANS denotes an exhaustive definition.
1697	1699		(26) MEMBERSHIP means the rights of a member in a
1698	1700		nonprofit corporation or foreign nonprofit corporation.
1699	1701		(27) ORGANIZATIONAL DOCUMENTS means the public organic
1700	1702		record and private organizational documents of a corporation,
1701	1703		foreign corporation, or eligible entity.
1702	1704		(28) PRINCIPAL OFFICE means the office (in or out of
1703	1705		this state) so designated in the annual report where the
1704	1706		principal executive offices of a corporation or foreign
1705	1707		corporation are located.
1706	1708		(29) PRIVATE ORGANIZATIONAL DOCUMENTS means (i) the
1707	1709		bylaws of a corporation, foreign corporation, nonprofit
1708	1710		corporation, or foreign nonprofit corporation, or (ii) the
1709	1711		rules, regardless of whether in writing, that govern the
1710	1712		internal affairs of an unincorporated entity or foreign
1711	1713		unincorporated entity, are binding on all its interest
1712	1714		holders, and are not part of its public organic record, if
1713	1715		any. Where private organizational documents have been amended
1714	1716		or restated, the term means the private organizational
1715	1717		documents as last amended or restated.
1716		-	(30) PROCEEDING includes any civil suit and criminal,
1717		-	administrative, and investigatory action.
1718		-	(31) PUBLIC ORGANIC RECORD means (i) the certificate of
1719		-	incorporation of a corporation, foreign corporation, nonprofit
1720		-	corporation, or foreign nonprofit corporation, or (ii) the
1721	1718		812
1722	1719		813
1723	1720		814
1724	1721		815
1725	1722		816
1726	1723		817
1727	1724		818
1728	1725		819
1729	1726		820
1730	1727		821
1731	1728		822
1732	1729		823
1733	1730		824
1734	1731		825
1735	1732		826
1736	1733		827
1737	1734		828
1738	1735		829
1739	1736		830
1740	1737		831
1741	1738		832
1742	1739		833
1743	1740		834
1744	1741		835
1745	1742		836
1746	1743		837
1747	1744		838
1748		-	839 SB112 ~~Enrolled~~
	1745	+	839 SB112 Engrossed
1749	1746		Page 31
	1747	+	documents as last amended or restated.
	1748	+	(30) PROCEEDING includes any civil suit and criminal,
	1749	+	administrative, and investigatory action.
	1750	+	(31) PUBLIC ORGANIC RECORD means (i) the certificate of
	1751	+	incorporation of a corporation, foreign corporation, nonprofit
1750	1752		corporation, or foreign nonprofit corporation, or (ii) the
1751	1753		document, if any, the filing of which is required to create an
1752	1754		unincorporated entity or foreign unincorporated entity, or
1753	1755		which creates the unincorporated entity or foreign
1754	1756		unincorporated entity and is required to be filed. Where a
1755	1757		public organic record has been amended or restated, the term
1756	1758		means the public organic record as last amended or restated.
1757	1759		(32) RECORD DATE means the date fixed for determining
1758	1760		the identity of the corporation's stockholders and their
1759	1761		stockholdings for purposes of this chapter. Unless another
1760	1762		time is specified when the record date is fixed, the
1761	1763		determination shall be made as of the close of business at the
1762	1764		principal office of the corporation on the date so fixed.
1763	1765		(33) RECORD STOCKHOLDER means (i) the person in whose
1764	1766		name shares of stock are registered in the records of the
1765	1767		corporation, or (ii) the person identified as the beneficial
1766	1768		owner of stock in a beneficial ownership certificate pursuant
1767	1769		to Section 10A-2A-7.23 on file with the corporation to the
1768	1770		extent of the rights granted by such certificate.
1769	1771		(34) SECRETARY means the corporate officer to whom the
1770	1772		board of directors has delegated responsibility under Section
1771	1773		10A-2A-8.40(c) to maintain the minutes of the meetings of the
1772	1774		board of directors and of the stockholders and for
1773	1775		authenticating records of the corporation.
1774		-	(35) STOCK EXCHANGE means a transaction pursuant to
1775		-	Section 10A-2A-11.03.
1776		-	(36) STOCKHOLDER means a record stockholder.
1777		-	(37) STOCK means the units into which the proprietary
1778		-	interests in a corporation or foreign corporation are divided.
1779	1776		840
1780	1777		841
1781	1778		842
1782	1779		843
1783	1780		844
1784	1781		845
1785	1782		846
1786	1783		847
1787	1784		848
1788	1785		849
1789	1786		850
1790	1787		851
1791	1788		852
1792	1789		853
1793	1790		854
1794	1791		855
1795	1792		856
1796	1793		857
1797	1794		858
1798	1795		859
1799	1796		860
1800	1797		861
1801	1798		862
1802	1799		863
1803	1800		864
1804	1801		865
1805	1802		866
1806		-	867 SB112 ~~Enrolled~~
	1803	+	867 SB112 Engrossed
1807	1804		Page 32
	1805	+	authenticating records of the corporation.
	1806	+	(35) STOCK EXCHANGE means a transaction pursuant to
	1807	+	Section 10A-2A-11.03.
	1808	+	(36) STOCKHOLDER means a record stockholder.
	1809	+	(37) STOCK means the units into which the proprietary
1808	1810		interests in a corporation or foreign corporation are divided.
1809	1811		(38) TYPE OF ENTITY means a generic form of entity: (i)
1810	1812		recognized at common law; or (ii) formed under a governing
1811	1813		statute, regardless of whether some entities formed under that
1812	1814		law are subject to provisions of that law that create
1813	1815		different categories of the form of entity.
1814	1816		(39) UNINCORPORATED ENTITY means an organization or
1815	1817		artificial legal person that either has a separate legal
1816	1818		existence or has the power to acquire an estate in real
1817	1819		property in its own name and that is not any of the following:
1818	1820		a corporation, foreign corporation, nonprofit corporation,
1819	1821		foreign nonprofit corporation, a series of a limited liability
1820	1822		company or of another type of entity, an estate, a trust, a
1821	1823		state, United States, or foreign government. The term includes
1822	1824		a general partnership, limited liability company, limited
1823	1825		partnership, business trust, joint stock association, and
1824	1826		unincorporated nonprofit association.
1825	1827		(40) UNITED STATES includes any district, authority,
1826	1828		bureau, commission, department, and any other agency of the
1827	1829		United States.
1828	1830		(41) UNRESTRICTED VOTING TRUST BENEFICIAL OWNER means,
1829	1831		with respect to any stockholder rights, a voting trust
1830	1832		beneficial owner whose entitlement to exercise the stockholder
1831	1833		right in question is not inconsistent with the voting trust
1832		-	agreement.
1833		-	(42) VOTING GROUP means all stock of one or more
1834		-	classes or series that under the certificate of incorporation
1835		-	or this chapter are entitled to vote and be counted together
1836		-	collectively on a matter at a meeting of stockholders. All
1837	1834		868
1838	1835		869
1839	1836		870
1840	1837		871
1841	1838		872
1842	1839		873
1843	1840		874
1844	1841		875
1845	1842		876
1846	1843		877
1847	1844		878
1848	1845		879
1849	1846		880
1850	1847		881
1851	1848		882
1852	1849		883
1853	1850		884
1854	1851		885
1855	1852		886
1856	1853		887
1857	1854		888
1858	1855		889
1859	1856		890
1860	1857		891
1861	1858		892
1862	1859		893
1863	1860		894
1864		-	895 SB112 ~~Enrolled~~
	1861	+	895 SB112 Engrossed
1865	1862		Page 33
	1863	+	right in question is not inconsistent with the voting trust
	1864	+	agreement.
	1865	+	(42) VOTING GROUP means all stock of one or more
	1866	+	classes or series that under the certificate of incorporation
	1867	+	or this chapter are entitled to vote and be counted together
1866	1868		collectively on a matter at a meeting of stockholders. All
1867	1869		stock entitled by the certificate of incorporation or this
1868	1870		chapter to vote generally on the matter is for that purpose a
1869	1871		single voting group.
1870	1872		(43) VOTING POWER means the current power to vote in
1871	1873		the election of directors.
1872	1874		(44) VOTING TRUST BENEFICIAL OWNER means an owner of a
1873	1875		beneficial interest in stock of the corporation held in a
1874	1876		voting trust established pursuant to Section 10A-2A-7.30(a)."
1875	1877		"§10A-2A-1.48
1876	1878		(a) The quorum and voting requirements applicable to a
1877	1879		ratifying action by the board of directors under Section
1878	1880		10A-2A-1.47(a) shall be the quorum and voting requirements
1879	1881		applicable to the corporate action proposed to be ratified at
1880	1882		the time such the ratifying action is taken.
1881	1883		(b) If the ratification of the defective corporate
1882	1884		action requires approval by the stockholders under Section
1883	1885		10A-2A-1.47(c), and if the approval is to be given at a
1884	1886		meeting, the corporation shall notify each holder of valid and
1885	1887		putative stock, regardless of whether entitled to vote , as of
1886	1888		(i) the record date for notice of the meeting and as of (i)
1887	1889		the date of the action by the board of directors under Section
1888	1890		10A-2A-1.47(a), which shall be the record date, and (ii) the
1889	1891		date of the occurrence of the defective corporate action,
1890		-	provided that notice shall not be required to be given to
1891		-	holders of valid or putative stock whose identities or
1892		-	addresses for notice cannot be determined from the records of
1893		-	the corporation. The notice must state that the purpose, or
1894		-	one of the purposes, of the meeting, is to consider
1895	1892		896
1896	1893		897
1897	1894		898
1898	1895		899
1899	1896		900
1900	1897		901
1901	1898		902
1902	1899		903
1903	1900		904
1904	1901		905
1905	1902		906
1906	1903		907
1907	1904		908
1908	1905		909
1909	1906		910
1910	1907		911
1911	1908		912
1912	1909		913
1913	1910		914
1914	1911		915
1915	1912		916
1916	1913		917
1917	1914		918
1918	1915		919
1919	1916		920
1920	1917		921
1921	1918		922
1922		-	923 SB112 ~~Enrolled~~
	1919	+	923 SB112 Engrossed
1923	1920		Page 34
	1921	+	date of the occurrence of the defective corporate action,
	1922	+	provided that notice shall not be required to be given to
	1923	+	holders of valid or putative stock whose identities or
	1924	+	addresses for notice cannot be determined from the records of
	1925	+	the corporation. The notice must state that the purpose, or
1924	1926		one of the purposes, of the meeting, is to consider
1925	1927		ratification of a defective corporate action and must be
1926	1928		accompanied by (i) either a copy of the action taken by the
1927	1929		board of directors in accordance with Section 10A-2A-1.47(a)
1928	1930		or the information required by Section 10A-2A-1.47(a)(1)
1929	1931		through (a)(4), and (ii) a statement that any claim that the
1930	1932		ratification of such the defective corporate action and any
1931	1933		putative stock issued as a result of such the defective
1932	1934		corporate action should not be effective, or should be
1933	1935		effective only on certain conditions, shall be brought within
1934	1936		120 days from the applicable validation effective time.
1935	1937		(c) Except as provided in subsection (d) with respect
1936	1938		to the voting requirements to ratify the election of a
1937	1939		director, the quorum and voting requirements applicable to the
1938	1940		approval by the stockholders required by Section
1939	1941		10A-2A-1.47(c) shall be the quorum and voting requirements
1940	1942		applicable to the corporate action proposed to be ratified at
1941	1943		the time of such the stockholder approval.
1942	1944		(d) The approval by stockholders to ratify the election
1943	1945		of a director requires that the votes cast within the voting
1944	1946		group favoring such the ratification exceed the votes cast
1945	1947		opposing the ratification of the election at a meeting at
1946	1948		which a quorum is present.
1947	1949		(e) Putative stock on the record date for determining
1948		-	the stockholders entitled to vote on any matter submitted to
1949		-	stockholders under Section 10A-2A-1.47(c) of the action by the
1950		-	board of directors under Section 10A-2A-1.47(a) (and without
1951		-	giving effect to any ratification of putative stock that
1952		-	becomes effective as a result of such the vote) shall neither
1953	1950		924
1954	1951		925
1955	1952		926
1956	1953		927
1957	1954		928
1958	1955		929
1959	1956		930
1960	1957		931
1961	1958		932
1962	1959		933
1963	1960		934
1964	1961		935
1965	1962		936
1966	1963		937
1967	1964		938
1968	1965		939
1969	1966		940
1970	1967		941
1971	1968		942
1972	1969		943
1973	1970		944
1974	1971		945
1975	1972		946
1976	1973		947
1977	1974		948
1978	1975		949
1979	1976		950
1980		-	951 SB112 ~~Enrolled~~
	1977	+	951 SB112 Engrossed
1981	1978		Page 35
	1979	+	(e) Putative stock on the record date for determining
	1980	+	the stockholders entitled to vote on any matter submitted to
	1981	+	stockholders under Section 10A-2A-1.47(c) of the action by the
	1982	+	board of directors under Section 10A-2A-1.47(a) (and without
	1983	+	giving effect to any ratification of putative stock that
1982	1984		becomes effective as a result of such the vote) shall neither
1983	1985		be entitled to vote nor counted for quorum purposes in any
1984	1986		vote to approve the ratification of any defective corporate
1985	1987		action.
1986	1988		(f) If the approval under this section of putative
1987	1989		stock would result in an overissue, in addition to the
1988	1990		approval required by Section 10A-2A-1.47, approval of an
1989	1991		amendment to the certificate of incorporation under Article 10
1990	1992		to increase the number of shares of stock of an authorized
1991	1993		class or series or to authorize the creation of a class or
1992	1994		series of stock so there would be no overissue shall also be
1993	1995		required."
1994	1996		"§10A-2A-1.51
1995	1997		(a) If the defective corporate action ratified under
1996	1998		this Division D of Article 1 would have required under any
1997	1999		other section of this chapter a filing in accordance with this
1998	2000		chapter, then, regardless of whether a filing was previously
1999	2001		made in respect of such defective corporate action and
2000	2002		instrument to be delivered to a filing officer for filing and
2001	2003		either (i) the filing instrument requires any change to give
2002	2004		effect to the defective corporate action in accordance with
2003	2005		this Division D of Article 1 (including any change to the date
2004	2006		and time of the effectiveness of the filing instrument) or
2005	2007		(ii) a filing instrument under any other section of this
2006		-	chapter was not previously delivered to a filing officer for
2007		-	filing in respect of the defective corporate action, then, in
2008		-	lieu of a filing instrument otherwise required by this
2009		-	chapter, the corporation shall file deliver a certificate of
2010		-	validation to the appropriate filing officer for filing in
2011	2008		952
2012	2009		953
2013	2010		954
2014	2011		955
2015	2012		956
2016	2013		957
2017	2014		958
2018	2015		959
2019	2016		960
2020	2017		961
2021	2018		962
2022	2019		963
2023	2020		964
2024	2021		965
2025	2022		966
2026	2023		967
2027	2024		968
2028	2025		969
2029	2026		970
2030	2027		971
2031	2028		972
2032	2029		973
2033	2030		974
2034	2031		975
2035	2032		976
2036	2033		977
2037	2034		978
2038		-	979 SB112 ~~Enrolled~~
	2035	+	979 SB112 Engrossed
2039	2036		Page 36
	2037	+	(ii) a filing instrument under any other section of this
	2038	+	chapter was not previously delivered to a filing officer for
	2039	+	filing in respect of the defective corporate action, then, in
	2040	+	lieu of a filing instrument otherwise required by this
	2041	+	chapter, the corporation shall file deliver a certificate of
2040	2042		validation to the appropriate filing officer for filing in
2041	2043		accordance with this section, and that certificate of
2042	2044		validation shall serve to amend or substitute for any other
2043	2045		filing instrument with respect to such the defective corporate
2044	2046		action required by this chapter.
2045	2047		(b) The certificate of validation must set forth:
2046	2048		(1) the name of the corporation;
2047	2049		(2) the unique identifying number or other designation
2048	2050		as assigned by the Secretary of State;
2049	2051		(3) the defective corporate action that is the subject
2050	2052		of the certificate of validation (including, in the case of
2051	2053		any defective corporate action involving the issuance of
2052	2054		putative stock, the number and type of shares of putative
2053	2055		stock issued and the date or dates upon which that putative
2054	2056		stock was purported to have been issued);
2055	2057		(4) the date of the defective corporate action;
2056	2058		(5) the nature of the failure of authorization in
2057	2059		respect of the defective corporate action;
2058	2060		(6)(3) a statement that the defective corporate action
2059	2061		was ratified in accordance with Section 10A-2A-1.47, including
2060	2062		the date on which the board of directors ratified that
2061	2063		defective corporate action and the date, if any, on which the
2062	2064		stockholders approved the ratification of that defective
2063	2065		corporate action; and
2064		-	(7)(4) the information required by subsection (c).
2065		-	(c) The certificate of validation must also contain the
2066		-	following information:
2067		-	(1) if a filing was previously made in respect of the
2068		-	defective corporate action and no changes to that filing are
2069	2066		980
2070	2067		981
2071	2068		982
2072	2069		983
2073	2070		984
2074	2071		985
2075	2072		986
2076	2073		987
2077	2074		988
2078	2075		989
2079	2076		990
2080	2077		991
2081	2078		992
2082	2079		993
2083	2080		994
2084	2081		995
2085	2082		996
2086	2083		997
2087	2084		998
2088	2085		999
2089	2086		1000
2090	2087		1001
2091	2088		1002
2092	2089		1003
2093	2090		1004
2094	2091		1005
2095	2092		1006
2096		-	1007 SB112 ~~Enrolled~~
	2093	+	1007 SB112 Engrossed
2097	2094		Page 37
	2095	+	corporate action; and
	2096	+	(7)(4) the information required by subsection (c).
	2097	+	(c) The certificate of validation must also contain the
	2098	+	following information:
	2099	+	(1) if a filing was previously made in respect of the
2098	2100		defective corporate action and no changes to that filing are
2099	2101		required to give effect to the ratification of that defective
2100	2102		corporate action in accordance with Section 10A-2A-1.47, the
2101	2103		certificate of validation must set forth (i) the name, title,
2102	2104		and filing date of the filing previously made and any
2103	2105		certificate of correction to that filing, and (ii) a statement
2104	2106		that a copy of the filing previously made, together with any
2105	2107		certificate of correction to that filing, is attached as an
2106	2108		exhibit to the certificate of validation;
2107	2109		(2)(1) if a filing instrument was previously made
2108	2110		delivered to a filing officer for filing in respect of the
2109	2111		defective corporate action and that filing instrument requires
2110	2112		any change to give effect to the ratification of that
2111	2113		defective corporate action in accordance with Section
2112	2114		10A-2A-1.47, the certificate of validation must set forth (i)
2113	2115		the name, title, and filing date of the filing instrument
2114	2116		previously made delivered to a filing officer for filing and
2115	2117		any certificate of correction to that filing instrument, and
2116	2118		(ii) a statement that a filing instrument containing all of
2117	2119		the information required to be included under the applicable
2118	2120		section or sections of this chapter to give effect to that
2119	2121		defective corporate action is attached as an exhibit to the
2120	2122		certificate of validation, and (iii) the date and time that
2121	2123		filing instrument is deemed to have become effective; or
2122		-	(3)(2) if a filing instrument was not previously made
2123		-	delivered to a filing officer for filing in respect of the
2124		-	defective corporate action and the defective corporate action
2125		-	ratified under Section 10A-2A-1.47 would have required a
2126		-	filing instrument under any other section of this chapter, the
2127	2124		1008
2128	2125		1009
2129	2126		1010
2130	2127		1011
2131	2128		1012
2132	2129		1013
2133	2130		1014
2134	2131		1015
2135	2132		1016
2136	2133		1017
2137	2134		1018
2138	2135		1019
2139	2136		1020
2140	2137		1021
2141	2138		1022
2142	2139		1023
2143	2140		1024
2144	2141		1025
2145	2142		1026
2146	2143		1027
2147	2144		1028
2148	2145		1029
2149	2146		1030
2150	2147		1031
2151	2148		1032
2152	2149		1033
2153	2150		1034
2154		-	1035 SB112 ~~Enrolled~~
	2151	+	1035 SB112 Engrossed
2155	2152		Page 38
	2153	+	filing instrument is deemed to have become effective; or
	2154	+	(3)(2) if a filing instrument was not previously made
	2155	+	delivered to a filing officer for filing in respect of the
	2156	+	defective corporate action and the defective corporate action
	2157	+	ratified under Section 10A-2A-1.47 would have required a
2156	2158		filing instrument under any other section of this chapter, the
2157	2159		certificate of validation must set forth (i) a statement that
2158	2160		a filing instrument containing all of the information required
2159	2161		to be included under the applicable section or sections of
2160	2162		this chapter to give effect to that defective corporate action
2161	2163		is attached as an exhibit to the certificate of validation,
2162	2164		and (ii) the date and time that filing instrument is deemed to
2163	2165		have become effective."
2164	2166		"§10A-2A-2.02
2165	2167		Section 10A-1-3.05 shall not apply to this chapter.
2166	2168		Instead:
2167	2169		(a) The certificate of incorporation must set forth:
2168	2170		(1) a corporate name for the corporation that satisfies
2169	2171		the requirements of Article 5 of Chapter 1;
2170	2172		(2) the number of shares of stock the corporation is
2171	2173		authorized to issue;
2172	2174		(3) the street and mailing addresses of the
2173	2175		corporation's initial registered office, the county within
2174	2176		this state in which the street and mailing address is located,
2175	2177		and the name of the corporation's initial registered agent at
2176	2178		that office as required by Article 5 of Chapter 1; and
2177	2179		(4) the name and address of each incorporator.
2178	2180		(b) The certificate of incorporation may set forth:
2179	2181		(1) the names and addresses of the individuals who are
2180		-	to serve as the initial directors;
2181		-	(2) provisions not inconsistent with law regarding:
2182		-	(i) the purpose or purposes for which the corporation
2183		-	is organized;
2184		-	(ii) managing the business and regulating the affairs
2185	2182		1036
2186	2183		1037
2187	2184		1038
2188	2185		1039
2189	2186		1040
2190	2187		1041
2191	2188		1042
2192	2189		1043
2193	2190		1044
2194	2191		1045
2195	2192		1046
2196	2193		1047
2197	2194		1048
2198	2195		1049
2199	2196		1050
2200	2197		1051
2201	2198		1052
2202	2199		1053
2203	2200		1054
2204	2201		1055
2205	2202		1056
2206	2203		1057
2207	2204		1058
2208	2205		1059
2209	2206		1060
2210	2207		1061
2211	2208		1062
2212		-	1063 SB112 ~~Enrolled~~
	2209	+	1063 SB112 Engrossed
2213	2210		Page 39
	2211	+	(1) the names and addresses of the individuals who are
	2212	+	to serve as the initial directors;
	2213	+	(2) provisions not inconsistent with law regarding:
	2214	+	(i) the purpose or purposes for which the corporation
	2215	+	is organized;
2214	2216		(ii) managing the business and regulating the affairs
2215	2217		of the corporation;
2216	2218		(iii) defining, limiting, and regulating the powers of
2217	2219		the corporation, its board of directors, and stockholders;
2218	2220		(iv) a par value for authorized stock or classes of
2219	2221		stock; or
2220	2222		(v) subject to subsection (f), a provision imposing
2221	2223		personal liability for the debts of the corporation on its
2222	2224		stockholders to a specified extent and upon specified
2223	2225		conditions; otherwise, the stockholders of a corporation shall
2224	2226		not be personally liable for the payment of the corporation's
2225	2227		debts, except as they may be liable by reason of their own
2226	2228		conduct or acts;
2227	2229		(3) any provision that under this chapter is permitted
2228	2230		to be set forth in the certificate of incorporation or
2229	2231		required or permitted to be set forth in the bylaws;
2230	2232		(4) a provision eliminating or limiting the liability
2231	2233		of a director or officer to the corporation or its
2232	2234		shareholders stockholders for money damages for any action
2233	2235		taken, or any failure to take any action, as a director or
2234	2236		officer, except liability for (i) the amount of a financial
2235	2237		benefit received by a director or officer to which the
2236	2238		director or officer is not entitled; (ii) an intentional
2237	2239		infliction of harm on the corporation or the stockholders;
2238		-	(iii) in the case of a director, a violation of Section
2239		-	10A-2A-8.32; or (iv) an intentional violation of criminal law;
2240		-	or (v) in the case of an officer, any claim by or in the right
2241		-	of the corporation;
2242		-	(5) a provision permitting or making obligatory
2243	2240		1064
2244	2241		1065
2245	2242		1066
2246	2243		1067
2247	2244		1068
2248	2245		1069
2249	2246		1070
2250	2247		1071
2251	2248		1072
2252	2249		1073
2253	2250		1074
2254	2251		1075
2255	2252		1076
2256	2253		1077
2257	2254		1078
2258	2255		1079
2259	2256		1080
2260	2257		1081
2261	2258		1082
2262	2259		1083
2263	2260		1084
2264	2261		1085
2265	2262		1086
2266	2263		1087
2267	2264		1088
2268	2265		1089
2269	2266		1090
2270		-	1091 SB112 ~~Enrolled~~
	2267	+	1091 SB112 Engrossed
2271	2268		Page 40
	2269	+	infliction of harm on the corporation or the stockholders;
	2270	+	(iii) in the case of a director, a violation of Section
	2271	+	10A-2A-8.32; or (iv) an intentional violation of criminal law;
	2272	+	or (v) in the case of an officer, any claim by or in the right
	2273	+	of the corporation;
2272	2274		(5) a provision permitting or making obligatory
2273	2275		indemnification of a director for liability as defined in
2274	2276		Section 10A-2A-8.50 to any person for any action taken, or any
2275	2277		failure to take any action, as a director, except liability
2276	2278		for (i) receipt of a financial benefit to which the director
2277	2279		is not entitled, (ii) an intentional infliction of harm on the
2278	2280		corporation or its stockholders, (iii) a violation of Section
2279	2281		10A-2A-8.32, or (iv) an intentional violation of criminal law;
2280	2282		and
2281	2283		(6) a provision limiting or eliminating any duty of a
2282	2284		director or any other person to offer the corporation the
2283	2285		right to have or participate in any, or one or more classes or
2284	2286		categories of, business opportunities, before the pursuit or
2285	2287		taking of the opportunity by the director or other person;
2286	2288		provided that any application of that provision to an officer
2287	2289		or a related person of that officer (i) also requires approval
2288	2290		of that application by the board of directors, subsequent to
2289	2291		the effective date of the provision, by action of qualified
2290	2292		directors taken in compliance with the same procedures as are
2291	2293		set forth in Section 10A-2A-8.60 ,; and (ii) may be limited by
2292	2294		the authorizing action of the board of directors.
2293	2295		(c) The certificate of incorporation need not set forth
2294	2296		any of the corporate powers enumerated in Sections 10A-1-2.11,
2295	2297		10A-1-2.12, and 10A-1-2.13.
2296		-	(d) Provisions of the certificate of incorporation may
2297		-	be made dependent upon facts objectively ascertainable outside
2298		-	the certificate of incorporation in accordance with Section
2299		-	10A-2A-1.20(c).
2300		-	(e) As used in this section, "related person" means:
2301	2298		1092
2302	2299		1093
2303	2300		1094
2304	2301		1095
2305	2302		1096
2306	2303		1097
2307	2304		1098
2308	2305		1099
2309	2306		1100
2310	2307		1101
2311	2308		1102
2312	2309		1103
2313	2310		1104
2314	2311		1105
2315	2312		1106
2316	2313		1107
2317	2314		1108
2318	2315		1109
2319	2316		1110
2320	2317		1111
2321	2318		1112
2322	2319		1113
2323	2320		1114
2324	2321		1115
2325	2322		1116
2326	2323		1117
2327	2324		1118
2328		-	1119 SB112 ~~Enrolled~~
	2325	+	1119 SB112 Engrossed
2329	2326		Page 41
	2327	+	10A-1-2.12, and 10A-1-2.13.
	2328	+	(d) Provisions of the certificate of incorporation may
	2329	+	be made dependent upon facts objectively ascertainable outside
	2330	+	the certificate of incorporation in accordance with Section
	2331	+	10A-2A-1.20(c).
2330	2332		(e) As used in this section, "related person" means:
2331	2333		(i) the individual's spouse;
2332	2334		(ii) a child, stepchild, grandchild, parent,
2333	2335		stepparent, grandparent, sibling, stepsibling, half sibling,
2334	2336		aunt, uncle, niece, or nephew (or spouse of any such person)
2335	2337		of the individual or of the individual's spouse;
2336	2338		(iii) a natural person living in the same home as the
2337	2339		individual;
2338	2340		(iv) an entity (other than the corporation or an entity
2339	2341		controlled by the corporation) controlled by the individual or
2340	2342		any person specified above in this definition;
2341	2343		(v) a domestic or foreign:
2342	2344		(A) business or nonprofit corporation (other than the
2343	2345		corporation or an entity controlled by the corporation) of
2344	2346		which the individual is a director ;,
2345	2347		(B) unincorporated entity of which the individual is a
2346	2348		general partner or a member of the governing authority ;, or
2347	2349		(C) individual, trust or estate for whom or of which
2348	2350		the individual is a trustee, guardian, personal
2349	2351		representative, or like fiduciary ;, or
2350	2352		(vi) a person that is, or an entity that is, controlled
2351	2353		by an employer of the individual.
2352	2354		(f) The certificate of incorporation may not contain
2353	2355		any provision that would impose liability on a stockholder for
2354		-	the attorney's fees or expenses of the corporation or any
2355		-	other party in connection with an internal corporate claim, as
2356		-	defined in Section 10A-2A-2.07(d).
2357		-	(g) The certificate of incorporation is part of a
2358		-	binding contract between the corporation and the stockholders,
2359	2356		1120
2360	2357		1121
2361	2358		1122
2362	2359		1123
2363	2360		1124
2364	2361		1125
2365	2362		1126
2366	2363		1127
2367	2364		1128
2368	2365		1129
2369	2366		1130
2370	2367		1131
2371	2368		1132
2372	2369		1133
2373	2370		1134
2374	2371		1135
2375	2372		1136
2376	2373		1137
2377	2374		1138
2378	2375		1139
2379	2376		1140
2380	2377		1141
2381	2378		1142
2382	2379		1143
2383	2380		1144
2384	2381		1145
2385	2382		1146
2386		-	1147 SB112 ~~Enrolled~~
	2383	+	1147 SB112 Engrossed
2387	2384		Page 42
	2385	+	any provision that would impose liability on a stockholder for
	2386	+	the attorney's fees or expenses of the corporation or any
	2387	+	other party in connection with an internal corporate claim, as
	2388	+	defined in Section 10A-2A-2.07(d).
	2389	+	(g) The certificate of incorporation is part of a
2388	2390		binding contract between the corporation and the stockholders,
2389	2391		subject to the provisions of this chapter.
2390	2392		(h) For purposes of subsection (b)(4) only, unless the
2391	2393		certificate of incorporation otherwise provides, "officer"
2392	2394		means an individual appointed or elected in accordance with
2393	2395		Section 10A-2A-8.40 as (i) president, chief executive officer,
2394	2396		chief operating officer, chief financial officer, chief legal
2395	2397		officer, secretary, controller, treasurer, or chief accounting
2396	2398		officer of the corporation; and (ii) any officer of the
2397	2399		corporation designated by resolution of the board of directors
2398	2400		as an "officer" for purposes of subsection (b)(4). The board
2399	2401		of directors may, from time to time, by resolution determine
2400	2402		that one or more of the officers designated in accordance with
2401	2403		subsection (h)(ii) shall no longer be an officer for purposes
2402	2404		of subsection (b)(4), but no such resolution shall be
2403	2405		effective as to any such officer, or any act or omission of
2404	2406		any such officer, prior to the adoption of the resolution.
2405	2407		(i) No provision in the certificate of incorporation
2406	2408		pursuant to subsection (b)(4) shall eliminate or limit the
2407	2409		liability of a director or officer for any act or omission
2408	2410		occurring prior to the date when the provision in the
2409	2411		certificate of incorporation becomes effective. Any amendment,
2410	2412		repeal, or elimination of a provision in the certificate of
2411	2413		incorporation pursuant to subsection (b)(4) shall not affect
2412		-	its application with respect to an act or omission by a
2413		-	director or officer occurring before the amendment, repeal, or
2414		-	elimination unless the provision in the certificate of
2415		-	incorporation provides otherwise at the time of the act or
2416		-	omission."
2417	2414		1148
2418	2415		1149
2419	2416		1150
2420	2417		1151
2421	2418		1152
2422	2419		1153
2423	2420		1154
2424	2421		1155
2425	2422		1156
2426	2423		1157
2427	2424		1158
2428	2425		1159
2429	2426		1160
2430	2427		1161
2431	2428		1162
2432	2429		1163
2433	2430		1164
2434	2431		1165
2435	2432		1166
2436	2433		1167
2437	2434		1168
2438	2435		1169
2439	2436		1170
2440	2437		1171
2441	2438		1172
2442	2439		1173
2443	2440		1174
2444		-	1175 SB112 ~~Enrolled~~
	2441	+	1175 SB112 Engrossed
2445	2442		Page 43
	2443	+	incorporation pursuant to subsection (b)(4) shall not affect
	2444	+	its application with respect to an act or omission by a
	2445	+	director or officer occurring before the amendment, repeal, or
	2446	+	elimination unless the provision in the certificate of
	2447	+	incorporation provides otherwise at the time of the act or
2446	2448		omission."
2447	2449		"§10A-2A-6.21
2448	2450		(a) The powers granted in this section to the board of
2449	2451		directors may be reserved to the stockholders by the
2450	2452		certificate of incorporation.
2451	2453		(b) The board of directors may authorize stock to be
2452	2454		issued for consideration consisting of a contribution. Stock
2453	2455		may be issued in one or more transactions, in the numbers, at
2454	2456		the time and for the consideration as set forth in a
2455	2457		resolution of the board of directors.
2456	2458		(c) A resolution of the board of directors may delegate
2457	2459		to a person or body, in addition to the board of directors,
2458	2460		the authority to enter into one or more transactions to issue
2459	2461		stock, and with respect to that transaction, shares of stock
2460	2462		may be issued in the numbers, at the time and for the
2461	2463		consideration as the person or body may determine; provided
2462	2464		the resolution fixes (i) a maximum number of shares of stock
2463	2465		that may be issued pursuant to the resolution, (ii) a time
2464	2466		period during which the stock may be issued, and (iii) a
2465	2467		minimum amount of consideration for which the stock may be
2466	2468		issued. No resolution shall permit a person or body to issue
2467	2469		stock to that person or body.
2468	2470		(c)(d) Before the corporation issues stock pursuant to
2469	2471		subsection (b) or subsection (c) , the board of directors or
2470		-	the person or body authorized pursuant to subsection (c) shall
2471		-	determine that the consideration received or to be received
2472		-	for stock to be issued is adequate. That determination by the
2473		-	board of directors or the person or body authorized pursuant
2474		-	to subsection (c) is conclusive insofar as the adequacy of
2475	2472		1176
2476	2473		1177
2477	2474		1178
2478	2475		1179
2479	2476		1180
2480	2477		1181
2481	2478		1182
2482	2479		1183
2483	2480		1184
2484	2481		1185
2485	2482		1186
2486	2483		1187
2487	2484		1188
2488	2485		1189
2489	2486		1190
2490	2487		1191
2491	2488		1192
2492	2489		1193
2493	2490		1194
2494	2491		1195
2495	2492		1196
2496	2493		1197
2497	2494		1198
2498	2495		1199
2499	2496		1200
2500	2497		1201
2501	2498		1202
2502		-	1203 SB112 ~~Enrolled~~
	2499	+	1203 SB112 Engrossed
2503	2500		Page 44
	2501	+	subsection (b) or subsection (c) , the board of directors or
	2502	+	the person or body authorized pursuant to subsection (c) shall
	2503	+	determine that the consideration received or to be received
	2504	+	for stock to be issued is adequate. That determination by the
	2505	+	board of directors or the person or body authorized pursuant
2504	2506		to subsection (c) is conclusive insofar as the adequacy of
2505	2507		consideration for the issuance of stock relates to whether the
2506	2508		stock is validly issued, fully paid, and nonassessable.
2507	2509		(e) Any provision of a resolution contemplated by
2508	2510		subsection (b) or subsection (c) may be made dependent on
2509	2511		facts ascertainable outside the resolution, which facts shall
2510	2512		be determined in accordance with Section 10A-2A-1.20(c).
2511	2513		(d)(f) When the corporation receives the consideration
2512	2514		for which the board of directors authorized the issuance of
2513	2515		stock, the stock issued therefor is fully paid and
2514	2516		nonassessable.
2515	2517		(e)(g) The corporation may place in escrow stock issued
2516	2518		for a contract for future services or benefits or a promissory
2517	2519		note, or make other arrangements to restrict the transfer of
2518	2520		the stock, and may credit distributions in respect of the
2519	2521		stock against its purchase price, until the services are
2520	2522		performed, the benefits are received, or the note is paid. If
2521	2523		the services are not performed, the benefits are not received,
2522	2524		or the note is not paid, the stock escrowed or restricted and
2523	2525		the distributions credited may be cancelled in whole or part."
2524	2526		"§10A-2A-6.24
2525	2527		(a) A corporation may issue rights, options, or
2526	2528		warrants for the purchase of stock or other securities of the
2527	2529		corporation. The board of directors shall determine (i) the
2528		-	terms and conditions upon which the rights, options, or
2529		-	warrants are issued ; and (ii) the terms, including the
2530		-	consideration for which the stock or other securities acquired
2531		-	from the corporation upon the exercise of any rights, options,
2532		-	or warrants are to be issued. The authorization by the board
2533	2530		1204
2534	2531		1205
2535	2532		1206
2536	2533		1207
2537	2534		1208
2538	2535		1209
2539	2536		1210
2540	2537		1211
2541	2538		1212
2542	2539		1213
2543	2540		1214
2544	2541		1215
2545	2542		1216
2546	2543		1217
2547	2544		1218
2548	2545		1219
2549	2546		1220
2550	2547		1221
2551	2548		1222
2552	2549		1223
2553	2550		1224
2554	2551		1225
2555	2552		1226
2556	2553		1227
2557	2554		1228
2558	2555		1229
2559	2556		1230
2560		-	1231 SB112 ~~Enrolled~~
	2557	+	1231 SB112 Engrossed
2561	2558		Page 45
	2559	+	corporation. The board of directors shall determine (i) the
	2560	+	terms and conditions upon which the rights, options, or
	2561	+	warrants are issued ; and (ii) the terms, including the
	2562	+	consideration for which the stock or other securities acquired
	2563	+	from the corporation upon the exercise of any rights, options,
2562	2564		or warrants are to be issued. The authorization by the board
2563	2565		of directors for the corporation to issue rights, options, or
2564	2566		warrants constitutes authorization of the issuance of the
2565	2567		stock or other securities for which the rights, options, or
2566	2568		warrants are exercisable.
2567	2569		(b) The board of directors may adopt a resolution to
2568	2570		delegate to a person or body, in addition to the board of
2569	2571		directors, the authority to enter into one or more
2570	2572		transactions to issue rights, options, or warrants, and with
2571	2573		respect to those transactions, the rights, options, or
2572	2574		warrants may be issued in the numbers, at the time and for the
2573	2575		consideration as the person or body may determine; provided
2574	2576		that the resolution fixes (i) the maximum number of rights,
2575	2577		options, or warrants, and the maximum number of shares of
2576	2578		stock issuable upon exercise thereof, that may be issued
2577	2579		pursuant to the resolution, (ii) a time period during which
2578	2580		the rights, options, or warrants, and during which the stock
2579	2581		issuable upon exercise thereof, may be issued, and (iii) a
2580	2582		minimum amount of consideration (if any) for which the rights,
2581	2583		options, or warrants may be issued and a minimum amount of
2582	2584		consideration for the stock issuable upon exercise thereof. No
2583	2585		resolution shall permit a person or body to issue rights,
2584	2586		options, or warrants to that person or body.
2585	2587		(c) Any provision in a resolution contemplated by
2586		-	subsection (a) or subsection (b) may be made dependent on
2587		-	facts ascertainable outside the resolution, which facts shall
2588		-	be determined in accordance with Section 10A-2A-1.20(c).
2589		-	(b)(d) The terms and conditions of rights, options, or
2590		-	warrants may include restrictions or conditions that:
2591	2588		1232
2592	2589		1233
2593	2590		1234
2594	2591		1235
2595	2592		1236
2596	2593		1237
2597	2594		1238
2598	2595		1239
2599	2596		1240
2600	2597		1241
2601	2598		1242
2602	2599		1243
2603	2600		1244
2604	2601		1245
2605	2602		1246
2606	2603		1247
2607	2604		1248
2608	2605		1249
2609	2606		1250
2610	2607		1251
2611	2608		1252
2612	2609		1253
2613	2610		1254
2614	2611		1255
2615	2612		1256
2616	2613		1257
2617	2614		1258
2618		-	1259 SB112 ~~Enrolled~~
	2615	+	1259 SB112 Engrossed
2619	2616		Page 46
	2617	+	(c) Any provision in a resolution contemplated by
	2618	+	subsection (a) or subsection (b) may be made dependent on
	2619	+	facts ascertainable outside the resolution, which facts shall
	2620	+	be determined in accordance with Section 10A-2A-1.20(c).
	2621	+	(b)(d) The terms and conditions of rights, options, or
2620	2622		warrants may include restrictions or conditions that:
2621	2623		(1) preclude or limit the exercise, transfer, or
2622	2624		receipt of rights, options, or warrants by any person or
2623	2625		persons owning or offering to acquire a specified number or
2624	2626		percentage of the outstanding stock or other securities of the
2625	2627		corporation or by any transferee or transferees of that person
2626	2628		or persons, or
2627	2629		(2) invalidate or void rights, options, or warrants
2628	2630		held by that person or persons or any of that person's
2629	2631		transferee or transferees.
2630	2632		(c)(e) The board of directors or the person or body
2631	2633		authorized pursuant to subsection (b) may authorize one or
2632	2634		more officers to (i) designate the recipients of rights,
2633	2635		options, warrants, or other equity compensation awards that
2634	2636		involve the issuance of stock and (ii) determine, within an
2635	2637		amount and subject to any other limitations established by the
2636	2638		board of directors , the person or body authorized pursuant to
2637	2639		subsection (b) and, if applicable, the stockholders, the
2638	2640		number of the rights, options, warrants, or other equity
2639	2641		compensation awards and the terms of the rights, options,
2640	2642		warrants, or awards to be received by the recipients, provided
2641	2643		that an officer may not use that authority to designate
2642	2644		himself or herself or any other persons as the board of
2643	2645		directors may specify as a recipient of rights, options,
2644		-	warrants, or other equity compensation awards."
2645		-	"§10A-2A-6.31
2646		-	(a) A corporation may acquire its own stock, and,
2647		-	unless otherwise provided in the certificate of incorporation,
2648		-	the stock so acquired constitutes shall constitute authorized
2649	2646		1260
2650	2647		1261
2651	2648		1262
2652	2649		1263
2653	2650		1264
2654	2651		1265
2655	2652		1266
2656	2653		1267
2657	2654		1268
2658	2655		1269
2659	2656		1270
2660	2657		1271
2661	2658		1272
2662	2659		1273
2663	2660		1274
2664	2661		1275
2665	2662		1276
2666	2663		1277
2667	2664		1278
2668	2665		1279
2669	2666		1280
2670	2667		1281
2671	2668		1282
2672	2669		1283
2673	2670		1284
2674	2671		1285
2675	2672		1286
2676		-	1287 SB112 ~~Enrolled~~
	2673	+	1287 SB112 Engrossed
2677	2674		Page 47
	2675	+	directors may specify as a recipient of rights, options,
	2676	+	warrants, or other equity compensation awards."
	2677	+	"§10A-2A-6.31
	2678	+	(a) A corporation may acquire its own stock, and,
	2679	+	unless otherwise provided in the certificate of incorporation,
2678	2680		the stock so acquired constitutes shall constitute authorized
2679	2681		but unissued stock ., provided, however, that:
2680	2682		(1) the certificate of incorporation may provide that
2681	2683		the acquired stock shall constitute authorized, issued, but
2682	2684		not outstanding stock;
2683	2685		(b) If the(2) the certificate of incorporation
2684	2686		prohibits may prohibit the reissue of the acquired stock, in
2685	2687		which case, the number of authorized shares of stock is
2686	2688		reduced by the number of shares of stock acquired .; or
2687	2689		(3) if the certificate of incorporation does not (i)
2688	2690		provide that the acquired stock shall constitute authorized
2689	2691		but unissued stock, (ii) prohibit the reissuance of the
2690	2692		acquired stock, or (iii) provide that the acquired stock shall
2691	2693		constitute authorized, issued, but not outstanding stock, then
2692	2694		the board of directors may determine, at or prior to the time
2693	2695		of the acquisition, that the acquired stock will constitute
2694	2696		authorized, issued, but not outstanding stock.
2695	2697		(b) If the board of directors has determined that any
2696	2698		acquired stock was to be authorized, issued, but not
2697	2699		outstanding in accordance with subsection (a)(3), then the
2698	2700		board of directors may thereafter determine that the acquired
2699	2701		stock shall be converted to stock that is authorized but not
2700	2702		issued."
2701	2703		"§10A-2A-7.04
2702		-	(a) Unless otherwise provided in the certificate of
2703		-	incorporation, any action required or permitted by this
2704		-	chapter to be taken at any meeting of the stockholders may be
2705		-	taken without a meeting, and without prior notice, if one or
2706		-	more consents in writing setting forth the action so taken are
2707	2704		1288
2708	2705		1289
2709	2706		1290
2710	2707		1291
2711	2708		1292
2712	2709		1293
2713	2710		1294
2714	2711		1295
2715	2712		1296
2716	2713		1297
2717	2714		1298
2718	2715		1299
2719	2716		1300
2720	2717		1301
2721	2718		1302
2722	2719		1303
2723	2720		1304
2724	2721		1305
2725	2722		1306
2726	2723		1307
2727	2724		1308
2728	2725		1309
2729	2726		1310
2730	2727		1311
2731	2728		1312
2732	2729		1313
2733	2730		1314
2734		-	1315 SB112 ~~Enrolled~~
	2731	+	1315 SB112 Engrossed
2735	2732		Page 48
	2733	+	"§10A-2A-7.04
	2734	+	(a) Unless otherwise provided in the certificate of
	2735	+	incorporation, any action required or permitted by this
	2736	+	chapter to be taken at any meeting of the stockholders may be
	2737	+	taken without a meeting, and without prior notice, if one or
2736	2738		more consents in writing setting forth the action so taken are
2737	2739		signed by the holders of outstanding stock having not less
2738	2740		than the minimum number of votes that would be required to
2739	2741		authorize or take the action at a meeting at which all shares
2740	2742		of stock entitled to vote on the action were present and
2741	2743		voted; provided, however, that if a corporation's certificate
2742	2744		of incorporation authorizes stockholders to cumulate their
2743	2745		votes when electing directors pursuant to Section 10A-2A-7.28,
2744	2746		directors may not be elected by less than unanimous written
2745	2747		consent. The action must be evidenced by one or more written
2746	2748		consents describing the action taken, signed by the
2747	2749		stockholders approving the action and delivered to the
2748	2750		corporation for filing by the corporation with the minutes or
2749	2751		corporate records.
2750	2752		(b) If not otherwise fixed under Section 10A-2A-7.07
2751	2753		and if prior action by the board of directors is not required
2752	2754		respecting the action to be taken without a meeting, the
2753	2755		record date for determining the stockholders entitled to take
2754	2756		action without a meeting shall be the first date on which a
2755	2757		signed written consent signed by a stockholder is delivered to
2756	2758		the corporation. If not otherwise fixed under Section
2757	2759		10A-2A-7.07 and if prior action by the board of directors is
2758	2760		required respecting the action to be taken without a meeting,
2759	2761		the record date shall be the close of business on the day the
2760		-	resolution of the board of directors taking the prior action
2761		-	is adopted. No written consent of the stockholders shall be
2762		-	effective to take the corporate action referred to therein
2763		-	unless, within 60 days of the earliest date on which a consent
2764		-	is delivered to the corporation as required by this section,
2765	2762		1316
2766	2763		1317
2767	2764		1318
2768	2765		1319
2769	2766		1320
2770	2767		1321
2771	2768		1322
2772	2769		1323
2773	2770		1324
2774	2771		1325
2775	2772		1326
2776	2773		1327
2777	2774		1328
2778	2775		1329
2779	2776		1330
2780	2777		1331
2781	2778		1332
2782	2779		1333
2783	2780		1334
2784	2781		1335
2785	2782		1336
2786	2783		1337
2787	2784		1338
2788	2785		1339
2789	2786		1340
2790	2787		1341
2791	2788		1342
2792		-	1343 SB112 ~~Enrolled~~
	2789	+	1343 SB112 Engrossed
2793	2790		Page 49
	2791	+	the record date shall be the close of business on the day the
	2792	+	resolution of the board of directors taking the prior action
	2793	+	is adopted. No written consent of the stockholders shall be
	2794	+	effective to take the corporate action referred to therein
	2795	+	unless, within 60 days of the earliest date on which a consent
2794	2796		is delivered to the corporation as required by this section,
2795	2797		written consents signed by sufficient stockholders to take the
2796	2798		action have been delivered to the corporation. Any person
2797	2799		executing signing a consent may provide, whether through
2798	2800		instruction to an agent or otherwise, that such the consent
2799	2801		will be effective at a future time, including a time
2800	2802		determined upon the happening of an event, occurring not later
2801	2803		than 60 days after such the instruction is given or such
2802	2804		provision is made, if evidence of the instruction or provision
2803	2805		is provided to the corporation. A If a person signs a consent
2804	2806		when that person is not a stockholder, then that person's
2805	2807		consent shall not be valid unless that person is a stockholder
2806	2808		as of the record date for determining stockholders entitled to
2807	2809		consent to the action. Unless a person's written consent
2808	2810		states that it is irrevocable, that written consent may be
2809	2811		revoked by that person by a writing to that effect delivered
2810	2812		to the corporation before unrevoked written consents
2811	2813		sufficient in number to take the corporate action have been
2812	2814		delivered to the corporation.
2813	2815		(c) A consent signed pursuant to this section has the
2814	2816		effect of a vote taken at a meeting and may be described as
2815	2817		such in any document. Unless the certificate of incorporation,
2816	2818		bylaws or a resolution of the board of directors provides for
2817	2819		a reasonable delay to permit tabulation of written consents,
2818		-	the action taken by written consent shall be effective when
2819		-	written consents signed by sufficient stockholders to take the
2820		-	action have been delivered to the corporation.
2821		-	(d) If this chapter requires that notice of a proposed
2822		-	action be given to nonvoting stockholders and the action is to
2823	2820		1344
2824	2821		1345
2825	2822		1346
2826	2823		1347
2827	2824		1348
2828	2825		1349
2829	2826		1350
2830	2827		1351
2831	2828		1352
2832	2829		1353
2833	2830		1354
2834	2831		1355
2835	2832		1356
2836	2833		1357
2837	2834		1358
2838	2835		1359
2839	2836		1360
2840	2837		1361
2841	2838		1362
2842	2839		1363
2843	2840		1364
2844	2841		1365
2845	2842		1366
2846	2843		1367
2847	2844		1368
2848	2845		1369
2849	2846		1370
2850		-	1371 SB112 ~~Enrolled~~
	2847	+	1371 SB112 Engrossed
2851	2848		Page 50
	2849	+	a reasonable delay to permit tabulation of written consents,
	2850	+	the action taken by written consent shall be effective when
	2851	+	written consents signed by sufficient stockholders to take the
	2852	+	action have been delivered to the corporation.
	2853	+	(d) If this chapter requires that notice of a proposed
2852	2854		action be given to nonvoting stockholders and the action is to
2853	2855		be taken by written consent of the voting stockholders, the
2854	2856		corporation shall give its nonvoting stockholders written
2855	2857		notice of the action not more than 10 days after (i) written
2856	2858		consents sufficient to take the action have been delivered to
2857	2859		the corporation, or (ii) any later date that tabulation of
2858	2860		consents is completed pursuant to an authorization under
2859	2861		subsection (c). The notice must reasonably describe the action
2860	2862		taken and contain or be accompanied by the same material that,
2861	2863		under any provision of this chapter, would have been required
2862	2864		to be sent to nonvoting stockholders in a notice of a meeting
2863	2865		at which the proposed action would have been submitted to the
2864	2866		stockholders for action.
2865	2867		(e) If action is taken by less than unanimous written
2866	2868		consent of the voting stockholders, the corporation shall give
2867	2869		its nonconsenting voting stockholders written notice of the
2868	2870		action not more than 10 days after (i) written consents
2869	2871		sufficient to take the action have been delivered to the
2870	2872		corporation, or (ii) any later date that tabulation of
2871	2873		consents is completed pursuant to an authorization under
2872	2874		subsection (c). The notice must reasonably describe the action
2873	2875		taken and contain or be accompanied by the same material that,
2874	2876		under any provision of this chapter, would have been required
2875	2877		to be sent to voting stockholders in a notice of a meeting at
2876		-	which the action would have been submitted to the stockholders
2877		-	for action.
2878		-	(f) The notice requirements in subsections (d) and (e)
2879		-	shall not delay the effectiveness of actions taken by written
2880		-	consent, and a failure to comply with those notice
2881	2878		1372
2882	2879		1373
2883	2880		1374
2884	2881		1375
2885	2882		1376
2886	2883		1377
2887	2884		1378
2888	2885		1379
2889	2886		1380
2890	2887		1381
2891	2888		1382
2892	2889		1383
2893	2890		1384
2894	2891		1385
2895	2892		1386
2896	2893		1387
2897	2894		1388
2898	2895		1389
2899	2896		1390
2900	2897		1391
2901	2898		1392
2902	2899		1393
2903	2900		1394
2904	2901		1395
2905	2902		1396
2906	2903		1397
2907	2904		1398
2908		-	1399 SB112 ~~Enrolled~~
	2905	+	1399 SB112 Engrossed
2909	2906		Page 51
	2907	+	to be sent to voting stockholders in a notice of a meeting at
	2908	+	which the action would have been submitted to the stockholders
	2909	+	for action.
	2910	+	(f) The notice requirements in subsections (d) and (e)
	2911	+	shall not delay the effectiveness of actions taken by written
2910	2912		consent, and a failure to comply with those notice
2911	2913		requirements shall not invalidate actions taken by written
2912	2914		consent, provided that this subsection shall not be deemed to
2913	2915		limit judicial power to fashion any appropriate remedy in
2914	2916		favor of a stockholder adversely affected by a failure to give
2915	2917		the notice within the required time period."
2916	2918		"§10A-2A-7.05
2917	2919		(a) A corporation shall notify stockholders of the
2918	2920		place, if any, date, and time of each annual and special
2919	2921		stockholders' meeting no fewer than 10 nor more than 60 days
2920	2922		before the meeting date. If the board of directors has
2921	2923		authorized participation by means of remote communication
2922	2924		pursuant to Section 10A-2A-7.09 for holders of any class or
2923	2925		series of stock, the notice to the holders of that class or
2924	2926		series of stock must describe the means of remote
2925	2927		communication to be used. The notice must include the record
2926	2928		date for determining the stockholders entitled to vote at the
2927	2929		meeting, if that date is different from the record date for
2928	2930		determining stockholders entitled to notice of the meeting.
2929	2931		Unless this chapter or the certificate of incorporation
2930	2932		requires otherwise, the corporation is required to give notice
2931	2933		only to stockholders entitled to vote at the meeting as of the
2932	2934		record date for determining the stockholders entitled to
2933	2935		notice of the meeting.
2934		-	(b) Unless this chapter or the certificate of
2935		-	incorporation requires otherwise, the notice of an annual
2936		-	meeting of stockholders need not include a description of the
2937		-	purpose or purposes for which the meeting is called.
2938		-	(c) Notice of a special meeting of stockholders must
2939	2936		1400
2940	2937		1401
2941	2938		1402
2942	2939		1403
2943	2940		1404
2944	2941		1405
2945	2942		1406
2946	2943		1407
2947	2944		1408
2948	2945		1409
2949	2946		1410
2950	2947		1411
2951	2948		1412
2952	2949		1413
2953	2950		1414
2954	2951		1415
2955	2952		1416
2956	2953		1417
2957	2954		1418
2958	2955		1419
2959	2956		1420
2960	2957		1421
2961	2958		1422
2962	2959		1423
2963	2960		1424
2964	2961		1425
2965	2962		1426
2966		-	1427 SB112 ~~Enrolled~~
	2963	+	1427 SB112 Engrossed
2967	2964		Page 52
	2965	+	notice of the meeting.
	2966	+	(b) Unless this chapter or the certificate of
	2967	+	incorporation requires otherwise, the notice of an annual
	2968	+	meeting of stockholders need not include a description of the
	2969	+	purpose or purposes for which the meeting is called.
2968	2970		(c) Notice of a special meeting of stockholders must
2969	2971		include a description of the purpose or purposes for which the
2970	2972		meeting is called.
2971	2973		(d) If not otherwise fixed under Section 10A-2A-7.03 or
2972	2974		Section 10A-2A-7.07, the record date for determining
2973	2975		stockholders entitled to notice of and to vote at an annual or
2974	2976		special stockholders' meeting is the earlier of (i) the date
2975	2977		of the action by the board of directors calling the meeting of
2976	2978		the stockholders or (ii) the day before the first notice is
2977	2979		delivered to stockholders.
2978	2980		(e) Unless the certificate of incorporation or bylaws
2979	2981		require otherwise, if an annual or special stockholders'
2980	2982		meeting is adjourned to a different place, if any, date, or
2981	2983		time (including an adjournment taken to address a technical
2982	2984		failure to convene or continue a meeting using remote
2983	2985		communication pursuant to Section 10A-2A-7.09) , notice need
2984	2986		not be given of the new place, if any, date, or time if the
2985	2987		new place, if any, date, or time is (i) announced at the
2986	2988		meeting before adjournment or (ii) displayed, during the time
2987	2989		scheduled for the meeting, on the same electronic network used
2988	2990		to enable stockholders and proxy holders to participate in the
2989	2991		meeting by means of remote communication . If a new record date
2990	2992		for the adjourned meeting is or must be fixed under Section
2991	2993		10A-2A-7.07, however, notice of the adjourned meeting shall be
2992		-	given under this section to stockholders entitled to vote at
2993		-	the adjourned meeting as of the record date fixed for notice
2994		-	of the adjourned meeting."
2995		-	"§10A-2A-10.05
2996		-	Unless the certificate of incorporation provides
2997	2994		1428
2998	2995		1429
2999	2996		1430
3000	2997		1431
3001	2998		1432
3002	2999		1433
3003	3000		1434
3004	3001		1435
3005	3002		1436
3006	3003		1437
3007	3004		1438
3008	3005		1439
3009	3006		1440
3010	3007		1441
3011	3008		1442
3012	3009		1443
3013	3010		1444
3014	3011		1445
3015	3012		1446
3016	3013		1447
3017	3014		1448
3018	3015		1449
3019	3016		1450
3020	3017		1451
3021	3018		1452
3022	3019		1453
3023	3020		1454
3024		-	1455 SB112 ~~Enrolled~~
	3021	+	1455 SB112 Engrossed
3025	3022		Page 53
	3023	+	10A-2A-7.07, however, notice of the adjourned meeting shall be
	3024	+	given under this section to stockholders entitled to vote at
	3025	+	the adjourned meeting as of the record date fixed for notice
	3026	+	of the adjourned meeting."
	3027	+	"§10A-2A-10.05
3026	3028		Unless the certificate of incorporation provides
3027	3029		otherwise, a corporation's board of directors may adopt
3028	3030		amendments to the corporation's certificate of incorporation
3029	3031		without stockholder approval:
3030	3032		(a) to extend the duration of the corporation if it was
3031	3033		incorporated at a time when limited duration was required by
3032	3034		law;
3033	3035		(b) to delete the names and addresses of the
3034	3036		incorporators or initial directors;
3035	3037		(c) to delete the name and address of the initial
3036	3038		registered agent or registered office, if a statement of
3037	3039		change is on file with the Secretary of State;
3038	3040		(d) if the corporation has only one class of stock
3039	3041		outstanding:
3040	3042		(1) to change each issued and unissued authorized share
3041	3043		of stock of the class into a greater number of whole shares of
3042	3044		stock of that class; or
3043	3045		(2) to increase the number of authorized shares of
3044	3046		stock of the class to the extent necessary to permit the
3045	3047		issuance of stock as a stock dividend;
3046	3048		(e) to change the corporate name, provided that the
3047	3049		name complies with Article 5 of Chapter 1;
3048	3050		(f) to reflect a reduction in authorized stock, as a
3049	3051		result of the operation of Section 10A-2A-6.31(b)
3050		-	10A-2A-6.31(a)(2) , when the corporation has acquired its own
3051		-	stock and the certificate of incorporation prohibits the
3052		-	reissue of the acquired stock;
3053		-	(g) to delete a class of stock from the certificate of
3054		-	incorporation, as a result of the operation of Section
3055	3052		1456
3056	3053		1457
3057	3054		1458
3058	3055		1459
3059	3056		1460
3060	3057		1461
3061	3058		1462
3062	3059		1463
3063	3060		1464
3064	3061		1465
3065	3062		1466
3066	3063		1467
3067	3064		1468
3068	3065		1469
3069	3066		1470
3070	3067		1471
3071	3068		1472
3072	3069		1473
3073	3070		1474
3074	3071		1475
3075	3072		1476
3076	3073		1477
3077	3074		1478
3078	3075		1479
3079	3076		1480
3080	3077		1481
3081	3078		1482
3082		-	1483 SB112 ~~Enrolled~~
	3079	+	1483 SB112 Engrossed
3083	3080		Page 54
	3081	+	result of the operation of Section 10A-2A-6.31(b)
	3082	+	10A-2A-6.31(a)(2) , when the corporation has acquired its own
	3083	+	stock and the certificate of incorporation prohibits the
	3084	+	reissue of the acquired stock;
	3085	+	(g) to delete a class of stock from the certificate of
3084	3086		incorporation, as a result of the operation of Section
3085	3087		10A-2A-6.31(b) 10A-2A-6.31(a)(2) , when there is no remaining
3086	3088		stock of the class because the corporation has acquired all
3087	3089		stock of the class and the certificate of incorporation
3088	3090		prohibits the reissue of the acquired stock; or
3089	3091		(h) to take actions expressly permitted by Section
3090	3092		10A-2A-6.02 to be made without stockholder approval."
3091	3093		"§10A-2A-10.07
3092	3094		(a) A corporation's board of directors may restate its
3093	3095		certificate of incorporation at any time, without stockholder
3094	3096		approval, to consolidate all amendments into a single
3095	3097		document. The restated certificate of incorporation may amend
3096	3098		the certificate of incorporation with those amendments that
3097	3099		the board of directors is permitted to adopt without
3098	3100		stockholder approval in accordance with Sections 10A-2A-10.02
3099	3101		and 10A-2A-10.05. The restated certificate of incorporation
3100	3102		may also amend the certificate of incorporation with those
3101	3103		amendments that the stockholders must approve in accordance
3102	3104		with Section 10A-2A-10.03.
3103	3105		(b) If the restated certificate of incorporation
3104	3106		includes one or more new amendments that require stockholder
3105	3107		approval, the amendments shall be adopted and approved as
3106	3108		provided in Section 10A-2A-10.03.
3107	3109		(c) A corporation that restates its certificate of
3108		-	incorporation shall deliver to the Secretary of State for
3109		-	filing a certificate of restatement setting forth:
3110		-	(1) the name of the corporation;
3111		-	(2) the text of the restated certificate of
3112		-	incorporation;
3113	3110		1484
3114	3111		1485
3115	3112		1486
3116	3113		1487
3117	3114		1488
3118	3115		1489
3119	3116		1490
3120	3117		1491
3121	3118		1492
3122	3119		1493
3123	3120		1494
3124	3121		1495
3125	3122		1496
3126	3123		1497
3127	3124		1498
3128	3125		1499
3129	3126		1500
3130	3127		1501
3131	3128		1502
3132	3129		1503
3133	3130		1504
3134	3131		1505
3135	3132		1506
3136	3133		1507
3137	3134		1508
3138	3135		1509
3139	3136		1510
3140		-	1511 SB112 ~~Enrolled~~
	3137	+	1511 SB112 Engrossed
3141	3138		Page 55
	3139	+	(c) A corporation that restates its certificate of
	3140	+	incorporation shall deliver to the Secretary of State for
	3141	+	filing a certificate of restatement setting forth:
	3142	+	(1) the name of the corporation;
	3143	+	(2) the text of the restated certificate of
3142	3144		incorporation;
3143	3145		(3) a statement that the restated certificate of
3144	3146		incorporation consolidates all amendments into a single
3145	3147		document;
3146	3148		(4) if a new amendment is included in the restated
3147	3149		certificate of incorporation, the statements required under
3148	3150		Section 10A-2A-10.06 with respect to the new amendment; and
3149	3151		(5) the unique identifying number or other designation
3150	3152		as assigned by the Secretary of State.
3151	3153		(d) The duly adopted restated certificate of
3152	3154		incorporation supersedes the original certificate of
3153	3155		incorporation and all amendments to the certificate of
3154	3156		incorporation.
3155	3157		(e) A restated certificate of incorporation may omit
3156	3158		the information that may be deleted pursuant to Section
3157	3159		10A-2A-10.05."
3158	3160		"§10A-2A-10.08
3159	3161		(a) A corporation's certificate of incorporation may be
3160	3162		amended without action by the board of directors or
3161	3163		stockholders to carry out a plan of reorganization ordered or
3162	3164		decreed by a court of competent jurisdiction under the
3163	3165		authority of a law of the United States if the certificate of
3164	3166		incorporation after the amendment only contains provisions
3165	3167		required or permitted by Section 10A-2A-2.02.
3166		-	(b) The individual or individuals designated by the
3167		-	court shall deliver to the Secretary of State for filing a
3168		-	certificate of amendment setting forth:
3169		-	(1) the name of the corporation;
3170		-	(2) the text of each amendment approved by the court;
3171	3168		1512
3172	3169		1513
3173	3170		1514
3174	3171		1515
3175	3172		1516
3176	3173		1517
3177	3174		1518
3178	3175		1519
3179	3176		1520
3180	3177		1521
3181	3178		1522
3182	3179		1523
3183	3180		1524
3184	3181		1525
3185	3182		1526
3186	3183		1527
3187	3184		1528
3188	3185		1529
3189	3186		1530
3190	3187		1531
3191	3188		1532
3192	3189		1533
3193	3190		1534
3194	3191		1535
3195	3192		1536
3196	3193		1537
3197	3194		1538
3198		-	1539 SB112 ~~Enrolled~~
	3195	+	1539 SB112 Engrossed
3199	3196		Page 56
	3197	+	required or permitted by Section 10A-2A-2.02.
	3198	+	(b) The individual or individuals designated by the
	3199	+	court shall deliver to the Secretary of State for filing a
	3200	+	certificate of amendment setting forth:
	3201	+	(1) the name of the corporation;
3200	3202		(2) the text of each amendment approved by the court;
3201	3203		(3) the date of the court's order or decree approving
3202	3204		the certificate of amendment;
3203	3205		(4) the title of the reorganization proceeding in which
3204	3206		the order or decree was entered;
3205	3207		(5) a statement that the court had jurisdiction of the
3206	3208		proceeding under federal statute; and
3207	3209		(6) the unique identifying number or other designation
3208	3210		as assigned by the Secretary of State.
3209	3211		(c) Stockholders of a corporation undergoing
3210	3212		reorganization do not have dissenters' appraisal rights except
3211	3213		as and to the extent provided in the reorganization plan.
3212	3214		(d) This section does not apply after entry of a final
3213	3215		decree in the reorganization proceeding even though the court
3214	3216		retains jurisdiction of the proceeding for limited purposes
3215	3217		unrelated to consummation of the reorganization plan."
3216	3218		"§10A-2A-12.01
3217	3219		(a) No approval of the stockholders is required, unless
3218	3220		the certificate of incorporation otherwise provides:
3219	3221		(a)(1) to sell, lease, exchange, or otherwise dispose
3220	3222		of any or all of the corporation's assets in the usual and
3221	3223		regular course of business;
3222	3224		(b)(2) to mortgage, pledge, dedicate to the repayment
3223	3225		of indebtedness (whether with or without recourse), or
3224		-	otherwise encumber any or all of the corporation's assets,
3225		-	regardless of whether in the usual and regular course of
3226		-	business;
3227		-	(c)(3) to transfer any or all of the corporation's
3228		-	assets to one or more corporations, foreign corporations, or
3229	3226		1540
3230	3227		1541
3231	3228		1542
3232	3229		1543
3233	3230		1544
3234	3231		1545
3235	3232		1546
3236	3233		1547
3237	3234		1548
3238	3235		1549
3239	3236		1550
3240	3237		1551
3241	3238		1552
3242	3239		1553
3243	3240		1554
3244	3241		1555
3245	3242		1556
3246	3243		1557
3247	3244		1558
3248	3245		1559
3249	3246		1560
3250	3247		1561
3251	3248		1562
3252	3249		1563
3253	3250		1564
3254	3251		1565
3255	3252		1566
3256		-	1567 SB112 ~~Enrolled~~
	3253	+	1567 SB112 Engrossed
3257	3254		Page 57
	3255	+	of indebtedness (whether with or without recourse), or
	3256	+	otherwise encumber any or all of the corporation's assets,
	3257	+	regardless of whether in the usual and regular course of
	3258	+	business;
	3259	+	(c)(3) to transfer any or all of the corporation's
3258	3260		assets to one or more corporations, foreign corporations, or
3259	3261		other entities all of the stock or interests of which are
3260	3262		owned by the corporation; or
3261	3263		(d)(4) to distribute assets pro rata to the holders of
3262	3264		one or more classes or series of the corporation's stock.
3263	3265		(b) Without limiting the rights of a secured party
3264	3266		under applicable law, no approval by stockholders shall be
3265	3267		required by Section 10A-2A-12.02 for a sale, lease, exchange,
3266	3268		or other disposition of any of the corporation's assets if
3267	3269		those assets are mortgaged, pledged, dedicated to the
3268	3270		repayment of indebtedness, or otherwise encumbered for the
3269	3271		benefit of a secured party or other creditor and either:
3270	3272		(1) The secured party or other creditor exercises its
3271	3273		rights under the law governing the mortgage, pledge,
3272	3274		dedication, or encumbrance, or other applicable law, whether
3273	3275		under the Uniform Commercial Code, a real property law, or
3274	3276		other law, to effect the sale, lease, exchange, or other
3275	3277		disposition of those assets without the consent of the
3276	3278		corporation; or
3277	3279		(2) In lieu of the secured party or other creditor
3278	3280		exercising such rights, the board of directors of the
3279	3281		corporation authorizes an alternative sale, lease, exchange,
3280	3282		or other disposition of those assets, whether with the secured
3281	3283		party or other creditor, that results in the reduction or
3282		-	elimination of the total liabilities or obligations secured by
3283		-	those assets, provided that (i) the value of those assets is
3284		-	less than or equal to the total amount of the liabilities or
3285		-	obligations being eliminated or reduced and (ii) the sale,
3286		-	lease, exchange, or other disposition of those assets is not
3287	3284		1568
3288	3285		1569
3289	3286		1570
3290	3287		1571
3291	3288		1572
3292	3289		1573
3293	3290		1574
3294	3291		1575
3295	3292		1576
3296	3293		1577
3297	3294		1578
3298	3295		1579
3299	3296		1580
3300	3297		1581
3301	3298		1582
3302	3299		1583
3303	3300		1584
3304	3301		1585
3305	3302		1586
3306	3303		1587
3307	3304		1588
3308	3305		1589
3309	3306		1590
3310	3307		1591
3311	3308		1592
3312	3309		1593
3313	3310		1594
3314		-	1595 SB112 ~~Enrolled~~
	3311	+	1595 SB112 Engrossed
3315	3312		Page 58
	3313	+	party or other creditor, that results in the reduction or
	3314	+	elimination of the total liabilities or obligations secured by
	3315	+	those assets, provided that (i) the value of those assets is
	3316	+	less than or equal to the total amount of the liabilities or
	3317	+	obligations being eliminated or reduced and (ii) the sale,
3316	3318		lease, exchange, or other disposition of those assets is not
3317	3319		prohibited by the law governing the mortgage, pledge,
3318	3320		dedication, or encumbrance. The provision of consideration to
3319	3321		the corporation or to its stockholders shall not create a
3320	3322		presumption that the value of the assets is greater than the
3321	3323		total amount of the liabilities or obligations being
3322	3324		eliminated or reduced.
3323	3325		(c) A failure to satisfy the condition in subsection
3324	3326		(b)(2)(i) shall not result in the invalidation of a sale,
3325	3327		lease, exchange, or other disposition of the corporation's
3326	3328		assets if the transferee of those assets (i) provided value
3327	3329		therefor (which may include the reduction or elimination of
3328	3330		the total liabilities or obligations secured by those assets)
3329	3331		and (ii) acted in good faith (as defined in Section
3330	3332		7-1-201(b)). The preceding sentence shall not apply to a
3331	3333		proceeding against the corporation and any other necessary
3332	3334		parties to enjoin the sale, lease, exchange, or other
3333	3335		disposition of the corporation's assets before the
3334	3336		consummation thereof and shall not eliminate any liability for
3335	3337		monetary damages for any claim, including a claim in the right
3336	3338		of the corporation, based upon a violation of a duty by a
3337	3339		current or former director or officer, or other person.
3338	3340		(d) A provision of the certificate of incorporation
3339	3341		that requires the authorization or consent of stockholders for
3340		-	a sale, lease, exchange, or other disposition of the
3341		-	corporation's assets shall not apply to a transaction
3342		-	permitted by subsection (b) unless that provision expressly so
3343		-	requires."
3344		-	"§10A-2A-13.02
3345	3342		1596
3346	3343		1597
3347	3344		1598
3348	3345		1599
3349	3346		1600
3350	3347		1601
3351	3348		1602
3352	3349		1603
3353	3350		1604
3354	3351		1605
3355	3352		1606
3356	3353		1607
3357	3354		1608
3358	3355		1609
3359	3356		1610
3360	3357		1611
3361	3358		1612
3362	3359		1613
3363	3360		1614
3364	3361		1615
3365	3362		1616
3366	3363		1617
3367	3364		1618
3368	3365		1619
3369	3366		1620
3370	3367		1621
3371	3368		1622
3372		-	1623 SB112 ~~Enrolled~~
	3369	+	1623 SB112 Engrossed
3373	3370		Page 59
	3371	+	that requires the authorization or consent of stockholders for
	3372	+	a sale, lease, exchange, or other disposition of the
	3373	+	corporation's assets shall not apply to a transaction
	3374	+	permitted by subsection (b) unless that provision expressly so
	3375	+	requires."
3374	3376		"§10A-2A-13.02
3375	3377		(a) A stockholder is entitled to appraisal rights, and
3376	3378		to obtain payment of the fair value of that stockholder's
3377	3379		stock, in the event of any of the following corporate actions:
3378	3380		(1) consummation of a merger to which the corporation
3379	3381		is a party (i) if the corporation is a subsidiary and the
3380	3382		merger is governed by Section 10A-2A-11.05 or (ii) if
3381	3383		stockholder approval is required for the merger by Section
3382	3384		10A-2A-11.04, or would be required but for the provisions of
3383	3385		Section 10A-2A-11.04(j), except that appraisal rights shall
3384	3386		not be available to any stockholder of the corporation with
3385	3387		respect to stock of any class or series that remain
3386	3388		outstanding after consummation of the merger;
3387	3389		(2) consummation of a stock exchange to which the
3388	3390		corporation is a party the stock of which will be acquired,
3389	3391		except that appraisal rights shall not be available to any
3390	3392		stockholder of the corporation with respect to any class or
3391	3393		series of stock of the corporation that is not acquired in the
3392	3394		stock exchange;
3393	3395		(3) consummation of a disposition of assets pursuant to
3394	3396		Section 10A-2A-12.02 if the stockholder is entitled to vote on
3395	3397		the disposition, except that appraisal rights shall not be
3396	3398		available to any stockholder of the corporation with respect
3397	3399		to stock of any class or series if (i) (A) under the terms of
3398		-	the corporate action approved by the stockholders there is to
3399		-	be distributed to stockholders in cash the corporation's net
3400		-	assets, in excess of a reasonable amount reserved to meet
3401		-	claims of the type described in Section 10A-2A-14.06 and
3402		-	Section 10A-2A-14.07, (A)(I) within one year after the
3403	3400		1624
3404	3401		1625
3405	3402		1626
3406	3403		1627
3407	3404		1628
3408	3405		1629
3409	3406		1630
3410	3407		1631
3411	3408		1632
3412	3409		1633
3413	3410		1634
3414	3411		1635
3415	3412		1636
3416	3413		1637
3417	3414		1638
3418	3415		1639
3419	3416		1640
3420	3417		1641
3421	3418		1642
3422	3419		1643
3423	3420		1644
3424	3421		1645
3425	3422		1646
3426	3423		1647
3427	3424		1648
3428	3425		1649
3429	3426		1650
3430		-	1651 SB112 ~~Enrolled~~
	3427	+	1651 SB112 Engrossed
3431	3428		Page 60
	3429	+	to stock of any class or series if (i) (A) under the terms of
	3430	+	the corporate action approved by the stockholders there is to
	3431	+	be distributed to stockholders in cash the corporation's net
	3432	+	assets, in excess of a reasonable amount reserved to meet
	3433	+	claims of the type described in Section 10A-2A-14.06 and
3432	3434		Section 10A-2A-14.07, (A)(I) within one year after the
3433	3435		stockholders' approval of the action and (B)(II) in accordance
3434	3436		with their respective interests determined at the time of
3435	3437		distribution, and (ii)(B) the disposition of assets is not an
3436	3438		interested transaction , or (ii) the certificate of
3437	3439		incorporation states that no stockholder shall be entitled to
3438	3440		appraisal rights with respect to the consummation of a
3439	3441		disposition of assets pursuant to Section 10A-2A-12.02 ;
3440	3442		(4) an amendment of the certificate of incorporation
3441	3443		with respect to a class or series of stock that reduces the
3442	3444		number of stock of a class or series owned by the stockholder
3443	3445		to a fraction of a stock if the corporation has the obligation
3444	3446		or right to repurchase the fractional stock so created;
3445	3447		(5) any other merger, stock exchange, disposition of
3446	3448		assets or amendment to the certificate of incorporation, in
3447	3449		each case to the extent provided by the certificate of
3448	3450		incorporation, bylaws or a resolution of the board of
3449	3451		directors;
3450	3452		(6) consummation of a conversion of a corporation to a
3451	3453		foreign corporation pursuant to Article 9 of this chapter or
3452	3454		Article 8 of Chapter 1 if the stockholder does not receive
3453	3455		stock in the foreign corporation resulting from the conversion
3454	3456		that has terms as favorable to the stockholder in all material
3455	3457		respects, and represents at least the same percentage interest
3456		-	of the total voting rights of the outstanding stock of the
3457		-	foreign corporation, as the stock held by the stockholder
3458		-	before the conversion;
3459		-	(7) consummation of a conversion of a corporation to a
3460		-	nonprofit corporation pursuant to Article 9 of this chapter of
3461	3458		1652
3462	3459		1653
3463	3460		1654
3464	3461		1655
3465	3462		1656
3466	3463		1657
3467	3464		1658
3468	3465		1659
3469	3466		1660
3470	3467		1661
3471	3468		1662
3472	3469		1663
3473	3470		1664
3474	3471		1665
3475	3472		1666
3476	3473		1667
3477	3474		1668
3478	3475		1669
3479	3476		1670
3480	3477		1671
3481	3478		1672
3482	3479		1673
3483	3480		1674
3484	3481		1675
3485	3482		1676
3486	3483		1677
3487	3484		1678
3488		-	1679 SB112 ~~Enrolled~~
	3485	+	1679 SB112 Engrossed
3489	3486		Page 61
	3487	+	respects, and represents at least the same percentage interest
	3488	+	of the total voting rights of the outstanding stock of the
	3489	+	foreign corporation, as the stock held by the stockholder
	3490	+	before the conversion;
	3491	+	(7) consummation of a conversion of a corporation to a
3490	3492		nonprofit corporation pursuant to Article 9 of this chapter of
3491	3493		or Article 8 of Chapter 1; or
3492	3494		(8) consummation of a conversion of the corporation to
3493	3495		an unincorporated entity pursuant to Article 9 of this chapter
3494	3496		or Article 8 of Chapter 1.
3495	3497		(b) Notwithstanding subsection (a), the availability of
3496	3498		appraisal rights under subsections (a)(1), (2), (3), (4), (6),
3497	3499		and (8) shall be limited in accordance with the following
3498	3500		provisions:
3499	3501		(1) Appraisal rights shall not be available for the
3500	3502		holders of stock of any class or series of stock which is:
3501	3503		(i) a covered security under Section 18(b)(1)(A) or (B)
3502	3504		of the Securities Act of 1933;
3503	3505		(ii) has at least 2,000 record stockholders; or
3504	3506		(iii) issued by an open end management investment
3505	3507		company registered with the Securities and Exchange Commission
3506	3508		under the Investment Company Act of 1940 and which may be
3507	3509		redeemed at the option of the holder at net asset value.
3508	3510		(2) The applicability of subsection (b)(1) shall be
3509	3511		determined as of:
3510	3512		(i) the record date fixed to determine the stockholders
3511	3513		entitled to receive notice of the meeting of stockholders to
3512	3514		act upon the corporate action requiring appraisal rights or,
3513	3515		in the case of an offer made pursuant to Section
3514		-	10A-2A-11.04(j), the date of the offer; or
3515		-	(ii) if there is no meeting of stockholders and no
3516		-	offer made pursuant to Section 10A-2A-11.04(j), the day before
3517		-	the consummation of the corporate action or effective date of
3518		-	the amendment of the certificate of incorporation, as
3519	3516		1680
3520	3517		1681
3521	3518		1682
3522	3519		1683
3523	3520		1684
3524	3521		1685
3525	3522		1686
3526	3523		1687
3527	3524		1688
3528	3525		1689
3529	3526		1690
3530	3527		1691
3531	3528		1692
3532	3529		1693
3533	3530		1694
3534	3531		1695
3535	3532		1696
3536	3533		1697
3537	3534		1698
3538	3535		1699
3539	3536		1700
3540	3537		1701
3541	3538		1702
3542	3539		1703
3543	3540		1704
3544	3541		1705
3545	3542		1706
3546		-	1707 SB112 ~~Enrolled~~
	3543	+	1707 SB112 Engrossed
3547	3544		Page 62
	3545	+	in the case of an offer made pursuant to Section
	3546	+	10A-2A-11.04(j), the date of the offer; or
	3547	+	(ii) if there is no meeting of stockholders and no
	3548	+	offer made pursuant to Section 10A-2A-11.04(j), the day before
	3549	+	the consummation of the corporate action or effective date of
3548	3550		the amendment of the certificate of incorporation, as
3549	3551		applicable.
3550	3552		(3) Subsection (b)(1) shall not be applicable and
3551	3553		appraisal rights shall be available pursuant to subsection (a)
3552	3554		for the holders of any class or series of stock (i) who are
3553	3555		required by the terms of the corporate action requiring
3554	3556		appraisal rights to accept for their stock anything other than
3555	3557		cash or stock of any class or any series of stock of any
3556	3558		corporation, or any other proprietary interest of any other
3557	3559		entity, that satisfies the standards set forth in subsection
3558	3560		(b)(1) at the time the corporate action becomes effective, or
3559	3561		(ii) in the case of the consummation of a disposition of
3560	3562		assets pursuant to Section 10A-2A-12.02, unless the cash,
3561	3563		stock, or proprietary interests received in the disposition
3562	3564		are, under the terms of the corporate action approved by the
3563	3565		stockholders, to be distributed to the stockholders, as part
3564	3566		of a distribution to stockholders of the net assets of the
3565	3567		corporation in excess of a reasonable amount to meet claims of
3566	3568		the type described in Sections 10A-2A-14.06 and 10A-2A-14.07,
3567	3569		(A) within one year after the stockholders' approval of the
3568	3570		action, and (B) in accordance with their respective interests
3569	3571		determined at the time of the distribution , or (iii) in the
3570	3572		case of the consummation of a disposition of assets pursuant
3571	3573		to Section 10A-2A-12.02, unless the certificate of
3572		-	incorporation states that no stockholder shall be entitled to
3573		-	appraisal rights with respect to the consummation of a
3574		-	disposition of assets pursuant to Section 10A-2A-12.02 .
3575		-	(4) Subsection (b)(1) shall not be applicable and
3576		-	appraisal rights shall be available pursuant to subsection (a)
3577	3574		1708
3578	3575		1709
3579	3576		1710
3580	3577		1711
3581	3578		1712
3582	3579		1713
3583	3580		1714
3584	3581		1715
3585	3582		1716
3586	3583		1717
3587	3584		1718
3588	3585		1719
3589	3586		1720
3590	3587		1721
3591	3588		1722
3592	3589		1723
3593	3590		1724
3594	3591		1725
3595	3592		1726
3596	3593		1727
3597	3594		1728
3598	3595		1729
3599	3596		1730
3600	3597		1731
3601	3598		1732
3602	3599		1733
3603	3600		1734
3604		-	1735 SB112 ~~Enrolled~~
	3601	+	1735 SB112 Engrossed
3605	3602		Page 63
	3603	+	to Section 10A-2A-12.02, unless the certificate of
	3604	+	incorporation states that no stockholder shall be entitled to
	3605	+	appraisal rights with respect to the consummation of a
	3606	+	disposition of assets pursuant to Section 10A-2A-12.02 .
	3607	+	(4) Subsection (b)(1) shall not be applicable and
3606	3608		appraisal rights shall be available pursuant to subsection (a)
3607	3609		for the holders of any class or series of stock where the
3608	3610		corporate action is an interested transaction.
3609	3611		(c) Notwithstanding any other provision of this Section
3610	3612		10A-2A-13.02, the certificate of incorporation as originally
3611	3613		filed or any amendment to the certificate of incorporation may
3612	3614		limit or eliminate appraisal rights for any class or series of
3613	3615		preferred stock, except that (i) no limitation or elimination
3614	3616		shall be effective if the class or series does not have the
3615	3617		right to vote separately as a voting group (alone or as part
3616	3618		of a group) on the action or if the action is a conversion or
3617	3619		merger in which the converted organization or the surviving
3618	3620		organization is not a corporation or foreign corporation, and
3619	3621		(ii) any limitation or elimination contained in an amendment
3620	3622		to the certificate of incorporation that limits or eliminates
3621	3623		appraisal rights for any stock that is outstanding immediately
3622	3624		before the effective date of the amendment or that the
3623	3625		corporation is or may be required to issue or sell thereafter
3624	3626		pursuant to any conversion, exchange, or other right existing
3625	3627		immediately before the effective date of the amendment shall
3626	3628		not apply to any corporate action that becomes effective
3627	3629		within one year after the effective date of the amendment if
3628	3630		that action would otherwise afford appraisal rights."
3629	3631		"§10A-2A-14.05
3630		-	(a) A dissolved corporation continues its existence as
3631		-	a corporation but may not carry on any business except as is
3632		-	appropriate to wind up and liquidate its business and affairs,
3633		-	including:
3634		-	(1) collecting its assets;
3635	3632		1736
3636	3633		1737
3637	3634		1738
3638	3635		1739
3639	3636		1740
3640	3637		1741
3641	3638		1742
3642	3639		1743
3643	3640		1744
3644	3641		1745
3645	3642		1746
3646	3643		1747
3647	3644		1748
3648	3645		1749
3649	3646		1750
3650	3647		1751
3651	3648		1752
3652	3649		1753
3653	3650		1754
3654	3651		1755
3655	3652		1756
3656	3653		1757
3657	3654		1758
3658	3655		1759
3659	3656		1760
3660	3657		1761
3661	3658		1762
3662		-	1763 SB112 ~~Enrolled~~
	3659	+	1763 SB112 Engrossed
3663	3660		Page 64
	3661	+	"§10A-2A-14.05
	3662	+	(a) A dissolved corporation continues its existence as
	3663	+	a corporation but may not carry on any business except as is
	3664	+	appropriate to wind up and liquidate its business and affairs,
	3665	+	including:
3664	3666		(1) collecting its assets;
3665	3667		(2) disposing of its properties that will not be
3666	3668		distributed in kind to stockholders;
3667	3669		(3) discharging or making provisions for discharging
3668	3670		its liabilities;
3669	3671		(4) distributing its remaining property among its
3670	3672		stockholders according to their interests; and
3671	3673		(5) doing every other act necessary to wind up and
3672	3674		liquidate its business and affairs.
3673	3675		(b) In winding up its business and affairs, a
3674	3676		corporation may:
3675	3677		(1) preserve the corporation's business and affairs and
3676	3678		property as a going concern for a reasonable time;
3677	3679		(2) prosecute, defend, or settle actions or proceedings
3678	3680		whether civil, criminal, or administrative;
3679	3681		(3) transfer the corporation's assets;
3680	3682		(4) resolve disputes by mediation or arbitration;
3681	3683		(5) merge or convert in accordance with Article 9 or 11
3682	3684		of this chapter or Article 8 of Chapter 1; and
3683	3685		(6) enter into a stock exchange in accordance with
3684	3686		Article 11 of this chapter.
3685	3687		(c) Dissolution of a corporation does not:
3686	3688		(1) transfer title to the corporation's property;
3687	3689		(2) prevent transfer of its stock or securities;
3688		-	(3) subject its directors or officers to standards of
3689		-	conduct different from those prescribed in Article 8 of this
3690		-	chapter;
3691		-	(4) change (i) quorum or voting requirements for its
3692		-	board of directors or stockholders;
3693	3690		1764
3694	3691		1765
3695	3692		1766
3696	3693		1767
3697	3694		1768
3698	3695		1769
3699	3696		1770
3700	3697		1771
3701	3698		1772
3702	3699		1773
3703	3700		1774
3704	3701		1775
3705	3702		1776
3706	3703		1777
3707	3704		1778
3708	3705		1779
3709	3706		1780
3710	3707		1781
3711	3708		1782
3712	3709		1783
3713	3710		1784
3714	3711		1785
3715	3712		1786
3716	3713		1787
3717	3714		1788
3718	3715		1789
3719	3716		1790
3720		-	1791 SB112 ~~Enrolled~~
	3717	+	1791 SB112 Engrossed
3721	3718		Page 65
	3719	+	(2) prevent transfer of its stock or securities;
	3720	+	(3) subject its directors or officers to standards of
	3721	+	conduct different from those prescribed in Article 8 of this
	3722	+	chapter;
	3723	+	(4) change (i) quorum or voting requirements for its
3722	3724		board of directors or stockholders;
3723	3725		(ii) provisions for selection, resignation, or removal
3724	3726		of its directors or officers or both; or
3725	3727		(iii) provisions for amending its bylaws;
3726	3728		(5) prevent commencement of a proceeding by or against
3727	3729		the corporation in its corporate name;
3728	3730		(6) abate or suspend a proceeding pending by or against
3729	3731		the corporation on the effective date of dissolution; or
3730	3732		(7) terminate the authority of the registered agent of
3731	3733		the corporation.
3732	3734		(d) A distribution in liquidation under this section
3733	3735		may only be made by a dissolved corporation. For purposes of
3734	3736		determining the stockholders entitled to receive a
3735	3737		distribution in liquidation, the board of directors may fix a
3736	3738		record date for determining stockholders entitled to a
3737	3739		distribution in liquidation, which date may not be
3738	3740		retroactive. If the board of directors does not fix a record
3739	3741		date for determining stockholders entitled to a distribution
3740	3742		in liquidation, the record date is the date the board of
3741	3743		directors authorizes the distribution in liquidation."
3742	3744		"§10A-3A-1.02
3743	3745		As used in this chapter, unless otherwise specified or
3744	3746		unless the context otherwise requires, the following terms
3745	3747		have the following meanings:
3746		-	(1) CERTIFICATE OF INCORPORATION means the certificate
3747		-	of incorporation described in Section 10A-3A-2.02, all
3748		-	amendments to the certificate of incorporation, and any other
3749		-	documents permitted or required to be delivered for filing by
3750		-	a nonprofit corporation with the Secretary of State under this
3751	3748		1792
3752	3749		1793
3753	3750		1794
3754	3751		1795
3755	3752		1796
3756	3753		1797
3757	3754		1798
3758	3755		1799
3759	3756		1800
3760	3757		1801
3761	3758		1802
3762	3759		1803
3763	3760		1804
3764	3761		1805
3765	3762		1806
3766	3763		1807
3767	3764		1808
3768	3765		1809
3769	3766		1810
3770	3767		1811
3771	3768		1812
3772	3769		1813
3773	3770		1814
3774	3771		1815
3775	3772		1816
3776	3773		1817
3777	3774		1818
3778		-	1819 SB112 ~~Enrolled~~
	3775	+	1819 SB112 Engrossed
3779	3776		Page 66
	3777	+	have the following meanings:
	3778	+	(1) CERTIFICATE OF INCORPORATION means the certificate
	3779	+	of incorporation described in Section 10A-3A-2.02, all
	3780	+	amendments to the certificate of incorporation, and any other
	3781	+	documents permitted or required to be delivered for filing by
3780	3782		a nonprofit corporation with the Secretary of State under this
3781	3783		chapter or Chapter 1 that modify, amend, supplement, restate,
3782	3784		or replace the certificate of incorporation. After an
3783	3785		amendment of the certificate of incorporation or any other
3784	3786		document filed the filing of a filing instrument under this
3785	3787		chapter or Chapter 1 that restates or amends and restates the
3786	3788		certificate of incorporation in its entirety, the certificate
3787	3789		of incorporation shall not include any prior documents , but
3788	3790		the original date of incorporation shall remain unchanged .
3789	3791		When used with respect to a nonprofit corporation incorporated
3790	3792		and existing on December 31, 2023, under a predecessor law of
3791	3793		this state, the term "certificate of incorporation" means
3792	3794		articles of incorporation, charter, or similar incorporating
3793	3795		document, and all amendments and restatements to the articles
3794	3796		of incorporation, charter, or similar incorporating document.
3795	3797		When used with respect to a foreign nonprofit corporation, a
3796	3798		business corporation, or a foreign business corporation, the
3797	3799		"certificate of incorporation" of that entity means the
3798	3800		document of that entity that is equivalent to the certificate
3799	3801		of incorporation of a corporation. The term "certificate of
3800	3802		incorporation" as used in this chapter is synonymous to the
3801	3803		term certificate of formation used in Chapter 1.
3802	3804		(2) BOARD or BOARD OF DIRECTORS means the group of
3803	3805		individuals responsible for the management or direction, and
3804		-	oversight, of the activities and affairs of the nonprofit
3805		-	corporation, regardless of the name used to refer to the group
3806		-	or other persons authorized to perform the functions of the
3807		-	board of directors.
3808		-	(3) BUSINESS CORPORATION, except in the phrase foreign
3809	3806		1820
3810	3807		1821
3811	3808		1822
3812	3809		1823
3813	3810		1824
3814	3811		1825
3815	3812		1826
3816	3813		1827
3817	3814		1828
3818	3815		1829
3819	3816		1830
3820	3817		1831
3821	3818		1832
3822	3819		1833
3823	3820		1834
3824	3821		1835
3825	3822		1836
3826	3823		1837
3827	3824		1838
3828	3825		1839
3829	3826		1840
3830	3827		1841
3831	3828		1842
3832	3829		1843
3833	3830		1844
3834	3831		1845
3835	3832		1846
3836		-	1847 SB112 ~~Enrolled~~
	3833	+	1847 SB112 Engrossed
3837	3834		Page 67
	3835	+	individuals responsible for the management or direction, and
	3836	+	oversight, of the activities and affairs of the nonprofit
	3837	+	corporation, regardless of the name used to refer to the group
	3838	+	or other persons authorized to perform the functions of the
	3839	+	board of directors.
3838	3840		(3) BUSINESS CORPORATION, except in the phrase foreign
3839	3841		business corporation, means an entity incorporated or existing
3840	3842		under the Alabama Business Corporation Law.
3841	3843		(4) BYLAWS means the code or codes of rules (other than
3842	3844		the certificate of incorporation) adopted for the regulation
3843	3845		or management of the affairs of the nonprofit corporation,
3844	3846		regardless of the name or names by which the rules are
3845	3847		designated.
3846	3848		(5) DELIVER or DELIVERY means any method of delivery
3847	3849		used in conventional commercial practice, including delivery
3848	3850		by hand, mail, commercial delivery, and, if authorized in
3849	3851		accordance with Section 10A-3A-1.03, by electronic
3850	3852		transmission.
3851	3853		(6) DIRECTOR means an individual designated, elected,
3852	3854		or appointed, by that or any other name or title, to act as a
3853	3855		member of the board of directors, while the individual is
3854	3856		holding that position.
3855	3857		(7) DISTRIBUTION means a direct or indirect transfer of
3856	3858		cash or other property from a nonprofit corporation to a
3857	3859		member, director, or officer of that nonprofit corporation in
3858	3860		that person's capacity as a member, director, or officer, but
3859	3861		does not mean payments or benefits made in accordance with
3860	3862		Section 10A-3A-6.41.
3861	3863		(8) DOCUMENT means a writing as defined in Chapter 1.
3862		-	(9) EFFECTIVE DATE when referring to a document
3863		-	accepted for filing by the Secretary of State, means the time
3864		-	and date determined in accordance with Article 4 of Chapter 1.
3865		-	(10) ELECTRONIC MAIL means an electronic transmission
3866		-	directed to a unique electronic mail address.
3867	3864		1848
3868	3865		1849
3869	3866		1850
3870	3867		1851
3871	3868		1852
3872	3869		1853
3873	3870		1854
3874	3871		1855
3875	3872		1856
3876	3873		1857
3877	3874		1858
3878	3875		1859
3879	3876		1860
3880	3877		1861
3881	3878		1862
3882	3879		1863
3883	3880		1864
3884	3881		1865
3885	3882		1866
3886	3883		1867
3887	3884		1868
3888	3885		1869
3889	3886		1870
3890	3887		1871
3891	3888		1872
3892	3889		1873
3893	3890		1874
3894		-	1875 SB112 ~~Enrolled~~
	3891	+	1875 SB112 Engrossed
3895	3892		Page 68
	3893	+	(8) DOCUMENT means a writing as defined in Chapter 1.
	3894	+	(9) EFFECTIVE DATE when referring to a document
	3895	+	accepted for filing by the Secretary of State, means the time
	3896	+	and date determined in accordance with Article 4 of Chapter 1.
	3897	+	(10) ELECTRONIC MAIL means an electronic transmission
3896	3898		directed to a unique electronic mail address.
3897	3899		(11) ELECTRONIC MAIL ADDRESS means a destination,
3898	3900		commonly expressed as a string of characters, consisting of a
3899	3901		unique user name or mailbox (commonly referred to as the
3900	3902		"local part" of the address) and a reference to an internet
3901	3903		domain (commonly referred to as the "domain part" of the
3902	3904		address), whether or not displayed, to which electronic mail
3903	3905		can be sent or delivered.
3904	3906		(12) EMPLOYEE does not include an individual serving as
3905	3907		an officer or director who is not otherwise employed by the
3906	3908		nonprofit corporation.
3907	3909		(13) ENTITLED TO VOTE means entitled to vote on the
3908	3910		matter under consideration pursuant to the certificate of
3909	3911		incorporation or bylaws of the nonprofit corporation, or
3910	3912		applicable provisions of this chapter or Chapter 1.
3911	3913		(14) ENTITY includes nonprofit corporation; foreign
3912	3914		nonprofit corporation; business corporation; foreign business
3913	3915		corporation; estate; trust; unincorporated entity; foreign
3914	3916		unincorporated entity; and state, United States, and foreign
3915	3917		government.
3916	3918		(15) EXPENSES means reasonable expenses of any kind
3917	3919		that are incurred in connection with a matter.
3918	3920		(16) FOREIGN BUSINESS CORPORATION means a business
3919	3921		corporation incorporated under a law other than the law of
3920		-	this state which would be a business corporation if
3921		-	incorporated under the law of this state.
3922		-	(17) FOREIGN NONPROFIT CORPORATION means a nonprofit
3923		-	corporation incorporated under a law other than the law of
3924		-	this state which would be a nonprofit corporation if
3925	3922		1876
3926	3923		1877
3927	3924		1878
3928	3925		1879
3929	3926		1880
3930	3927		1881
3931	3928		1882
3932	3929		1883
3933	3930		1884
3934	3931		1885
3935	3932		1886
3936	3933		1887
3937	3934		1888
3938	3935		1889
3939	3936		1890
3940	3937		1891
3941	3938		1892
3942	3939		1893
3943	3940		1894
3944	3941		1895
3945	3942		1896
3946	3943		1897
3947	3944		1898
3948	3945		1899
3949	3946		1900
3950	3947		1901
3951	3948		1902
3952		-	1903 SB112 ~~Enrolled~~
	3949	+	1903 SB112 Engrossed
3953	3950		Page 69
	3951	+	corporation incorporated under a law other than the law of
	3952	+	this state which would be a business corporation if
	3953	+	incorporated under the law of this state.
	3954	+	(17) FOREIGN NONPROFIT CORPORATION means a nonprofit
	3955	+	corporation incorporated under a law other than the law of
3954	3956		this state which would be a nonprofit corporation if
3955	3957		incorporated under the law of this state.
3956	3958		(18) FOREIGN UNINCORPORATED ENTITY means an
3957	3959		unincorporated entity whose internal affairs are governed by
3958	3960		the law of a jurisdiction other than this state.
3959	3961		(19) FUNDAMENTAL TRANSACTION means an amendment of the
3960	3962		certificate of incorporation, an amendment to the bylaws, a
3961	3963		merger, a conversion, a sale of all or substantially all of
3962	3964		the assets, or the dissolution of a nonprofit corporation.
3963	3965		(20) GOVERNING STATUTE means the statute governing the
3964	3966		internal affairs of a nonprofit corporation, foreign nonprofit
3965	3967		corporation, business corporation, foreign business
3966	3968		corporation, unincorporated entity, or foreign unincorporated
3967	3969		entity.
3968	3970		(21) INCLUDES and INCLUDING denote a partial definition
3969	3971		or a nonexclusive list.
3970	3972		(22) INTEREST means:
3971	3973		(a) a share;
3972	3974		(b) a membership or membership interests; or
3973	3975		(c) either or both of the following rights under the
3974	3976		governing statute governing an organization other than a
3975	3977		nonprofit corporation, foreign nonprofit corporation, business
3976	3978		corporation, or foreign business corporation:
3977	3979		(i) the right to receive distributions from that
3978		-	organization either in the ordinary course or upon
3979		-	liquidation; or
3980		-	(ii) the right to receive notice or vote on issues
3981		-	involving that organization's internal affairs, other than as
3982		-	an agent, assignee, proxy, or person responsible for managing
3983	3980		1904
3984	3981		1905
3985	3982		1906
3986	3983		1907
3987	3984		1908
3988	3985		1909
3989	3986		1910
3990	3987		1911
3991	3988		1912
3992	3989		1913
3993	3990		1914
3994	3991		1915
3995	3992		1916
3996	3993		1917
3997	3994		1918
3998	3995		1919
3999	3996		1920
4000	3997		1921
4001	3998		1922
4002	3999		1923
4003	4000		1924
4004	4001		1925
4005	4002		1926
4006	4003		1927
4007	4004		1928
4008	4005		1929
4009	4006		1930
4010		-	1931 SB112 ~~Enrolled~~
	4007	+	1931 SB112 Engrossed
4011	4008		Page 70
	4009	+	(i) the right to receive distributions from that
	4010	+	organization either in the ordinary course or upon
	4011	+	liquidation; or
	4012	+	(ii) the right to receive notice or vote on issues
	4013	+	involving that organization's internal affairs, other than as
4012	4014		an agent, assignee, proxy, or person responsible for managing
4013	4015		that organization's business and affairs.
4014	4016		(23) INTEREST HOLDER means a person who holds of record
4015	4017		an interest.
4016	4018		(24) KNOWLEDGE is determined as follows:
4017	4019		(a) A person knows a fact when the person:
4018	4020		(1) has actual knowledge of it; or
4019	4021		(2) is deemed to know it under law other than this
4020	4022		chapter.
4021	4023		(b) A person has notice of a fact when the person:
4022	4024		(1) knows of it;
4023	4025		(2) receives notification of it in accordance with
4024	4026		Section 10A-3A-1.03;
4025	4027		(3) has reason to know the fact from all of the facts
4026	4028		known to the person at the time in question; or
4027	4029		(4) is deemed to have notice of the fact under
4028	4030		subsection (d).
4029	4031		(c) A person notifies another of a fact by taking steps
4030	4032		reasonably required to inform the other person in ordinary
4031	4033		course in accordance with Section 10A-3A-1.03, whether or not
4032	4034		the other person knows the fact.
4033	4035		(d) A person is deemed to have notice of a nonprofit
4034	4036		corporation's:
4035	4037		(1) matters included in the certificate of
4036		-	incorporation upon filing;
4037		-	(2) dissolution, 90 days after a certificate of
4038		-	dissolution under Section 10A-3A-11.05 becomes effective;
4039		-	(3) conversion or merger under Article 13 or Article
4040		-	12, 90 days after a statement of conversion or statement of
4041	4038		1932
4042	4039		1933
4043	4040		1934
4044	4041		1935
4045	4042		1936
4046	4043		1937
4047	4044		1938
4048	4045		1939
4049	4046		1940
4050	4047		1941
4051	4048		1942
4052	4049		1943
4053	4050		1944
4054	4051		1945
4055	4052		1946
4056	4053		1947
4057	4054		1948
4058	4055		1949
4059	4056		1950
4060	4057		1951
4061	4058		1952
4062	4059		1953
4063	4060		1954
4064	4061		1955
4065	4062		1956
4066	4063		1957
4067	4064		1958
4068		-	1959 SB112 ~~Enrolled~~
	4065	+	1959 SB112 Engrossed
4069	4066		Page 71
	4067	+	(1) matters included in the certificate of
	4068	+	incorporation upon filing;
	4069	+	(2) dissolution, 90 days after a certificate of
	4070	+	dissolution under Section 10A-3A-11.05 becomes effective;
	4071	+	(3) conversion or merger under Article 13 or Article
4070	4072		12, 90 days after a statement of conversion or statement of
4071	4073		merger becomes effective;
4072	4074		(4) conversion or merger under Article 8 of Chapter 1,
4073	4075		90 days after a statement of conversion or statement of merger
4074	4076		becomes effective; and
4075	4077		(5) revocation of dissolution and reinstatement, 90
4076	4078		days after certificate of revocation of dissolution and
4077	4079		reinstatement under Section 10A-3A-11.06 becomes effective.
4078	4080		(e) A member's knowledge, notice, or receipt of a
4079	4081		notification of a fact relating to the nonprofit corporation
4080	4082		is not knowledge, notice, or receipt of a notification of a
4081	4083		fact by that nonprofit corporation solely by reason of the
4082	4084		member's capacity as a member.
4083	4085		(f) The date and time of the effectiveness of a notice
4084	4086		delivered in accordance with Section 10A-3A-1.03, is
4085	4087		determined by Section 10A-3A-1.03.
4086	4088		(25) MEANS denotes an exhaustive definition.
4087	4089		(26) MEMBER means a person in whose name a membership
4088	4090		is registered on the records of the membership nonprofit
4089	4091		corporation and who has the right to (i) select or vote for
4090	4092		the election of directors or (ii) vote on any type of
4091	4093		fundamental transaction.
4092	4094		(27) MEMBERSHIP or MEMBERSHIP INTERESTS means the
4093	4095		rights and any obligations of a member in a membership
4094		-	nonprofit corporation or a foreign membership nonprofit
4095		-	corporation.
4096		-	(28) MEMBERSHIP NONPROFIT CORPORATION means, except as
4097		-	provided in Section 10A-3A-14.01(c)(1), a nonprofit
4098		-	corporation whose certificate of incorporation provides that
4099	4096		1960
4100	4097		1961
4101	4098		1962
4102	4099		1963
4103	4100		1964
4104	4101		1965
4105	4102		1966
4106	4103		1967
4107	4104		1968
4108	4105		1969
4109	4106		1970
4110	4107		1971
4111	4108		1972
4112	4109		1973
4113	4110		1974
4114	4111		1975
4115	4112		1976
4116	4113		1977
4117	4114		1978
4118	4115		1979
4119	4116		1980
4120	4117		1981
4121	4118		1982
4122	4119		1983
4123	4120		1984
4124	4121		1985
4125	4122		1986
4126		-	1987 SB112 ~~Enrolled~~
	4123	+	1987 SB112 Engrossed
4127	4124		Page 72
	4125	+	rights and any obligations of a member in a membership
	4126	+	nonprofit corporation or a foreign membership nonprofit
	4127	+	corporation.
	4128	+	(28) MEMBERSHIP NONPROFIT CORPORATION means, except as
	4129	+	provided in Section 10A-3A-14.01(c)(1), a nonprofit
4128	4130		corporation whose certificate of incorporation provides that
4129	4131		it will have members.
4130	4132		(29) NONMEMBERSHIP NONPROFIT CORPORATION means a
4131	4133		nonprofit corporation whose certificate of incorporation
4132	4134		provides that it will not have members.
4133	4135		(30) NONPROFIT CORPORATION, except in the phrase
4134	4136		foreign nonprofit corporation, means a nonprofit corporation
4135	4137		incorporated under or existing under this chapter.
4136	4138		(31) ORGANIZATIONAL DOCUMENTS means the public organic
4137	4139		record and private organizational documents of a nonprofit
4138	4140		corporation, foreign nonprofit corporation, business
4139	4141		corporation, foreign business corporation, or other
4140	4142		organization.
4141	4143		(32) PRINCIPAL OFFICE means the office (in or out of
4142	4144		this state) where the principal executive offices of a
4143	4145		nonprofit corporation or foreign nonprofit corporation are
4144	4146		located.
4145	4147		(33) PRIVATE ORGANIZATIONAL DOCUMENTS means (i) the
4146	4148		bylaws of a nonprofit corporation, foreign nonprofit
4147	4149		corporation, business corporation, or foreign business
4148	4150		corporation or (ii) the rules, regardless of whether in
4149	4151		writing, that govern the internal affairs of an unincorporated
4150	4152		entity or foreign unincorporated entity, are binding on all
4151	4153		its interest holders, and are not part of its public organic
4152		-	record, if any. Where private organizational documents have
4153		-	been amended or restated, the term means the private
4154		-	organizational documents as last amended or restated.
4155		-	(34) PROCEEDING includes any civil suit and criminal,
4156		-	administrative, and investigatory action.
4157	4154		1988
4158	4155		1989
4159	4156		1990
4160	4157		1991
4161	4158		1992
4162	4159		1993
4163	4160		1994
4164	4161		1995
4165	4162		1996
4166	4163		1997
4167	4164		1998
4168	4165		1999
4169	4166		2000
4170	4167		2001
4171	4168		2002
4172	4169		2003
4173	4170		2004
4174	4171		2005
4175	4172		2006
4176	4173		2007
4177	4174		2008
4178	4175		2009
4179	4176		2010
4180	4177		2011
4181	4178		2012
4182	4179		2013
4183	4180		2014
4184		-	2015 SB112 ~~Enrolled~~
	4181	+	2015 SB112 Engrossed
4185	4182		Page 73
	4183	+	its interest holders, and are not part of its public organic
	4184	+	record, if any. Where private organizational documents have
	4185	+	been amended or restated, the term means the private
	4186	+	organizational documents as last amended or restated.
	4187	+	(34) PROCEEDING includes any civil suit and criminal,
4186	4188		administrative, and investigatory action.
4187	4189		(35) PUBLIC ORGANIC RECORD means (i) the certificate of
4188	4190		incorporation of a nonprofit corporation, foreign nonprofit
4189	4191		corporation, business corporation, or foreign business
4190	4192		corporation, or (ii) the document, if any, the filing of which
4191	4193		is required to create an unincorporated entity or foreign
4192	4194		unincorporated entity, or which creates the unincorporated
4193	4195		entity or foreign unincorporated entity and is required to be
4194	4196		filed. Where a public organic record has been amended or
4195	4197		restated, the term means the public organic record as last
4196	4198		amended or restated.
4197	4199		(36) RECORD DATE means the date fixed for determining
4198	4200		the identity of the nonprofit corporation's members and their
4199	4201		interests for purposes of this chapter. Unless another time is
4200	4202		specified when the record date is fixed, the determination
4201	4203		shall be made as of the close of business at the principal
4202	4204		office of the nonprofit corporation on the date so fixed.
4203	4205		(37) SECRETARY means the corporate officer to whom the
4204	4206		certificate of incorporation, bylaws, or board of directors
4205	4207		has delegated responsibility under Section 10A-3A-8.40(c) to
4206	4208		maintain the minutes of the meetings of the board of
4207	4209		directors, committees, and the members, and for authenticating
4208	4210		records of the nonprofit corporation.
4209	4211		(38) SHARES means the units into which the proprietary
4210		-	interests in a domestic or foreign business corporation are
4211		-	divided.
4212		-	(39) TYPE OF ENTITY means a generic form of entity: (i)
4213		-	recognized at common law; or (ii) formed under a governing
4214		-	statute, regardless of whether some entities formed under that
4215	4212		2016
4216	4213		2017
4217	4214		2018
4218	4215		2019
4219	4216		2020
4220	4217		2021
4221	4218		2022
4222	4219		2023
4223	4220		2024
4224	4221		2025
4225	4222		2026
4226	4223		2027
4227	4224		2028
4228	4225		2029
4229	4226		2030
4230	4227		2031
4231	4228		2032
4232	4229		2033
4233	4230		2034
4234	4231		2035
4235	4232		2036
4236	4233		2037
4237	4234		2038
4238	4235		2039
4239	4236		2040
4240	4237		2041
4241	4238		2042
4242		-	2043 SB112 ~~Enrolled~~
	4239	+	2043 SB112 Engrossed
4243	4240		Page 74
	4241	+	(38) SHARES means the units into which the proprietary
	4242	+	interests in a domestic or foreign business corporation are
	4243	+	divided.
	4244	+	(39) TYPE OF ENTITY means a generic form of entity: (i)
	4245	+	recognized at common law; or (ii) formed under a governing
4244	4246		statute, regardless of whether some entities formed under that
4245	4247		law are subject to provisions of that law that create
4246	4248		different categories of the form of entity.
4247	4249		(40) UNINCORPORATED ENTITY means an organization or
4248	4250		artificial legal person that either has a separate legal
4249	4251		existence or has the power to acquire an estate in real
4250	4252		property in its own name and that is not any of the following:
4251	4253		a corporation, foreign corporation, nonprofit corporation,
4252	4254		foreign nonprofit corporation, a series of a limited liability
4253	4255		company or of another type of entity, an estate, a trust, a
4254	4256		state, United States, or foreign government. The term includes
4255	4257		a general partnership, limited liability company, limited
4256	4258		partnership, business trust, joint stock association, and
4257	4259		unincorporated nonprofit association.
4258	4260		(41) UNITED STATES includes a district, authority,
4259	4261		bureau, commission, department, and any other agency of the
4260	4262		United States.
4261	4263		(42) VOTE, VOTING, or CASTING A VOTE includes the
4262	4264		giving of consent in writing without a meeting. The term does
4263	4265		not include either recording the fact of abstention or failing
4264	4266		to vote for a candidate or for approval or disapproval of a
4265	4267		matter, whether or not the person entitled to vote
4266	4268		characterizes that conduct as voting or casting a vote.
4267	4269		(43) VOTING GROUP means one or more classes of members
4268		-	that under the certificate of incorporation, bylaws, or this
4269		-	chapter are entitled to vote and be counted together
4270		-	collectively on a matter at a meeting of members. All members
4271		-	entitled by the certificate of incorporation, bylaws, or this
4272		-	chapter to vote generally on the matter are for that purpose a
4273	4270		2044
4274	4271		2045
4275	4272		2046
4276	4273		2047
4277	4274		2048
4278	4275		2049
4279	4276		2050
4280	4277		2051
4281	4278		2052
4282	4279		2053
4283	4280		2054
4284	4281		2055
4285	4282		2056
4286	4283		2057
4287	4284		2058
4288	4285		2059
4289	4286		2060
4290	4287		2061
4291	4288		2062
4292	4289		2063
4293	4290		2064
4294	4291		2065
4295	4292		2066
4296	4293		2067
4297	4294		2068
4298	4295		2069
4299	4296		2070
4300		-	2071 SB112 ~~Enrolled~~
	4297	+	2071 SB112 Engrossed
4301	4298		Page 75
	4299	+	(43) VOTING GROUP means one or more classes of members
	4300	+	that under the certificate of incorporation, bylaws, or this
	4301	+	chapter are entitled to vote and be counted together
	4302	+	collectively on a matter at a meeting of members. All members
	4303	+	entitled by the certificate of incorporation, bylaws, or this
4302	4304		chapter to vote generally on the matter are for that purpose a
4303	4305		single voting group.
4304	4306		(44) VOTING POWER means the current power to vote in
4305	4307		the election of directors, or to vote on approval of any type
4306	4308		of fundamental transaction.
4307	4309		"§10A-3A-1.23
4308	4310		(a) The quorum and voting requirements applicable to a
4309	4311		ratifying action by the board of directors under Section
4310	4312		10A-3A-1.22(a) shall be the quorum and voting requirements
4311	4313		applicable to the corporate action proposed to be ratified at
4312	4314		the time the ratifying action is taken.
4313	4315		(b) If the ratification of the defective corporate
4314	4316		action requires approval by the members under Section
4315	4317		10A-3A-1.22(c), and if the approval is to be given at a
4316	4318		meeting, the membership nonprofit corporation shall notify
4317	4319		each holder of valid and putative membership interests,
4318	4320		regardless of whether entitled to vote , as of the record date
4319	4321		for notice of the meeting and as of (i) the date of the action
4320	4322		by the board of directors under Section 10A-3A-1.22(a) which
4321	4323		shall be the record date and (ii) the date of the occurrence
4322	4324		of the defective corporate action, provided that notice shall
4323	4325		not be required to be given to holders of valid or putative
4324	4326		membership interests whose identities or addresses for notice
4325	4327		cannot be determined from the records of the membership
4326		-	nonprofit corporation. The notice must state that the purpose,
4327		-	or one of the purposes, of the meeting, is to consider
4328		-	ratification of a defective corporate action and must be
4329		-	accompanied by (i) either a copy of the action taken by the
4330		-	board of directors in accordance with Section 10A-3A-1.22(a)
4331	4328		2072
4332	4329		2073
4333	4330		2074
4334	4331		2075
4335	4332		2076
4336	4333		2077
4337	4334		2078
4338	4335		2079
4339	4336		2080
4340	4337		2081
4341	4338		2082
4342	4339		2083
4343	4340		2084
4344	4341		2085
4345	4342		2086
4346	4343		2087
4347	4344		2088
4348	4345		2089
4349	4346		2090
4350	4347		2091
4351	4348		2092
4352	4349		2093
4353	4350		2094
4354	4351		2095
4355	4352		2096
4356	4353		2097
4357	4354		2098
4358		-	2099 SB112 ~~Enrolled~~
	4355	+	2099 SB112 Engrossed
4359	4356		Page 76
	4357	+	cannot be determined from the records of the membership
	4358	+	nonprofit corporation. The notice must state that the purpose,
	4359	+	or one of the purposes, of the meeting, is to consider
	4360	+	ratification of a defective corporate action and must be
	4361	+	accompanied by (i) either a copy of the action taken by the
4360	4362		board of directors in accordance with Section 10A-3A-1.22(a)
4361	4363		or the information required by Section 10A-3A-1.22(a)(1)
4362	4364		through (a)(4), and (ii) a statement that any claim that the
4363	4365		ratification of the defective corporate action and any
4364	4366		putative membership interest issued as a result of the
4365	4367		defective corporate action should not be effective, or should
4366	4368		be effective only on certain conditions, shall be brought
4367	4369		within 120 days from the applicable validation effective time.
4368	4370		(c) Except as provided in subsection (d) with respect
4369	4371		to the voting requirements to ratify the election of a
4370	4372		director, the quorum and voting requirements applicable to the
4371	4373		approval by the members, if any, and if none, by the directors
4372	4374		shall be the quorum and voting requirements applicable to the
4373	4375		corporate action proposed to be ratified at the time of the
4374	4376		member or director approval.
4375	4377		(d) The approval by members to ratify the election of a
4376	4378		director requires that the votes cast within the voting group
4377	4379		favoring the ratification exceed the votes cast opposing the
4378	4380		ratification of the election at a meeting at which a quorum is
4379	4381		present.
4380	4382		(e) Putative membership interest interests on the
4381	4383		record date for determining the members entitled to vote on
4382	4384		any matter submitted to members under Section 10A-3A-1.22(c)
4383	4385		of the action by the board of directors under Section
4384		-	10A-3A-1.22(a) (and without giving effect to any ratification
4385		-	of putative membership interests that becomes effective as a
4386		-	result of the vote) shall neither be entitled to vote nor
4387		-	counted for quorum purposes in any vote to approve the
4388		-	ratification of any defective corporate action.
4389	4386		2100
4390	4387		2101
4391	4388		2102
4392	4389		2103
4393	4390		2104
4394	4391		2105
4395	4392		2106
4396	4393		2107
4397	4394		2108
4398	4395		2109
4399	4396		2110
4400	4397		2111
4401	4398		2112
4402	4399		2113
4403	4400		2114
4404	4401		2115
4405	4402		2116
4406	4403		2117
4407	4404		2118
4408	4405		2119
4409	4406		2120
4410	4407		2121
4411	4408		2122
4412	4409		2123
4413	4410		2124
4414	4411		2125
4415	4412		2126
4416		-	2127 SB112 ~~Enrolled~~
	4413	+	2127 SB112 Engrossed
4417	4414		Page 77
	4415	+	of the action by the board of directors under Section
	4416	+	10A-3A-1.22(a) (and without giving effect to any ratification
	4417	+	of putative membership interests that becomes effective as a
	4418	+	result of the vote) shall neither be entitled to vote nor
	4419	+	counted for quorum purposes in any vote to approve the
4418	4420		ratification of any defective corporate action.
4419	4421		(f) If the approval under this section of putative
4420	4422		membership interests would result in an overissue, in addition
4421	4423		to the approval required by Section 10A-3A-1.22, approval of
4422	4424		an amendment to the certificate of incorporation under Article
4423	4425		9 to increase the number of membership interests of an
4424	4426		authorized class or to authorize the creation of a class of
4425	4427		membership interests so there would be no overissue shall also
4426	4428		be required.
4427	4429		(g) If the ratification of the defective corporate
4428	4430		action requires approval by a person or group of persons
4429	4431		specified in the certificate of incorporation, the directors
4430	4432		shall provide that person or group of persons with (i) either
4431	4433		a copy of the action taken by the board of directors in
4432	4434		accordance with Section 10A-3A-1.22(a) or the information
4433	4435		required by Section 10A-3A-1.22(a)(1) through (a)(4), and (ii)
4434	4436		a statement that any claim that the ratification of the
4435	4437		defective corporate action and any putative membership
4436	4438		interest issued as a result of the defective corporate action
4437	4439		should not be effective, or should be effective only on
4438	4440		certain conditions, shall be brought within 120 days from the
4439	4441		applicable validation effective time.
4440	4442		"§10A-3A-1.26
4441	4443		(a) If the defective corporate action ratified under
4442		-	this Division B of Article 1 would have required under any
4443		-	other section of this chapter a filing in accordance with this
4444		-	chapter, then, regardless of whether a filing was previously
4445		-	made in respect of the defective corporate action and
4446		-	instrument to be delivered to a filing officer for filing and
4447	4444		2128
4448	4445		2129
4449	4446		2130
4450	4447		2131
4451	4448		2132
4452	4449		2133
4453	4450		2134
4454	4451		2135
4455	4452		2136
4456	4453		2137
4457	4454		2138
4458	4455		2139
4459	4456		2140
4460	4457		2141
4461	4458		2142
4462	4459		2143
4463	4460		2144
4464	4461		2145
4465	4462		2146
4466	4463		2147
4467	4464		2148
4468	4465		2149
4469	4466		2150
4470	4467		2151
4471	4468		2152
4472	4469		2153
4473	4470		2154
4474		-	2155 SB112 ~~Enrolled~~
	4471	+	2155 SB112 Engrossed
4475	4472		Page 78
	4473	+	(a) If the defective corporate action ratified under
	4474	+	this Division B of Article 1 would have required under any
	4475	+	other section of this chapter a filing in accordance with this
	4476	+	chapter, then, regardless of whether a filing was previously
	4477	+	made in respect of the defective corporate action and
4476	4478		instrument to be delivered to a filing officer for filing and
4477	4479		either (i) the filing instrument requires any change to give
4478	4480		effect to the defective corporate action in accordance with
4479	4481		Division B of Article 1 (including any change to the date and
4480	4482		time of the effectiveness of the filing instrument) or (ii) a
4481	4483		filing instrument under any other section of this chapter was
4482	4484		not previously delivered to a filing officer for filing in
4483	4485		respect of the defective corporate action, then, in lieu of a
4484	4486		filing instrument otherwise required by this chapter, the
4485	4487		nonprofit corporation shall file deliver a certificate of
4486	4488		validation to the appropriate filing officer for filing in
4487	4489		accordance with this section, and that certificate of
4488	4490		validation shall serve to amend or substitute for any other
4489	4491		filing instrument with respect to the defective corporate
4490	4492		action required by this chapter.
4491	4493		(b) The certificate of validation must set forth:
4492	4494		(1) the name of the nonprofit corporation;
4493	4495		(2) the unique identifying number or other designation
4494	4496		as assigned by the Secretary of State;
4495	4497		(3) the defective corporate action that is the subject
4496	4498		of the certificate of validation (including, in the case of
4497	4499		any defective corporate action involving the issuance of
4498	4500		putative membership interests, the number and type of shares
4499	4501		of putative membership interests issued and the date or dates
4500		-	upon which that putative membership interest was purported to
4501		-	have been issued);
4502		-	(4) the date of the defective corporate action;
4503		-	(5) the nature of the failure of authorization in
4504		-	respect of the defective corporate action;
4505	4502		2156
4506	4503		2157
4507	4504		2158
4508	4505		2159
4509	4506		2160
4510	4507		2161
4511	4508		2162
4512	4509		2163
4513	4510		2164
4514	4511		2165
4515	4512		2166
4516	4513		2167
4517	4514		2168
4518	4515		2169
4519	4516		2170
4520	4517		2171
4521	4518		2172
4522	4519		2173
4523	4520		2174
4524	4521		2175
4525	4522		2176
4526	4523		2177
4527	4524		2178
4528	4525		2179
4529	4526		2180
4530	4527		2181
4531	4528		2182
4532		-	2183 SB112 ~~Enrolled~~
	4529	+	2183 SB112 Engrossed
4533	4530		Page 79
	4531	+	of putative membership interests issued and the date or dates
	4532	+	upon which that putative membership interest was purported to
	4533	+	have been issued);
	4534	+	(4) the date of the defective corporate action;
	4535	+	(5) the nature of the failure of authorization in
4534	4536		respect of the defective corporate action;
4535	4537		(6)(3) a statement that the defective corporate action
4536	4538		was ratified in accordance with Section 10A-3A-1.22, including
4537	4539		the date on which the board of directors ratified that
4538	4540		defective corporate action, and if applicable, the date on
4539	4541		which the members approved the ratification of that defective
4540	4542		corporate action, and the date on which the person or group of
4541	4543		persons specified in the certificate of incorporation approved
4542	4544		the ratification of that defective corporate action; and
4543	4545		(7)(4) the information required by subsection (c).
4544	4546		(c) The certificate of validation must also contain the
4545	4547		following information:
4546	4548		(1) if a filing was previously made in respect of the
4547	4549		defective corporate action and no changes to that filing are
4548	4550		required to give effect to the ratification of that defective
4549	4551		corporate action in accordance with Section 10A-3A-1.22, the
4550	4552		certificate of validation must set forth (i) the name, title,
4551	4553		and filing date of the filing previously made and any
4552	4554		certificate of correction to that filing, and (ii) a statement
4553	4555		that a copy of the filing previously made, together with any
4554	4556		certificate of correction to that filing, is attached as an
4555	4557		exhibit to the certificate of validation;
4556	4558		(2)(1) if a filing instrument was previously made
4557	4559		delivered to a filing officer for filing in respect of the
4558		-	defective corporate action and that filing instrument requires
4559		-	any change to give effect to the ratification of that
4560		-	defective corporate action in accordance with Section
4561		-	10A-3A-1.22, the certificate of validation must set forth (i)
4562		-	the name, title, and filing date of the filing instrument
4563	4560		2184
4564	4561		2185
4565	4562		2186
4566	4563		2187
4567	4564		2188
4568	4565		2189
4569	4566		2190
4570	4567		2191
4571	4568		2192
4572	4569		2193
4573	4570		2194
4574	4571		2195
4575	4572		2196
4576	4573		2197
4577	4574		2198
4578	4575		2199
4579	4576		2200
4580	4577		2201
4581	4578		2202
4582	4579		2203
4583	4580		2204
4584	4581		2205
4585	4582		2206
4586	4583		2207
4587	4584		2208
4588	4585		2209
4589	4586		2210
4590		-	2211 SB112 ~~Enrolled~~
	4587	+	2211 SB112 Engrossed
4591	4588		Page 80
	4589	+	delivered to a filing officer for filing in respect of the
	4590	+	defective corporate action and that filing instrument requires
	4591	+	any change to give effect to the ratification of that
	4592	+	defective corporate action in accordance with Section
	4593	+	10A-3A-1.22, the certificate of validation must set forth (i)
4592	4594		the name, title, and filing date of the filing instrument
4593	4595		previously made delivered to a filing officer for filing and
4594	4596		any certificate of correction to that filing instrument, and
4595	4597		(ii) a statement that a filing instrument containing all of
4596	4598		the information required to be included under the applicable
4597	4599		section or sections of this chapter to give effect to that
4598	4600		defective corporate action is attached as an exhibit to the
4599	4601		certificate of validation, and (iii) the date and time that
4600	4602		filing instrument is deemed to have become effective; or
4601	4603		(3)(2) if a filing instrument was not previously made
4602	4604		delivered to a filing officer for filing in respect of the
4603	4605		defective corporate action and the defective corporate action
4604	4606		ratified under Section 10A-3A-1.22 would have required a
4605	4607		filing instrument under any other section of this chapter, the
4606	4608		certificate of validation must set forth (i) a statement that
4607	4609		a filing instrument containing all of the information required
4608	4610		to be included under the applicable section or sections of
4609	4611		this chapter to give effect to that defective corporate action
4610	4612		is attached as an exhibit to the certificate of validation,
4611	4613		and (ii) the date and time that filing instrument is deemed to
4612	4614		have become effective."
4613	4615		"§10A-3A-2.02
4614	4616		Section 10A-1-3.05 shall not apply to this chapter.
4615	4617		Instead:
4616		-	(a) The certificate of incorporation must set forth:
4617		-	(1) a name for the nonprofit corporation that satisfies
4618		-	the requirements of Article 5 of Chapter 1;
4619		-	(2) the street and mailing address of the nonprofit
4620		-	corporation's initial registered office, the county within
4621	4618		2212
4622	4619		2213
4623	4620		2214
4624	4621		2215
4625	4622		2216
4626	4623		2217
4627	4624		2218
4628	4625		2219
4629	4626		2220
4630	4627		2221
4631	4628		2222
4632	4629		2223
4633	4630		2224
4634	4631		2225
4635	4632		2226
4636	4633		2227
4637	4634		2228
4638	4635		2229
4639	4636		2230
4640	4637		2231
4641	4638		2232
4642	4639		2233
4643	4640		2234
4644	4641		2235
4645	4642		2236
4646	4643		2237
4647	4644		2238
4648		-	2239 SB112 ~~Enrolled~~
	4645	+	2239 SB112 Engrossed
4649	4646		Page 81
	4647	+	Instead:
	4648	+	(a) The certificate of incorporation must set forth:
	4649	+	(1) a name for the nonprofit corporation that satisfies
	4650	+	the requirements of Article 5 of Chapter 1;
	4651	+	(2) the street and mailing address of the nonprofit
4650	4652		corporation's initial registered office, the county within
4651	4653		this state in which the street and mailing address is located,
4652	4654		and the name of the nonprofit corporation's initial registered
4653	4655		agent at that office as required by Article 5 of Chapter 1;
4654	4656		(3) that the nonprofit corporation is incorporated
4655	4657		under this chapter;
4656	4658		(4) the name and address of each incorporator; and
4657	4659		(5)(i) if the nonprofit corporation will have members,
4658	4660		a statement to that effect; or
4659	4661		(ii) if the nonprofit corporation will not have
4660	4662		members, a statement to that effect.
4661	4663		(b) The certificate of incorporation may set forth:
4662	4664		(1) the names and addresses of the individuals who are
4663	4665		to serve as the initial directors;
4664	4666		(2) provisions not inconsistent with law regarding:
4665	4667		(i) the purpose or purposes for which the nonprofit
4666	4668		corporation is organized;
4667	4669		(ii) managing the activities and regulating the affairs
4668	4670		of the nonprofit corporation;
4669	4671		(iii) defining, limiting, and regulating the powers of
4670	4672		the nonprofit corporation, its board of directors, and the
4671	4673		members;
4672	4674		(iv) the characteristics, qualifications, rights,
4673	4675		limitations, and obligations attaching to each or any class of
4674		-	members;
4675		-	(v) subject to Section 10A-3A-4.20, limiting a member's
4676		-	right to inspect and copy the records of the nonprofit
4677		-	corporation under Section 10A-3A-4.02(b);
4678		-	(vi) the distribution of assets on dissolution;
4679	4676		2240
4680	4677		2241
4681	4678		2242
4682	4679		2243
4683	4680		2244
4684	4681		2245
4685	4682		2246
4686	4683		2247
4687	4684		2248
4688	4685		2249
4689	4686		2250
4690	4687		2251
4691	4688		2252
4692	4689		2253
4693	4690		2254
4694	4691		2255
4695	4692		2256
4696	4693		2257
4697	4694		2258
4698	4695		2259
4699	4696		2260
4700	4697		2261
4701	4698		2262
4702	4699		2263
4703	4700		2264
4704	4701		2265
4705	4702		2266
4706		-	2267 SB112 ~~Enrolled~~
	4703	+	2267 SB112 Engrossed
4707	4704		Page 82
	4705	+	limitations, and obligations attaching to each or any class of
	4706	+	members;
	4707	+	(v) subject to Section 10A-3A-4.20, limiting a member's
	4708	+	right to inspect and copy the records of the nonprofit
	4709	+	corporation under Section 10A-3A-4.02(b);
4708	4710		(vi) the distribution of assets on dissolution;
4709	4711		(vii) provisions for the election, appointment, or
4710	4712		designation of directors;
4711	4713		(viii) provisions granting inspection rights to a
4712	4714		person or group of persons under Section 10A-3A-4.07; and
4713	4715		(ix) provisions specifying a person or group of persons
4714	4716		whose approval is required under Sections 10A-3A-9.30,
4715	4717		10A-3A-10.04, 10A-3A-11.04, 10A-3A-12.08, or 10A-3A-13.08;
4716	4718		(3) any provision that under this chapter is permitted
4717	4719		to be set forth in the certificate of incorporation or
4718	4720		required or permitted to be set forth in the bylaws;
4719	4721		(4) a provision eliminating or limiting the liability
4720	4722		of a director or officer to a nonprofit corporation or its
4721	4723		members for money damages for any action taken, or any failure
4722	4724		to take any action, as a director or officer, except liability
4723	4725		for (i) the amount of a financial benefit received by a
4724	4726		director or officer to which the director or officer is not
4725	4727		entitled, (ii) an intentional infliction of harm on the
4726	4728		nonprofit corporation or its members, (iii) in the case of a
4727	4729		director, a violation of Section 10A-3A-8.32, or (iv) an
4728	4730		intentional violation of criminal law ;, or (v) in the case of
4729	4731		an officer, any claim by or in the right of the nonprofit
4730	4732		corporation;
4731	4733		(5) a provision permitting or making obligatory
4732		-	indemnification of a director for liability as defined in
4733		-	Section 10A-3A-8.50 to any person for any action taken, or any
4734		-	failure to take any action, as a director, except liability
4735		-	for (i) receipt of a financial benefit to which the director
4736		-	is not entitled, (ii) an intentional infliction of harm on the
4737	4734		2268
4738	4735		2269
4739	4736		2270
4740	4737		2271
4741	4738		2272
4742	4739		2273
4743	4740		2274
4744	4741		2275
4745	4742		2276
4746	4743		2277
4747	4744		2278
4748	4745		2279
4749	4746		2280
4750	4747		2281
4751	4748		2282
4752	4749		2283
4753	4750		2284
4754	4751		2285
4755	4752		2286
4756	4753		2287
4757	4754		2288
4758	4755		2289
4759	4756		2290
4760	4757		2291
4761	4758		2292
4762	4759		2293
4763	4760		2294
4764		-	2295 SB112 ~~Enrolled~~
	4761	+	2295 SB112 Engrossed
4765	4762		Page 83
	4763	+	(5) a provision permitting or making obligatory
	4764	+	indemnification of a director for liability as defined in
	4765	+	Section 10A-3A-8.50 to any person for any action taken, or any
	4766	+	failure to take any action, as a director, except liability
	4767	+	for (i) receipt of a financial benefit to which the director
4766	4768		is not entitled, (ii) an intentional infliction of harm on the
4767	4769		nonprofit corporation or its members, (iii) a violation of
4768	4770		Section 10A-3A-8.32, or (iv) an intentional violation of
4769	4771		criminal law;
4770	4772		(6) a provision limiting or eliminating any duty of a
4771	4773		director or any other person to offer the nonprofit
4772	4774		corporation the right to have or participate in any, or one or
4773	4775		more classes or categories of, corporate opportunities, before
4774	4776		the pursuit or taking of the opportunity by the director or
4775	4777		other person; provided that the application of that provision
4776	4778		to an officer or a related person of that officer (i) also
4777	4779		requires approval of that application by the board of
4778	4780		directors, subsequent to the effective date of the provision,
4779	4781		by action of the disinterested or qualified directors taken in
4780	4782		compliance with the same procedures as are set forth in
4781	4783		Section 10A-3A-8.60, and (ii) may be limited by the
4782	4784		authorizing action of the board of directors; and
4783	4785		(7) provisions required if the nonprofit corporation is
4784	4786		to be exempt from taxation under federal, state, or local law.
4785	4787		(c) The certificate of incorporation need not set forth
4786	4788		any of the corporate powers enumerated in Sections 10A-1-2.11,
4787	4789		10A-1-2.12, and 10A-1-2.13.
4788	4790		(d) Provisions of the certificate of incorporation may
4789	4791		be made dependent upon facts objectively ascertainable outside
4790		-	the certificate of incorporation in accordance with Section
4791		-	10A-3A-1.04.
4792		-	(e) As used in this section, "related person" means:
4793		-	(i) the individual's spouse; (ii) a child, stepchild,
4794		-	grandchild, parent, stepparent, grandparent, sibling,
4795	4792		2296
4796	4793		2297
4797	4794		2298
4798	4795		2299
4799	4796		2300
4800	4797		2301
4801	4798		2302
4802	4799		2303
4803	4800		2304
4804	4801		2305
4805	4802		2306
4806	4803		2307
4807	4804		2308
4808	4805		2309
4809	4806		2310
4810	4807		2311
4811	4808		2312
4812	4809		2313
4813	4810		2314
4814	4811		2315
4815	4812		2316
4816	4813		2317
4817	4814		2318
4818	4815		2319
4819	4816		2320
4820	4817		2321
4821	4818		2322
4822		-	2323 SB112 ~~Enrolled~~
	4819	+	2323 SB112 Engrossed
4823	4820		Page 84
	4821	+	be made dependent upon facts objectively ascertainable outside
	4822	+	the certificate of incorporation in accordance with Section
	4823	+	10A-3A-1.04.
	4824	+	(e) As used in this section, "related person" means:
	4825	+	(i) the individual's spouse; (ii) a child, stepchild,
4824	4826		grandchild, parent, stepparent, grandparent, sibling,
4825	4827		stepsibling, half sibling, aunt, uncle, niece, or nephew (or
4826	4828		spouse of any such person) of the individual or of the
4827	4829		individual's spouse; (iii) a natural person living in the same
4828	4830		home as the individual; (iv) an entity (other than the
4829	4831		nonprofit corporation or an entity controlled by the nonprofit
4830	4832		corporation) controlled by the individual or any person
4831	4833		specified above in this definition; (v) a domestic or foreign
4832	4834		(A) business or nonprofit corporation (other than the
4833	4835		nonprofit corporation or an entity controlled by the nonprofit
4834	4836		corporation) of which the individual is a director, (B)
4835	4837		unincorporated entity of which the individual is a general
4836	4838		partner or a member of the governing authority, or (C)
4837	4839		individual, trust or estate for whom or of which the
4838	4840		individual is a trustee, guardian, personal representative, or
4839	4841		like fiduciary; or (vi) a person that is, or an entity that
4840	4842		is, controlled by, an employer of the individual.
4841	4843		(f) The certificate of incorporation may not contain
4842	4844		any provision that would impose liability on a member or a
4843	4845		director for the attorney's fees or expenses of the nonprofit
4844	4846		corporation or any other party in connection with an internal
4845	4847		corporate claim, as defined in Section 10A-3A-2.07(d).
4846	4848		(g) The certificate of incorporation is a part of a
4847	4849		binding contract between the nonprofit corporation and (i) the
4848		-	members in a membership nonprofit corporation and (ii) the
4849		-	directors in a nonmembership nonprofit corporation, subject to
4850		-	the provisions of this chapter.
4851		-	(h) For purposes of subsection (b)(4) only, unless the
4852		-	certificate of incorporation otherwise provides, "officer"
4853	4850		2324
4854	4851		2325
4855	4852		2326
4856	4853		2327
4857	4854		2328
4858	4855		2329
4859	4856		2330
4860	4857		2331
4861	4858		2332
4862	4859		2333
4863	4860		2334
4864	4861		2335
4865	4862		2336
4866	4863		2337
4867	4864		2338
4868	4865		2339
4869	4866		2340
4870	4867		2341
4871	4868		2342
4872	4869		2343
4873	4870		2344
4874	4871		2345
4875	4872		2346
4876	4873		2347
4877	4874		2348
4878	4875		2349
4879	4876		2350
4880		-	2351 SB112 ~~Enrolled~~
	4877	+	2351 SB112 Engrossed
4881	4878		Page 85
	4879	+	binding contract between the nonprofit corporation and (i) the
	4880	+	members in a membership nonprofit corporation and (ii) the
	4881	+	directors in a nonmembership nonprofit corporation, subject to
	4882	+	the provisions of this chapter.
	4883	+	(h) For purposes of subsection (b)(4) only, unless the
4882	4884		certificate of incorporation otherwise provides, "officer"
4883	4885		means an individual appointed or elected in accordance with
4884	4886		Section 10A-3A-8.40 as (i) president, chief executive officer,
4885	4887		chief operating officer, chief financial officer, chief legal
4886	4888		officer, secretary, controller, treasurer, or chief accounting
4887	4889		officer of the nonprofit corporation and (ii) any officer of
4888	4890		the nonprofit corporation designated by resolution of the
4889	4891		board of directors as an "officer" for purposes of subsection
4890	4892		(b)(4). The board of directors may from time to time by
4891	4893		resolution determine that one or more of the officers
4892	4894		designated in accordance with subsection (h)(ii) shall no
4893	4895		longer be an "officer" for purposes of subsection (b)(4), but
4894	4896		no such resolution shall be effective as to any such officer,
4895	4897		or any act or omission of any such officer, prior to the
4896	4898		adoption of such resolution.
4897	4899		(i) No provision in the certificate of incorporation
4898	4900		pursuant to subsection (b)(4) shall eliminate or limit the
4899	4901		liability of a director or officer for any act or omission
4900	4902		occurring prior to the date when the provision in the
4901	4903		certificate of incorporation becomes effective. Any amendment,
4902	4904		repeal, or elimination of a provision in the certificate of
4903	4905		incorporation pursuant to subsection (b)(4) shall not affect
4904	4906		its application with respect to an act or omission by a
4905	4907		director or officer occurring before the amendment, repeal, or
4906		-	elimination unless the provision in the certificate of
4907		-	incorporation provides otherwise at the time of the act or
4908		-	omission."
4909		-	"§10A-3A-7.04
4910		-	(a) Unless otherwise provided in the certificate of
4911	4908		2352
4912	4909		2353
4913	4910		2354
4914	4911		2355
4915	4912		2356
4916	4913		2357
4917	4914		2358
4918	4915		2359
4919	4916		2360
4920	4917		2361
4921	4918		2362
4922	4919		2363
4923	4920		2364
4924	4921		2365
4925	4922		2366
4926	4923		2367
4927	4924		2368
4928	4925		2369
4929	4926		2370
4930	4927		2371
4931	4928		2372
4932	4929		2373
4933	4930		2374
4934	4931		2375
4935	4932		2376
4936	4933		2377
4937	4934		2378
4938		-	2379 SB112 ~~Enrolled~~
	4935	+	2379 SB112 Engrossed
4939	4936		Page 86
	4937	+	director or officer occurring before the amendment, repeal, or
	4938	+	elimination unless the provision in the certificate of
	4939	+	incorporation provides otherwise at the time of the act or
	4940	+	omission."
	4941	+	"§10A-3A-7.04
4940	4942		(a) Unless otherwise provided in the certificate of
4941	4943		incorporation;, any action required or permitted by this
4942	4944		chapter to be taken at any meeting of the members may be taken
4943	4945		without a meeting, and without prior notice, if one or more
4944	4946		consents in writing setting forth the action so taken are
4945	4947		signed by the members having not less than the minimum number
4946	4948		of votes that would be required to authorize or take the
4947	4949		action at a meeting at which all members entitled to vote on
4948	4950		the action were present and voted. The action must be
4949	4951		evidenced by one or more written consents describing the
4950	4952		action taken, signed by the members approving the action and
4951	4953		delivered to the membership nonprofit corporation for filing
4952	4954		by the membership nonprofit corporation with the minutes or
4953	4955		corporate records.
4954	4956		(b) If not otherwise fixed under Section 10A-3A-7.07
4955	4957		and if prior action by the board of directors is not required
4956	4958		respecting the action to be taken without a meeting, the
4957	4959		record date for determining the members entitled to take
4958	4960		action without a meeting shall be the first date on which a
4959	4961		signed written consent signed by a member is delivered to the
4960	4962		membership nonprofit corporation. If not otherwise fixed under
4961	4963		Section 10A-3A-7.07 and if prior action by the board of
4962	4964		directors is required respecting the action to be taken
4963	4965		without a meeting, the record date shall be the close of
4964		-	business on the day the resolution of the board of directors
4965		-	taking the prior action is adopted. No written consent of a
4966		-	member shall be effective to take the corporate action
4967		-	referred to therein unless, within 60 days of the earliest
4968		-	date on which a consent is delivered to the membership
4969	4966		2380
4970	4967		2381
4971	4968		2382
4972	4969		2383
4973	4970		2384
4974	4971		2385
4975	4972		2386
4976	4973		2387
4977	4974		2388
4978	4975		2389
4979	4976		2390
4980	4977		2391
4981	4978		2392
4982	4979		2393
4983	4980		2394
4984	4981		2395
4985	4982		2396
4986	4983		2397
4987	4984		2398
4988	4985		2399
4989	4986		2400
4990	4987		2401
4991	4988		2402
4992	4989		2403
4993	4990		2404
4994	4991		2405
4995	4992		2406
4996		-	2407 SB112 ~~Enrolled~~
	4993	+	2407 SB112 Engrossed
4997	4994		Page 87
	4995	+	without a meeting, the record date shall be the close of
	4996	+	business on the day the resolution of the board of directors
	4997	+	taking the prior action is adopted. No written consent of a
	4998	+	member shall be effective to take the corporate action
	4999	+	referred to therein unless, within 60 days of the earliest
4998	5000		date on which a consent is delivered to the membership
4999	5001		nonprofit corporation as required by this section, written
5000	5002		consents signed by sufficient members to take the action have
5001	5003		been delivered to the membership nonprofit corporation. Any
5002	5004		person executing signing a consent may provide, whether
5003	5005		through instruction to an agent or otherwise, that the consent
5004	5006		will be effective at a future time, including a time
5005	5007		determined upon the happening of an event, occurring not later
5006	5008		than 60 days after the instruction is given or the provision
5007	5009		is made, if evidence of the instruction or provision is
5008	5010		provided to the membership nonprofit corporation. A If a
5009	5011		person signs a consent when that person is not a member, then
5010	5012		that person's consent shall not be valid unless that person is
5011	5013		a member as of the record date for determining members
5012	5014		entitled to consent to the action. Unless a person's written
5013	5015		consent states that it is irrevocable, that written consent
5014	5016		may be revoked by that person by a writing to that effect
5015	5017		delivered to the membership nonprofit corporation before
5016	5018		unrevoked written consents sufficient in number to take the
5017	5019		corporate action have been delivered to the membership
5018	5020		nonprofit corporation.
5019	5021		(c) A consent signed pursuant to the provisions of this
5020	5022		section has the effect of a vote taken at a meeting and may be
5021	5023		described as such in any document. Unless the certificate of
5022		-	incorporation, bylaws, or a resolution of the board of
5023		-	directors provides for a reasonable delay to permit tabulation
5024		-	of written consents, the action taken by written consent shall
5025		-	be effective when written consents signed by sufficient
5026		-	members to take the action have been delivered to the
5027	5024		2408
5028	5025		2409
5029	5026		2410
5030	5027		2411
5031	5028		2412
5032	5029		2413
5033	5030		2414
5034	5031		2415
5035	5032		2416
5036	5033		2417
5037	5034		2418
5038	5035		2419
5039	5036		2420
5040	5037		2421
5041	5038		2422
5042	5039		2423
5043	5040		2424
5044	5041		2425
5045	5042		2426
5046	5043		2427
5047	5044		2428
5048	5045		2429
5049	5046		2430
5050	5047		2431
5051	5048		2432
5052	5049		2433
5053	5050		2434
5054		-	2435 SB112 ~~Enrolled~~
	5051	+	2435 SB112 Engrossed
5055	5052		Page 88
	5053	+	described as such in any document. Unless the certificate of
	5054	+	incorporation, bylaws, or a resolution of the board of
	5055	+	directors provides for a reasonable delay to permit tabulation
	5056	+	of written consents, the action taken by written consent shall
	5057	+	be effective when written consents signed by sufficient
5056	5058		members to take the action have been delivered to the
5057	5059		membership nonprofit corporation.
5058	5060		(d) If action is taken by less than unanimous written
5059	5061		consent of the voting members, the membership nonprofit
5060	5062		corporation shall give its nonconsenting voting members
5061	5063		written notice of the action not more than 10 days after (i)
5062	5064		written consents sufficient to take the action have been
5063	5065		delivered to the membership nonprofit corporation or (ii) any
5064	5066		later date that tabulation of consents is completed pursuant
5065	5067		to an authorization under subsection (c). The notice must
5066	5068		reasonably describe the action taken.
5067	5069		(e) The notice requirements in subsection (d) shall not
5068	5070		delay the effectiveness of actions taken by written consent,
5069	5071		and a failure to comply with those notice requirements shall
5070	5072		not invalidate actions taken by written consent, provided that
5071	5073		this subsection shall not be deemed to limit judicial power to
5072	5074		fashion any appropriate remedy in favor of a member adversely
5073	5075		affected by a failure to give the notice within the required
5074	5076		time period.
5075	5077		"§10A-3A-7.05
5076	5078		(a) A membership nonprofit corporation shall notify
5077	5079		members of the place, if any, date, and time of each annual,
5078	5080		regular, or special meeting of the members no fewer than 10
5079	5081		nor more than 60 days before the meeting date. If the board of
5080		-	directors has authorized participation by means of remote
5081		-	communication pursuant to Section 10A-3A-7.09 for any class of
5082		-	members or voting group, the notice to that class of members
5083		-	or voting group must describe the means of remote
5084		-	communication to be used. The notice must include the record
5085	5082		2436
5086	5083		2437
5087	5084		2438
5088	5085		2439
5089	5086		2440
5090	5087		2441
5091	5088		2442
5092	5089		2443
5093	5090		2444
5094	5091		2445
5095	5092		2446
5096	5093		2447
5097	5094		2448
5098	5095		2449
5099	5096		2450
5100	5097		2451
5101	5098		2452
5102	5099		2453
5103	5100		2454
5104	5101		2455
5105	5102		2456
5106	5103		2457
5107	5104		2458
5108	5105		2459
5109	5106		2460
5110	5107		2461
5111	5108		2462
5112		-	2463 SB112 ~~Enrolled~~
	5109	+	2463 SB112 Engrossed
5113	5110		Page 89
	5111	+	nor more than 60 days before the meeting date. If the board of
	5112	+	directors has authorized participation by means of remote
	5113	+	communication pursuant to Section 10A-3A-7.09 for any class of
	5114	+	members or voting group, the notice to that class of members
	5115	+	or voting group must describe the means of remote
5114	5116		communication to be used. The notice must include the record
5115	5117		date for determining the members entitled to vote at the
5116	5118		meeting, if that date is different from the record date for
5117	5119		determining members entitled to notice of the meeting. Unless
5118	5120		the certificate of incorporation requires otherwise, the
5119	5121		membership nonprofit corporation is required to give notice
5120	5122		only to members entitled to vote at the meeting as of the
5121	5123		record date for determining the members entitled to notice of
5122	5124		the meeting.
5123	5125		(b) Unless this chapter, the certificate of
5124	5126		incorporation, or the bylaws require otherwise, notice of an
5125	5127		annual or regular meeting of the members need not include a
5126	5128		description of the purpose or purposes for which the meeting
5127	5129		is called.
5128	5130		(c) Notice of a special meeting of members must include
5129	5131		a description of the purpose or purposes for which the meeting
5130	5132		is called.
5131	5133		(d) If not otherwise fixed under Section 10A-3A-7.03 or
5132	5134		Section 10A-3A-7.07, the record date for determining members
5133	5135		entitled to notice of and to vote at an annual, regular, or
5134	5136		special meeting of the members is the earlier of (i) the date
5135	5137		of the action by the board of directors calling the meeting of
5136	5138		the members or (ii) the day before the first notice is
5137	5139		delivered to members.
5138		-	(e) Unless the certificate of incorporation or bylaws
5139		-	require otherwise, if an annual, regular, or special meeting
5140		-	of the members is adjourned to a different place, if any,
5141		-	date, or time (including an adjournment taken to address a
5142		-	technical failure to convene or continue a meeting using
5143	5140		2464
5144	5141		2465
5145	5142		2466
5146	5143		2467
5147	5144		2468
5148	5145		2469
5149	5146		2470
5150	5147		2471
5151	5148		2472
5152	5149		2473
5153	5150		2474
5154	5151		2475
5155	5152		2476
5156	5153		2477
5157	5154		2478
5158	5155		2479
5159	5156		2480
5160	5157		2481
5161	5158		2482
5162	5159		2483
5163	5160		2484
5164	5161		2485
5165	5162		2486
5166	5163		2487
5167	5164		2488
5168	5165		2489
5169	5166		2490
5170		-	2491 SB112 ~~Enrolled~~
	5167	+	2491 SB112 Engrossed
5171	5168		Page 90
	5169	+	delivered to members.
	5170	+	(e) Unless the certificate of incorporation or bylaws
	5171	+	require otherwise, if an annual, regular, or special meeting
	5172	+	of the members is adjourned to a different place, if any,
	5173	+	date, or time (including an adjournment taken to address a
5172	5174		technical failure to convene or continue a meeting using
5173	5175		remote communication pursuant to Section 10A-3A-7.09) , notice
5174	5176		need not be given of the new place, if any, date, or time if
5175	5177		the new place, if any, date, or time is (i) announced at the
5176	5178		meeting before adjournment or (ii) displayed, during the time
5177	5179		scheduled for the meeting, on the same electronic network used
5178	5180		to enable members and proxy holders to participate in the
5179	5181		meeting by means of remote communication . If a new record date
5180	5182		for the adjourned meeting is or must be fixed under Section
5181	5183		10A-3A-7.07, however, notice of the adjourned meeting shall be
5182	5184		given under this section to members entitled to vote at the
5183	5185		adjourned meeting as of the record date fixed for notice of
5184	5186		the adjourned meeting.
5185	5187		"§10A-3A-9.05
5186	5188		Except as otherwise provided in the certificate of
5187	5189		incorporation:
5188	5190		(1) the board of directors of a nonmembership nonprofit
5189	5191		corporation, or if the initial board of directors of a
5190	5192		nonmembership nonprofit corporation is not named in the
5191	5193		certificate of incorporation and has not yet been elected,
5192	5194		appointed, or designated, its incorporators, may adopt
5193	5195		amendments to the nonmembership nonprofit corporation's
5194	5196		certificate of incorporation; and
5195	5197		(2) an amendment adopted by the board of directors
5196		-	under this section must also be approved by that person or
5197		-	group of persons, if any, whose approval is required by the
5198		-	certificate of incorporation in accordance with Section
5199		-	10A-3A-9.30.
5200		-	"§10A-3A-9.07
5201	5198		2492
5202	5199		2493
5203	5200		2494
5204	5201		2495
5205	5202		2496
5206	5203		2497
5207	5204		2498
5208	5205		2499
5209	5206		2500
5210	5207		2501
5211	5208		2502
5212	5209		2503
5213	5210		2504
5214	5211		2505
5215	5212		2506
5216	5213		2507
5217	5214		2508
5218	5215		2509
5219	5216		2510
5220	5217		2511
5221	5218		2512
5222	5219		2513
5223	5220		2514
5224	5221		2515
5225	5222		2516
5226	5223		2517
5227	5224		2518
5228		-	2519 SB112 ~~Enrolled~~
	5225	+	2519 SB112 Engrossed
5229	5226		Page 91
	5227	+	(2) an amendment adopted by the board of directors
	5228	+	under this section must also be approved by that person or
	5229	+	group of persons, if any, whose approval is required by the
	5230	+	certificate of incorporation in accordance with Section
	5231	+	10A-3A-9.30.
5230	5232		"§10A-3A-9.07
5231	5233		(a)(1) A membership nonprofit corporation's board of
5232	5234		directors may restate its certificate of incorporation at any
5233	5235		time, without member the approval of the members or any person
5234	5236		or group of persons specified in the certificate of
5235	5237		incorporation, to consolidate all amendments into a single
5236	5238		document. Unless the certificate of incorporation of a
5237	5239		membership nonprofit corporation provides otherwise, the
5238	5240		restated certificate of incorporation may amend the
5239	5241		certificate of incorporation with those amendments that the
5240	5242		board of directors is permitted to adopt in accordance with
5241	5243		Sections 10A-3A-9.02 and 10A-3A-9.03(g) without the approval
5242	5244		of the members or any person or group of persons specified in
5243	5245		the certificate of incorporation. Unless the certificate of
5244	5246		incorporation of a membership nonprofit corporation provides
5245	5247		otherwise, the restated certificate of incorporation of a
5246	5248		membership nonprofit corporation may also amend the
5247	5249		certificate of incorporation with those amendments that the
5248	5250		member or any person or group of persons specified in the
5249	5251		certificate of incorporation must approve in accordance with
5250	5252		Sections 10A-3A-9.02, 10A-3A-9.03, 10A-3A-9.04, and
5251	5253		10A-3A-9.30.
5252	5254		(2) A nonmembership nonprofit corporation's board of
5253	5255		directors may restate its certificate of incorporation at any
5254		-	time without the approval of any person or group of persons
5255		-	specified in the certificate of incorporation to consolidate
5256		-	all amendments into a single document. Unless the certificate
5257		-	of incorporation of a nonmembership nonprofit corporation
5258		-	provides otherwise, the restated certificate of incorporation
5259	5256		2520
5260	5257		2521
5261	5258		2522
5262	5259		2523
5263	5260		2524
5264	5261		2525
5265	5262		2526
5266	5263		2527
5267	5264		2528
5268	5265		2529
5269	5266		2530
5270	5267		2531
5271	5268		2532
5272	5269		2533
5273	5270		2534
5274	5271		2535
5275	5272		2536
5276	5273		2537
5277	5274		2538
5278	5275		2539
5279	5276		2540
5280	5277		2541
5281	5278		2542
5282	5279		2543
5283	5280		2544
5284	5281		2545
5285	5282		2546
5286		-	2547 SB112 ~~Enrolled~~
	5283	+	2547 SB112 Engrossed
5287	5284		Page 92
	5285	+	directors may restate its certificate of incorporation at any
	5286	+	time without the approval of any person or group of persons
	5287	+	specified in the certificate of incorporation to consolidate
	5288	+	all amendments into a single document. Unless the certificate
	5289	+	of incorporation of a nonmembership nonprofit corporation
5288	5290		provides otherwise, the restated certificate of incorporation
5289	5291		may amend the certificate of incorporation with those
5290	5292		amendments that the board of directors is permitted to adopt
5291	5293		in accordance with Section 10A-3A-9.05 without the approval of
5292	5294		any person or group of persons specified in the certificate of
5293	5295		incorporation. Unless the certificate of incorporation of a
5294	5296		nonmembership nonprofit corporation provides otherwise, the
5295	5297		restated certificate of incorporation of a nonmembership
5296	5298		nonprofit corporation may also amend the certificate of
5297	5299		incorporation with those amendments that any person or group
5298	5300		of persons specified in the certificate of incorporation must
5299	5301		approve in accordance with Sections 10A-3A-9.02, 10A-3A-9.05,
5300	5302		and 10A-3A-9.30.
5301	5303		(b) If the restated certificate of incorporation
5302	5304		includes one or more new amendments, the amendments must be
5303	5305		adopted and approved as provided in (i) Section 10A-3A-9.02,
5304	5306		(ii) Sections 10A-3A-9.03 and 10A-3A-9.04 , or (ii)(iii)
5305	5307		Section 10A-3A-9.05.
5306	5308		(c) A nonprofit corporation that restates its
5307	5309		certificate of incorporation shall deliver to the Secretary of
5308	5310		State for filing a certificate of restatement setting forth:
5309	5311		(1) the name of the nonprofit corporation;
5310	5312		(2) the text of the restated certificate of
5311	5313		incorporation;
5312		-	(3) a statement that the restated certificate of
5313		-	incorporation consolidates all amendments into a single
5314		-	document;
5315		-	(4) if a new amendment is included in the restated
5316		-	certificate of incorporation, the statements required under
5317	5314		2548
5318	5315		2549
5319	5316		2550
5320	5317		2551
5321	5318		2552
5322	5319		2553
5323	5320		2554
5324	5321		2555
5325	5322		2556
5326	5323		2557
5327	5324		2558
5328	5325		2559
5329	5326		2560
5330	5327		2561
5331	5328		2562
5332	5329		2563
5333	5330		2564
5334	5331		2565
5335	5332		2566
5336	5333		2567
5337	5334		2568
5338	5335		2569
5339	5336		2570
5340	5337		2571
5341	5338		2572
5342	5339		2573
5343	5340		2574
5344		-	2575 SB112 ~~Enrolled~~
	5341	+	2575 SB112 Engrossed
5345	5342		Page 93
	5343	+	incorporation;
	5344	+	(3) a statement that the restated certificate of
	5345	+	incorporation consolidates all amendments into a single
	5346	+	document;
	5347	+	(4) if a new amendment is included in the restated
5346	5348		certificate of incorporation, the statements required under
5347	5349		Section 10A-3A-9.06 with respect to the new amendment; and
5348	5350		(5) the unique identifying number or other designation
5349	5351		as assigned by the Secretary of State.
5350	5352		(d) The duly adopted restated certificate of
5351	5353		incorporation supersedes the original certificate of
5352	5354		incorporation and all amendments to the certificate of
5353	5355		incorporation.
5354	5356		(e) Unless the certificate of incorporation provides
5355	5357		otherwise, a restated certificate of incorporation may omit
5356	5358		the information that may be deleted pursuant to Section
5357	5359		10A-3A-9.03(g)."
5358	5360		"§10A-3A-10.01
5359	5361		In a membership nonprofit corporation , no:
5360	5362		(a) No approval of the members or any person or group
5361	5363		of persons specified in the certificate of incorporation is
5362	5364		required, unless the certificate of incorporation otherwise
5363	5365		provides:
5364	5366		(a)(1) to sell, lease, exchange, or otherwise dispose
5365	5367		of any or all of the membership nonprofit corporation's assets
5366	5368		in the usual and regular course of the membership nonprofit
5367	5369		corporation's activities;
5368	5370		(b)(2) to mortgage, pledge, dedicate to the repayment
5369	5371		of indebtedness (whether with or without recourse), or
5370		-	otherwise encumber any or all of the membership nonprofit
5371		-	corporation's assets, regardless of whether in the usual and
5372		-	regular course of its activities; or
5373		-	(c)(3) to transfer any or all of the membership
5374		-	nonprofit corporation's assets to one or more corporations or
5375	5372		2576
5376	5373		2577
5377	5374		2578
5378	5375		2579
5379	5376		2580
5380	5377		2581
5381	5378		2582
5382	5379		2583
5383	5380		2584
5384	5381		2585
5385	5382		2586
5386	5383		2587
5387	5384		2588
5388	5385		2589
5389	5386		2590
5390	5387		2591
5391	5388		2592
5392	5389		2593
5393	5390		2594
5394	5391		2595
5395	5392		2596
5396	5393		2597
5397	5394		2598
5398	5395		2599
5399	5396		2600
5400	5397		2601
5401	5398		2602
5402		-	2603 SB112 ~~Enrolled~~
	5399	+	2603 SB112 Engrossed
5403	5400		Page 94
	5401	+	of indebtedness (whether with or without recourse), or
	5402	+	otherwise encumber any or all of the membership nonprofit
	5403	+	corporation's assets, regardless of whether in the usual and
	5404	+	regular course of its activities; or
	5405	+	(c)(3) to transfer any or all of the membership
5404	5406		nonprofit corporation's assets to one or more corporations or
5405	5407		other entities all of the memberships or interests of which
5406	5408		are owned by the membership nonprofit corporation.
5407	5409		(b) Unless the certificate of incorporation otherwise
5408	5410		provides, without limiting the rights of a secured party under
5409	5411		applicable law, no approval by members or any person or group
5410	5412		of persons specified in the certificate of incorporation shall
5411	5413		be required by Section 10A-3A-10.02 for a sale, lease,
5412	5414		exchange, or other disposition of any of the membership
5413	5415		nonprofit corporation's assets if those assets are mortgaged,
5414	5416		pledged, dedicated to the repayment of indebtedness, or
5415	5417		otherwise encumbered for the benefit of a secured party or
5416	5418		other creditor and either:
5417	5419		(1) The secured party or other creditor exercises its
5418	5420		rights under the law governing the mortgage, pledge,
5419	5421		dedication, or encumbrance, or other applicable law, whether
5420	5422		under the Uniform Commercial Code, a real property law, or
5421	5423		other law, to effect the sale, lease, exchange, or other
5422	5424		disposition of those assets without the consent of the
5423	5425		corporation; or
5424	5426		(2) In lieu of the secured party or other creditor
5425	5427		exercising such rights, the board of directors of the
5426	5428		membership nonprofit corporation authorizes an alternative
5427	5429		sale, lease, exchange, or other disposition of those assets,
5428		-	whether with the secured party or other creditor, that results
5429		-	in the reduction or elimination of the total liabilities or
5430		-	obligations secured by those assets, provided that (i) the
5431		-	value of those assets is less than or equal to the total
5432		-	amount of the liabilities or obligations being eliminated or
5433	5430		2604
5434	5431		2605
5435	5432		2606
5436	5433		2607
5437	5434		2608
5438	5435		2609
5439	5436		2610
5440	5437		2611
5441	5438		2612
5442	5439		2613
5443	5440		2614
5444	5441		2615
5445	5442		2616
5446	5443		2617
5447	5444		2618
5448	5445		2619
5449	5446		2620
5450	5447		2621
5451	5448		2622
5452	5449		2623
5453	5450		2624
5454	5451		2625
5455	5452		2626
5456	5453		2627
5457	5454		2628
5458	5455		2629
5459	5456		2630
5460		-	2631 SB112 ~~Enrolled~~
	5457	+	2631 SB112 Engrossed
5461	5458		Page 95
	5459	+	sale, lease, exchange, or other disposition of those assets,
	5460	+	whether with the secured party or other creditor, that results
	5461	+	in the reduction or elimination of the total liabilities or
	5462	+	obligations secured by those assets, provided that (i) the
	5463	+	value of those assets is less than or equal to the total
5462	5464		amount of the liabilities or obligations being eliminated or
5463	5465		reduced and (ii) the sale, lease, exchange, or other
5464	5466		disposition of those assets is not prohibited by the law
5465	5467		governing the mortgage, pledge, dedication, or encumbrance.
5466	5468		The provision of consideration to the membership nonprofit
5467	5469		corporation shall not create a presumption that the value of
5468	5470		the assets is greater than the total amount of the liabilities
5469	5471		or obligations being eliminated or reduced.
5470	5472		(c) A failure to satisfy the condition in subsection
5471	5473		(b)(2)(i) shall not result in the invalidation of a sale,
5472	5474		lease, exchange, or other disposition of the membership
5473	5475		nonprofit corporation's assets if the transferee of those
5474	5476		assets (i) provided value therefor (which may include the
5475	5477		reduction or elimination of the total liabilities or
5476	5478		obligations secured by those assets) and (ii) acted in good
5477	5479		faith (as defined in Section 7-1-201(b)). The preceding
5478	5480		sentence shall not apply to a proceeding against the
5479	5481		membership nonprofit corporation and any other necessary
5480	5482		parties to enjoin the sale, lease, exchange, or other
5481	5483		disposition of the membership nonprofit corporation's assets
5482	5484		before the consummation thereof and shall not eliminate any
5483	5485		liability for monetary damages for any claim, including a
5484	5486		claim in the right of the membership nonprofit corporation,
5485	5487		based upon a violation of a duty by a current or former
5486		-	director or officer, or other person.
5487		-	(d) A provision of the certificate of incorporation
5488		-	that requires the authorization or consent of members or any
5489		-	person or group of persons specified in the certificate of
5490		-	incorporation for a sale, lease, exchange, or other
5491	5488		2632
5492	5489		2633
5493	5490		2634
5494	5491		2635
5495	5492		2636
5496	5493		2637
5497	5494		2638
5498	5495		2639
5499	5496		2640
5500	5497		2641
5501	5498		2642
5502	5499		2643
5503	5500		2644
5504	5501		2645
5505	5502		2646
5506	5503		2647
5507	5504		2648
5508	5505		2649
5509	5506		2650
5510	5507		2651
5511	5508		2652
5512	5509		2653
5513	5510		2654
5514	5511		2655
5515	5512		2656
5516	5513		2657
5517	5514		2658
5518		-	2659 SB112 ~~Enrolled~~
	5515	+	2659 SB112 Engrossed
5519	5516		Page 96
	5517	+	based upon a violation of a duty by a current or former
	5518	+	director or officer, or other person.
	5519	+	(d) A provision of the certificate of incorporation
	5520	+	that requires the authorization or consent of members or any
	5521	+	person or group of persons specified in the certificate of
5520	5522		incorporation for a sale, lease, exchange, or other
5521	5523		disposition of the membership nonprofit corporation's assets
5522	5524		shall not apply to a transaction permitted by subsection (b)
5523	5525		unless that provision expressly so requires.
5524	5526		"§10A-3A-10.03
5525	5527		Except as otherwise provided in In a nonmembership
5526	5528		nonprofit corporation:
5527	5529		(a) Unless the certificate of incorporation otherwise
5528	5530		provides:
5529	5531		(1) a sale, lease, exchange, mortgage, pledge, or other
5530	5532		disposition of all, or substantially all, the property and
5531	5533		assets of the nonmembership nonprofit corporation may be
5532	5534		approved by the board of directors; and
5533	5535		(2) a sale, lease, exchange, mortgage, pledge, or other
5534	5536		disposition of all, or substantially all, of the property and
5535	5537		assets of the nonmembership nonprofit corporation approved by
5536	5538		the board of directors under this section must also be
5537	5539		approved by that person or group of persons whose approval is
5538	5540		required by the certificate of incorporation in accordance
5539	5541		with Section 10A-3A-10.04.
5540	5542		(b) Unless the certificate of incorporation otherwise
5541	5543		provides, without limiting the rights of a secured party under
5542	5544		applicable law, no approval by any person or group of persons
5543	5545		specified in the certificate of incorporation shall be
5544		-	required by this section for a sale, lease, exchange, or other
5545		-	disposition of any of the nonmembership nonprofit
5546		-	corporation's assets if those assets are mortgaged, pledged,
5547		-	dedicated to the repayment of indebtedness, or otherwise
5548		-	encumbered for the benefit of a secured party or other
5549	5546		2660
5550	5547		2661
5551	5548		2662
5552	5549		2663
5553	5550		2664
5554	5551		2665
5555	5552		2666
5556	5553		2667
5557	5554		2668
5558	5555		2669
5559	5556		2670
5560	5557		2671
5561	5558		2672
5562	5559		2673
5563	5560		2674
5564	5561		2675
5565	5562		2676
5566	5563		2677
5567	5564		2678
5568	5565		2679
5569	5566		2680
5570	5567		2681
5571	5568		2682
5572	5569		2683
5573	5570		2684
5574	5571		2685
5575	5572		2686
5576		-	2687 SB112 ~~Enrolled~~
	5573	+	2687 SB112 Engrossed
5577	5574		Page 97
	5575	+	specified in the certificate of incorporation shall be
	5576	+	required by this section for a sale, lease, exchange, or other
	5577	+	disposition of any of the nonmembership nonprofit
	5578	+	corporation's assets if those assets are mortgaged, pledged,
	5579	+	dedicated to the repayment of indebtedness, or otherwise
5578	5580		encumbered for the benefit of a secured party or other
5579	5581		creditor and either:
5580	5582		(1) The secured party or other creditor exercises its
5581	5583		rights under the law governing the mortgage, pledge,
5582	5584		dedication, or encumbrance, or other applicable law, whether
5583	5585		under the Uniform Commercial Code, a real property law, or
5584	5586		other law, to effect the sale, lease, exchange, or other
5585	5587		disposition of those assets without the consent of the
5586	5588		nonmembership nonprofit corporation; or
5587	5589		(2) In lieu of the secured party or other creditor
5588	5590		exercising such rights, the board of directors of the
5589	5591		nonmembership nonprofit corporation authorizes an alternative
5590	5592		sale, lease, exchange, or other disposition of those assets,
5591	5593		whether with the secured party or other creditor, that results
5592	5594		in the reduction or elimination of the total liabilities or
5593	5595		obligations secured by those assets, provided that (i) the
5594	5596		value of those assets is less than or equal to the total
5595	5597		amount of the liabilities or obligations being eliminated or
5596	5598		reduced and (ii) the sale, lease, exchange, or other
5597	5599		disposition of those assets is not prohibited by the law
5598	5600		governing the mortgage, pledge, dedication, or encumbrance.
5599	5601		The provision of consideration to the nonmembership nonprofit
5600	5602		corporation shall not create a presumption that the value of
5601	5603		the assets is greater than the total amount of the liabilities
5602		-	or obligations being eliminated or reduced.
5603		-	(c) A failure to satisfy the condition in subsection
5604		-	(b)(2)(i) shall not result in the invalidation of a sale,
5605		-	lease, exchange, or other disposition of the nonmembership
5606		-	nonprofit corporation's assets if the transferee of those
5607	5604		2688
5608	5605		2689
5609	5606		2690
5610	5607		2691
5611	5608		2692
5612	5609		2693
5613	5610		2694
5614	5611		2695
5615	5612		2696
5616	5613		2697
5617	5614		2698
5618	5615		2699
5619	5616		2700
5620	5617		2701
5621	5618		2702
5622	5619		2703
5623	5620		2704
5624	5621		2705
5625	5622		2706
5626	5623		2707
5627	5624		2708
5628	5625		2709
5629	5626		2710
5630	5627		2711
5631	5628		2712
5632	5629		2713
5633	5630		2714
5634		-	2715 SB112 ~~Enrolled~~
	5631	+	2715 SB112 Engrossed
5635	5632		Page 98
	5633	+	the assets is greater than the total amount of the liabilities
	5634	+	or obligations being eliminated or reduced.
	5635	+	(c) A failure to satisfy the condition in subsection
	5636	+	(b)(2)(i) shall not result in the invalidation of a sale,
	5637	+	lease, exchange, or other disposition of the nonmembership
5636	5638		nonprofit corporation's assets if the transferee of those
5637	5639		assets (i) provided value therefor (which may include the
5638	5640		reduction or elimination of the total liabilities or
5639	5641		obligations secured by those assets) and (ii) acted in good
5640	5642		faith (as defined in Section 7-1-201(b)). The preceding
5641	5643		sentence shall not apply to a proceeding against the
5642	5644		nonmembership nonprofit corporation and any other necessary
5643	5645		parties to enjoin the sale, lease, exchange, or other
5644	5646		disposition of the nonmembership nonprofit corporation's
5645	5647		assets before the consummation thereof and shall not eliminate
5646	5648		any liability for monetary damages for any claim, including a
5647	5649		claim in the right of the nonmembership nonprofit corporation,
5648	5650		based upon a violation of a duty by a current or former
5649	5651		director or officer, or other person.
5650	5652		(d) A provision of the certificate of incorporation
5651	5653		that requires the authorization or consent of any person or
5652	5654		group of persons specified in the certificate of incorporation
5653	5655		for a sale, lease, exchange, or other disposition of the
5654	5656		nonmembership nonprofit corporation's assets shall not apply
5655	5657		to a transaction permitted by subsection (b) unless that
5656	5658		provision expressly so requires.
5657	5659		"§10A-3A-10.04
5658	5660		(a) The certificate of incorporation of a membership
5659	5661		nonprofit corporation may require that a disposition of assets
5660		-	under either or both Section 10A-3A-10.01 and Section
5661		-	10A-3A-10.02 be approved in writing by a specified person or
5662		-	group of persons in addition to the board of directors and
5663		-	members.
5664		-	(b) The certificate of incorporation of a nonmembership
5665	5662		2716
5666	5663		2717
5667	5664		2718
5668	5665		2719
5669	5666		2720
5670	5667		2721
5671	5668		2722
5672	5669		2723
5673	5670		2724
5674	5671		2725
5675	5672		2726
5676	5673		2727
5677	5674		2728
5678	5675		2729
5679	5676		2730
5680	5677		2731
5681	5678		2732
5682	5679		2733
5683	5680		2734
5684	5681		2735
5685	5682		2736
5686	5683		2737
5687	5684		2738
5688	5685		2739
5689	5686		2740
5690	5687		2741
5691	5688		2742
5692		-	2743 SB112 ~~Enrolled~~
	5689	+	2743 SB112 Engrossed
5693	5690		Page 99
	5691	+	nonprofit corporation may require that a disposition of assets
	5692	+	under either or both Section 10A-3A-10.01 and Section
	5693	+	10A-3A-10.02 be approved in writing by a specified person or
	5694	+	group of persons in addition to the board of directors and
	5695	+	members.
5694	5696		(b) The certificate of incorporation of a nonmembership
5695	5697		nonprofit corporation may require that a disposition of assets
5696	5698		under Section 10A-3A-10.03 be approved in writing by a
5697	5699		specified person or group of persons in addition to the board
5698	5700		of directors.
5699	5701		(c) A requirement in the certificate of incorporation
5700	5702		described in subsection (a) or (b) may only be approved by the
5701	5703		written approval of the specified person or group of persons."
5702	5704		"§10A-3A-11.07
5703	5705		(a) A dissolved nonprofit corporation continues its
5704	5706		existence as a nonprofit corporation but may not carry on any
5705	5707		activity except as is appropriate to wind up and liquidate its
5706	5708		activities and affairs, including:
5707	5709		(1) collecting its assets;
5708	5710		(2) disposing of its properties that will not be
5709	5711		distributed in kind;
5710	5712		(3) discharging or making provisions for discharging
5711	5713		its liabilities;
5712	5714		(4) distributing its remaining property as required by
5713	5715		law, its certificate of incorporation, bylaws, and as approved
5714	5716		when the dissolution was authorized; and
5715	5717		(5) doing every other act necessary to wind up and
5716	5718		liquidate its activities and affairs.
5717	5719		(b) In winding up its activities and affairs, a
5718		-	dissolved nonprofit corporation may:
5719		-	(1) preserve the nonprofit corporation's activities and
5720		-	affairs and property as a going concern for a reasonable time;
5721		-	(2) prosecute, defend, or settle actions or proceedings
5722		-	whether civil, criminal, or administrative;
5723	5720		2744
5724	5721		2745
5725	5722		2746
5726	5723		2747
5727	5724		2748
5728	5725		2749
5729	5726		2750
5730	5727		2751
5731	5728		2752
5732	5729		2753
5733	5730		2754
5734	5731		2755
5735	5732		2756
5736	5733		2757
5737	5734		2758
5738	5735		2759
5739	5736		2760
5740	5737		2761
5741	5738		2762
5742	5739		2763
5743	5740		2764
5744	5741		2765
5745	5742		2766
5746	5743		2767
5747	5744		2768
5748	5745		2769
5749	5746		2770
5750		-	2771 SB112 ~~Enrolled~~
	5747	+	2771 SB112 Engrossed
5751	5748		Page 100
	5749	+	(b) In winding up its activities and affairs, a
	5750	+	dissolved nonprofit corporation may:
	5751	+	(1) preserve the nonprofit corporation's activities and
	5752	+	affairs and property as a going concern for a reasonable time;
	5753	+	(2) prosecute, defend, or settle actions or proceedings
5752	5754		whether civil, criminal, or administrative;
5753	5755		(3) transfer the nonprofit corporation's assets;
5754	5756		(4) resolve disputes by mediation or arbitration; and
5755	5757		(5) merge or convert in accordance with Article 12 or
5756	5758		13 of this chapter or Article 8 of Chapter 1.
5757	5759		(c) Dissolution of a nonprofit corporation does not:
5758	5760		(1) transfer title to the nonprofit corporation's
5759	5761		property;
5760	5762		(2) subject its directors or officers to standards of
5761	5763		conduct different from those prescribed in Article 8 of this
5762	5764		chapter;
5763	5765		(3) change:
5764	5766		(i) quorum or voting requirements for its board of
5765	5767		directors or members;
5766	5768		(ii) provisions for selection, resignation, or removal
5767	5769		of its directors or officers or both; or
5768	5770		(iii) provisions for amending its bylaws;
5769	5771		(4) prevent commencement of a proceeding by or against
5770	5772		the nonprofit corporation in its corporate name;
5771	5773		(5) abate or suspend a proceeding pending by or against
5772	5774		the nonprofit corporation on the effective date of
5773	5775		dissolution; or
5774	5776		(6) terminate the authority of the registered agent of
5775	5777		the nonprofit corporation.
5776		-	(d) A distribution in liquidation under this section
5777		-	may only be made by a dissolved nonprofit corporation.
5778		-	"§10A-4-1.03
5779		-	As used in this chapter, unless the context otherwise
5780		-	requires, the term:
5781	5778		2772
5782	5779		2773
5783	5780		2774
5784	5781		2775
5785	5782		2776
5786	5783		2777
5787	5784		2778
5788	5785		2779
5789	5786		2780
5790	5787		2781
5791	5788		2782
5792	5789		2783
5793	5790		2784
5794	5791		2785
5795	5792		2786
5796	5793		2787
5797	5794		2788
5798	5795		2789
5799	5796		2790
5800	5797		2791
5801	5798		2792
5802	5799		2793
5803	5800		2794
5804	5801		2795
5805	5802		2796
5806	5803		2797
5807	5804		2798
5808		-	2799 SB112 ~~Enrolled~~
	5805	+	2799 SB112 Engrossed
5809	5806		Page 101
	5807	+	the nonprofit corporation.
	5808	+	(d) A distribution in liquidation under this section
	5809	+	may only be made by a dissolved nonprofit corporation.
	5810	+	"§10A-4-1.03
	5811	+	As used in this chapter, unless the context otherwise
5810	5812		requires, the term:
5811	5813		(1) DISQUALIFIED PERSON. Any person who is not a
5812	5814		qualified person.
5813	5815		(2) DOMESTIC PROFESSIONAL CORPORATION. A business
5814	5816		professional corporation for profit or nonprofit professional
5815	5817		corporation organized pursuant to the provisions of this
5816	5818		chapter.
5817	5819		(3) FOREIGN PROFESSIONAL CORPORATION. A corporation or
5818	5820		unincorporated association, for profit or nonprofit, organized
5819	5821		for the purpose of rendering professional services under a law
5820	5822		other than the law of Alabama this state.
5821	5823		(4) LICENSING AUTHORITY. As defined in Section
5822	5824		10A-1-1.03(49) 10A-1-1.03.
5823	5825		(5) PROFESSIONAL SERVICE. As defined in Section
5824	5826		10A-1-1.03(80) 10A-1-1.03.
5825	5827		(6) QUALIFIED PERSON. With respect to any domestic
5826	5828		professional corporation:
5827	5829		a. An individual who is authorized by law of Alabama
5828	5830		this state or of any qualified state to render a professional
5829	5831		service permitted by the certificate of formation
5830	5832		incorporation of the professional corporation;
5831	5833		b. A general partnership in which all the partners are
5832	5834		qualified persons with respect to the professional
5833	5835		corporation; and
5834		-	c. A professional corporation, domestic or foreign, in
5835		-	which all the shareholders stockholders are qualified persons
5836		-	with respect to the professional corporation.
5837		-	d. A limited liability company in which all the members
5838		-	are qualified persons with respect to the professional
5839	5836		2800
5840	5837		2801
5841	5838		2802
5842	5839		2803
5843	5840		2804
5844	5841		2805
5845	5842		2806
5846	5843		2807
5847	5844		2808
5848	5845		2809
5849	5846		2810
5850	5847		2811
5851	5848		2812
5852	5849		2813
5853	5850		2814
5854	5851		2815
5855	5852		2816
5856	5853		2817
5857	5854		2818
5858	5855		2819
5859	5856		2820
5860	5857		2821
5861	5858		2822
5862	5859		2823
5863	5860		2824
5864	5861		2825
5865	5862		2826
5866		-	2827 SB112 ~~Enrolled~~
	5863	+	2827 SB112 Engrossed
5867	5864		Page 102
	5865	+	corporation; and
	5866	+	c. A professional corporation, domestic or foreign, in
	5867	+	which all the shareholders stockholders are qualified persons
	5868	+	with respect to the professional corporation.
	5869	+	d. A limited liability company in which all the members
5868	5870		are qualified persons with respect to the professional
5869	5871		corporation.
5870	5872		"Qualified person" does not include any person during
5871	5873		any period in which the person's authorization to render
5872	5874		professional services has been completely terminated or
5873	5875		suspended.
5874	5876		(7) QUALIFIED STATE. Any state, other than Alabama this
5875	5877		state, or territory of the United States or the District of
5876	5878		Columbia which allows individuals authorized to render
5877	5879		professional services in Alabama this state and not in the
5878	5880		other state, or partnerships of the individuals, or domestic
5879	5881		professional corporations or professional associations owned
5880	5882		by the individuals to own shares of stock in professional
5881	5883		corporations or to be members of professional associations
5882	5884		organized under its laws."
5883	5885		"§10A-4-2.01
5884	5886		DomesticA domestic professional corporations
5885	5887		corporation may be organized under this chapter only for the
5886	5888		purpose of rendering professional services and services
5887	5889		ancillary thereto within a single profession, except that the
5888	5890		same professional corporation or nonprofit professional
5889	5891		corporation may render medical, dental, and other health
5890	5892		related services for the purpose of, and shall have the power
5891	5893		to render, professional services if the domestic professional
5892		-	corporation complies with the rules of the licensing authority
5893		-	for such profession ; provided that in the case of a
5894		-	professional corporation, at least one shareholder stockholder
5895		-	of the professional corporation is duly licensed to provide
5896		-	each professional service for which the professional
5897	5894		2828
5898	5895		2829
5899	5896		2830
5900	5897		2831
5901	5898		2832
5902	5899		2833
5903	5900		2834
5904	5901		2835
5905	5902		2836
5906	5903		2837
5907	5904		2838
5908	5905		2839
5909	5906		2840
5910	5907		2841
5911	5908		2842
5912	5909		2843
5913	5910		2844
5914	5911		2845
5915	5912		2846
5916	5913		2847
5917	5914		2848
5918	5915		2849
5919	5916		2850
5920	5917		2851
5921	5918		2852
5922	5919		2853
5923	5920		2854
5924		-	2855 SB112 ~~Enrolled~~
	5921	+	2855 SB112 Engrossed
5925	5922		Page 103
	5923	+	to render, professional services if the domestic professional
	5924	+	corporation complies with the rules of the licensing authority
	5925	+	for such profession ; provided that in the case of a
	5926	+	professional corporation, at least one shareholder stockholder
	5927	+	of the professional corporation is duly licensed to provide
5926	5928		each professional service for which the professional
5927	5929		corporation is organized, or, in the case of a nonprofit
5928	5930		professional corporation, all of the professional services
5929	5931		rendered by the professional corporation are rendered by
5930	5932		persons duly licensed to render the professional service."
5931	5933		"§10A-4-2.02
5932	5934		(a) Any corporation whose certificate of formation
5933	5935		incorporation includes as a stated purpose the performance of
5934	5936		professional services may be incorporated under this chapter
5935	5937		by stating in its certificate of formation incorporation that
5936	5938		it is incorporated under this chapter.
5937	5939		(b) A domestic professional business corporation, other
5938	5940		than that is not a nonprofit professional corporation , which
5939	5941		is subject to this chapter shall cease being governed by this
5940	5942		chapter and shall be governed by the Alabama Business
5941	5943		Corporation Law, if it is a domestic corporation, if it amends
5942	5944		its certificate of formation incorporation to delete the
5943	5945		statement that it is organized under this chapter, and
5944	5946		conforms its articles certificate of incorporation to the
5945	5947		Alabama Business Corporation Law and, if it is a foreign
5946	5948		corporation, complies with the provisions of this title
5947	5949		applicable to foreign entities . A domestic nonprofit
5948	5950		professional corporation which is subject to this chapter
5949	5951		shall cease being governed by this chapter and shall be
5950		-	governed by the Alabama Nonprofit Corporation Law , if it is a
5951		-	domestic corporation, if it amends its certificate of
5952		-	formation incorporation to delete the statement that it is
5953		-	organized under this chapter, and conforms its certificate of
5954		-	incorporation to the Alabama Nonprofit Corporation Law and, if
5955	5952		2856
5956	5953		2857
5957	5954		2858
5958	5955		2859
5959	5956		2860
5960	5957		2861
5961	5958		2862
5962	5959		2863
5963	5960		2864
5964	5961		2865
5965	5962		2866
5966	5963		2867
5967	5964		2868
5968	5965		2869
5969	5966		2870
5970	5967		2871
5971	5968		2872
5972	5969		2873
5973	5970		2874
5974	5971		2875
5975	5972		2876
5976	5973		2877
5977	5974		2878
5978	5975		2879
5979	5976		2880
5980	5977		2881
5981	5978		2882
5982		-	2883 SB112 ~~Enrolled~~
	5979	+	2883 SB112 Engrossed
5983	5980		Page 104
	5981	+	shall cease being governed by this chapter and shall be
	5982	+	governed by the Alabama Nonprofit Corporation Law , if it is a
	5983	+	domestic corporation, if it amends its certificate of
	5984	+	formation incorporation to delete the statement that it is
	5985	+	organized under this chapter, and conforms its certificate of
5984	5986		incorporation to the Alabama Nonprofit Corporation Law and, if
5985	5987		it is a foreign corporation, complies with the provisions of
5986	5988		this title applicable to foreign entities .
5987	5989		(c) Any corporation which is not subject to this
5988	5990		chapter may become subject to this chapter, if it is a
5989	5991		domestic corporation, by conforming its articles certificate
5990	5992		of incorporation to this chapter.
5991	5993		(d) Any foreign professional corporation which renders
5992	5994		professional services in Alabama this state shall be subject
5993	5995		to this chapter."
5994	5996		"§10A-4-2.03
5995	5997		(a) Subject to Section 10A-4-5.07, a domestic
5996	5998		professional corporation, including a professional corporation
5997	5999		that is a nonprofit corporation, shall have all the powers
5998	6000		necessary or convenient to effectuate its purposes, including
5999	6001		those enumerated in Sections 10A-1-2.11, 10A-1-2.12, and
6000	6002		10A-1-2.13.
6001	6003		(b) A domestic professional corporation shall not
6002	6004		engage in any profession other than the profession or
6003	6005		professions permitted by its certificate of formation
6004	6006		incorporation, except that a domestic professional corporation
6005	6007		may invest its funds in real estate, mortgages, stocks, bonds,
6006	6008		or any other type investment."
6007	6009		"§10A-4-2.04
6008		-	A professional corporation, domestic or foreign, may
6009		-	render professional services in Alabama this state only
6010		-	through individuals permitted to render the services in
6011		-	Alabama this state; but nothing in this chapter shall be
6012		-	construed to require that any individual who is employed by a
6013	6010		2884
6014	6011		2885
6015	6012		2886
6016	6013		2887
6017	6014		2888
6018	6015		2889
6019	6016		2890
6020	6017		2891
6021	6018		2892
6022	6019		2893
6023	6020		2894
6024	6021		2895
6025	6022		2896
6026	6023		2897
6027	6024		2898
6028	6025		2899
6029	6026		2900
6030	6027		2901
6031	6028		2902
6032	6029		2903
6033	6030		2904
6034	6031		2905
6035	6032		2906
6036	6033		2907
6037	6034		2908
6038	6035		2909
6039	6036		2910
6040		-	2911 SB112 ~~Enrolled~~
	6037	+	2911 SB112 Engrossed
6041	6038		Page 105
	6039	+	"§10A-4-2.04
	6040	+	A professional corporation, domestic or foreign, may
	6041	+	render professional services in Alabama this state only
	6042	+	through individuals permitted to render the services in
	6043	+	Alabama this state; but nothing in this chapter shall be
6042	6044		construed to require that any individual who is employed by a
6043	6045		professional corporation be licensed to perform services for
6044	6046		which no license is otherwise required or to prohibit the
6045	6047		rendering of professional services by a licensed individual
6046	6048		acting in his or her that person's individual capacity,
6047	6049		notwithstanding the individual may be a shareholder
6048	6050		stockholder, member, director, officer, employee, or agent of
6049	6051		a professional corporation, domestic or foreign."
6050	6052		"§10A-4-3.01
6051	6053		(a) A domestic professional corporation may issue
6052	6054		shares, fractional shares stock, fractions of a share of
6053	6055		stock, and rights or options to purchase shares stock only to
6054	6056		qualified persons.
6055	6057		(b) Where deemed necessary by the licensing authority
6056	6058		for any profession in order to prevent violations of the
6057	6059		ethical standards of the profession, the licensing authority
6058	6060		may, within its rule-making power, by rule further restrict,
6059	6061		condition, or abridge the authority of domestic professional
6060	6062		corporations to issue shares stock, but no rule shall, of
6061	6063		itself, have the effect of causing a shareholder stockholder
6062	6064		of a professional corporation at the time the rule becomes
6063	6065		effective to become a disqualified person unless and to the
6064	6066		extent specified by the licensing authority.
6065	6067		(c) A shareholder stockholder of a domestic
6066		-	professional corporation may transfer or pledge shares,
6067		-	fractional shares stock, fractions of a share of stock , and
6068		-	rights or options to purchase shares stock of the professional
6069		-	corporation only to qualified persons.
6070		-	(d) Any issuance or transfer of shares stock in
6071	6068		2912
6072	6069		2913
6073	6070		2914
6074	6071		2915
6075	6072		2916
6076	6073		2917
6077	6074		2918
6078	6075		2919
6079	6076		2920
6080	6077		2921
6081	6078		2922
6082	6079		2923
6083	6080		2924
6084	6081		2925
6085	6082		2926
6086	6083		2927
6087	6084		2928
6088	6085		2929
6089	6086		2930
6090	6087		2931
6091	6088		2932
6092	6089		2933
6093	6090		2934
6094	6091		2935
6095	6092		2936
6096	6093		2937
6097	6094		2938
6098		-	2939 SB112 ~~Enrolled~~
	6095	+	2939 SB112 Engrossed
6099	6096		Page 106
	6097	+	(c) A shareholder stockholder of a domestic
	6098	+	professional corporation may transfer or pledge shares,
	6099	+	fractional shares stock, fractions of a share of stock , and
	6100	+	rights or options to purchase shares stock of the professional
	6101	+	corporation only to qualified persons.
6100	6102		(d) Any issuance or transfer of shares stock in
6101	6103		violation of this section shall be void, however, nothing
6102	6104		contained herein shall prohibit the transfer of shares stock
6103	6105		of a domestic professional corporation by operation of law or
6104	6106		court decree.
6105	6107		(e) Nothing in this section shall require domestic
6106	6108		nonprofit professional corporations to issue shares stock. The
6107	6109		Domestic nonprofit professional corporations may have members
6108	6110		and all members must be qualified persons. A licensing
6109	6111		authority may, within its rule-making power, by rule further
6110	6112		restrict, condition, or abridge membership in domestic
6111	6113		nonprofit corporations, but no rule shall, of itself, have the
6112	6114		effect of causing a member of a domestic nonprofit
6113	6115		professional corporation at the time the rule becomes
6114	6116		effective to become a disqualified person unless and to the
6115	6117		extent specified by the licensing authority."
6116	6118		"§10A-4-3.02
6117	6119		(a) Upon the death of a shareholder stockholder of a
6118	6120		domestic professional corporation, or if a shareholder
6119	6121		stockholder of a domestic professional corporation becomes a
6120	6122		disqualified person, or if shares stock of a domestic
6121	6123		professional corporation are is transferred by operation of
6122	6124		law or court decree to a disqualified person, the shares of
6123	6125		stock owned by the deceased shareholder stockholder or of the
6124		-	disqualified person may be transferred to a qualified person
6125		-	and, if not so transferred, shall be purchased or redeemed by
6126		-	the domestic professional corporation to the extent of funds
6127		-	which may be legally made available for the purchase.
6128		-	(b) If the price for the shares stock is not fixed by
6129	6126		2940
6130	6127		2941
6131	6128		2942
6132	6129		2943
6133	6130		2944
6134	6131		2945
6135	6132		2946
6136	6133		2947
6137	6134		2948
6138	6135		2949
6139	6136		2950
6140	6137		2951
6141	6138		2952
6142	6139		2953
6143	6140		2954
6144	6141		2955
6145	6142		2956
6146	6143		2957
6147	6144		2958
6148	6145		2959
6149	6146		2960
6150	6147		2961
6151	6148		2962
6152	6149		2963
6153	6150		2964
6154	6151		2965
6155	6152		2966
6156		-	2967 SB112 ~~Enrolled~~
	6153	+	2967 SB112 Engrossed
6157	6154		Page 107
	6155	+	stock owned by the deceased shareholder stockholder or of the
	6156	+	disqualified person may be transferred to a qualified person
	6157	+	and, if not so transferred, shall be purchased or redeemed by
	6158	+	the domestic professional corporation to the extent of funds
	6159	+	which may be legally made available for the purchase.
6158	6160		(b) If the price for the shares stock is not fixed by
6159	6161		the governing documents of the domestic professional
6160	6162		corporation or by private agreement, the domestic professional
6161	6163		corporation, within six months after the death or 30 days
6162	6164		after the disqualification or transfer, as the case may be,
6163	6165		shall make a written offer to pay for the shares stock at a
6164	6166		specified price deemed by the domestic professional
6165	6167		corporation to be the fair value thereof as of the date of the
6166	6168		death, disqualification, or transfer. The offer shall be given
6167	6169		to the executor or administrator of the estate of a deceased
6168	6170		shareholder stockholder or to the disqualified shareholder
6169	6171		person or transferee and shall be accompanied by a balance
6170	6172		sheet of the domestic professional corporation, as of the
6171	6173		latest available date and not more than 12 months prior to the
6172	6174		making of the offer, and a profit and loss statement of the
6173	6175		domestic professional corporation for the 12 months' period
6174	6176		ended on the date of the balance sheet.
6175	6177		(c) If within 30 days after the date of the written
6176	6178		offer from the domestic professional corporation the fair
6177	6179		value of the shares stock is agreed upon between the
6178	6180		disqualified person and the domestic professional corporation,
6179	6181		payment therefor shall be made within 90 days, or other period
6180	6182		as the parties may fix by agreement, after the date of the
6181	6183		offer, upon surrender of the certificate or certificates
6182		-	representing the shares stock. Upon payment of the agreed
6183		-	value the disqualified persons shall cease to have any
6184		-	interest in the shares stock.
6185		-	(d) If within 30 days from the date of the written
6186		-	offer from the domestic professional corporation, the
6187	6184		2968
6188	6185		2969
6189	6186		2970
6190	6187		2971
6191	6188		2972
6192	6189		2973
6193	6190		2974
6194	6191		2975
6195	6192		2976
6196	6193		2977
6197	6194		2978
6198	6195		2979
6199	6196		2980
6200	6197		2981
6201	6198		2982
6202	6199		2983
6203	6200		2984
6204	6201		2985
6205	6202		2986
6206	6203		2987
6207	6204		2988
6208	6205		2989
6209	6206		2990
6210	6207		2991
6211	6208		2992
6212	6209		2993
6213	6210		2994
6214		-	2995 SB112 ~~Enrolled~~
	6211	+	2995 SB112 Engrossed
6215	6212		Page 108
	6213	+	offer, upon surrender of the certificate or certificates
	6214	+	representing the shares stock. Upon payment of the agreed
	6215	+	value the disqualified persons shall cease to have any
	6216	+	interest in the shares stock.
	6217	+	(d) If within 30 days from the date of the written
6216	6218		offer from the domestic professional corporation, the
6217	6219		disqualified person and the domestic professional corporation
6218	6220		do not so agree, then either party may commence a civil action
6219	6221		in the designated court, and if none, in the circuit court for
6220	6222		the county in which the domestic professional corporation's
6221	6223		principal office is located in this state, and if none in this
6222	6224		state, in the circuit court for the county in which the
6223	6225		domestic professional corporation's most recent registered
6224	6226		office is located requesting that the fair value of the shares
6225	6227		stock be found and determined. The disqualified person,
6226	6228		wherever residing, shall be made a party to the proceeding as
6227	6229		an action against his or her shares the disqualified person's
6228	6230		stock quasi in rem. Service shall be made in accordance with
6229	6231		the rules of civil procedure. The disqualified person shall be
6230	6232		entitled to judgment against the domestic professional
6231	6233		corporation for the amount of the fair value of his or her
6232	6234		shares the disqualified person's stock as of the date of
6233	6235		death, disqualification, or transfer upon surrender to the
6234	6236		domestic professional corporation of the certificate or
6235	6237		certificates representing the shares stock. The court may, in
6236	6238		its discretion, order that the judgment be paid in
6237	6239		installments and with interest and on terms as the court may
6238	6240		determine. The court may, if it so elects, appoint one or more
6239	6241		persons as appraisers to receive evidence and recommend a
6240		-	decision on the question of fair value. The appraisers shall
6241		-	have the power and authority as shall be specified in the
6242		-	order of their appointment or an amendment thereof.
6243		-	(e) The judgment shall include an allowance for
6244		-	interest at the rate the court finds to be fair and equitable
6245	6242		2996
6246	6243		2997
6247	6244		2998
6248	6245		2999
6249	6246		3000
6250	6247		3001
6251	6248		3002
6252	6249		3003
6253	6250		3004
6254	6251		3005
6255	6252		3006
6256	6253		3007
6257	6254		3008
6258	6255		3009
6259	6256		3010
6260	6257		3011
6261	6258		3012
6262	6259		3013
6263	6260		3014
6264	6261		3015
6265	6262		3016
6266	6263		3017
6267	6264		3018
6268	6265		3019
6269	6266		3020
6270	6267		3021
6271	6268		3022
6272		-	3023 SB112 ~~Enrolled~~
	6269	+	3023 SB112 Engrossed
6273	6270		Page 109
	6271	+	persons as appraisers to receive evidence and recommend a
	6272	+	decision on the question of fair value. The appraisers shall
	6273	+	have the power and authority as shall be specified in the
	6274	+	order of their appointment or an amendment thereof.
	6275	+	(e) The judgment shall include an allowance for
6274	6276		interest at the rate the court finds to be fair and equitable
6275	6277		in all the circumstances, from the date of death,
6276	6278		disqualification, or transfer.
6277	6279		(f) The costs and expenses of any proceeding shall be
6278	6280		determined by the court and shall be assessed against the
6279	6281		domestic professional corporation, but all or any part of the
6280	6282		costs and expenses may be apportioned and assessed as the
6281	6283		court may deem equitable against the disqualified person if
6282	6284		the court shall find that the action of the disqualified
6283	6285		person in failing to accept the offer was arbitrary or
6284	6286		vexatious or not in good faith. The expenses shall include
6285	6287		reasonable compensation for and reasonable expenses of the
6286	6288		appraisers and a reasonable attorney's fee but shall exclude
6287	6289		the fees and expenses of counsel for and of experts employed
6288	6290		by any party; but if the fair value of the shares stock as
6289	6291		determined materially exceeds the amount which the domestic
6290	6292		professional corporation offered to pay therefor, or if no
6291	6293		offer was made, the court in its discretion may award to the
6292	6294		disqualified person the sum the court determines to be
6293	6295		reasonable compensation to any expert or experts employed by
6294	6296		the disqualified person in the proceeding.
6295	6297		(g) If a purchase, redemption, or transfer of the
6296	6298		shares stock of a deceased stockholder or disqualified
6297	6299		shareholder person or of a transferee who is a disqualified
6298		-	person is not completed within 12 months after the death of
6299		-	the deceased shareholder stockholder or 12 months after the
6300		-	disqualification or transfer, as the case may be, the domestic
6301		-	professional corporation shall forthwith cancel the shares
6302		-	stock on its books and the disqualified person shall have no
6303	6300		3024
6304	6301		3025
6305	6302		3026
6306	6303		3027
6307	6304		3028
6308	6305		3029
6309	6306		3030
6310	6307		3031
6311	6308		3032
6312	6309		3033
6313	6310		3034
6314	6311		3035
6315	6312		3036
6316	6313		3037
6317	6314		3038
6318	6315		3039
6319	6316		3040
6320	6317		3041
6321	6318		3042
6322	6319		3043
6323	6320		3044
6324	6321		3045
6325	6322		3046
6326	6323		3047
6327	6324		3048
6328	6325		3049
6329	6326		3050
6330		-	3051 SB112 ~~Enrolled~~
	6327	+	3051 SB112 Engrossed
6331	6328		Page 110
	6329	+	shareholder person or of a transferee who is a disqualified
	6330	+	person is not completed within 12 months after the death of
	6331	+	the deceased shareholder stockholder or 12 months after the
	6332	+	disqualification or transfer, as the case may be, the domestic
	6333	+	professional corporation shall forthwith cancel the shares
6332	6334		stock on its books and the disqualified person shall have no
6333	6335		further interest as a shareholder stockholder in the domestic
6334	6336		professional corporation other than his or her the
6335	6337		disqualified person's right to payment for the shares stock
6336	6338		under this section.
6337	6339		(h) Shares acquired by a domestic professional
6338	6340		corporation pursuant to payment of the agreed value therefor
6339	6341		or to payment of the judgment entered therefor, as in this
6340	6342		section provided, may be held, cancelled, or disposed of by
6341	6343		the domestic professional corporation as in the case of other
6342	6344		treasury shares. (1) A professional corporation may acquire its
6343	6345		own stock, and, the stock so acquired shall constitute
6344	6346		authorized but unissued stock, provided however:
6345	6347		(A) the certificate of incorporation may provide that
6346	6348		the acquired stock shall constitute authorized, issued, but
6347	6349		not outstanding stock;
6348	6350		(B) the certificate of incorporation may prohibit the
6349	6351		reissue of the acquired stock, in which case, the number of
6350	6352		authorized shares of stock is reduced by the number of shares
6351	6353		of stock acquired; or
6352	6354		(C) if the certificate incorporation does not (i)
6353	6355		provide that the acquired stock shall constitute authorized
6354	6356		but unissued stock, (ii) prohibit the reissuance of the
6355	6357		acquired stock, or (iii) provide that the acquired stock shall
6356		-	constitute authorized, issued, but not outstanding stock, then
6357		-	the board of directors may determine, at or prior to the time
6358		-	of the acquisition, that the acquired stock will constitute
6359		-	authorized, issued, but not outstanding stock.
6360		-	(2) If the board of directors determines that any
6361	6358		3052
6362	6359		3053
6363	6360		3054
6364	6361		3055
6365	6362		3056
6366	6363		3057
6367	6364		3058
6368	6365		3059
6369	6366		3060
6370	6367		3061
6371	6368		3062
6372	6369		3063
6373	6370		3064
6374	6371		3065
6375	6372		3066
6376	6373		3067
6377	6374		3068
6378	6375		3069
6379	6376		3070
6380	6377		3071
6381	6378		3072
6382	6379		3073
6383	6380		3074
6384	6381		3075
6385	6382		3076
6386	6383		3077
6387	6384		3078
6388		-	3079 SB112 ~~Enrolled~~
	6385	+	3079 SB112 Engrossed
6389	6386		Page 111
	6387	+	acquired stock, or (iii) provide that the acquired stock shall
	6388	+	constitute authorized, issued, but not outstanding stock, then
	6389	+	the board of directors may determine, at or prior to the time
	6390	+	of the acquisition, that the acquired stock will constitute
	6391	+	authorized, issued, but not outstanding stock.
6390	6392		(2) If the board of directors determines that any
6391	6393		acquired stock was to be authorized, issued, but not
6392	6394		outstanding in accordance with subsection (h)(1)(C), then the
6393	6395		board of directors may thereafter determine that the acquired
6394	6396		stock shall be converted to stock that is authorized but not
6395	6397		issued.
6396	6398		(i) This section shall not be deemed to require the
6397	6399		purchase of shares stock of a disqualified person where the
6398	6400		period of the disqualification is for less than 12 months from
6399	6401		the date of disqualification or transfer.
6400	6402		(j) Any provision regarding purchase, redemption, or
6401	6403		transfer of shares stock of a domestic professional
6402	6404		corporation contained in the certificate of formation
6403	6405		incorporation, bylaws, or any private agreement shall be
6404	6406		specifically enforceable in the courts of Alabama this state.
6405	6407		(k) Nothing herein contained shall prevent or relieve a
6406	6408		domestic professional corporation from paying pension benefits
6407	6409		or other deferred compensation for services rendered to or on
6408	6410		behalf of a former shareholder stockholder as otherwise
6409	6411		permitted by law.
6410	6412		(l) A domestic professional corporation may purchase
6411	6413		its own shares stock from a disqualified person without regard
6412	6414		to the availability of capital or surplus for the purchase;
6413	6415		however, no purchase of or payment for the shares stock shall
6414		-	be made at a time when the domestic professional corporation
6415		-	is insolvent or when the purchase or payment would make it
6416		-	insolvent.
6417		-	(m) The foregoing provisions of this section shall not
6418		-	apply to a domestic nonprofit professional corporation. Any
6419	6416		3080
6420	6417		3081
6421	6418		3082
6422	6419		3083
6423	6420		3084
6424	6421		3085
6425	6422		3086
6426	6423		3087
6427	6424		3088
6428	6425		3089
6429	6426		3090
6430	6427		3091
6431	6428		3092
6432	6429		3093
6433	6430		3094
6434	6431		3095
6435	6432		3096
6436	6433		3097
6437	6434		3098
6438	6435		3099
6439	6436		3100
6440	6437		3101
6441	6438		3102
6442	6439		3103
6443	6440		3104
6444	6441		3105
6445	6442		3106
6446		-	3107 SB112 ~~Enrolled~~
	6443	+	3107 SB112 Engrossed
6447	6444		Page 112
	6445	+	however, no purchase of or payment for the shares stock shall
	6446	+	be made at a time when the domestic professional corporation
	6447	+	is insolvent or when the purchase or payment would make it
	6448	+	insolvent.
	6449	+	(m) The foregoing provisions of this section shall not
6448	6450		apply to a domestic nonprofit professional corporation. Any
6449	6451		member of a corporation who becomes a disqualified person must
6450	6452		cease being a member not more than 12 months after the date of
6451	6453		disqualification if he or she is then a disqualified person."
6452	6454		"§10A-4-3.03
6453	6455		(a) Every individual who renders professional services
6454	6456		as an employee of a domestic or professional corporation shall
6455	6457		be liable for any negligent or wrongful act or omission in
6456	6458		which he or she that individual personally participates to the
6457	6459		same extent as if he or she that individual rendered the
6458	6460		services as a sole practitioner.
6459	6461		(b) The Except as otherwise provided in subsection (a),
6460	6462		the personal liability of a shareholder stockholder, employee,
6461	6463		director, or officer of a domestic professional corporation,
6462	6464		other than a domestic nonprofit professional corporation,
6463	6465		shall be no greater in any respect than that of a shareholder
6464	6466		stockholder, employee, director, or officer of a corporation
6465	6467		organized under governed by the Alabama Business Corporation
6466	6468		Law.
6467	6469		(c) The Except as otherwise provided in subsection (a),
6468	6470		the personal liability of a member, employee, director, or
6469	6471		officer of a domestic nonprofit professional corporation shall
6470	6472		be no greater in any respect than that of a member, employee,
6471	6473		director, or officer of a corporation organized under governed
6472		-	by the Alabama Nonprofit Corporation Law.
6473		-	(d) The Except as otherwise provided in subsection (a),
6474		-	the personal liability of a shareholder stockholder, member,
6475		-	employee, director, or officer of a foreign professional
6476		-	corporation shall be determined under the law of the
6477	6474		3108
6478	6475		3109
6479	6476		3110
6480	6477		3111
6481	6478		3112
6482	6479		3113
6483	6480		3114
6484	6481		3115
6485	6482		3116
6486	6483		3117
6487	6484		3118
6488	6485		3119
6489	6486		3120
6490	6487		3121
6491	6488		3122
6492	6489		3123
6493	6490		3124
6494	6491		3125
6495	6492		3126
6496	6493		3127
6497	6494		3128
6498	6495		3129
6499	6496		3130
6500	6497		3131
6501	6498		3132
6502	6499		3133
6503	6500		3134
6504		-	3135 SB112 ~~Enrolled~~
	6501	+	3135 SB112 Engrossed
6505	6502		Page 113
	6503	+	director, or officer of a corporation organized under governed
	6504	+	by the Alabama Nonprofit Corporation Law.
	6505	+	(d) The Except as otherwise provided in subsection (a),
	6506	+	the personal liability of a shareholder stockholder, member,
	6507	+	employee, director, or officer of a foreign professional
6506	6508		corporation shall be determined under the law of the
6507	6509		jurisdiction in which it is organized."
6508	6510		"§10A-4-3.05
6509	6511		A voting trust with respect to shares stock of a
6510	6512		domestic professional corporation shall not be valid unless
6511	6513		all the trustees and beneficiaries thereof are qualified
6512	6514		persons, except that a voting trust may be validly continued
6513	6515		for a period of 12 months after the death of a deceased
6514	6516		beneficiary or after a beneficiary has become a disqualified
6515	6517		person."
6516	6518		"§10A-4-3.06
6517	6519		At least one director of a domestic professional
6518	6520		corporation and the president of a domestic professional
6519	6521		corporation shall be qualified persons with respect to the
6520	6522		domestic professional corporation; provided, however, that the
6521	6523		foregoing restriction shall not apply for a period of 12
6522	6524		months after the death of the sole shareholder stockholder of
6523	6525		a domestic professional corporation."
6524	6526		"§10A-4-4.01
6525	6527		Administrators, executors, guardians, conservators, or
6526	6528		receivers of the estates of shareholders stockholders of a
6527	6529		domestic professional corporation who hold all of the
6528	6530		outstanding shares stock of the domestic professional
6529	6531		corporation may amend the certificate of formation
6530		-	incorporation by signing a written consent to the certificate
6531		-	of amendment and delivering the certificate of amendment for
6532		-	filing to the Secretary of State. The certificate of amendment
6533		-	shall set forth, in addition to the information required to be
6534		-	included in the certificate of amendment by the Alabama
6535	6532		3136
6536	6533		3137
6537	6534		3138
6538	6535		3139
6539	6536		3140
6540	6537		3141
6541	6538		3142
6542	6539		3143
6543	6540		3144
6544	6541		3145
6545	6542		3146
6546	6543		3147
6547	6544		3148
6548	6545		3149
6549	6546		3150
6550	6547		3151
6551	6548		3152
6552	6549		3153
6553	6550		3154
6554	6551		3155
6555	6552		3156
6556	6553		3157
6557	6554		3158
6558	6555		3159
6559	6556		3160
6560	6557		3161
6561	6558		3162
6562		-	3163 SB112 ~~Enrolled~~
	6559	+	3163 SB112 Engrossed
6563	6560		Page 114
	6561	+	corporation may amend the certificate of formation
	6562	+	incorporation by signing a written consent to the certificate
	6563	+	of amendment and delivering the certificate of amendment for
	6564	+	filing to the Secretary of State. The certificate of amendment
	6565	+	shall set forth, in addition to the information required to be
6564	6566		included in the certificate of amendment by the Alabama
6565	6567		Business Corporation Law, a statement that the administrators,
6566	6568		executors, guardians, conservators, or receivers own all the
6567	6569		outstanding shares stock."
6568	6570		"§10A-4-4.02
6569	6571		(a) A domestic professional corporation may convert to
6570	6572		or merge with another corporation, professional corporation,
6571	6573		or another type of entity, domestic or foreign, if permitted
6572	6574		under the Alabama Business Corporation Law, the Alabama
6573	6575		Nonprofit Corporation Law, or may merge with or convert to
6574	6576		another type of entity as permitted by Article 8 of Chapter 1.
6575	6577		Upon the merger, consolidation, or conversion, if the
6576	6578		surviving or new corporation or converted entity, as the case
6577	6579		may be, is to render professional services in Alabama this
6578	6580		state, it shall comply with the provisions of this chapter.
6579	6581		(b) An unincorporated professional association
6580	6582		organized under Article 1 of Chapter 30 may merge or
6581	6583		consolidate with a domestic professional corporation organized
6582	6584		under this chapter . In the merger, the unincorporated
6583	6585		professional association shall follow the procedure specified
6584	6586		in the Alabama Business Corporation Law shall apply, provided
6585	6587		that:
6586	6588		(1) The surviving corporation shall be a domestic
6587	6589		professional corporation,
6588		-	(2) The following terms, when used in the Alabama
6589		-	Business Corporation Law to refer to an unincorporated
6590		-	professional association, shall have the following meanings:
6591		-	a. "Board of directors" shall mean BOARD OF DIRECTORS
6592		-	means"board of governors ,".
6593	6590		3164
6594	6591		3165
6595	6592		3166
6596	6593		3167
6597	6594		3168
6598	6595		3169
6599	6596		3170
6600	6597		3171
6601	6598		3172
6602	6599		3173
6603	6600		3174
6604	6601		3175
6605	6602		3176
6606	6603		3177
6607	6604		3178
6608	6605		3179
6609	6606		3180
6610	6607		3181
6611	6608		3182
6612	6609		3183
6613	6610		3184
6614	6611		3185
6615	6612		3186
6616	6613		3187
6617	6614		3188
6618	6615		3189
6619	6616		3190
6620		-	3191 SB112 ~~Enrolled~~
	6617	+	3191 SB112 Engrossed
6621	6618		Page 115
	6619	+	professional corporation,
	6620	+	(2) The following terms, when used in the Alabama
	6621	+	Business Corporation Law to refer to an unincorporated
	6622	+	professional association, shall have the following meanings:
	6623	+	a. "Board of directors" shall mean BOARD OF DIRECTORS
6622	6624		means"board of governors ,".
6623	6625		b. "Corporation" shall mean CORPORATION means
6624	6626		"unincorporated association ,".
6625	6627		c. "Shares or securities" STOCK or SECURITIES in the
6626	6628		case of an unincorporated professional association which is a
6627	6629		nonstock organization, shall mean means the undivided
6628	6630		interests of the members in the assets of the association ,.
6629	6631		d. "Shareholder" STOCKHOLDER in the case of an
6630	6632		unincorporated association which is a nonstock organization,
6631	6633		shall mean means"member."
6632	6634		(3) The plan of merger or plan of conversion shall be
6633	6635		approved by a vote of two thirds two-thirds of the members of
6634	6636		the professional association."
6635	6637		"§10A-4-5.01
6636	6638		The Attorney General may institute proceedings to
6637	6639		involuntarily dissolve a domestic professional corporation or
6638	6640		a domestic nonprofit professional corporation . A licensing
6639	6641		authority may request that the Attorney General institute such
6640	6642		the proceedings."
6641	6643		"§10A-4-5.02
6642	6644		(a) A foreign professional corporation shall be
6643	6645		entitled to register under Article 7 of Chapter 1 for
6644	6646		authority to render professional services in Alabama this
6645	6647		state only if:
6646		-	(1) A domestic professional corporation incorporated
6647		-	under this chapter would be allowed to register or procure a
6648		-	certificate of authority or equivalent authorization to render
6649		-	professional services in the state under whose laws the
6650		-	foreign professional corporation is organized;
6651	6648		3192
6652	6649		3193
6653	6650		3194
6654	6651		3195
6655	6652		3196
6656	6653		3197
6657	6654		3198
6658	6655		3199
6659	6656		3200
6660	6657		3201
6661	6658		3202
6662	6659		3203
6663	6660		3204
6664	6661		3205
6665	6662		3206
6666	6663		3207
6667	6664		3208
6668	6665		3209
6669	6666		3210
6670	6667		3211
6671	6668		3212
6672	6669		3213
6673	6670		3214
6674	6671		3215
6675	6672		3216
6676	6673		3217
6677	6674		3218
6678		-	3219 SB112 ~~Enrolled~~
	6675	+	3219 SB112 Engrossed
6679	6676		Page 116
	6677	+	state only if:
	6678	+	(1) A domestic professional corporation incorporated
	6679	+	under this chapter would be allowed to register or procure a
	6680	+	certificate of authority or equivalent authorization to render
	6681	+	professional services in the state under whose laws the
6680	6682		foreign professional corporation is organized;
6681	6683		(2) The foreign professional corporation meets the
6682	6684		requirements of Section 10A-4-2.01;
6683	6685		(3) The foreign professional corporation designates the
6684	6686		Alabama licensed individual or individuals through whom it
6685	6687		will render professional services in Alabama this state and
6686	6688		the individual or individuals are not, at the time of the
6687	6689		designation, so designated by any other foreign professional
6688	6690		corporation;
6689	6691		(4) The name of the foreign professional corporation
6690	6692		meets the requirements of Section 10A-1-5.08, provided that
6691	6693		the foreign professional corporation can meet the requirements
6692	6694		of Section 10A-1-5.08 by adding at the end of its name, for
6693	6695		use in Alabama this state, the words "professional
6694	6696		corporation" or the abbreviation "P.C."; and
6695	6697		(5) All the shareholders stockholders, or all the
6696	6698		members, in the case of a nonprofit professional corporation
6697	6699		which has members, at least one director , and the president of
6698	6700		the foreign professional corporation are licensed in at least
6699	6701		one state or territory of the United States or the District of
6700	6702		Columbia to render the professional services which the foreign
6701	6703		professional corporation would render in Alabama this state.
6702	6704		(6) The foreign professional corporation includes in
6703	6705		its application a statement acknowledging that it will be
6704		-	subject to the jurisdiction of the Alabama regulatory and
6705		-	licensing authorities with respect to any professional
6706		-	services rendered to clients or patients in Alabama this
6707		-	state.
6708		-	(b) No foreign professional corporation shall maintain
6709	6706		3220
6710	6707		3221
6711	6708		3222
6712	6709		3223
6713	6710		3224
6714	6711		3225
6715	6712		3226
6716	6713		3227
6717	6714		3228
6718	6715		3229
6719	6716		3230
6720	6717		3231
6721	6718		3232
6722	6719		3233
6723	6720		3234
6724	6721		3235
6725	6722		3236
6726	6723		3237
6727	6724		3238
6728	6725		3239
6729	6726		3240
6730	6727		3241
6731	6728		3242
6732	6729		3243
6733	6730		3244
6734	6731		3245
6735	6732		3246
6736		-	3247 SB112 ~~Enrolled~~
	6733	+	3247 SB112 Engrossed
6737	6734		Page 117
	6735	+	its application a statement acknowledging that it will be
	6736	+	subject to the jurisdiction of the Alabama regulatory and
	6737	+	licensing authorities with respect to any professional
	6738	+	services rendered to clients or patients in Alabama this
	6739	+	state.
6738	6740		(b) No foreign professional corporation shall maintain
6739	6741		an office in Alabama this state for the conduct of business or
6740	6742		professional practice until it has obtained a certificate of
6741	6743		authority to render professional services in Alabama this
6742	6744		state."
6743	6745		"§10A-4-5.03
6744	6746		The certificate of authority of a foreign professional
6745	6747		corporation may be revoked by the Secretary of State if the
6746	6748		foreign professional corporation fails to comply with any
6747	6749		provision of this chapter applicable to it the foreign
6748	6750		professional corporation . Each licensing authority in Alabama
6749	6751		this state shall certify to the Secretary of State, from time
6750	6752		to time, the names of all foreign professional corporations
6751	6753		which have given cause for revocation as provided in this
6752	6754		chapter, together with the facts pertinent thereto. Whenever a
6753	6755		licensing authority shall certify the name of a foreign
6754	6756		professional corporation to the Secretary of State as having
6755	6757		given cause for revocation, the licensing authority shall
6756	6758		concurrently mail to the foreign professional corporation at
6757	6759		its registered office in Alabama this state notice that the
6758	6760		certification has been made. No certificate of authority of a
6759	6761		foreign professional corporation shall be revoked by the
6760	6762		Secretary of State unless he or she the Secretary of State
6761	6763		shall have given the foreign professional corporation not less
6762		-	than 60 days' notice thereof and the foreign professional
6763		-	corporation shall fail prior to revocation to correct the
6764		-	noncompliance."
6765		-	"§10A-4-5.04
6766		-	(a) Every business professional corporation, domestic
6767	6764		3248
6768	6765		3249
6769	6766		3250
6770	6767		3251
6771	6768		3252
6772	6769		3253
6773	6770		3254
6774	6771		3255
6775	6772		3256
6776	6773		3257
6777	6774		3258
6778	6775		3259
6779	6776		3260
6780	6777		3261
6781	6778		3262
6782	6779		3263
6783	6780		3264
6784	6781		3265
6785	6782		3266
6786	6783		3267
6787	6784		3268
6788	6785		3269
6789	6786		3270
6790	6787		3271
6791	6788		3272
6792	6789		3273
6793	6790		3274
6794		-	3275 SB112 ~~Enrolled~~
	6791	+	3275 SB112 Engrossed
6795	6792		Page 118
	6793	+	shall have given the foreign professional corporation not less
	6794	+	than 60 days' notice thereof and the foreign professional
	6795	+	corporation shall fail prior to revocation to correct the
	6796	+	noncompliance."
	6797	+	"§10A-4-5.04
6796	6798		(a) Every business professional corporation, domestic
6797	6799		or foreign, is required to file an annual report under the
6798	6800		Alabama Business Corporation Law, and shall include in the
6799	6801		annual report, in addition to the items required by the
6800	6802		Alabama Business Corporation Law:
6801	6803		(1) A statement that all the shareholders stockholders,
6802	6804		at least one director, and the president of the corporation
6803	6805		are qualified persons with respect to the corporation, and
6804	6806		(2) In the case of a foreign professional corporation,
6805	6807		the name or names of the Alabama licensed professional or
6806	6808		professionals through whom the foreign professional
6807	6809		corporation will render professional services in Alabama this
6808	6810		state.
6809	6811		(b) Financial information contained in the annual
6810	6812		report of a professional corporation, other than the amount of
6811	6813		stated capital of the corporation, shall not be open to public
6812	6814		inspection nor shall the licensing authority disclose any
6813	6815		facts or information obtained therefrom except insofar as its
6814	6816		official duty may require the same to be made public or in the
6815	6817		event the information is required for evidence in any criminal
6816	6818		proceedings or in any other action by the State of Alabama."
6817	6819		"§10A-4-5.05
6818	6820		(a) Each licensing authority of Alabama this state may
6819	6821		propound to any professional corporation, domestic or foreign,
6820		-	organized to practice a profession within the jurisdiction of
6821		-	the licensing authority, and to any officer or director
6822		-	thereof, the interrogatories as may be reasonably necessary
6823		-	and proper to enable the licensing authority to ascertain
6824		-	whether the professional corporation has complied with all the
6825	6822		3276
6826	6823		3277
6827	6824		3278
6828	6825		3279
6829	6826		3280
6830	6827		3281
6831	6828		3282
6832	6829		3283
6833	6830		3284
6834	6831		3285
6835	6832		3286
6836	6833		3287
6837	6834		3288
6838	6835		3289
6839	6836		3290
6840	6837		3291
6841	6838		3292
6842	6839		3293
6843	6840		3294
6844	6841		3295
6845	6842		3296
6846	6843		3297
6847	6844		3298
6848	6845		3299
6849	6846		3300
6850	6847		3301
6851	6848		3302
6852		-	3303 SB112 ~~Enrolled~~
	6849	+	3303 SB112 Engrossed
6853	6850		Page 119
	6851	+	propound to any professional corporation, domestic or foreign,
	6852	+	organized to practice a profession within the jurisdiction of
	6853	+	the licensing authority, and to any officer or director
	6854	+	thereof, the interrogatories as may be reasonably necessary
	6855	+	and proper to enable the licensing authority to ascertain
6854	6856		whether the professional corporation has complied with all the
6855	6857		provisions of this chapter applicable to the professional
6856	6858		corporation. The interrogatories shall be answered within 30
6857	6859		days after the mailing thereof, or within the additional time
6858	6860		as shall be fixed by the licensing authority, and the answers
6859	6861		thereto shall be full and complete and shall be made in
6860	6862		writing and under oath. If the interrogatories be directed to
6861	6863		an individual they shall be answered by him or her, and if
6862	6864		directed to a professional corporation they shall be answered
6863	6865		by the president, vice president, secretary, or assistant
6864	6866		secretary thereof. The licensing authority shall certify to
6865	6867		the Attorney General, for such action as the Attorney General
6866	6868		may deem appropriate, all interrogatories and answers thereto
6867	6869		which disclosed a violation of any of the provisions of this
6868	6870		chapter.
6869	6871		(b) Interrogatories propounded by a licensing authority
6870	6872		and the answers thereto shall not be open to public inspection
6871	6873		nor shall the licensing authority disclose any facts or
6872	6874		information obtained therefrom except insofar as its official
6873	6875		duty may require the same to be made public or in the event
6874	6876		the interrogatories or the answers thereto are required for
6875	6877		evidence in any criminal proceedings or in any other action by
6876	6878		the State of Alabama this state."
6877	6879		"§10A-4-5.06
6878		-	(a) Each officer and director of a professional
6879		-	corporation, domestic or foreign, who signs any articles
6880		-	certificate, statement, report, application, answer to an
6881		-	interrogatory, or other document filed pursuant to this
6882		-	article with the licensing authority having jurisdiction which
6883	6880		3304
6884	6881		3305
6885	6882		3306
6886	6883		3307
6887	6884		3308
6888	6885		3309
6889	6886		3310
6890	6887		3311
6891	6888		3312
6892	6889		3313
6893	6890		3314
6894	6891		3315
6895	6892		3316
6896	6893		3317
6897	6894		3318
6898	6895		3319
6899	6896		3320
6900	6897		3321
6901	6898		3322
6902	6899		3323
6903	6900		3324
6904	6901		3325
6905	6902		3326
6906	6903		3327
6907	6904		3328
6908	6905		3329
6909	6906		3330
6910		-	3331 SB112 ~~Enrolled~~
	6907	+	3331 SB112 Engrossed
6911	6908		Page 120
	6909	+	"§10A-4-5.06
	6910	+	(a) Each officer and director of a professional
	6911	+	corporation, domestic or foreign, who signs any articles
	6912	+	certificate, statement, report, application, answer to an
	6913	+	interrogatory, or other document filed pursuant to this
6912	6914		article with the licensing authority having jurisdiction which
6913	6915		is known to the officer or director to be false in any
6914	6916		material respect, shall be deemed to be guilty of a Class C
6915	6917		misdemeanor.
6916	6918		(b) If any professional corporation, domestic or
6917	6919		foreign, or individual shall fail to answer interrogatories
6918	6920		directed to the professional corporation or to the individual
6919	6921		under Section 10A-4-5.05, the licensing authority which
6920	6922		propounded the interrogatories may seek an order from the a
6921	6923		circuit court compelling with competent jurisdiction to compel
6922	6924		an answer."
6923	6925		"§10A-4-5.08
6924	6926		(a) The provisions of this chapter shall apply to all
6925	6927		existing corporations organized under the statute formerly
6926	6928		codified as Article 11 of Chapter 4, Title 10 and repealed by
6927	6929		Acts 1983, No. 83-514, effective January 1, 1984; provided,
6928	6930		that any professional corporation, or nonprofit corporation,
6929	6931		in existence on December 31, 1983, in which duly licensed
6930	6932		medical and dental professionals are shareholders
6931	6933		stockholders, or in the case of a nonprofit professional
6932	6934		corporation, render medical and dental services, shall be
6933	6935		deemed to be in compliance with Sections 10A-4-2.01 and
6934	6936		10A-4-2.03, as amended, and other applicable provisions of
6935	6937		this chapter. The repeal of a prior act by this chapter shall
6936		-	not impair, or otherwise affect, the organization or continued
6937		-	existence of an existing domestic professional corporation nor
6938		-	the right of any foreign professional corporation presently
6939		-	qualified to render professional services in Alabama this
6940		-	state to continue to do so without again qualifying to render
6941	6938		3332
6942	6939		3333
6943	6940		3334
6944	6941		3335
6945	6942		3336
6946	6943		3337
6947	6944		3338
6948	6945		3339
6949	6946		3340
6950	6947		3341
6951	6948		3342
6952	6949		3343
6953	6950		3344
6954	6951		3345
6955	6952		3346
6956	6953		3347
6957	6954		3348
6958	6955		3349
6959	6956		3350
6960	6957		3351
6961	6958		3352
6962	6959		3353
6963	6960		3354
6964	6961		3355
6965	6962		3356
6966	6963		3357
6967	6964		3358
6968		-	3359 SB112 ~~Enrolled~~
	6965	+	3359 SB112 Engrossed
6969	6966		Page 121
	6967	+	this chapter. The repeal of a prior act by this chapter shall
	6968	+	not impair, or otherwise affect, the organization or continued
	6969	+	existence of an existing domestic professional corporation nor
	6970	+	the right of any foreign professional corporation presently
	6971	+	qualified to render professional services in Alabama this
6970	6972		state to continue to do so without again qualifying to render
6971	6973		professional services in Alabama this state.
6972	6974		(b) Any unincorporated professional association
6973	6975		organized under Section 10A-30-1.01 Article 1 of Chapter 30
6974	6976		may become subject to the provisions of this chapter by
6975	6977		amending its certificate of association as a certificate of
6976	6978		formation incorporation in compliance with this chapter, and
6977	6979		delivering its certificate of formation incorporation to the
6978	6980		Secretary of State for filing.
6979	6981		(c) Any domestic nonprofit corporation rendering
6980	6982		professional services may become subject to the provisions of
6981	6983		this chapter by amending its certificate of formation
6982	6984		incorporation in compliance with this chapter and delivering
6983	6985		the amendment to its certificate of formation incorporation to
6984	6986		the Secretary of State for filing.
6985	6987		(d) The provisions of this chapter shall not apply to
6986	6988		any unincorporated professional association now in existence
6987	6989		under Section 10A-30-1.01, or to any domestic nonprofit
6988	6990		corporation rendering professional services unless the
6989	6991		association or nonprofit corporation voluntarily becomes
6990	6992		subject to this chapter as herein provided, and nothing
6991	6993		contained in this chapter shall alter or affect any existing
6992	6994		or future right or privilege permitting or not prohibiting
6993	6995		performance of professional services through the use of any
6994		-	other form of business organization."
6995		-	"§10A-5A-1.08
6996		-	(a) Except as otherwise provided in subsections (b) and
6997		-	(c):
6998		-	(1) the limited liability company agreement governs
6999	6996		3360
7000	6997		3361
7001	6998		3362
7002	6999		3363
7003	7000		3364
7004	7001		3365
7005	7002		3366
7006	7003		3367
7007	7004		3368
7008	7005		3369
7009	7006		3370
7010	7007		3371
7011	7008		3372
7012	7009		3373
7013	7010		3374
7014	7011		3375
7015	7012		3376
7016	7013		3377
7017	7014		3378
7018	7015		3379
7019	7016		3380
7020	7017		3381
7021	7018		3382
7022	7019		3383
7023	7020		3384
7024	7021		3385
7025	7022		3386
7026		-	3387 SB112 ~~Enrolled~~
	7023	+	3387 SB112 Engrossed
7027	7024		Page 122
	7025	+	performance of professional services through the use of any
	7026	+	other form of business organization."
	7027	+	"§10A-5A-1.08
	7028	+	(a) Except as otherwise provided in subsections (b) and
	7029	+	(c):
7028	7030		(1) the limited liability company agreement governs
7029	7031		relations among the members as members and between the members
7030	7032		and the limited liability company; and
7031	7033		(2) to the extent the limited liability company
7032	7034		agreement does not otherwise provide for a matter described in
7033	7035		subsection (a)(1), this chapter governs the matter.
7034	7036		(b)(1) To the extent that, at law or in equity, a
7035	7037		member or other person has duties, including fiduciary duties,
7036	7038		to the limited liability company, or to another member or to
7037	7039		another person that is a party to or is otherwise bound by a
7038	7040		limited liability company agreement, the member's or other
7039	7041		person's duties may be expanded or restricted or eliminated by
7040	7042		a written limited liability company agreement, but the implied
7041	7043		contractual covenant of good faith and fair dealing may not be
7042	7044		eliminated.
7043	7045		(2) A written limited liability company agreement may
7044	7046		provide for the limitation or elimination of any and all
7045	7047		liabilities for breach of contract and breach of duties,
7046	7048		including fiduciary duties, of a member or other person to a
7047	7049		limited liability company or to another member or to another
7048	7050		person that is a party to or is otherwise bound by a limited
7049	7051		liability company agreement, but a limited liability company
7050	7052		agreement may not limit or eliminate liability for any act or
7051	7053		omission that constitutes a bad faith violation of the implied
7052		-	contractual covenant of good faith and fair dealing.
7053		-	(3) A member or other person shall not be liable to a
7054		-	limited liability company or to another member or to another
7055		-	person that is a party to or is otherwise bound by a limited
7056		-	liability company agreement for breach of fiduciary duty for
7057	7054		3388
7058	7055		3389
7059	7056		3390
7060	7057		3391
7061	7058		3392
7062	7059		3393
7063	7060		3394
7064	7061		3395
7065	7062		3396
7066	7063		3397
7067	7064		3398
7068	7065		3399
7069	7066		3400
7070	7067		3401
7071	7068		3402
7072	7069		3403
7073	7070		3404
7074	7071		3405
7075	7072		3406
7076	7073		3407
7077	7074		3408
7078	7075		3409
7079	7076		3410
7080	7077		3411
7081	7078		3412
7082	7079		3413
7083	7080		3414
7084		-	3415 SB112 ~~Enrolled~~
	7081	+	3415 SB112 Engrossed
7085	7082		Page 123
	7083	+	omission that constitutes a bad faith violation of the implied
	7084	+	contractual covenant of good faith and fair dealing.
	7085	+	(3) A member or other person shall not be liable to a
	7086	+	limited liability company or to another member or to another
	7087	+	person that is a party to or is otherwise bound by a limited
7086	7088		liability company agreement for breach of fiduciary duty for
7087	7089		the member's or other person's good faith reliance on the
7088	7090		limited liability company agreement.
7089	7091		(4) A limited liability company agreement may provide
7090	7092		that any or all of the following :
7091	7093		(A) a member, dissociated member, or transferee who
7092	7094		fails to perform in accordance with, or to comply with the
7093	7095		terms and conditions of, the limited liability company
7094	7096		agreement shall be subject to specified penalties or specified
7095	7097		consequences; and
7096	7098		(B) at the time or upon the happening of events
7097	7099		specified in the limited liability company agreement, a
7098	7100		member, dissociated member, or transferee may be subject to
7099	7101		specified penalties or specified consequences .; and
7100	7102		(C) subject to Section 10A-5A-1.08(c), an act or
7101	7103		transaction under the limited liability company agreement by
7102	7104		the limited liability company, a member, dissociated member,
7103	7105		or transferee is void or voidable.
7104	7106		(5) A penalty or consequence that may be specified
7105	7107		under paragraph (4) of this subsection may include and take
7106	7108		the form of reducing or eliminating the defaulting member's or
7107	7109		transferee's proportionate interest in a limited liability
7108	7110		company, subordinating the member's or transferee's
7109	7111		transferable interest to that of non-defaulting members or
7110		-	transferees, forcing a sale of that transferable interest,
7111		-	forfeiting the defaulting member's or transferee's
7112		-	transferable interest, the lending by other members or
7113		-	transferees of the amount necessary to meet the defaulting
7114		-	member's or transferee's commitment, a fixing of the value of
7115	7112		3416
7116	7113		3417
7117	7114		3418
7118	7115		3419
7119	7116		3420
7120	7117		3421
7121	7118		3422
7122	7119		3423
7123	7120		3424
7124	7121		3425
7125	7122		3426
7126	7123		3427
7127	7124		3428
7128	7125		3429
7129	7126		3430
7130	7127		3431
7131	7128		3432
7132	7129		3433
7133	7130		3434
7134	7131		3435
7135	7132		3436
7136	7133		3437
7137	7134		3438
7138	7135		3439
7139	7136		3440
7140	7137		3441
7141	7138		3442
7142		-	3443 SB112 ~~Enrolled~~
	7139	+	3443 SB112 Engrossed
7143	7140		Page 124
	7141	+	transferable interest to that of non-defaulting members or
	7142	+	transferees, forcing a sale of that transferable interest,
	7143	+	forfeiting the defaulting member's or transferee's
	7144	+	transferable interest, the lending by other members or
	7145	+	transferees of the amount necessary to meet the defaulting
7144	7146		member's or transferee's commitment, a fixing of the value of
7145	7147		the defaulting member's or transferee's transferable interest
7146	7148		by appraisal or by formula and redemption or sale of the
7147	7149		transferable interest at that value, or other penalty or
7148	7150		consequence.
7149	7151		(6) A written limited liability company agreement may
7150	7152		supersede, in whole or in part, the provisions of Division C
7151	7153		of Article 3 of Chapter 1.
7152	7154		(c) A limited liability company agreement may not:
7153	7155		(1) vary the nature of the limited liability company as
7154	7156		a separate legal entity under Section 10A-5A-1.04(a);
7155	7157		(2) vary the law applicable under Section 10A-5A-1.05;
7156	7158		(3) restrict the rights under this chapter of a person
7157	7159		other than a member, dissociated member, or transferee;
7158	7160		(4) vary the power of the court under Section
7159	7161		10A-5A-2.05;
7160	7162		(5) eliminate the implied contractual covenant of good
7161	7163		faith and fair dealing as provided under Section
7162	7164		10A-5A-1.08(b)(1);
7163	7165		(6) eliminate or limit the liability of a member or
7164	7166		other person for any act or omission that constitutes a bad
7165	7167		faith violation of the implied contractual covenant of good
7166	7168		faith and fair dealing as provided under Section
7167	7169		10A-5A-1.08(b)(2);
7168		-	(7) waive the requirements of Section 10A-5A-4.04(c);
7169		-	(8) vary the law applicable under Section
7170		-	10A-5A-4.06(c);
7171		-	(9) reduce the limitations period specified under
7172		-	Section 10A-5A-4.06(d) for an action commenced under other
7173	7170		3444
7174	7171		3445
7175	7172		3446
7176	7173		3447
7177	7174		3448
7178	7175		3449
7179	7176		3450
7180	7177		3451
7181	7178		3452
7182	7179		3453
7183	7180		3454
7184	7181		3455
7185	7182		3456
7186	7183		3457
7187	7184		3458
7188	7185		3459
7189	7186		3460
7190	7187		3461
7191	7188		3462
7192	7189		3463
7193	7190		3464
7194	7191		3465
7195	7192		3466
7196	7193		3467
7197	7194		3468
7198	7195		3469
7199	7196		3470
7200		-	3471 SB112 ~~Enrolled~~
	7197	+	3471 SB112 Engrossed
7201	7198		Page 125
	7199	+	10A-5A-1.08(b)(2);
	7200	+	(7) waive the requirements of Section 10A-5A-4.04(c);
	7201	+	(8) vary the law applicable under Section
	7202	+	10A-5A-4.06(c);
	7203	+	(9) reduce the limitations period specified under
7202	7204		Section 10A-5A-4.06(d) for an action commenced under other
7203	7205		applicable law;
7204	7206		(10) waive the prohibition on issuance of a certificate
7205	7207		of a transferable interest in bearer form under Section
7206	7208		10A-5A-5.02(c);
7207	7209		(11) vary the power of a court to decree dissolution in
7208	7210		the circumstances specified in Section 10A-5A-7.01(d) or in
7209	7211		Section 10A-5A-11.09(e);
7210	7212		(12) vary the requirement to wind up a limited
7211	7213		liability company's activities and affairs as specified in
7212	7214		Section 10A-5A-7.02(a);
7213	7215		(13) vary the provisions of Section 10A-5A-8.01;
7214	7216		(14) vary the right of a member under Section
7215	7217		10A-5A-10.09; or
7216	7218		(15) waive the requirements of Section
7217	7219		10A-5A-11.02(b).; or
7218	7220		(16) vary the provisions of Section 10A-5A-1.11(c),
7219	7221		(d), or (e)."
7220	7222		"§10A-5A-2.01
7221	7223		(a) In order to form a limited liability company, one
7222	7224		or more organizers must execute a certificate of formation and
7223	7225		deliver it for filing to the filing officer provided for in
7224	7226		subsection (e). Section 10A-1-3.05 shall not apply to this
7225	7227		chapter. Instead, the certificate of formation shall set
7226		-	forth:
7227		-	(1) the name of the limited liability company, which
7228		-	must comply with Article 5 of Chapter 1;
7229		-	(2) the street address in this state, including the
7230		-	county, of the registered office required by Article 5 of
7231	7228		3472
7232	7229		3473
7233	7230		3474
7234	7231		3475
7235	7232		3476
7236	7233		3477
7237	7234		3478
7238	7235		3479
7239	7236		3480
7240	7237		3481
7241	7238		3482
7242	7239		3483
7243	7240		3484
7244	7241		3485
7245	7242		3486
7246	7243		3487
7247	7244		3488
7248	7245		3489
7249	7246		3490
7250	7247		3491
7251	7248		3492
7252	7249		3493
7253	7250		3494
7254	7251		3495
7255	7252		3496
7256	7253		3497
7257	7254		3498
7258		-	3499 SB112 ~~Enrolled~~
	7255	+	3499 SB112 Engrossed
7259	7256		Page 126
	7257	+	chapter. Instead, the certificate of formation shall set
	7258	+	forth:
	7259	+	(1) the name of the limited liability company, which
	7260	+	must comply with Article 5 of Chapter 1;
	7261	+	(2) the street address in this state, including the
7260	7262		county, of the registered office required by Article 5 of
7261	7263		Chapter 1;
7262	7264		(3) the name of the registered agent at the registered
7263	7265		office required by Article 5 of Chapter 1;
7264	7266		(4) a statement that there is at least one member of
7265	7267		the limited liability company;
7266	7268		(5) if applicable, a statement as provided in Section
7267	7269		10A-5A-11.02(b)(3); and
7268	7270		(6) any other matters the members determine to include
7269	7271		therein.
7270	7272		(b) A limited liability company is formed when its
7271	7273		certificate of formation becomes effective in accordance with
7272	7274		Article 4 of Chapter 1.
7273	7275		(c) The fact that a certificate of formation has been
7274	7276		filed and is effective in accordance with Article 4 of Chapter
7275	7277		1 is notice of the matters required to be included by
7276	7278		subsections (a)(1), (a)(2), (a)(3), and (a)(4) and if
7277	7279		applicable, (a)(5), but is not notice of any other fact.
7278	7280		(d) A limited liability company agreement shall be
7279	7281		entered into either before, after, or at the time of the
7280	7282		filing of the certificate of formation and, whether entered
7281	7283		into before, after, or at the time of the filing, may be made
7282	7284		effective as of the filing of the certificate of formation or
7283	7285		at any other time or date provided in the limited liability
7284		-	company agreement.
7285		-	(e) A certificate of formation shall be delivered for
7286		-	filing to the Secretary of State."
7287		-	"§10A-5A-2.02
7288		-	Division B of Article 3 of Chapter 1 shall not apply to
7289	7286		3500
7290	7287		3501
7291	7288		3502
7292	7289		3503
7293	7290		3504
7294	7291		3505
7295	7292		3506
7296	7293		3507
7297	7294		3508
7298	7295		3509
7299	7296		3510
7300	7297		3511
7301	7298		3512
7302	7299		3513
7303	7300		3514
7304	7301		3515
7305	7302		3516
7306	7303		3517
7307	7304		3518
7308	7305		3519
7309	7306		3520
7310	7307		3521
7311	7308		3522
7312	7309		3523
7313	7310		3524
7314	7311		3525
7315	7312		3526
7316		-	3527 SB112 ~~Enrolled~~
	7313	+	3527 SB112 Engrossed
7317	7314		Page 127
	7315	+	at any other time or date provided in the limited liability
	7316	+	company agreement.
	7317	+	(e) A certificate of formation shall be delivered for
	7318	+	filing to the Secretary of State."
	7319	+	"§10A-5A-2.02
7318	7320		Division B of Article 3 of Chapter 1 shall not apply to
7319	7321		this chapter. Instead:
7320	7322		(a) A certificate of formation may be amended at any
7321	7323		time.
7322	7324		(b) A certificate of formation may be restated with or
7323	7325		without amendment at any time.
7324	7326		(c) To amend its certificate of formation, a limited
7325	7327		liability company must deliver a certificate of amendment for
7326	7328		filing to the Secretary of State which certificate of
7327	7329		amendment shall state:
7328	7330		(1) the name of the limited liability company;
7329	7331		(2) the unique identifying number or other designation
7330	7332		as assigned by the Secretary of State; and
7331	7333		(3) the changes the amendment makes to the certificate
7332	7334		of formation as most recently amended or restated.
7333	7335		(d) To restate its certificate of formation, a limited
7334	7336		liability company must deliver a restated certificate of
7335	7337		formation for filing to the Secretary of State. A restated
7336	7338		certificate of formation must:
7337	7339		(1) be designated as such in the heading;
7338	7340		(2) state the limited liability company's name;
7339	7341		(3) state the unique identifying number or other
7340	7342		designation as assigned by the Secretary of State; and
7341	7343		(4) set forth any amendment or change effected in
7342		-	connection with the restatement of the certificate of
7343		-	formation.
7344		-	Any such restatement that effects an amendment shall be
7345		-	subject to any other provision of this chapter, not
7346		-	inconsistent with this section, which would apply if a
7347	7344		3528
7348	7345		3529
7349	7346		3530
7350	7347		3531
7351	7348		3532
7352	7349		3533
7353	7350		3534
7354	7351		3535
7355	7352		3536
7356	7353		3537
7357	7354		3538
7358	7355		3539
7359	7356		3540
7360	7357		3541
7361	7358		3542
7362	7359		3543
7363	7360		3544
7364	7361		3545
7365	7362		3546
7366	7363		3547
7367	7364		3548
7368	7365		3549
7369	7366		3550
7370	7367		3551
7371	7368		3552
7372	7369		3553
7373	7370		3554
7374		-	3555 SB112 ~~Enrolled~~
	7371	+	3555 SB112 Engrossed
7375	7372		Page 128
	7373	+	(4) set forth any amendment or change effected in
	7374	+	connection with the restatement of the certificate of
	7375	+	formation.
	7376	+	Any such restatement that effects an amendment shall be
	7377	+	subject to any other provision of this chapter, not
7376	7378		inconsistent with this section, which would apply if a
7377	7379		separate certificate of amendment were filed to effect the
7378	7380		amendment or change.
7379	7381		(e) The original certificate of formation, as
7380	7382		theretofore amended, shall be superseded by the restated
7381	7383		certificate of formation and thenceforth, the restated
7382	7384		certificate of formation, including any further amendment or
7383	7385		changes made thereby, shall be the certificate of formation of
7384	7386		the limited liability company, but the original effective date
7385	7387		of formation shall remain unchanged.
7386	7388		(f) An amended or restated certificate of formation may
7387	7389		contain only provisions that would be permitted at the time of
7388	7390		the amendment if the amended or restated certificate of
7389	7391		formation were a newly filed original certificate of
7390	7392		formation.
7391	7393		(g) A restated certificate of formation may omit any
7392	7394		information that is not required to be in the certificate of
7393	7395		formation under this chapter, including the name and address
7394	7396		of the initial registered agent or registered office, if a
7395	7397		statement of change is on file with the Secretary of State.
7396	7398		Any omission other than the initial registered agent, shall be
7397	7399		an amendment to the certificate of formation, which amendment
7398	7400		must be approved in accordance with the limited liability
7399	7401		company agreement, and if the limited liability company
7400		-	agreement does not state the approval required for an
7401		-	amendment of the certificate of formation, then the amendment
7402		-	must be approved by all of the members. "
7403		-	"§10A-5A-3.02
7404		-	No person shall have the power to bind the limited
7405	7402		3556
7406	7403		3557
7407	7404		3558
7408	7405		3559
7409	7406		3560
7410	7407		3561
7411	7408		3562
7412	7409		3563
7413	7410		3564
7414	7411		3565
7415	7412		3566
7416	7413		3567
7417	7414		3568
7418	7415		3569
7419	7416		3570
7420	7417		3571
7421	7418		3572
7422	7419		3573
7423	7420		3574
7424	7421		3575
7425	7422		3576
7426	7423		3577
7427	7424		3578
7428	7425		3579
7429	7426		3580
7430	7427		3581
7431	7428		3582
7432		-	3583 SB112 ~~Enrolled~~
	7429	+	3583 SB112 Engrossed
7433	7430		Page 129
	7431	+	company agreement, and if the limited liability company
	7432	+	agreement does not state the approval required for an
	7433	+	amendment of the certificate of formation, then the amendment
	7434	+	must be approved by all of the members. "
	7435	+	"§10A-5A-3.02
7434	7436		No person shall have the power to bind the limited
7435	7437		liability company, or a series thereof, except:
7436	7438		(a) to the extent the person is authorized to act as
7437	7439		the agent of the limited liability company or a series thereof
7438	7440		under or pursuant to the limited liability company agreement;
7439	7441		(b) to the extent the person is authorized to act as
7440	7442		the agent of the limited liability company or a series thereof
7441	7443		pursuant to in accordance with Sections 10A-5A-4.07,
7442	7444		10A-5A-7.03, or 10A-5A-11.11; or
7443	7445		(c) to the extent provided by law other than this
7444	7446		chapter."
7445	7447		"§10A-5A-8.01
7446	7448		(a) A limited liability company shall have the power to
7447	7449		render professional services if it complies with the rules of
7448	7450		the licensing authority for such profession.
7449	7451		(b) Every individual who renders professional services
7450	7452		as a member or as an employee of a limited liability company
7451	7453		shall be liable for any negligent or wrongful act or omission
7452	7454		in which the individual personally participates to the same
7453	7455		extent the individual would be liable if the individual
7454	7456		rendered the services as a sole practitioner.
7455	7457		(c) Except as otherwise provided in subsection (b), the
7456	7458		personal liability of a member of any limited liability
7457	7459		company engaged in providing professional services shall be
7458		-	governed by Section 10A-5A-3.01.
7459		-	(d) The Except as otherwise provided in subsection (b),
7460		-	the personal liability of a member, manager, or employee of a
7461		-	foreign limited liability company engaged in providing
7462		-	professional services shall be determined under the law of the
7463	7460		3584
7464	7461		3585
7465	7462		3586
7466	7463		3587
7467	7464		3588
7468	7465		3589
7469	7466		3590
7470	7467		3591
7471	7468		3592
7472	7469		3593
7473	7470		3594
7474	7471		3595
7475	7472		3596
7476	7473		3597
7477	7474		3598
7478	7475		3599
7479	7476		3600
7480	7477		3601
7481	7478		3602
7482	7479		3603
7483	7480		3604
7484	7481		3605
7485	7482		3606
7486	7483		3607
7487	7484		3608
7488	7485		3609
7489	7486		3610
7490		-	3611 SB112 ~~Enrolled~~
	7487	+	3611 SB112 Engrossed
7491	7488		Page 130
	7489	+	company engaged in providing professional services shall be
	7490	+	governed by Section 10A-5A-3.01.
	7491	+	(d) The Except as otherwise provided in subsection (b),
	7492	+	the personal liability of a member, manager, or employee of a
	7493	+	foreign limited liability company engaged in providing
7492	7494		professional services shall be determined under the law of the
7493	7495		jurisdiction in which the foreign limited liability company is
7494	7496		organized.
7495	7497		(e) Nothing in this article shall restrict or limit in
7496	7498		any manner the authority or duty of a licensing authority with
7497	7499		respect to individuals rendering a professional service within
7498	7500		the jurisdiction of the licensing authority. Nothing in this
7499	7501		article shall restrict or limit any law, rule, or regulation
7500	7502		pertaining to standards of professional conduct.
7501	7503		(f) Nothing in this article shall limit the authority
7502	7504		of a licensing authority to impose requirements in addition to
7503	7505		those stated in this chapter on any limited liability company
7504	7506		or foreign limited liability company rendering professional
7505	7507		services within the jurisdiction of the licensing authority.
7506	7508		(g) A member's transferrable interest in a limited
7507	7509		liability company organized to render professional services
7508	7510		may be voluntarily transferred only to a qualified person."
7509	7511		"§10A-8A-1.08
7510	7512		(a) Except as otherwise provided in subsections (b) and
7511	7513		(c):
7512	7514		(1) the partnership agreement governs relations among
7513	7515		the partners as partners and between the partners and the
7514	7516		partnership; and
7515	7517		(2) to the extent the partnership agreement does not
7516		-	otherwise provide for a matter described in subsection (a)(1),
7517		-	this chapter governs the matter.
7518		-	(b)(1) To the extent that, at law or in equity, a
7519		-	partner or other person has duties, including fiduciary
7520		-	duties, to a partnership or to another partner or to another
7521	7518		3612
7522	7519		3613
7523	7520		3614
7524	7521		3615
7525	7522		3616
7526	7523		3617
7527	7524		3618
7528	7525		3619
7529	7526		3620
7530	7527		3621
7531	7528		3622
7532	7529		3623
7533	7530		3624
7534	7531		3625
7535	7532		3626
7536	7533		3627
7537	7534		3628
7538	7535		3629
7539	7536		3630
7540	7537		3631
7541	7538		3632
7542	7539		3633
7543	7540		3634
7544	7541		3635
7545	7542		3636
7546	7543		3637
7547	7544		3638
7548		-	3639 SB112 ~~Enrolled~~
	7545	+	3639 SB112 Engrossed
7549	7546		Page 131
	7547	+	(2) to the extent the partnership agreement does not
	7548	+	otherwise provide for a matter described in subsection (a)(1),
	7549	+	this chapter governs the matter.
	7550	+	(b)(1) To the extent that, at law or in equity, a
	7551	+	partner or other person has duties, including fiduciary
7550	7552		duties, to a partnership or to another partner or to another
7551	7553		person that is a party to or is otherwise bound by a
7552	7554		partnership agreement, the partner's or other person's duties
7553	7555		may be expanded or restricted or eliminated by provisions in a
7554	7556		written partnership agreement, but the implied contractual
7555	7557		covenant of good faith and fair dealing may not be eliminated.
7556	7558		(2) A written partnership agreement may provide for the
7557	7559		limitation or elimination of any and all liabilities for
7558	7560		breach of contract and breach of duties, including fiduciary
7559	7561		duties, of a partner or other person to a partnership or to
7560	7562		another partner or to another person that is a party to or is
7561	7563		otherwise bound by a partnership agreement, but a partnership
7562	7564		agreement may not limit or eliminate liability for any act or
7563	7565		omission that constitutes a bad faith violation of the implied
7564	7566		contractual covenant of good faith and fair dealing.
7565	7567		(3) A partner or other person shall not be liable to a
7566	7568		partnership or to another partner or to another person that is
7567	7569		a party to or is otherwise bound by a partnership agreement
7568	7570		for breach of fiduciary duty for the partner's or other
7569	7571		person's good faith reliance on the partnership agreement.
7570	7572		(4) A partnership agreement may provide that:
7571	7573		(A) a partner, dissociated partner, or transferee who
7572	7574		fails to perform in accordance with, or to comply with the
7573	7575		terms and conditions of, the partnership agreement shall be
7574		-	subject to specified penalties or specified consequences; and
7575		-	(B) at the time or upon the happening of events
7576		-	specified in the partnership agreement, a partner , dissociated
7577		-	partner, or transferee may be subject to specified penalties
7578		-	or specified consequences .; and
7579	7576		3640
7580	7577		3641
7581	7578		3642
7582	7579		3643
7583	7580		3644
7584	7581		3645
7585	7582		3646
7586	7583		3647
7587	7584		3648
7588	7585		3649
7589	7586		3650
7590	7587		3651
7591	7588		3652
7592	7589		3653
7593	7590		3654
7594	7591		3655
7595	7592		3656
7596	7593		3657
7597	7594		3658
7598	7595		3659
7599	7596		3660
7600	7597		3661
7601	7598		3662
7602	7599		3663
7603	7600		3664
7604	7601		3665
7605	7602		3666
7606		-	3667 SB112 ~~Enrolled~~
	7603	+	3667 SB112 Engrossed
7607	7604		Page 132
	7605	+	terms and conditions of, the partnership agreement shall be
	7606	+	subject to specified penalties or specified consequences; and
	7607	+	(B) at the time or upon the happening of events
	7608	+	specified in the partnership agreement, a partner , dissociated
	7609	+	partner, or transferee may be subject to specified penalties
7608	7610		or specified consequences .; and
7609	7611		(C) subject to Section 10A-8A-1.08(c), an act or
7610	7612		transaction under the partnership agreement by the
7611	7613		partnership, a partner, a dissociated partner, or a transferee
7612	7614		is void or voidable.
7613	7615		(5) A penalty or consequence that may be specified
7614	7616		under paragraph (4) of this subsection may include and take
7615	7617		the form of reducing or eliminating the defaulting partner's
7616	7618		or transferee's proportionate transferable interest in a
7617	7619		partnership, subordinating the partner's or transferee's
7618	7620		transferable interest to that of non-defaulting partners or
7619	7621		transferees, forcing a sale of that transferable interest,
7620	7622		forfeiting the defaulting partner's or transferee's
7621	7623		transferable interest, the lending by other partners or
7622	7624		transferees of the amount necessary to meet the defaulting
7623	7625		partner's or transferee's commitment, a fixing of the value of
7624	7626		the defaulting partner's or transferee's transferable interest
7625	7627		by appraisal or by formula and redemption or sale of the
7626	7628		transferable interest at that value, or other penalty or
7627	7629		consequence.
7628	7630		(6) A written partnership agreement may supersede, in
7629	7631		whole or in part, the provisions of Division C and Division D
7630	7632		of Article 3 of Chapter 1.
7631	7633		(c) A partnership agreement may not:
7632		-	(1) vary the nature of the partnership as a separate
7633		-	legal entity under Section 10A-8A-1.04(a);
7634		-	(2) vary a partnership's power under Section
7635		-	10A-8A-1.05 to sue, be sued, and defend in its own name;
7636		-	(3) vary the law applicable to a limited liability
7637	7634		3668
7638	7635		3669
7639	7636		3670
7640	7637		3671
7641	7638		3672
7642	7639		3673
7643	7640		3674
7644	7641		3675
7645	7642		3676
7646	7643		3677
7647	7644		3678
7648	7645		3679
7649	7646		3680
7650	7647		3681
7651	7648		3682
7652	7649		3683
7653	7650		3684
7654	7651		3685
7655	7652		3686
7656	7653		3687
7657	7654		3688
7658	7655		3689
7659	7656		3690
7660	7657		3691
7661	7658		3692
7662	7659		3693
7663	7660		3694
7664		-	3695 SB112 ~~Enrolled~~
	7661	+	3695 SB112 Engrossed
7665	7662		Page 133
	7663	+	(c) A partnership agreement may not:
	7664	+	(1) vary the nature of the partnership as a separate
	7665	+	legal entity under Section 10A-8A-1.04(a);
	7666	+	(2) vary a partnership's power under Section
	7667	+	10A-8A-1.05 to sue, be sued, and defend in its own name;
7666	7668		(3) vary the law applicable to a limited liability
7667	7669		partnership under Section 10A-8A-1.06;
7668	7670		(4) restrict rights under this chapter of a person
7669	7671		other than a partner, a dissociated partner, or a transferee;
7670	7672		(5) vary the requirements of Section 10A-8A-2.03;
7671	7673		(6) unreasonably restrict the right of access to books
7672	7674		and records under Section 10A-8A-4.10, but the partnership
7673	7675		agreement may impose reasonable restrictions on the
7674	7676		availability and use of information obtained under those
7675	7677		sections and may define appropriate remedies, including
7676	7678		liquidated damages, for a breach of any reasonable restriction
7677	7679		on use;
7678	7680		(7) eliminate the implied contractual covenant of good
7679	7681		faith and fair dealing as provided under Section
7680	7682		10A-8A-1.08(b)(1);
7681	7683		(8) eliminate or limit the liability of a partner or
7682	7684		other person for any act or omission that constitutes a bad
7683	7685		faith violation of the implied contractual covenant of good
7684	7686		faith and fair dealing as provided under Section
7685	7687		10A-8A-1.08(b)(2);
7686	7688		(9) waive the requirements of Section 10A-8A-4.04(e);
7687	7689		(10) reduce the limitations period specified under
7688	7690		Section 10A-8A-4.09(e) for an action commenced under other
7689	7691		applicable law;
7690		-	(11) waive the prohibition on issuance of a certificate
7691		-	of a transferable interest in bearer form under Section
7692		-	10A-8A-5.02(c);
7693		-	(12) vary the power of a person to dissociate as a
7694		-	partner under Section 10A-8A-6.02(a) except that the
7695	7692		3696
7696	7693		3697
7697	7694		3698
7698	7695		3699
7699	7696		3700
7700	7697		3701
7701	7698		3702
7702	7699		3703
7703	7700		3704
7704	7701		3705
7705	7702		3706
7706	7703		3707
7707	7704		3708
7708	7705		3709
7709	7706		3710
7710	7707		3711
7711	7708		3712
7712	7709		3713
7713	7710		3714
7714	7711		3715
7715	7712		3716
7716	7713		3717
7717	7714		3718
7718	7715		3719
7719	7716		3720
7720	7717		3721
7721	7718		3722
7722		-	3723 SB112 ~~Enrolled~~
	7719	+	3723 SB112 Engrossed
7723	7720		Page 134
	7721	+	applicable law;
	7722	+	(11) waive the prohibition on issuance of a certificate
	7723	+	of a transferable interest in bearer form under Section
	7724	+	10A-8A-5.02(c);
	7725	+	(12) vary the power of a person to dissociate as a
7724	7726		partner under Section 10A-8A-6.02(a) except that the
7725	7727		partnership agreement may require that the notice under
7726	7728		Section 10A-8A-6.01(1) be in a writing or in a specific form
7727	7729		thereof;
7728	7730		(13) vary the right of a court to expel a partner in
7729	7731		the events specified in Section 10A-8A-6.01(5);
7730	7732		(14) vary the power of a court to decree dissolution in
7731	7733		the circumstances specified in Section 10A-8A-8.01(4) or (5);
7732	7734		(15) vary the requirement to wind up the partnership's
7733	7735		business or not for profit activity as specified in Section
7734	7736		10A-8A-8.01(4), (5), (6), or (7);
7735	7737		(16) vary the right of a partner to approve or consent
7736	7738		to the cancellation of a statement of limited liability
7737	7739		partnership as specified in Section 10A-8A-10.01(m); or
7738	7740		(17) vary the rights of a partner under Section
7739	7741		10A-8A-9.10.; or
7740	7742		(18) vary the provisions of Section 10A-8A-1.14(c),
7741	7743		(d), or (e)."
7742	7744		"§10A-8A-10.02
7743	7745		(a) A limited liability partnership shall have the
7744	7746		power to render professional services if it complies with the
7745	7747		rules of the licensing authority for such profession.
7746	7748		(b) Every individual who renders professional services
7747	7749		as a partner or as an employee of a limited liability
7748		-	partnership shall be liable for any negligent or wrongful act
7749		-	or omission in which the individual personally participates to
7750		-	the same extent the individual would be liable if the
7751		-	individual rendered the services as a sole practitioner.
7752		-	(c) Except as otherwise provided in subsection (b), the
7753	7750		3724
7754	7751		3725
7755	7752		3726
7756	7753		3727
7757	7754		3728
7758	7755		3729
7759	7756		3730
7760	7757		3731
7761	7758		3732
7762	7759		3733
7763	7760		3734
7764	7761		3735
7765	7762		3736
7766	7763		3737
7767	7764		3738
7768	7765		3739
7769	7766		3740
7770	7767		3741
7771	7768		3742
7772	7769		3743
7773	7770		3744
7774	7771		3745
7775	7772		3746
7776	7773		3747
7777	7774		3748
7778	7775		3749
7779	7776		3750
7780		-	3751 SB112 ~~Enrolled~~
	7777	+	3751 SB112 Engrossed
7781	7778		Page 135
	7779	+	as a partner or as an employee of a limited liability
	7780	+	partnership shall be liable for any negligent or wrongful act
	7781	+	or omission in which the individual personally participates to
	7782	+	the same extent the individual would be liable if the
	7783	+	individual rendered the services as a sole practitioner.
7782	7784		(c) Except as otherwise provided in subsection (b), the
7783	7785		personal liability of a partner of any limited liability
7784	7786		partnership engaged in providing professional services shall
7785	7787		be governed by Section 10A-8A-3.06.
7786	7788		(d) The Except as otherwise provided in subsection (b),
7787	7789		the personal liability of a partner or employee of a foreign
7788	7790		limited liability partnership engaged in providing
7789	7791		professional services shall be determined under the law of the
7790	7792		jurisdiction which governs the foreign limited liability
7791	7793		partnership.
7792	7794		(e) Nothing in this article shall restrict or limit in
7793	7795		any manner the authority or duty of a licensing authority with
7794	7796		respect to individuals rendering a professional service within
7795	7797		the jurisdiction of the licensing authority. Nothing in this
7796	7798		article shall restrict or limit any law, rule, or regulation
7797	7799		pertaining to standards of professional conduct.
7798	7800		(f) Nothing in this article shall limit the authority
7799	7801		of a licensing authority to impose requirements in addition to
7800	7802		those stated in this chapter on any limited liability
7801	7803		partnership or foreign limited liability partnership rendering
7802	7804		professional services within the jurisdiction of the licensing
7803	7805		authority.
7804	7806		(g) A partner's transferable interest in a limited
7805	7807		liability partnership organized to render professional
7806		-	services may be voluntarily transferred only to a qualified
7807		-	person."
7808		-	"§10A-9A-1.08
7809		-	(a) Except as otherwise provided in subsections (b) and
7810		-	(c):
7811	7808		3752
7812	7809		3753
7813	7810		3754
7814	7811		3755
7815	7812		3756
7816	7813		3757
7817	7814		3758
7818	7815		3759
7819	7816		3760
7820	7817		3761
7821	7818		3762
7822	7819		3763
7823	7820		3764
7824	7821		3765
7825	7822		3766
7826	7823		3767
7827	7824		3768
7828	7825		3769
7829	7826		3770
7830	7827		3771
7831	7828		3772
7832	7829		3773
7833	7830		3774
7834	7831		3775
7835	7832		3776
7836	7833		3777
7837	7834		3778
7838		-	3779 SB112 ~~Enrolled~~
	7835	+	3779 SB112 Engrossed
7839	7836		Page 136
	7837	+	liability partnership organized to render professional
	7838	+	services may be voluntarily transferred only to a qualified
	7839	+	person."
	7840	+	"§10A-9A-1.08
	7841	+	(a) Except as otherwise provided in subsections (b) and
7840	7842		(c):
7841	7843		(1) the partnership agreement governs relations among
7842	7844		the partners as partners and between the partners and the
7843	7845		partnership; and
7844	7846		(2) to the extent the partnership agreement does not
7845	7847		otherwise provide for a matter described in subsection (a)(1),
7846	7848		this chapter governs the matter.
7847	7849		(b)(1) To the extent that, at law or in equity, a
7848	7850		partner or other person has duties, including fiduciary
7849	7851		duties, to a limited partnership or to another partner or to
7850	7852		another person that is a party to or is otherwise bound by a
7851	7853		partnership agreement, the partner's or other person's duties
7852	7854		may be expanded or restricted or eliminated by provisions in a
7853	7855		written partnership agreement, but the implied contractual
7854	7856		covenant of good faith and fair dealing may not be eliminated.
7855	7857		(2) A written partnership agreement may provide for the
7856	7858		limitation or elimination of any and all liabilities for
7857	7859		breach of contract and breach of duties, including fiduciary
7858	7860		duties, of a partner or other person to a limited partnership
7859	7861		or to another partner or to another person that is a party to
7860	7862		or is otherwise bound by a partnership agreement, but a
7861	7863		partnership agreement may not limit or eliminate liability for
7862	7864		any act or omission that constitutes a bad faith violation of
7863	7865		the implied contractual covenant of good faith and fair
7864		-	dealing.
7865		-	(3) A partner or other person shall not be liable to a
7866		-	limited partnership or to another partner or to another person
7867		-	that is a party to or is otherwise bound by a partnership
7868		-	agreement for breach of fiduciary duty for the partner's or
7869	7866		3780
7870	7867		3781
7871	7868		3782
7872	7869		3783
7873	7870		3784
7874	7871		3785
7875	7872		3786
7876	7873		3787
7877	7874		3788
7878	7875		3789
7879	7876		3790
7880	7877		3791
7881	7878		3792
7882	7879		3793
7883	7880		3794
7884	7881		3795
7885	7882		3796
7886	7883		3797
7887	7884		3798
7888	7885		3799
7889	7886		3800
7890	7887		3801
7891	7888		3802
7892	7889		3803
7893	7890		3804
7894	7891		3805
7895	7892		3806
7896		-	3807 SB112 ~~Enrolled~~
	7893	+	3807 SB112 Engrossed
7897	7894		Page 137
	7895	+	the implied contractual covenant of good faith and fair
	7896	+	dealing.
	7897	+	(3) A partner or other person shall not be liable to a
	7898	+	limited partnership or to another partner or to another person
	7899	+	that is a party to or is otherwise bound by a partnership
7898	7900		agreement for breach of fiduciary duty for the partner's or
7899	7901		other person's good faith reliance on the partnership
7900	7902		agreement.
7901	7903		(4) A partnership agreement may provide that any of the
7902	7904		following:
7903	7905		(A) a partner, dissociated partner, or transferee who
7904	7906		fails to perform in accordance with, or to comply with the
7905	7907		terms and conditions of, the partnership agreement shall be
7906	7908		subject to specified penalties or specified consequences; and
7907	7909		(B) at the time or upon the happening of events
7908	7910		specified in the partnership agreement, a partner , dissociated
7909	7911		partner, or transferee may be subject to specified penalties
7910	7912		or specified consequences .; and
7911	7913		(C) subject to Section 10A-9A-1.08(c), an act or
7912	7914		transaction under the partnership agreement by the
7913	7915		partnership, a partner, a dissociated partner, or a transferee
7914	7916		is void or voidable.
7915	7917		(5) A penalty or consequence that may be specified
7916	7918		under paragraph (4) of this subsection may include and take
7917	7919		the form of reducing or eliminating the defaulting partner's
7918	7920		or transferee's proportionate interest in a limited
7919	7921		partnership, subordinating the partner's or transferee's
7920	7922		transferable interest to that of non-defaulting partners or
7921	7923		transferees, forcing a sale of that transferable interest,
7922		-	forfeiting the defaulting partner's or transferee's
7923		-	transferable interest, the lending by other partners or
7924		-	transferees of the amount necessary to meet the defaulting
7925		-	partner's or transferee's commitment, a fixing of the value of
7926		-	the defaulting partner's or transferee's transferable interest
7927	7924		3808
7928	7925		3809
7929	7926		3810
7930	7927		3811
7931	7928		3812
7932	7929		3813
7933	7930		3814
7934	7931		3815
7935	7932		3816
7936	7933		3817
7937	7934		3818
7938	7935		3819
7939	7936		3820
7940	7937		3821
7941	7938		3822
7942	7939		3823
7943	7940		3824
7944	7941		3825
7945	7942		3826
7946	7943		3827
7947	7944		3828
7948	7945		3829
7949	7946		3830
7950	7947		3831
7951	7948		3832
7952	7949		3833
7953	7950		3834
7954		-	3835 SB112 ~~Enrolled~~
	7951	+	3835 SB112 Engrossed
7955	7952		Page 138
	7953	+	transferees, forcing a sale of that transferable interest,
	7954	+	forfeiting the defaulting partner's or transferee's
	7955	+	transferable interest, the lending by other partners or
	7956	+	transferees of the amount necessary to meet the defaulting
	7957	+	partner's or transferee's commitment, a fixing of the value of
7956	7958		the defaulting partner's or transferee's transferable interest
7957	7959		by appraisal or by formula and redemption or sale of the
7958	7960		transferable interest at that value, or other penalty or
7959	7961		consequence.
7960	7962		(6) A written partnership agreement may supersede, in
7961	7963		whole or in part, the provisions of Division C and Division D
7962	7964		of Article 3 of Chapter 1.
7963	7965		(c) A partnership agreement may not:
7964	7966		(1) vary the nature of the limited partnership as a
7965	7967		separate legal entity under Section 10A-9A-1.04(a);
7966	7968		(2) vary a limited partnership's power under Section
7967	7969		10A-9A-1.05 to sue, be sued, and defend in its own name;
7968	7970		(3) vary the law applicable to a limited partnership
7969	7971		under Section 10A-9A-1.06;
7970	7972		(4) restrict rights under this chapter of a person
7971	7973		other than a partner, a dissociated partner, or a transferee;
7972	7974		(5) vary the requirements of Section 10A-9A-2.03;
7973	7975		(6) vary the information required under Section
7974	7976		10A-9A-1.11 or unreasonably restrict the right to information
7975	7977		under Sections 10A-9A-3.04 or 10A-9A-4.07, but the partnership
7976	7978		agreement may impose reasonable restrictions on the
7977	7979		availability and use of information obtained under those
7978	7980		sections and may define appropriate remedies, including
7979	7981		liquidated damages, for a breach of any reasonable restriction
7980		-	on use;
7981		-	(7) vary the power of the court under Section
7982		-	10A-9A-2.04;
7983		-	(8) eliminate the implied contractual covenant of good
7984		-	faith and fair dealing as provided under Section
7985	7982		3836
7986	7983		3837
7987	7984		3838
7988	7985		3839
7989	7986		3840
7990	7987		3841
7991	7988		3842
7992	7989		3843
7993	7990		3844
7994	7991		3845
7995	7992		3846
7996	7993		3847
7997	7994		3848
7998	7995		3849
7999	7996		3850
8000	7997		3851
8001	7998		3852
8002	7999		3853
8003	8000		3854
8004	8001		3855
8005	8002		3856
8006	8003		3857
8007	8004		3858
8008	8005		3859
8009	8006		3860
8010	8007		3861
8011	8008		3862
8012		-	3863 SB112 ~~Enrolled~~
	8009	+	3863 SB112 Engrossed
8013	8010		Page 139
	8011	+	liquidated damages, for a breach of any reasonable restriction
	8012	+	on use;
	8013	+	(7) vary the power of the court under Section
	8014	+	10A-9A-2.04;
	8015	+	(8) eliminate the implied contractual covenant of good
8014	8016		faith and fair dealing as provided under Section
8015	8017		10A-9A-1.08(b)(1);
8016	8018		(9) eliminate or limit the liability of a partner or
8017	8019		other person for any act or omission that constitutes a bad
8018	8020		faith violation of the implied contractual covenant of good
8019	8021		faith and fair dealing as provided under Section
8020	8022		10A-9A-1.08(b)(2);
8021	8023		(10) waive the requirements of Section 10A-9A-5.02(e);
8022	8024		(11) reduce the limitations period specified under
8023	8025		Section 10A-9A-5.08(d) for an action commenced under other
8024	8026		applicable law;
8025	8027		(12) waive the prohibition on issuance of a certificate
8026	8028		of a transferable interest in bearer form under Section
8027	8029		10A-9A-7.02(c);
8028	8030		(13) vary the power of a person to dissociate as a
8029	8031		general partner under Section 10A-9A-6.04(a) except that the
8030	8032		partnership agreement may require that the notice under
8031	8033		Section 10A-9A-6.03(1) be in a writing or in a specific form
8032	8034		thereof;
8033	8035		(14) vary the power of a court to decree dissolution in
8034	8036		the circumstances specified in Section 10A-9A-8.01(f);
8035	8037		(15) vary the requirement to wind up the partnership's
8036	8038		activities and affairs as specified in Section 10A-9A-8.02; or
8037	8039		(16) vary the rights of a partner under Section
8038		-	10A-9A-10.10.; or
8039		-	(17) vary the provisions of Section 10A-9A-1.15(c),
8040		-	(d), or (e)"
8041		-	"§10A-9A-2.01
8042		-	(a) In order to form a limited partnership, a person
8043	8040		3864
8044	8041		3865
8045	8042		3866
8046	8043		3867
8047	8044		3868
8048	8045		3869
8049	8046		3870
8050	8047		3871
8051	8048		3872
8052	8049		3873
8053	8050		3874
8054	8051		3875
8055	8052		3876
8056	8053		3877
8057	8054		3878
8058	8055		3879
8059	8056		3880
8060	8057		3881
8061	8058		3882
8062	8059		3883
8063	8060		3884
8064	8061		3885
8065	8062		3886
8066	8063		3887
8067	8064		3888
8068	8065		3889
8069	8066		3890
8070		-	3891 SB112 ~~Enrolled~~
	8067	+	3891 SB112 Engrossed
8071	8068		Page 140
	8069	+	(16) vary the rights of a partner under Section
	8070	+	10A-9A-10.10.; or
	8071	+	(17) vary the provisions of Section 10A-9A-1.15(c),
	8072	+	(d), or (e)"
	8073	+	"§10A-9A-2.01
8072	8074		(a) In order to form a limited partnership, a person
8073	8075		must deliver a certificate of formation for filing to the
8074	8076		Secretary of State. Section 10A-1-3.05 shall not apply to this
8075	8077		chapter. Instead, the certificate of formation shall set
8076	8078		forth:
8077	8079		(1) the name of the limited partnership, which must
8078	8080		comply with Article 5 of Chapter 1;
8079	8081		(2) the street address in this state, including the
8080	8082		county, of the registered office required by Article 5 of
8081	8083		Chapter 1;
8082	8084		(3) the name of the registered agent at the registered
8083	8085		office as required by Article 5 of Chapter 1;
8084	8086		(4) the name and the street and mailing address of each
8085	8087		general partner;
8086	8088		(5) whether the limited partnership is a limited
8087	8089		liability limited partnership;
8088	8090		(6) any additional information required by Article 8 of
8089	8091		Chapter 1 or by Article 10 of this chapter; and
8090	8092		(7) any other matters the partners determine to include
8091	8093		therein which comply with Section 10A-9A-1.08.
8092	8094		(b) A limited partnership is formed when the
8093	8095		certificate of formation becomes effective in accordance with
8094	8096		Article 4 of Chapter 1.
8095	8097		(c) The fact that a certificate of formation has been
8096		-	filed and is effective in accordance with Article 4 of Chapter
8097		-	1 is notice of the matters required to be included by
8098		-	subsections (a)(1), (a)(2), (a)(3), (a)(4), if applicable,
8099		-	(a)(5), and (a)(6), but is not notice of any other fact.
8100		-	(d) A partnership agreement shall be entered into
8101	8098		3892
8102	8099		3893
8103	8100		3894
8104	8101		3895
8105	8102		3896
8106	8103		3897
8107	8104		3898
8108	8105		3899
8109	8106		3900
8110	8107		3901
8111	8108		3902
8112	8109		3903
8113	8110		3904
8114	8111		3905
8115	8112		3906
8116	8113		3907
8117	8114		3908
8118	8115		3909
8119	8116		3910
8120	8117		3911
8121	8118		3912
8122	8119		3913
8123	8120		3914
8124	8121		3915
8125	8122		3916
8126	8123		3917
8127	8124		3918
8128		-	3919 SB112 ~~Enrolled~~
	8125	+	3919 SB112 Engrossed
8129	8126		Page 141
	8127	+	(c) The fact that a certificate of formation has been
	8128	+	filed and is effective in accordance with Article 4 of Chapter
	8129	+	1 is notice of the matters required to be included by
	8130	+	subsections (a)(1), (a)(2), (a)(3), (a)(4), if applicable,
	8131	+	(a)(5), and (a)(6), but is not notice of any other fact.
8130	8132		(d) A partnership agreement shall be entered into
8131	8133		either before, after, or at the time of filing the certificate
8132	8134		of formation and, whether entered into before, after, or at
8133	8135		the time of filing, may be made effective as of the filing of
8134	8136		the certificate of formation or at any other time or date
8135	8137		provided in the partnership agreement."
8136	8138		"§10A-9A-2.02
8137	8139		Division B of Article 3 of Chapter 1 shall not apply to
8138	8140		this chapter. Instead:
8139	8141		(a) A certificate of formation may be amended at any
8140	8142		time.
8141	8143		(b) A certificate of formation may be restated with or
8142	8144		without amendment at any time.
8143	8145		(c) To amend its certificate of formation, a limited
8144	8146		partnership must deliver a certificate of amendment for filing
8145	8147		to the Secretary of State which certificate of amendment shall
8146	8148		state:
8147	8149		(1) the name of the limited partnership;
8148	8150		(2) the unique identifying number or other designation
8149	8151		as assigned by the Secretary of State; and
8150	8152		(3) the changes the amendment makes to the certificate
8151	8153		of formation as most recently amended or restated.
8152	8154		(d) Prior to a statement of dissolution being delivered
8153	8155		to the Secretary of State for filing, a limited partnership
8154		-	shall promptly deliver a certificate of amendment for filing
8155		-	with the Secretary of State to reflect:
8156		-	(1) the admission of a new general partner; or
8157		-	(2) the dissociation of a person as a general partner.
8158		-	(e) Prior to a statement of dissolution being delivered
8159	8156		3920
8160	8157		3921
8161	8158		3922
8162	8159		3923
8163	8160		3924
8164	8161		3925
8165	8162		3926
8166	8163		3927
8167	8164		3928
8168	8165		3929
8169	8166		3930
8170	8167		3931
8171	8168		3932
8172	8169		3933
8173	8170		3934
8174	8171		3935
8175	8172		3936
8176	8173		3937
8177	8174		3938
8178	8175		3939
8179	8176		3940
8180	8177		3941
8181	8178		3942
8182	8179		3943
8183	8180		3944
8184	8181		3945
8185	8182		3946
8186		-	3947 SB112 ~~Enrolled~~
	8183	+	3947 SB112 Engrossed
8187	8184		Page 142
	8185	+	to the Secretary of State for filing, a limited partnership
	8186	+	shall promptly deliver a certificate of amendment for filing
	8187	+	with the Secretary of State to reflect:
	8188	+	(1) the admission of a new general partner; or
	8189	+	(2) the dissociation of a person as a general partner.
8188	8190		(e) Prior to a statement of dissolution being delivered
8189	8191		to the Secretary of State for filing, if a general partner
8190	8192		knows that any information in a filed certificate of formation
8191	8193		was inaccurate when the certificate of formation was filed or
8192	8194		has become inaccurate due to changed circumstances and if such
8193	8195		the information is required to be set forth in a newly filed
8194	8196		certificate of formation under this chapter, the general
8195	8197		partner shall promptly:
8196	8198		(1) cause the certificate of formation to be amended;
8197	8199		or
8198	8200		(2) if appropriate, deliver for filing with the
8199	8201		Secretary of State a certificate of correction in accordance
8200	8202		with Chapter 1.
8201	8203		(f) A certificate of formation may be amended at any
8202	8204		time pursuant to this section for any other proper purpose as
8203	8205		determined by the limited partnership. A certificate of
8204	8206		formation may also be amended in a statement of merger
8205	8207		pursuant to Article 8 of Chapter 1 or Article 10 of this
8206	8208		chapter.
8207	8209		(g) In order to restate its certificate of formation, a
8208	8210		limited partnership must deliver a restated certificate of
8209	8211		formation for filing with the Secretary of State. A restated
8210	8212		certificate of formation must:
8211	8213		(1) be designated as such in the heading;
8212		-	(2) state the name of the limited partnership;
8213		-	(3) state the unique identifying number or other
8214		-	designation as assigned by the Secretary of State;
8215		-	(4) set forth any amendment or change effected in
8216		-	connection with the restatement of the certificate of
8217	8214		3948
8218	8215		3949
8219	8216		3950
8220	8217		3951
8221	8218		3952
8222	8219		3953
8223	8220		3954
8224	8221		3955
8225	8222		3956
8226	8223		3957
8227	8224		3958
8228	8225		3959
8229	8226		3960
8230	8227		3961
8231	8228		3962
8232	8229		3963
8233	8230		3964
8234	8231		3965
8235	8232		3966
8236	8233		3967
8237	8234		3968
8238	8235		3969
8239	8236		3970
8240	8237		3971
8241	8238		3972
8242	8239		3973
8243	8240		3974
8244		-	3975 SB112 ~~Enrolled~~
	8241	+	3975 SB112 Engrossed
8245	8242		Page 143
	8243	+	(1) be designated as such in the heading;
	8244	+	(2) state the name of the limited partnership;
	8245	+	(3) state the unique identifying number or other
	8246	+	designation as assigned by the Secretary of State;
	8247	+	(4) set forth any amendment or change effected in
8246	8248		connection with the restatement of the certificate of
8247	8249		formation. Any such restatement that effects an amendment
8248	8250		shall be subject to any other provision of this chapter not
8249	8251		inconsistent with this section, which would apply if a
8250	8252		separate certificate of amendment were filed to effect the
8251	8253		amendment or change;
8252	8254		(5) set forth the text of the restated certificate of
8253	8255		formation; and
8254	8256		(6) state that the restated certificate of formation
8255	8257		consolidates all amendments into a single document.
8256	8258		(h) The original certificate of formation, as
8257	8259		theretofore amended, shall be superseded by the restated
8258	8260		certificate of formation and thenceforth, the restated
8259	8261		certificate of formation, including any further amendment or
8260	8262		changes made thereby, shall be the certificate of formation of
8261	8263		the limited partnership, but the original effective date of
8262	8264		formation shall remain unchanged.
8263	8265		(i) An amended or restated certificate of formation may
8264	8266		contain only the provisions that would be permitted at the
8265	8267		time of the amendment if the amended or restated certificate
8266	8268		of formation were a newly filed original certificate of
8267	8269		formation.
8268	8270		(j)(1) An amendment to a certificate of formation takes
8269	8271		effect when the filing of the certificate of amendment takes
8270		-	effect as provided by Article 4 of Chapter 1.
8271		-	(2) An amendment to a certificate of formation does not
8272		-	affect:
8273		-	(i) an existing cause of action in favor of or against
8274		-	the limited partnership for which the certificate of amendment
8275	8272		3976
8276	8273		3977
8277	8274		3978
8278	8275		3979
8279	8276		3980
8280	8277		3981
8281	8278		3982
8282	8279		3983
8283	8280		3984
8284	8281		3985
8285	8282		3986
8286	8283		3987
8287	8284		3988
8288	8285		3989
8289	8286		3990
8290	8287		3991
8291	8288		3992
8292	8289		3993
8293	8290		3994
8294	8291		3995
8295	8292		3996
8296	8293		3997
8297	8294		3998
8298	8295		3999
8299	8296		4000
8300	8297		4001
8301	8298		4002
8302		-	4003 SB112 ~~Enrolled~~
	8299	+	4003 SB112 Engrossed
8303	8300		Page 144
	8301	+	effect when the filing of the certificate of amendment takes
	8302	+	effect as provided by Article 4 of Chapter 1.
	8303	+	(2) An amendment to a certificate of formation does not
	8304	+	affect:
	8305	+	(i) an existing cause of action in favor of or against
8304	8306		the limited partnership for which the certificate of amendment
8305	8307		is sought;
8306	8308		(ii) a pending suit to which the limited partnership is
8307	8309		a party; or
8308	8310		(iii) an existing right of a person other than an
8309	8311		existing partner.
8310	8312		(3) If the name of a limited partnership is changed by
8311	8313		amendment, an action brought by or against the limited
8312	8314		partnership in the former name of that limited partnership
8313	8315		does not abate because of the name change.
8314	8316		(k)(1) A restated certificate of formation takes effect
8315	8317		when the filing of the restated certificate of formation takes
8316	8318		effect as provided by Article 4 of Chapter 1.
8317	8319		(2) On the date and time the restated certificate of
8318	8320		formation takes effect, the original certificate of formation
8319	8321		and each prior amendment or restatement of the certificate of
8320	8322		formation is superseded and the restated certificate of
8321	8323		formation is the effective certificate of formation.
8322	8324		(3) Subsections (j)(2) and (3) (j)(3) apply to an
8323	8325		amendment effected by a restated certificate of formation.
8324	8326		(l) A restated certificate of formation may omit any
8325	8327		information that is not required to be in the certificate of
8326	8328		formation under this chapter, including the name and address
8327	8329		of the initial registered agent or registered office, if a
8328		-	statement of change is on file with the Secretary of State.
8329		-	Any omission other than the initial registered agent, shall be
8330		-	an amendment to the certificate of formation, which amendment
8331		-	must be approved in accordance with the partnership agreement,
8332		-	and if the partnership agreement does not state the approval
8333	8330		4004
8334	8331		4005
8335	8332		4006
8336	8333		4007
8337	8334		4008
8338	8335		4009
8339	8336		4010
8340	8337		4011
8341	8338		4012
8342	8339		4013
8343	8340		4014
8344	8341		4015
8345	8342		4016
8346	8343		4017
8347	8344		4018
8348	8345		4019
8349	8346		4020
8350	8347		4021
8351	8348		4022
8352	8349		4023
8353	8350		4024
8354	8351		4025
8355	8352		4026
8356	8353		4027
8357	8354		4028
8358	8355		4029
8359	8356		4030
8360		-	4031 SB112 ~~Enrolled~~
	8357	+	4031 SB112 Engrossed
8361	8358		Page 145
	8359	+	of the initial registered agent or registered office, if a
	8360	+	statement of change is on file with the Secretary of State.
	8361	+	Any omission other than the initial registered agent, shall be
	8362	+	an amendment to the certificate of formation, which amendment
	8363	+	must be approved in accordance with the partnership agreement,
8362	8364		and if the partnership agreement does not state the approval
8363	8365		required for an amendment of the certificate of formation,
8364	8366		then the amendment must be approved by all of the partners. "
8365	8367		Section 2. Sections 10A-5A-1.11, 10A-8A-1.14, and
8366	8368		10A-9A-1.15, are added to the Code of Alabama 1975 to read as
8367	8369		follows:
8368	8370		§10A-5A-1.11
8369	8371		(a) If a limited liability company agreement provides
8370	8372		that an act or transaction is void or voidable when taken,
8371	8373		then that act or transaction may be ratified or waived by:
8372	8374		(1) the members or other persons entitled to ratify or
8373	8375		waive that act or transaction under the limited liability
8374	8376		company agreement;
8375	8377		(2) if the limited liability company agreement does not
8376	8378		specify the approval required for the ratification or waiver,
8377	8379		then those members or other persons entitled to approve the
8378	8380		amendment of the limited liability company agreement; or
8379	8381		(3) if the limited liability company agreement does not
8380	8382		specify the approval required for the amendment of the limited
8381	8383		liability company agreement, then all of the members.
8382	8384		(b) If the void or voidable act or transaction was the
8383	8385		issuance or transfer of any transferable interest, then for
8384	8386		purposes of determining who may ratify or waive any act or
8385	8387		transaction, the transferable interest purportedly issued or
8386		-	transferred shall be deemed not to have been issued or
8387		-	transferred.
8388		-	(c) Any act or transaction ratified, or with respect to
8389		-	which the failure to comply with any requirements of the
8390		-	limited liability company agreement is waived, pursuant to
8391	8388		4032
8392	8389		4033
8393	8390		4034
8394	8391		4035
8395	8392		4036
8396	8393		4037
8397	8394		4038
8398	8395		4039
8399	8396		4040
8400	8397		4041
8401	8398		4042
8402	8399		4043
8403	8400		4044
8404	8401		4045
8405	8402		4046
8406	8403		4047
8407	8404		4048
8408	8405		4049
8409	8406		4050
8410	8407		4051
8411	8408		4052
8412	8409		4053
8413	8410		4054
8414	8411		4055
8415	8412		4056
8416	8413		4057
8417	8414		4058
8418		-	4059 SB112 ~~Enrolled~~
	8415	+	4059 SB112 Engrossed
8419	8416		Page 146
	8417	+	transaction, the transferable interest purportedly issued or
	8418	+	transferred shall be deemed not to have been issued or
	8419	+	transferred.
	8420	+	(c) Any act or transaction ratified, or with respect to
	8421	+	which the failure to comply with any requirements of the
8420	8422		limited liability company agreement is waived, pursuant to
8421	8423		this section shall be deemed validly taken at the time of the
8422	8424		act or transaction.
8423	8425		(d) Upon application of the limited liability company,
8424	8426		any member, or any person claiming to be substantially and
8425	8427		adversely affected by a ratification or waiver pursuant to
8426	8428		this section, the designated court, and if none, the circuit
8427	8429		court for the county in which the limited liability company's
8428	8430		principal office is located in this state, and if none in this
8429	8431		state, in the circuit court for the county in which the
8430	8432		limited liability company's most recent registered office is
8431	8433		located, may hear and determine the validity and effectiveness
8432	8434		of the ratification of, or waiver with respect to, any void or
8433	8435		voidable act or transaction effectuated pursuant to this
8434	8436		section, and in any such application, the limited liability
8435	8437		company shall be named as a party and service of the
8436	8438		application upon the registered agent of the limited liability
8437	8439		company shall be deemed to be service upon the limited
8438	8440		liability company, and no other party need be joined in order
8439	8441		for the court to adjudicate the validity and effectiveness of
8440	8442		the ratification or waiver, and the court may make such order
8441	8443		respecting further or other notice of the application as the
8442	8444		court deems proper under the circumstances; provided, that
8443	8445		nothing herein limits or affects the right to serve process in
8444		-	any other manner now or hereafter provided by law, and this
8445		-	sentence is an extension of and not a limitation upon the
8446		-	right otherwise existing of service of legal process upon
8447		-	nonresidents.
8448		-	(e) The provisions of this section shall not be
8449	8446		4060
8450	8447		4061
8451	8448		4062
8452	8449		4063
8453	8450		4064
8454	8451		4065
8455	8452		4066
8456	8453		4067
8457	8454		4068
8458	8455		4069
8459	8456		4070
8460	8457		4071
8461	8458		4072
8462	8459		4073
8463	8460		4074
8464	8461		4075
8465	8462		4076
8466	8463		4077
8467	8464		4078
8468	8465		4079
8469	8466		4080
8470	8467		4081
8471	8468		4082
8472	8469		4083
8473	8470		4084
8474	8471		4085
8475	8472		4086
8476		-	4087 SB112 ~~Enrolled~~
	8473	+	4087 SB112 Engrossed
8477	8474		Page 147
	8475	+	nothing herein limits or affects the right to serve process in
	8476	+	any other manner now or hereafter provided by law, and this
	8477	+	sentence is an extension of and not a limitation upon the
	8478	+	right otherwise existing of service of legal process upon
	8479	+	nonresidents.
8478	8480		(e) The provisions of this section shall not be
8479	8481		construed to limit the accomplishment of a ratification or
8480	8482		waiver of a void or voidable act or transaction by other means
8481	8483		permitted by law.
8482	8484		§10A-8A-1.14
8483	8485		(a) If a partnership agreement provides that an act or
8484	8486		transaction is void or voidable when taken, then that act or
8485	8487		transaction may be ratified or waived by:
8486	8488		(1) the partners or other persons entitled to ratify or
8487	8489		waive that act or transaction under the partnership agreement;
8488	8490		(2) if the partnership agreement does not specify the
8489	8491		approval required for the ratification or waiver, then those
8490	8492		partners or other persons entitled to approve the amendment of
8491	8493		the partnership agreement; or
8492	8494		(3) if the partnership agreement does not specify the
8493	8495		approval required for the amendment of the partnership
8494	8496		agreement, then all of the partners.
8495	8497		(b) If the void or voidable act or transaction was the
8496	8498		issuance or transfer of any transferable interest, then for
8497	8499		purposes of determining who may ratify or waive any act or
8498	8500		transaction, the transferable interest purportedly issued or
8499	8501		transferred shall be deemed not to have been issued or
8500	8502		transferred.
8501	8503		(c) Any act or transaction ratified, or with respect to
8502		-	which the failure to comply with any requirements of the
8503		-	partnership agreement is waived, pursuant to this section
8504		-	shall be deemed validly taken at the time of the act or
8505		-	transaction.
8506		-	(d) Upon application of the partnership, any partner,
8507	8504		4088
8508	8505		4089
8509	8506		4090
8510	8507		4091
8511	8508		4092
8512	8509		4093
8513	8510		4094
8514	8511		4095
8515	8512		4096
8516	8513		4097
8517	8514		4098
8518	8515		4099
8519	8516		4100
8520	8517		4101
8521	8518		4102
8522	8519		4103
8523	8520		4104
8524	8521		4105
8525	8522		4106
8526	8523		4107
8527	8524		4108
8528	8525		4109
8529	8526		4110
8530	8527		4111
8531	8528		4112
8532	8529		4113
8533	8530		4114
8534		-	4115 SB112 ~~Enrolled~~
	8531	+	4115 SB112 Engrossed
8535	8532		Page 148
	8533	+	(c) Any act or transaction ratified, or with respect to
	8534	+	which the failure to comply with any requirements of the
	8535	+	partnership agreement is waived, pursuant to this section
	8536	+	shall be deemed validly taken at the time of the act or
	8537	+	transaction.
	8538	+	(d) Upon application of the partnership, any partner,
	8539	+	or any person claiming to be substantially and adversely
	8540	+	affected by a ratification or waiver pursuant to this section,
	8541	+	the designated court, and if none, the circuit court for the
	8542	+	county in which the partnership's principal office is located
	8543	+	in this state, and if none in this state, in the circuit court
	8544	+	for the county in which the partnership's most recent
	8545	+	registered office is located, may hear and determine the
	8546	+	validity and effectiveness of the ratification of, or waiver
	8547	+	with respect to, any void or voidable act or transaction
	8548	+	effectuated pursuant to this section, and in any such
	8549	+	application, the partnership shall be named as a party and
	8550	+	service of the application upon the registered agent of the
	8551	+	partnership shall be deemed to be service upon the
	8552	+	partnership, and no other party need be joined in order for
	8553	+	the court to adjudicate the validity and effectiveness of the
	8554	+	ratification or waiver, and the court may make such order
	8555	+	respecting further or other notice of the application as the
	8556	+	court deems proper under the circumstances; provided, that
	8557	+	nothing herein limits or affects the right to serve process in
	8558	+	any other manner now or hereafter provided by law, and this
	8559	+	sentence is an extension of and not a limitation upon the
	8560	+	right otherwise existing of service of legal process upon
	8561	+	nonresidents.
	8562	+	4116
	8563	+	4117
	8564	+	4118
	8565	+	4119
	8566	+	4120
	8567	+	4121
	8568	+	4122
	8569	+	4123
	8570	+	4124
	8571	+	4125
	8572	+	4126
	8573	+	4127
	8574	+	4128
	8575	+	4129
	8576	+	4130
	8577	+	4131
	8578	+	4132
	8579	+	4133
	8580	+	4134
	8581	+	4135
	8582	+	4136
	8583	+	4137
	8584	+	4138
	8585	+	4139
	8586	+	4140
	8587	+	4141
	8588	+	4142
	8589	+	4143 SB112 Engrossed
	8590	+	Page 149
	8591	+	nonresidents.
	8592	+	(e) The provisions of this section shall not be
	8593	+	construed to limit the accomplishment of a ratification or
	8594	+	waiver of a void or voidable act or transaction by other means
	8595	+	permitted by law.
	8596	+	§10A-9A-1.15
	8597	+	(a) If a partnership agreement provides that an act or
	8598	+	transaction is void or voidable when taken, then that act or
	8599	+	transaction may be ratified or waived by:
	8600	+	(1) the partners or other persons entitled to ratify or
	8601	+	waive that act or transaction under the partnership agreement;
	8602	+	(2) if the partnership agreement does not specify the
	8603	+	approval required for the ratification or waiver, then those
	8604	+	partners or other persons entitled to approve the amendment of
	8605	+	the partnership agreement; or
	8606	+	(3) if the partnership agreement does not specify the
	8607	+	approval required for the amendment of the partnership
	8608	+	agreement, then all of the partners.
	8609	+	(b) If the void or voidable act or transaction was the
	8610	+	issuance or transfer of any transferable interest, then for
	8611	+	purposes of determining who may ratify or waive any act or
	8612	+	transaction, the transferable interest purportedly issued or
	8613	+	transferred shall be deemed not to have been issued or
	8614	+	transferred.
	8615	+	(c) Any act or transaction ratified, or with respect to
	8616	+	which the failure to comply with any requirements of the
	8617	+	partnership agreement is waived, pursuant to this section
	8618	+	shall be deemed validly taken at the time of the act or
	8619	+	transaction.
	8620	+	4144
	8621	+	4145
	8622	+	4146
	8623	+	4147
	8624	+	4148
	8625	+	4149
	8626	+	4150
	8627	+	4151
	8628	+	4152
	8629	+	4153
	8630	+	4154
	8631	+	4155
	8632	+	4156
	8633	+	4157
	8634	+	4158
	8635	+	4159
	8636	+	4160
	8637	+	4161
	8638	+	4162
	8639	+	4163
	8640	+	4164
	8641	+	4165
	8642	+	4166
	8643	+	4167
	8644	+	4168
	8645	+	4169
	8646	+	4170
	8647	+	4171 SB112 Engrossed
	8648	+	Page 150
	8649	+	transaction.
8536	8650		(d) Upon application of the partnership, any partner,
8537	8651		or any person claiming to be substantially and adversely
8538	8652		affected by a ratification or waiver pursuant to this section,
8539	8653		the designated court, and if none, the circuit court for the
8540	8654		county in which the partnership's principal office is located
8541	8655		in this state, and if none in this state, in the circuit court
8542	8656		for the county in which the partnership's most recent
8543	8657		registered office is located, may hear and determine the
8544	8658		validity and effectiveness of the ratification of, or waiver
8545	8659		with respect to, any void or voidable act or transaction
8546	8660		effectuated pursuant to this section, and in any such
8547	8661		application, the partnership shall be named as a party and
8548	8662		service of the application upon the registered agent of the
8549	8663		partnership shall be deemed to be service upon the
8550	8664		partnership, and no other party need be joined in order for
8551	8665		the court to adjudicate the validity and effectiveness of the
8552	8666		ratification or waiver, and the court may make such order
8553	8667		respecting further or other notice of the application as the
8554	8668		court deems proper under the circumstances; provided, that
8555	8669		nothing herein limits or affects the right to serve process in
8556	8670		any other manner now or hereafter provided by law, and this
8557	8671		sentence is an extension of and not a limitation upon the
8558	8672		right otherwise existing of service of legal process upon
8559	8673		nonresidents.
8560	8674		(e) The provisions of this section shall not be
8561	8675		construed to limit the accomplishment of a ratification or
8562	8676		waiver of a void or voidable act or transaction by other means
8563	8677		permitted by law.
8564		-	§10A-9A-1.15
8565		-	4116
8566		-	4117
8567		-	4118
8568		-	4119
8569		-	4120
8570		-	4121
8571		-	4122
8572		-	4123
8573		-	4124
8574		-	4125
8575		-	4126
8576		-	4127
8577		-	4128
8578		-	4129
8579		-	4130
8580		-	4131
8581		-	4132
8582		-	4133
8583		-	4134
8584		-	4135
8585		-	4136
8586		-	4137
8587		-	4138
8588		-	4139
8589		-	4140
8590		-	4141
8591		-	4142
8592		-	4143 SB112 Enrolled
8593		-	Page 149
8594		-	§10A-9A-1.15
8595		-	(a) If a partnership agreement provides that an act or
8596		-	transaction is void or voidable when taken, then that act or
8597		-	transaction may be ratified or waived by:
8598		-	(1) the partners or other persons entitled to ratify or
8599		-	waive that act or transaction under the partnership agreement;
8600		-	(2) if the partnership agreement does not specify the
8601		-	approval required for the ratification or waiver, then those
8602		-	partners or other persons entitled to approve the amendment of
8603		-	the partnership agreement; or
8604		-	(3) if the partnership agreement does not specify the
8605		-	approval required for the amendment of the partnership
8606		-	agreement, then all of the partners.
8607		-	(b) If the void or voidable act or transaction was the
8608		-	issuance or transfer of any transferable interest, then for
8609		-	purposes of determining who may ratify or waive any act or
8610		-	transaction, the transferable interest purportedly issued or
8611		-	transferred shall be deemed not to have been issued or
8612		-	transferred.
8613		-	(c) Any act or transaction ratified, or with respect to
8614		-	which the failure to comply with any requirements of the
8615		-	partnership agreement is waived, pursuant to this section
8616		-	shall be deemed validly taken at the time of the act or
8617		-	transaction.
8618		-	(d) Upon application of the partnership, any partner,
8619		-	or any person claiming to be substantially and adversely
8620		-	affected by a ratification or waiver pursuant to this section,
8621		-	the designated court, and if none, the circuit court for the
8622		-	county in which the partnership's principal office is located
8623		-	4144
8624		-	4145
8625		-	4146
8626		-	4147
8627		-	4148
8628		-	4149
8629		-	4150
8630		-	4151
8631		-	4152
8632		-	4153
8633		-	4154
8634		-	4155
8635		-	4156
8636		-	4157
8637		-	4158
8638		-	4159
8639		-	4160
8640		-	4161
8641		-	4162
8642		-	4163
8643		-	4164
8644		-	4165
8645		-	4166
8646		-	4167
8647		-	4168
8648		-	4169
8649		-	4170
8650		-	4171 SB112 Enrolled
8651		-	Page 150
8652		-	county in which the partnership's principal office is located
8653		-	in this state, and if none in this state, in the circuit court
8654		-	for the county in which the partnership's most recent
8655		-	registered office is located, may hear and determine the
8656		-	validity and effectiveness of the ratification of, or waiver
8657		-	with respect to, any void or voidable act or transaction
8658		-	effectuated pursuant to this section, and in any such
8659		-	application, the partnership shall be named as a party and
8660		-	service of the application upon the registered agent of the
8661		-	partnership shall be deemed to be service upon the
8662		-	partnership, and no other party need be joined in order for
8663		-	the court to adjudicate the validity and effectiveness of the
8664		-	ratification or waiver, and the court may make such order
8665		-	respecting further or other notice of the application as the
8666		-	court deems proper under the circumstances; provided, that
8667		-	nothing herein limits or affects the right to serve process in
8668		-	any other manner now or hereafter provided by law, and this
8669		-	sentence is an extension of and not a limitation upon the
8670		-	right otherwise existing of service of legal process upon
8671		-	nonresidents.
8672		-	(e) The provisions of this section shall not be
8673		-	construed to limit the accomplishment of a ratification or
8674		-	waiver of a void or voidable act or transaction by other means
8675		-	permitted by law.
8676		-	Section 3. Chapter 18 is added to Title 10A of the Code
8677		-	of Alabama 1975, to read as follows:
8678		-	CHAPTER 18. Alabama Statewide Trade Associations.
8679		-	§10A-18-1.01. Short title.
8680		-	This chapter and the provisions of Chapter 1, to the
8681	8678		4172
8682	8679		4173
8683	8680		4174
8684	8681		4175
8685	8682		4176
8686	8683		4177
8687	8684		4178
8688	8685		4179
8689	8686		4180
8690	8687		4181
8691	8688		4182
8692	8689		4183
8693	8690		4184
8694	8691		4185
8695	8692		4186
8696	8693		4187
8697	8694		4188
8698	8695		4189
8699	8696		4190
8700	8697		4191
8701	8698		4192
8702	8699		4193
8703	8700		4194
8704	8701		4195
8705	8702		4196
8706	8703		4197
8707	8704		4198
8708		-	4199 SB112 ~~Enrolled~~
	8705	+	4199 SB112 Engrossed
8709	8706		Page 151
	8707	+	permitted by law.
	8708	+	Section 3. Chapter 18 is added to Title 10A of the Code
	8709	+	of Alabama 1975, to read as follows:
	8710	+	CHAPTER 18. Alabama Statewide Trade Associations.
	8711	+	§10A-18-1.01. Short title.
8710	8712		This chapter and the provisions of Chapter 1, to the
8711	8713		extent applicable to Alabama statewide trade associations, may
8712	8714		be cited as the Alabama Statewide Trade Association Law.
8713	8715		§10A-18-1.02. Applicability of Alabama Nonprofit
8714	8716		Corporation Law.
8715	8717		The provisions of the Alabama Nonprofit Corporation Law
8716	8718		shall apply to Alabama statewide trade associations, except to
8717	8719		the extent they are inconsistent with the provisions of this
8718	8720		chapter.
8719	8721		§10A-18-1.03. Definitions.
8720	8722		As used in this chapter, unless the context otherwise
8721	8723		requires, the term:
8722	8724		(a) Alabama statewide trade association means a
8723	8725		domestic entity that is formed under or is governed by the
8724	8726		Alabama Nonprofit Corporation Law and that:
8725	8727		(1) is a membership nonprofit corporation as defined in
8726	8728		the Alabama Nonprofit Corporation Law;
8727	8729		(2) was formed on or before January 1, 2024, and is in
8728	8730		existence as of January 1, 2024;
8729	8731		(3) has its principal office or other headquarters in
8730		-	~~this state~~;
	8732	+	the City of Montgomery, Alabama;
8731	8733		(4) represents or promotes the common business,
8732	8734		professional, or industry interests of its members on a
8733	8735		statewide basis;
8734		-	(5) has elected to be governed by this chapter on or
8735		-	before December 31, 2024, by amending its certificate of
8736		-	incorporation in accordance with Section 10A-18-1.09(a); and
8737		-	(6) has not ceased to be governed by this chapter in
8738		-	accordance with Section 10A-18-1.09(b) or Section
8739	8736		4200
8740	8737		4201
8741	8738		4202
8742	8739		4203
8743	8740		4204
8744	8741		4205
8745	8742		4206
8746	8743		4207
8747	8744		4208
8748	8745		4209
8749	8746		4210
8750	8747		4211
8751	8748		4212
8752	8749		4213
8753	8750		4214
8754	8751		4215
8755	8752		4216
8756	8753		4217
8757	8754		4218
8758	8755		4219
8759	8756		4220
8760	8757		4221
8761	8758		4222
8762	8759		4223
8763	8760		4224
8764	8761		4225
8765	8762		4226
8766		-	4227 SB112 ~~Enrolled~~
	8763	+	4227 SB112 Engrossed
8767	8764		Page 152
	8765	+	statewide basis;
	8766	+	(5) has elected to be governed by this chapter on or
	8767	+	before December 31, 2024, by amending its certificate of
	8768	+	incorporation in accordance with Section 10A-18-1.09(a); and
	8769	+	(6) has not ceased to be governed by this chapter in
8768	8770		accordance with Section 10A-18-1.09(b) or Section
8769	8771		10A-18-1.09(c).
8770	8772		(b) Policies and procedures means guidelines that
8771	8773		provide detailed instructions on how specific tasks,
8772	8774		activities, or situations should be handled within an Alabama
8773	8775		statewide trade association, including areas such as
8774	8776		membership application and renewal processes, event planning
8775	8777		and execution, code of conduct and ethics, financial
8776	8778		management and reporting, dispute resolution, communication
8777	8779		protocols, and operational aspects relevant to the Alabama
8778	8780		statewide trade association's functioning.
8779	8781		§10A-18-1.04. Alabama statewide trade association
8780	8782		records.
8781	8783		(a) In lieu of any records required to be maintained by
8782	8784		a membership nonprofit corporation under the Alabama Nonprofit
8783	8785		Corporation Law, a statewide trade association must maintain
8784	8786		the following records:
8785	8787		(1) its certificate of incorporation as currently in
8786	8788		effect;
8787	8789		(2) its bylaws as currently in effect;
8788	8790		(3) its policies and procedures as currently in effect;
8789	8791		(4) minutes of all meetings of its board of directors
8790	8792		and its members;
8791	8793		(5) a list of the names and business addresses of its
8792		-	current directors and officers;
8793		-	(6) its annual financial statements, annual audits, and
8794		-	annual federal and state income tax returns for its last three
8795		-	fiscal years (or such shorter period of existence); and
8796		-	(7) a list of its current members in alphabetical order
8797	8794		4228
8798	8795		4229
8799	8796		4230
8800	8797		4231
8801	8798		4232
8802	8799		4233
8803	8800		4234
8804	8801		4235
8805	8802		4236
8806	8803		4237
8807	8804		4238
8808	8805		4239
8809	8806		4240
8810	8807		4241
8811	8808		4242
8812	8809		4243
8813	8810		4244
8814	8811		4245
8815	8812		4246
8816	8813		4247
8817	8814		4248
8818	8815		4249
8819	8816		4250
8820	8817		4251
8821	8818		4252
8822	8819		4253
8823	8820		4254
8824		-	4255 SB112 ~~Enrolled~~
	8821	+	4255 SB112 Engrossed
8825	8822		Page 153
	8823	+	(5) a list of the names and business addresses of its
	8824	+	current directors and officers;
	8825	+	(6) its annual financial statements, annual audits, and
	8826	+	annual federal and state income tax returns for its last three
	8827	+	fiscal years (or such shorter period of existence); and
8826	8828		(7) a list of its current members in alphabetical order
8827	8829		by class of membership showing the address for each member to
8828	8830		which notices and other communications from the Alabama
8829	8831		statewide trade association are to be sent.
8830	8832		(b) An Alabama statewide trade association shall
8831	8833		maintain its books and records for its last three fiscal years
8832	8834		(or such shorter period of existence) in a form that permits
8833	8835		preparation of the financial statements in accordance with
8834	8836		generally accepted accounting principles as applied to
8835	8837		nonprofit corporations. Financial statements shall mean
8836	8838		balance sheets, income statements, statements of activities,
8837	8839		notes to financial statements, statements of financial
8838	8840		position, and any investment summaries.
8839	8841		(c) An Alabama statewide trade association shall have
8840	8842		an annual audit of its financial statements. The audit shall
8841	8843		be conducted by an independent certified public accounting
8842	8844		firm that regularly audits nonprofit entities. The independent
8843	8845		certified public accounting firm shall be appointed annually
8844	8846		by the board of directors.
8845	8847		§10A-18-1.05. Inspection rights of members.
8846	8848		In lieu of any inspection rights of the members of a
8847	8849		membership nonprofit corporation under the Alabama Nonprofit
8848	8850		Corporation Law:
8849	8851		(a) A member of an Alabama statewide trade association
8850		-	is entitled to inspect the records required to be maintained
8851		-	by the Alabama statewide trade association under Sections
8852		-	10A-18-1.04(a)(1)through (6) during regular business hours at
8853		-	the principal office of the Alabama statewide trade
8854		-	association provided that the member gives the Alabama
8855	8852		4256
8856	8853		4257
8857	8854		4258
8858	8855		4259
8859	8856		4260
8860	8857		4261
8861	8858		4262
8862	8859		4263
8863	8860		4264
8864	8861		4265
8865	8862		4266
8866	8863		4267
8867	8864		4268
8868	8865		4269
8869	8866		4270
8870	8867		4271
8871	8868		4272
8872	8869		4273
8873	8870		4274
8874	8871		4275
8875	8872		4276
8876	8873		4277
8877	8874		4278
8878	8875		4279
8879	8876		4280
8880	8877		4281
8881	8878		4282
8882		-	4283 SB112 ~~Enrolled~~
	8879	+	4283 SB112 Engrossed
8883	8880		Page 154
	8881	+	(a) A member of an Alabama statewide trade association
	8882	+	is entitled to inspect the records required to be maintained
	8883	+	by the Alabama statewide trade association under Sections
	8884	+	10A-18-1.04(a)(1)through (6) during regular business hours at
	8885	+	the principal office of the Alabama statewide trade
8884	8886		association provided that the member gives the Alabama
8885	8887		statewide trade association written notice of the member's
8886	8888		demand at least five business days before the date on which
8887	8889		the member wishes to inspect.
8888	8890		(b) A member may inspect the records Sections
8889	8891		10A-18-1.04(a)(1) through (6) only if:
8890	8892		(1) the member's request is made in good faith and for
8891	8893		a proper purpose;
8892	8894		(2) the member's request describes with reasonable
8893	8895		particularity the member's purpose and the records the member
8894	8896		desires to inspect; and
8895	8897		(3) the records are directly connected with the
8896	8898		member's purpose.
8897	8899		(c) An Alabama statewide trade association may impose
8898	8900		reasonable restrictions and conditions on access to and use of
8899	8901		the records to be inspected under subsection (a), including
8900	8902		designating information confidential and imposing
8901	8903		nondisclosure and safeguarding, and may further keep
8902	8904		confidential from its members and other persons, for a period
8903	8905		of time as the Alabama statewide trade association deems
8904	8906		reasonable, any information that the Alabama statewide trade
8905	8907		association reasonably believes to be in the nature of a trade
8906	8908		secret or other information the disclosure of which the
8907	8909		Alabama statewide trade association in good faith believes is
8908		-	not in the best interest of the Alabama statewide trade
8909		-	association or could damage the Alabama statewide trade
8910		-	association or its activities or affairs or that the Alabama
8911		-	statewide trade association is required by law or by agreement
8912		-	with a third party to keep confidential. In any dispute
8913	8910		4284
8914	8911		4285
8915	8912		4286
8916	8913		4287
8917	8914		4288
8918	8915		4289
8919	8916		4290
8920	8917		4291
8921	8918		4292
8922	8919		4293
8923	8920		4294
8924	8921		4295
8925	8922		4296
8926	8923		4297
8927	8924		4298
8928	8925		4299
8929	8926		4300
8930	8927		4301
8931	8928		4302
8932	8929		4303
8933	8930		4304
8934	8931		4305
8935	8932		4306
8936	8933		4307
8937	8934		4308
8938	8935		4309
8939	8936		4310
8940		-	4311 SB112 ~~Enrolled~~
	8937	+	4311 SB112 Engrossed
8941	8938		Page 155
	8939	+	Alabama statewide trade association in good faith believes is
	8940	+	not in the best interest of the Alabama statewide trade
	8941	+	association or could damage the Alabama statewide trade
	8942	+	association or its activities or affairs or that the Alabama
	8943	+	statewide trade association is required by law or by agreement
8942	8944		with a third party to keep confidential. In any dispute
8943	8945		concerning the reasonableness of a restriction under this
8944	8946		subsection, the Alabama statewide trade association has the
8945	8947		burden of proving reasonableness.
8946		-	(d) This section does not limit the power of a court,
	8948	+	(d) A member's right of inspection set forth in this
	8949	+	section may be further limited by the certificate of
	8950	+	incorporation of an Alabama statewide trade association.
	8951	+	(e) The certificate of incorporation may provide that a
	8952	+	member or group of members has additional inspection rights to
	8953	+	those provided by this section. Any provision in the
	8954	+	certificate of incorporation for additional inspection rights
	8955	+	under this subsection shall set forth the scope, rights,
	8956	+	limits, restrictions, conditions, confidentiality, and any
	8957	+	other matter related to the additional inspection rights.
	8958	+	(f) This section does not limit the power of a court,
8947	8959		upon showing of good cause, to compel the production of the
8948	8960		books and records of an Alabama statewide trade association,
8949	8961		including records not set forth in Section 10A-18-1.04, to the
8950	8962		court for examination by a court appointed professional and to
8951	8963		impose reasonable restrictions on the use of those books and
8952	8964		records by that court appointed professional.
8953	8965		§10A-18-1.06. Court ordered action.
8954	8966		(a) If an Alabama statewide trade association does not,
8955	8967		within the time period set forth in Section 10A-18-1.05, allow
8956		-	a member who complies with Section 10A-18-1.05 to inspect the
8957		-	records required to be maintained by Sections
8958		-	10A-18-1.04(a)(1) through (6), a member may petition the
8959		-	Montgomery County Circuit Court, and the court may summarily
8960		-	order inspection of the records demanded at the Alabama
8961		-	statewide trade association's expense upon application of the
8962		-	member.
8963		-	(b) If the court orders inspection of the records
8964		-	demanded under Section 10A-18-1.05, it shall impose reasonable
8965		-	restrictions on the confidentiality, use, or distribution of
8966		-	the records by the demanding member and the court shall also
8967		-	order the Alabama statewide trade association to pay the
8968		-	member's expenses incurred to obtain the order, unless the
8969		-	Alabama statewide trade association establishes that it
8970		-	refused inspection in good faith because the Alabama statewide
8971	8968		4312
8972	8969		4313
8973	8970		4314
8974	8971		4315
8975	8972		4316
8976	8973		4317
8977	8974		4318
8978	8975		4319
8979	8976		4320
8980	8977		4321
8981	8978		4322
8982	8979		4323
8983	8980		4324
8984	8981		4325
8985	8982		4326
8986	8983		4327
8987	8984		4328
8988	8985		4329
8989	8986		4330
8990	8987		4331
8991	8988		4332
8992	8989		4333
8993	8990		4334
8994	8991		4335
8995	8992		4336
8996	8993		4337
8997	8994		4338
8998		-	4339 SB112 ~~Enrolled~~
	8995	+	4339 SB112 Engrossed
8999	8996		Page 156
	8997	+	within the time period set forth in Section 10A-18-1.05, allow
	8998	+	a member who complies with Section 10A-18-1.05 to inspect the
	8999	+	records required to be maintained by Sections
	9000	+	10A-18-1.04(a)(1) through (6), a member may petition the
	9001	+	Montgomery County Circuit Court, and the court may summarily
	9002	+	order inspection of the records demanded at the Alabama
	9003	+	statewide trade association's expense upon application of the
	9004	+	member.
	9005	+	(b) If the court orders inspection of the records
	9006	+	demanded under Section 10A-18-1.05, it shall impose reasonable
	9007	+	restrictions on the confidentiality, use, or distribution of
	9008	+	the records by the demanding member and the court shall also
	9009	+	order the Alabama statewide trade association to pay the
	9010	+	member's expenses incurred to obtain the order, unless the
	9011	+	Alabama statewide trade association establishes that it
9000	9012		refused inspection in good faith because the Alabama statewide
9001	9013		trade association had:
9002	9014		(1) a reasonable basis for doubt about the right of the
9003	9015		member to inspect the records demanded; or
9004	9016		(2) required reasonable restrictions on the
9005	9017		confidentiality, use, or distribution of the records demanded
9006	9018		to which the demanding member had been unwilling to agree.
9007	9019		§10A-18-1.07. Financial review.
9008	9020		(a) If a member of an Alabama statewide trade
9009	9021		association has a reasonable belief that financial fraud or
9010	9022		malfeasance has occurred or is occurring at the Alabama
9011	9023		statewide trade association, that member may petition the
9012	9024		Montgomery County Circuit Court for an independent audit of
9013	9025		the financial statements of the Alabama statewide trade
9014		-	association. For good cause shown, the court may order an
9015		-	independent audit of the financial statements of the Alabama
9016		-	statewide trade association with that independent audit report
9017		-	to be made to the court. If the court does not find good
9018		-	cause, the court costs shall be assessed to the petitioning
9019		-	member. If the court does find good cause, the court costs and
9020		-	the cost of the audit shall be assessed to the Alabama
9021		-	statewide trade association.
9022		-	(b) In making its determination, the court may review
9023		-	among other matters, whether the Alabama statewide trade
9024		-	association (i) prepared its annual financial statements for
9025		-	its last three fiscal years (or such shorter period of
9026		-	existence), (ii) had an independent audit of its financial
9027		-	statements for its last three fiscal years (or such shorter
9028		-	period of existence), (iii) timely filed its federal or state
9029	9026		4340
9030	9027		4341
9031	9028		4342
9032	9029		4343
9033	9030		4344
9034	9031		4345
9035	9032		4346
9036	9033		4347
9037	9034		4348
9038	9035		4349
9039	9036		4350
9040	9037		4351
9041	9038		4352
9042	9039		4353
9043	9040		4354
9044	9041		4355
9045	9042		4356
9046	9043		4357
9047	9044		4358
9048	9045		4359
9049	9046		4360
9050	9047		4361
9051	9048		4362
9052	9049		4363
9053	9050		4364
9054	9051		4365
9055	9052		4366
9056		-	4367 SB112 ~~Enrolled~~
	9053	+	4367 SB112 Engrossed
9057	9054		Page 157
	9055	+	the financial statements of the Alabama statewide trade
	9056	+	association. For good cause shown, the court may order an
	9057	+	independent audit of the financial statements of the Alabama
	9058	+	statewide trade association with that independent audit report
	9059	+	to be made to the court. If the court does not find good
	9060	+	cause, the court costs shall be assessed to the petitioning
	9061	+	member. If the court does find good cause, the court costs and
	9062	+	the cost of the audit shall be assessed to the Alabama
	9063	+	statewide trade association.
	9064	+	(b) In making its determination, the court may review
	9065	+	among other matters, whether the Alabama statewide trade
	9066	+	association (i) prepared its annual financial statements for
	9067	+	its last three fiscal years (or such shorter period of
	9068	+	existence), (ii) had an independent audit of its financial
	9069	+	statements for its last three fiscal years (or such shorter
9058	9070		period of existence), (iii) timely filed its federal or state
9059	9071		income tax returns for its last three fiscal years (or such
9060	9072		shorter period of existence), or (iv) incurred negative
9061	9073		financial performance without a reasonable basis and/or board
9062	9074		approval.
9063	9075		§10A-18-1.08. Limitations on use of membership list.
9064	9076		In addition to the restrictions on the use of
9065	9077		membership lists under the Alabama Nonprofit Corporation Law:
9066	9078		(a) In an effort to prevent cybercrime, identity fraud,
9067	9079		and financial crimes, an Alabama statewide trade association
9068	9080		shall take reasonable precautions to safeguard member data,
9069	9081		information, and contact information, including membership
9070	9082		lists.
9071	9083		(b) An Alabama statewide trade association's
9072		-	certificate of incorporation may provide that the Alabama
9073		-	statewide trade association may not disclose member lists and
9074		-	member data.
9075		-	(c) The membership list of an Alabama statewide trade
9076		-	association is the property of the Alabama statewide trade
9077		-	association and shall be used solely for official use of the
9078		-	Alabama statewide trade association. The Alabama statewide
9079		-	trade association may provide member mailing lists for
9080		-	official business purposes consistent with its purpose and its
9081		-	certificate of incorporation.
9082		-	(d) Electronic mail addresses and other electronic
9083		-	transmission information for members may be used in the
9084		-	historical and routine business of an Alabama statewide trade
9085		-	association and shall not be rented, sold, or otherwise
9086		-	provided to any other individual or organization for any other
9087	9084		4368
9088	9085		4369
9089	9086		4370
9090	9087		4371
9091	9088		4372
9092	9089		4373
9093	9090		4374
9094	9091		4375
9095	9092		4376
9096	9093		4377
9097	9094		4378
9098	9095		4379
9099	9096		4380
9100	9097		4381
9101	9098		4382
9102	9099		4383
9103	9100		4384
9104	9101		4385
9105	9102		4386
9106	9103		4387
9107	9104		4388
9108	9105		4389
9109	9106		4390
9110	9107		4391
9111	9108		4392
9112	9109		4393
9113	9110		4394
9114		-	4395 SB112 ~~Enrolled~~
	9111	+	4395 SB112 Engrossed
9115	9112		Page 158
	9113	+	(b) An Alabama statewide trade association's
	9114	+	certificate of incorporation may provide that the Alabama
	9115	+	statewide trade association may not disclose member lists and
	9116	+	member data.
	9117	+	(c) The membership list of an Alabama statewide trade
	9118	+	association is the property of the Alabama statewide trade
	9119	+	association and shall be used solely for official use of the
	9120	+	Alabama statewide trade association. The Alabama statewide
	9121	+	trade association may provide member mailing lists for
	9122	+	official business purposes consistent with its purpose and its
	9123	+	certificate of incorporation.
	9124	+	(d) Electronic mail addresses and other electronic
	9125	+	transmission information for members may be used in the
	9126	+	historical and routine business of an Alabama statewide trade
	9127	+	association and shall not be rented, sold, or otherwise
9116	9128		provided to any other individual or organization for any other
9117	9129		purpose unless authorized by the board of directors.
9118	9130		(e) Unless otherwise permitted by the certificate of
9119	9131		incorporation or bylaws of an Alabama statewide trade
9120	9132		association, a membership list or any part thereof may not be
9121	9133		obtained or used by a member or members of the Alabama
9122	9134		statewide trade association for any purpose unrelated to the
9123	9135		interest of that member or members with respect to the
9124	9136		member's capacity as a member of the Alabama statewide trade
9125	9137		association without the consent of the board of directors,
9126	9138		including without limitation:
9127	9139		(1) to solicit money or property unless the money or
9128	9140		property will be used solely to solicit the votes of the
9129	9141		members in an election to be held by the Alabama statewide
9130		-	trade association;
9131		-	(2) for any commercial purpose; or
9132		-	(3) to be sold to, or purchased by, any person.
9133		-	§10A-18-1.09. Required statement in certificate of formation.
9134		-	(a) A membership nonprofit corporation formed under or
9135		-	governed by the Alabama Nonprofit Corporation Law that elects
9136		-	to be governed by this chapter shall amend its certificate of
9137		-	incorporation by setting forth in its certificate of
9138		-	incorporation a statement that it is an Alabama statewide
9139		-	trade association as defined in Sections 10A-18-1.03(a)(1)
9140		-	through (6) and that it elects to be governed by this chapter.
9141		-	(b) An Alabama statewide trade association shall cease
9142		-	to be governed by this chapter if it amends its certificate of
9143		-	incorporation by removing the statement required in Section
9144		-	10A-18-1.09(a) and shall thereafter be governed solely by the
9145	9142		4396
9146	9143		4397
9147	9144		4398
9148	9145		4399
9149	9146		4400
9150	9147		4401
9151	9148		4402
9152	9149		4403
9153	9150		4404
9154	9151		4405
9155	9152		4406
9156	9153		4407
9157	9154		4408
9158	9155		4409
9159	9156		4410
9160	9157		4411
9161	9158		4412
9162	9159		4413
9163	9160		4414
9164	9161		4415
9165	9162		4416
9166	9163		4417
9167	9164		4418
9168	9165		4419
9169	9166		4420
9170	9167		4421
9171	9168		4422
9172		-	4423 SB112 ~~Enrolled~~
	9169	+	4423 SB112 Engrossed
9173	9170		Page 159
	9171	+	members in an election to be held by the Alabama statewide
	9172	+	trade association;
	9173	+	(2) for any commercial purpose; or
	9174	+	(3) to be sold to, or purchased by, any person.
	9175	+	§10A-18-1.09. Required statement in certificate of formation.
	9176	+	(a) A membership nonprofit corporation formed under or
	9177	+	governed by the Alabama Nonprofit Corporation Law that elects
	9178	+	to be governed by this chapter shall amend its certificate of
	9179	+	incorporation by setting forth in its certificate of
	9180	+	incorporation a statement that it is an Alabama statewide
	9181	+	trade association as defined in Sections 10A-18-1.03(a)(1)
	9182	+	through (6) and that it elects to be governed by this chapter.
	9183	+	(b) An Alabama statewide trade association shall cease
	9184	+	to be governed by this chapter if it amends its certificate of
	9185	+	incorporation by removing the statement required in Section
9174	9186		10A-18-1.09(a) and shall thereafter be governed solely by the
9175	9187		Alabama Nonprofit Corporation Law, with no right to elect to
9176	9188		be governed by this chapter thereafter.
9177	9189		(c) An Alabama statewide trade association shall cease
9178	9190		to be governed by this chapter if it no longer meets the
9179	9191		definition of an Alabama statewide trade association as set
9180	9192		forth in Section 10A-18-1.03. If an Alabama statewide trade
9181	9193		association ceases to be governed by this chapter in
9182	9194		accordance with this section, then that Alabama statewide
9183	9195		trade association shall thereafter be governed solely by the
9184	9196		Alabama Nonprofit Corporation Law, with no right to elect to
9185	9197		be governed by this chapter thereafter.
9186	9198		Section 4. Although this bill would have as its purpose
9187	9199		or effect the requirement of a new or increased expenditure of
9188		-	local funds, the bill is excluded from further requirements
9189		-	and application under Section 111.05 of the Constitution of
9190		-	Alabama of 2022, because the bill defines a new crime or
9191		-	amends the definition of an existing crime.
9192		-	Section 5.Section 3 and Section 4 shall become
9193		-	effective on June 1, 2024; Section 1 and Section 2, with the
9194		-	exception of Sections 10A-1-1.03, 10A-1-1.08, and 10A-1-3.32,
9195		-	Code of Alabama 1975, as amended by Section 1 of this act,
9196		-	shall become effective on August 1, 2024; and Sections
9197		-	10A-1-1.03, 10A-1-1.08, and 10A-1-3.32, Code of Alabama 1975,
9198		-	as amended by Section 1 of this act, shall become effective
9199		-	January 1, 2025.
9200	9200		4424
9201	9201		4425
9202	9202		4426
9203	9203		4427
9204	9204		4428
9205	9205		4429
9206	9206		4430
9207	9207		4431
9208	9208		4432
9209	9209		4433
9210	9210		4434
9211	9211		4435
9212	9212		4436
9213	9213		4437
9214	9214		4438
9215	9215		4439
9216	9216		4440
9217	9217		4441
9218	9218		4442
9219	9219		4443
9220	9220		4444
9221	9221		4445
9222	9222		4446
9223	9223		4447
9224		-	4448 SB112 Enrolled
9225		-	Page 160
9226		-	January 1, 2025.
9227		-	________________________________________________
9228		-	President and Presiding Officer of the Senate
9229		-	________________________________________________
9230		-	Speaker of the House of Representatives
9231		-	SB112
9232		-	Senate 04-Apr-24
9233		-	I hereby certify that the within Act originated in and passed
9234		-	the Senate, as amended.
9235		-	Patrick Harris,
9236		-	Secretary.
9237		-	House of Representatives
9238		-	Amended and passed: 02-May-24
9239		-	Senate concurred in House amendment 07-May-24
9240		-	By: Senator Givhan
	9224	+	4448
9241	9225		4449
9242	9226		4450
9243		-	4451
	9227	+	4451 SB112 Engrossed
	9228	+	Page 160
	9229	+	or effect the requirement of a new or increased expenditure of
	9230	+	local funds, the bill is excluded from further requirements
	9231	+	and application under Section 111.05 of the Constitution of
	9232	+	Alabama of 2022, because the bill defines a new crime or
	9233	+	amends the definition of an existing crime.
	9234	+	Section 5.Section 3 and Section 4 shall become
	9235	+	effective on June 1, 2024; Section 1 and Section 2, with the
	9236	+	exception of Sections 10A-1-1.03, 10A-1-1.08, and 10A-1-3.32,
	9237	+	Code of Alabama 1975, as amended by Section 1 of this act,
	9238	+	shall become effective on August 1, 2024; and Sections
	9239	+	10A-1-1.03, 10A-1-1.08, and 10A-1-3.32, Code of Alabama 1975,
	9240	+	as amended by Section 1 of this act, shall become effective
	9241	+	January 1, 2025.
9244	9242		4452
9245	9243		4453
9246	9244		4454
9247	9245		4455
9248	9246		4456
9249	9247		4457
9250	9248		4458
9251	9249		4459
9252	9250		4460
9253	9251		4461
9254	9252		4462
9255		-	4463
	9253	+	4463 SB112 Engrossed
	9254	+	Page 161
	9255	+	January 1, 2025.
	9256	+	Senate
	9257	+	Read for the first time and referred
	9258	+	to the Senate committee on Fiscal
	9259	+	Responsibility and Economic
	9260	+	Development
	9261	+	................20-Feb-24
	9262	+	Read for the second time and placed
	9263	+	on the calendar:
	9264	+	0 amendments
	9265	+	................19-Mar-24
	9266	+	Read for the third time and passed
	9267	+	as amended
	9268	+	Yeas 34
	9269	+	Nays 0
	9270	+	Abstains 0
	9271	+	................04-Apr-24
	9272	+	Patrick Harris,
	9273	+	Secretary.
9256	9274		4464
9257	9275		4465
9258	9276		4466
9259	9277		4467
9260	9278		4468
9261	9279		4469
9262	9280		4470
9263	9281		4471
9264	9282		4472
9265	9283		4473
9266	9284		4474
9267	9285		4475
9268	9286		4476
9269	9287		4477
9270	9288		4478
9271	9289		4479
9272	9290		4480
9273	9291		4481
9274	9292		4482
9275	9293		4483
9276	9294		4484
9277	9295		4485
9278		-	4486