Alabama 2025 Regular Session

Alabama House Bill HB200 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	HB200INTRODUCED
2	2	Page 0
3	3	HB200
4	4	1NWI3LZ-1
5	5	By Representative Almond
6	6	RFD: Judiciary
7	7	First Read: 05-Feb-25
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12	12	5 1NWI3LZ-1 02/05/2025 KMS (L)ccr 2025-579
13	13	Page 1
14	14	First Read: 05-Feb-25
15	15	SYNOPSIS:
16	16	This bill would revise the Alabama Business and
17	17	Nonprofit Entity Code.
18	18	This bill would make technical changes, such as
19	19	corrected references to other parts of the Business and
20	20	Nonprofit Entities Code, and would codify practices
21	21	relating to electronic filing and name reservations.
22	22	This bill would codify the common law doctrine
23	23	of independent legal significance.
24	24	This bill would clarify the current practice of
25	25	approving and authorizing agreements, including
26	26	conversion, merger, and exchange agreements, and would
27	27	provide a ratification process for documents that were
28	28	not properly approved.
29	29	This bill would clarify the current practice of
30	30	providing termination fees and other consequences in
31	31	merger agreements.
32	32	This bill would clarify the existing practice of
33	33	naming merger agreements.
34	34	This bill would provide a simplified purchase
35	35	process upon the death or disqualification of a
36	36	stockholder or member of a professional corporation,
37	37	limited liability company, or partnership.
38	38	This bill would also provide that the agreement
39	39	for a limited liability company, a limited partnership,
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69	69	for a limited liability company, a limited partnership,
70	70	or partnership may allow for the transfer of a
71	71	transferable interest upon the death of a transferable
72	72	interest holder, with or without consideration, subject
73	73	to outstanding charging orders and subject to the
74	74	rights of creditors.
75	75	A BILL
76	76	TO BE ENTITLED
77	77	AN ACT
78	78	Relating to the Alabama Business Corporation Law, the
79	79	Alabama Nonprofit Corporation Law, the Alabama Professional
80	80	Corporation Law, the Alabama Limited Liability Company Law,
81	81	the Alabama Partnership Law, and the Alabama Limited
82	82	Partnership Law; to amend Sections 10A-1-1.02, 10A-1-1.08, as
83	83	amended by Act 2024-413, 2024 Regular Session, 10A-1-2.11,
84	84	10A-1-3.08, 10A-1-5.08, 10A-1-5.09, 10A-1-5.10, 10A-1-5.32,
85	85	10A-1-5.33, 10A-1-5.34, 10A-1-7.01, 10A-1-7.04, 10A-1-8.01,
86	86	10A-1-8.02, 10A-2A-7.40, 10A-2A-9.11, 10A-2A-11.01,
87	87	10A-2A-11.02, 10A-2A-11.03, 10A-3A-12.01, 10A-3A-12.02,
88	88	10A-3A-13.02, 10A-4-3.02, as amended by Act 2024-413, 2024
89	89	Regular Session, 10A-5A-1.02, 10A-5A-1.06, 10A-5A-2.02, as
90	90	amended by Act 2024-413, 2024 Regular Session, 10A-5A-5.02,
91	91	10A-5A-5.04, 10A-5A-8.02, 10A-5A-10.01, 10A-5A-10.05,
92	92	10A-8A-1.07, 10A-8A-2.02, 10A-8A-3.03, 10A-8A-3.04,
93	93	10A-8A-5.02, 10A-8A-5.04, 10A-8A-8.02, 10A-8A-8.03,
94	94	10A-8A-8.11, 10A-8A-9.01, 10A-8A-9.02, 10A-8A-9.06,
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124	124	10A-8A-8.11, 10A-8A-9.01, 10A-8A-9.02, 10A-8A-9.06,
125	125	10A-8A-10.01, and 10A-8A-10.03, 10A-9A-1.07, 10A-9A-2.06,
126	126	10A-9A-7.02, 10A-9A-7.04, 10A-9A-9.02, 10A-9A-10.01,
127	127	10A-9A-10.02, 10A-9A-10.06, Code of Alabama 1975, and to add
128	128	Sections 10A-2A-3.05, 10A-2A-8.27, 10A-3A-3.05, and
129	129	10A-3A-8.26 to the Code of Alabama 1975; to make technical
130	130	corrections and to codify issues regarding electronic filing
131	131	issues and name reservation issues; to clarify the current
132	132	practice of providing certain termination fees and other
133	133	consequences in merger agreements; to clarify the current
134	134	practice of approving merger agreements; to clarify the
135	135	current practice of naming of merger agreements; to codify the
136	136	common law doctrine of independent legal significance; to
137	137	codify the current practice of approving and authorizing
138	138	agreements, including conversion, merger, and exchange
139	139	agreements, and providing a ratification process for documents
140	140	that were not properly approved; to provide a simplified
141	141	purchase process upon the death or disqualification of a
142	142	stockholder or member of an Alabama professional corporation;
143	143	to provide that a limited liability company agreement may
144	144	allow for the transfer of a transferable interest upon the
145	145	death of a transferable interest holder, with or without
146	146	consideration, subject to outstanding charging orders and
147	147	subject to the rights of creditors; to provide a simplified
148	148	purchase process upon the death or disqualification of a
149	149	member of an Alabama limited liability company; to provide
150	150	that a partnership agreement may allow for the transfer of a
151	151	transferable interest upon the death of a transferable
152	152	interest holder, with or without consideration, subject to
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182	182	interest holder, with or without consideration, subject to
183	183	outstanding charging orders and subject to the rights of
184	184	creditors; to provide a simplified purchase process upon the
185	185	death or disqualification of a member of an Alabama
186	186	partnership; to provide that a limited partnership agreement
187	187	may allow for the transfer of a transferable interest upon the
188	188	death of a transferable interest holder, with or without
189	189	consideration, subject to outstanding charging orders and
190	190	subject to the rights of creditors; and to provide an
191	191	effective date.
192	192	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
193	193	Section 1. Sections 10A-1-1.02, 10A-1-1.08, as amended
194	194	by Act 2024-413, 2024 Regular Session, 10A-1-2.11, 10A-1-3.08,
195	195	10A-1-5.08, 10A-1-5.09, 10A-1-5.10, 10A-1-5.32, 10A-1-5.33,
196	196	10A-1-5.34, 10A-1-7.01, 10A-1-7.04, 10A-1-8.01, and
197	197	10A-1-8.02, Code of Alabama 1975, are amended to read as
198	198	follows:
199	199	"§10A-1-1.02
200	200	(a) All provisions of this chapter shall apply to all
201	201	entities formed pursuant to or governed by Chapters 2A to 11,
202	202	inclusive, and Chapter Chapters 17 and 18, except as set forth
203	203	in this chapter and except as set forth in subsections (c),
204	204	(d), and (e).
205	205	(b) The provisions of this chapter shall apply to
206	206	entities formed pursuant to or governed by Chapter 16, Chapter
207	207	20, and Chapter 30 only as provided therein or expressly
208	208	provided in this chapter.
209	209	(c) If a provision of this chapter conflicts with a
210	210	provision in another chapter of this title, the provision of
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240	240	provision in another chapter of this title, the provision of
241	241	the other chapter, to the extent of the conflict, supersedes
242	242	the provision of this chapter.
243	243	(d) Provisions in another chapter may provide that the
244	244	provisions of this chapter do not apply by specifically
245	245	providing which provisions in this chapter do not apply.
246	246	(e) Provisions in another chapter may provide that the
247	247	governing documents of an entity governed by that other
248	248	chapter may supersede the provisions of this chapter by
249	249	specifically providing which provisions in this chapter may be
250	250	superseded by those governing documents."
251	251	"§10A-1-1.08
252	252	(a) The provisions of this title as described by this
253	253	section may be cited as provided by this section.
254	254	(b) Chapter 2A and the provisions of Chapter 1 to the
255	255	extent applicable to business corporations may be cited as the
256	256	Alabama Business Corporation Law.
257	257	(c) Chapter 3A and the provisions of Chapter 1 to the
258	258	extent applicable to nonprofit corporations may be cited as
259	259	the Alabama Nonprofit Corporation Law.
260	260	(d) Chapter 4 and the provisions of Chapter 1 to the
261	261	extent applicable to professional corporations may be cited as
262	262	the Alabama Professional Corporation Law.
263	263	(e) Chapter 5A and the provisions of Chapter 1 to the
264	264	extent applicable to limited liability companies may be cited
265	265	as the Alabama Limited Liability Company Law.
266	266	(f) Chapter 8A and the provisions of Chapter 1 to the
267	267	extent applicable to general partnerships may be cited as the
268	268	Alabama Partnership Law.
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298	298	Alabama Partnership Law.
299	299	(g) Chapter 9A and the provisions of Chapter 1 to the
300	300	extent applicable to limited partnerships may be cited as the
301	301	Alabama Limited Partnership Law.
302	302	(h) Chapter 10 and the provisions of Chapter 1 to the
303	303	extent applicable to real estate investment trusts may be
304	304	cited as the Alabama Real Estate Investment Trust Law.
305	305	(i) Chapter 11 and the provisions of Chapter 1 and
306	306	Chapter 2A to the extent applicable to employee cooperative
307	307	corporations may be cited as the Alabama Employee Cooperative
308	308	Corporations Law.
309	309	(j) Chapter 17 and the provisions of Chapter 1 to the
310	310	extent applicable to unincorporated nonprofit associations may
311	311	be cited as the Alabama Unincorporated Nonprofit Association
312	312	Law.
313	313	(k) Chapter 18 and the provisions of Chapter 1 to the
314	314	extent applicable to Alabama statewide trade associations may
315	315	be cited as the Alabama Statewide Trade Association Law. "
316	316	"§10A-1-2.11
317	317	Except as otherwise provided by this title, and whether
318	318	or not expressly stated in its governing documents, a domestic
319	319	entity has the same powers as an individual to take action
320	320	necessary or convenient to carry out its business and affairs.
321	321	Except as otherwise provided by this title or the governing
322	322	documents of the entity, the powers of a domestic entity
323	323	include the power to:
324	324	(1) sue, be sued, complain and defend suit in its
325	325	entity name;
326	326	(2) have and alter a seal and use the seal or a
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356	356	(2) have and alter a seal and use the seal or a
357	357	facsimile of it by impressing, affixing, or reproducing it;
358	358	(3) purchase, lease, or otherwise acquire, receive,
359	359	own, hold, improve, use, and deal in and with property or an
360	360	interest in property;
361	361	(4) sell, convey, mortgage, pledge, lease, exchange,
362	362	and otherwise dispose of property;
363	363	(5) make contracts and guaranties;
364	364	(6) incur liabilities, borrow money, issue notes,
365	365	bonds, and other obligations which may be convertible into or
366	366	include the option to purchase other securities or ownership
367	367	interests in the entity, and secure any obligations, or the
368	368	obligations of others for whom it can make guarantees, whether
369	369	or not a guarantee is made, by mortgaging or pledging its
370	370	property, franchises, or income;
371	371	(7) lend money, invest its funds, and receive and hold
372	372	property as security for repayment;
373	373	(8) acquire its own bonds, debentures, or other
374	374	evidences of indebtedness or obligations;
375	375	(9) acquire its own ownership interests, regardless of
376	376	whether redeemable, and hold the ownership interests as
377	377	treasury ownership interests or cancel or dispose of the
378	378	ownership interests;
379	379	(10) be a promoter, organizer, owner, partner, member,
380	380	associate, or manager of an organization;
381	381	(11) acquire, receive, own, hold, vote, use, pledge,
382	382	and dispose of ownership interests in or securities issued by
383	383	another person;
384	384	(12) conduct its business, locate its offices, and
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414	414	(12) conduct its business, locate its offices, and
415	415	exercise the powers granted by this title to further its
416	416	purposes, in or out of this state;
417	417	(13) lend money to, and otherwise assist, its
418	418	managerial officials, owners, members, or employees as
419	419	necessary or appropriate, provided, however, a nonprofit
420	420	entity shall not have the power to lend money to its officers
421	421	or directors;
422	422	(14) elect or appoint governing persons, officers, and
423	423	agents of the entity, establish the length of their terms,
424	424	define their duties, and fix their compensation;
425	425	(15) pay pensions and establish pension plans, pension
426	426	trusts, profit sharing plans, share bonus plans, and incentive
427	427	plans for managerial officials, owners, members, or employees
428	428	or former managerial officials, owners, members, or employees;
429	429	(16) indemnify and maintain liability insurance for
430	430	managerial officials, owners, members, employees, and agents
431	431	of the entity or the entity's affiliate;
432	432	(17) adopt and amend governing documents for managing
433	433	the affairs of the entity subject to applicable law;
434	434	(18) make donations for the public welfare or for
435	435	charitable, scientific, or educational purposes;
436	436	(19) voluntarily wind up its business and activities
437	437	and terminate its existence;
438	438	(20) transact business or take action that will aid
439	439	governmental policy; and
440	440	(21) make payments or donations, or do any other act,
441	441	not inconsistent with law, that furthers the business and
442	442	affairs of the entity; and
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472	472	affairs of the entity; and
473	473	(21)(22) take other action necessary or appropriate to
474	474	further the purposes of the entity."
475	475	"§10A-1-3.08
476	476	(a) Filing instruments that (i) were required or
477	477	permitted to be delivered for filing to a filing officer other
478	478	than the Secretary of State prior to January 1, 2021, (ii)
479	479	were delivered for filing to a filing officer other than the
480	480	Secretary of State prior to January 1, 2021, (iii) were
481	481	accepted by that filing officer and filed by that filing
482	482	officer prior to January 1, 2021, and (iv) would, if they were
483	483	delivered for filing on or after January 1, 2021, be required
484	484	or permitted to be delivered to the Secretary of State for
485	485	filing shall:
486	486	(1) remain in full force and effect until amended,
487	487	restated, revoked, or otherwise altered by a filing instrument
488	488	filed with the Secretary of State for that purpose; and
489	489	(2) not be affected as to their validity on or after
490	490	January 1, 2021, solely by reason of the change of location of
491	491	filings for similar filing instruments on or after January 1,
492	492	2021, to the office of the Secretary of State.
493	493	(b) A filing entity that has one or more filing
494	494	instruments that are described in clauses (i) through (iv) of
495	495	subsection (a) and that are not in the records of the
496	496	Secretary of State, may, but is not required to, deliver to
497	497	the Secretary of State for filing on or after January 1, 2021,
498	498	a certificate of information listing and attaching certified
499	499	copies of all of the above-described filing instruments of
500	500	that entity. The certificate of information shall include the
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530	530	that entity. The certificate of information shall include the
531	531	following information:
532	532	(1) the name of the entity;
533	533	(2) the type of entity;
534	534	(3) the date of formation of the entity;
535	535	(4) the unique identifying number or other designation
536	536	assigned by the Secretary of State, if any;
537	537	(5) a list of all of the filing instruments known to
538	538	the entity that are described in clauses (i) through (iv) of
539	539	subsection (a) that are not in the records of the Secretary of
540	540	State, which list must include the title of each filing
541	541	instrument, the date of the filing of each filing instrument,
542	542	and the filing officer with whom each filing instrument was
543	543	delivered for filing;
544	544	(6) an attached certified copy of the certificate of
545	545	formation then in effect if not in the records of the
546	546	Secretary of State; and
547	547	(7) an attached certified copy of any other filing
548	548	instruments of that entity then in effect that are not in the
549	549	records of the Secretary of State that the entity determines
550	550	to have in the records of the Secretary of State. "
551	551	"§10A-1-5.08
552	552	(a) The name of a domestic professional corporation or
553	553	of a foreign professional corporation registered to transact
554	554	business in this state must contain the words "professional
555	555	corporation" or the abbreviation "P.C." or "PC" and shall
556	556	otherwise conform to any rule promulgated by a licensing
557	557	authority having jurisdiction of a professional service
558	558	described in the certificate of formation of the professional
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588	588	described in the certificate of formation of the professional
589	589	corporation.
590	590	(b) The name of a professional entity must be
591	591	consistent with a statute or regulation that governs a person
592	592	that provides a professional service through the professional
593	593	entity, including a rule of professional ethics. "
594	594	"§10A-1-5.09
595	595	The name of a professional entity must be consistent
596	596	with a statute or regulation that governs a person that
597	597	provides a professional service through the professional
598	598	entity, including a rule of professional ethics. (a) The name
599	599	of a general partnership that has filed a statement of
600	600	partnership in accordance with Section 10A-8A-2.02 must
601	601	include the words "general partnership" or the abbreviation
602	602	"G.P." or "GP."
603	603	(b) The name of a general partnership that has filed a
604	604	statement of not for profit partnership in accordance with
605	605	Section 10A-8A-2.02 must include the words "not for profit
606	606	general partnership" or the abbreviation "N.G.P." or "NGP." "
607	607	"§10A-1-5.10
608	608	(a) The name of a general partnership that has filed a
609	609	statement of partnership in accordance with Section
610	610	10A-8A-2.02 must include the words "general partnership" or
611	611	the abbreviation "G.P." or "GP."
612	612	(b) The name of a general partnership that has filed a
613	613	statement of not for profit partnership in accordance with
614	614	Section 10A-8A-2.02 must include the words "not for profit
615	615	general partnership" or the abbreviation "N.G.P." or "NGP."
616	616	(a)(i) All filing entities and (ii) all general
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643	643	307
644	644	308 HB200 INTRODUCED
645	645	Page 12
646	646	(a)(i) All filing entities and (ii) all general
647	647	partnerships that are filing a statement of partnership, a
648	648	statement of not for profit general partnership, or a
649	649	statement of limited liability partnership, must reserve a
650	650	name with the Secretary of State in accordance with this
651	651	Article 5.
652	652	(b) When a filing entity delivers its certificate of
653	653	formation or certificate of incorporation, as applicable, to
654	654	the Secretary of State for filing, that filing entity must
655	655	attach its name reservation certificate to its certificate of
656	656	formation or the certificate of incorporation, as applicable;
657	657	provided, that the name reservation certificate shall not be
658	658	part of the certificate of formation or certificate of
659	659	incorporation, as applicable.
660	660	(c) When a general partnership delivers its statement
661	661	of partnership, statement of not for profit general
662	662	partnership, or statement of limited liability partnership, as
663	663	applicable, to the Secretary of State for filing, that general
664	664	partnership must attach its name reservation certificate to
665	665	its statement of partnership, statement of not for profit
666	666	general partnership, or statement of limited liability
667	667	partnership, as applicable; provided, that the name
668	668	reservation certificate shall not be part of the statement of
669	669	partnership, the statement of not for profit general
670	670	partnership, or the statement of limited liability
671	671	partnership, as applicable. "
672	672	"§10A-1-5.32
673	673	(a) An entity required to maintain a registered office
674	674	and registered agent under Section 10A-1-5.31 may change its
675	675	309
676	676	310
677	677	311
678	678	312
679	679	313
680	680	314
681	681	315
682	682	316
683	683	317
684	684	318
685	685	319
686	686	320
687	687	321
688	688	322
689	689	323
690	690	324
691	691	325
692	692	326
693	693	327
694	694	328
695	695	329
696	696	330
697	697	331
698	698	332
699	699	333
700	700	334
701	701	335
702	702	336 HB200 INTRODUCED
703	703	Page 13
704	704	and registered agent under Section 10A-1-5.31 may change its
705	705	registered office, its registered agent, or both, by
706	706	delivering to the Secretary of State for filing a statement of
707	707	the change in accordance with the procedures in Article 4.
708	708	(b) The statement of change must contain:
709	709	(1) the name of the entity;
710	710	(2) the unique identifying number or other designation
711	711	assigned by the Secretary of State;
712	712	(2)(3) the name of the entity's registered agent;
713	713	(3)(4) the street address of the entity's registered
714	714	agent;
715	715	(4)(5) if the change relates to the registered agent,
716	716	the name of the entity's new registered agent and the new
717	717	registered agent's written consent to the appointment, either
718	718	on the statement or attached to it;
719	719	(5)(6) if the change relates to the registered office,
720	720	the street address of the entity's new registered office;
721	721	(6)(7) a recitation that the change specified in the
722	722	statement is authorized by the entity; and
723	723	(7)(8) a recitation that the street address of the
724	724	registered office and the street address of the registered
725	725	agent's business are the same.
726	726	(c) On acceptance of the statement by the Secretary of
727	727	State, the statement is:
728	728	(1) in the case of a domestic filing entity, effective
729	729	to change the designation of the entity's registered agent or
730	730	registered office, or both, without the necessity of amending
731	731	the entity's certificate of formation;
732	732	(2) in the case of a general partnership with an
733	733	337
734	734	338
735	735	339
736	736	340
737	737	341
738	738	342
739	739	343
740	740	344
741	741	345
742	742	346
743	743	347
744	744	348
745	745	349
746	746	350
747	747	351
748	748	352
749	749	353
750	750	354
751	751	355
752	752	356
753	753	357
754	754	358
755	755	359
756	756	360
757	757	361
758	758	362
759	759	363
760	760	364 HB200 INTRODUCED
761	761	Page 14
762	762	(2) in the case of a general partnership with an
763	763	effective statement of partnership, statement of not for
764	764	profit partnership, or statement of limited liability
765	765	partnership on file with the Secretary of State under Chapter
766	766	8A, effective to change its registered agent or registered
767	767	office, or both, without the necessity of amending its
768	768	statement of partnership, statement of not for profit
769	769	partnership, or statement of limited liability partnership
770	770	under Chapter 8A;
771	771	(3) in the case of a foreign filing entity other than a
772	772	foreign limited liability partnership, effective to change the
773	773	designation of the entity's registered agent or registered
774	774	office, or both, and effective as an amendment of its
775	775	application for registration as a foreign entity under Article
776	776	7; or
777	777	(4) in the case of a foreign limited liability
778	778	partnership, effective to change the designation of its
779	779	registered agent or registered office, or both, without the
780	780	necessity of amending its statement of foreign limited
781	781	liability partnership under Article 7."
782	782	"§10A-1-5.33
783	783	(a) The registered agent of any entity required by
784	784	Section 10A-1-5.31 to designate and maintain a registered
785	785	agent or registered office may give notice of a change of its
786	786	name, or a change of its street address as the street address
787	787	of the entity's registered office, or both, by delivering a
788	788	statement of change containing the information required by
789	789	this section to the Secretary of State for filing a statement
790	790	of the change in accordance with the procedures in Article 4.
791	791	365
792	792	366
793	793	367
794	794	368
795	795	369
796	796	370
797	797	371
798	798	372
799	799	373
800	800	374
801	801	375
802	802	376
803	803	377
804	804	378
805	805	379
806	806	380
807	807	381
808	808	382
809	809	383
810	810	384
811	811	385
812	812	386
813	813	387
814	814	388
815	815	389
816	816	390
817	817	391
818	818	392 HB200 INTRODUCED
819	819	Page 15
820	820	of the change in accordance with the procedures in Article 4.
821	821	(b) The statement of change must be signed by the
822	822	registered agent, or a person authorized to sign the statement
823	823	on behalf of the registered agent, and must contain include:
824	824	(1) the name of the entity represented by the
825	825	registered agent;
826	826	(2) the unique identifying number of the entity
827	827	assigned by the Secretary of State;
828	828	(2)(3) the name of the entity's registered agent and
829	829	the street address at which the registered agent maintained
830	830	the entity's registered office;
831	831	(3)(4) if the change relates to the name of the
832	832	registered agent, the new name of that agent;
833	833	(4)(5) if the change relates to the street address of
834	834	the registered office, the new street address of that the
835	835	registered office; and
836	836	(5)(6) a recitation that written notice of the change
837	837	was given to the entity by the registered agent at least 10
838	838	days before the date the statement of change is filed
839	839	delivered to the Secretary of State for filing .
840	840	(c) On acceptance of the statement of change by the
841	841	Secretary of State, the statement of change is:
842	842	(1) in the case of a domestic filing entity, effective
843	843	to make the change or changes set forth in the statement of
844	844	change without the necessity of amending the entity's
845	845	certificate of formation;
846	846	(2) in the case of a general partnership with an
847	847	effective statement of partnership, statement of not for
848	848	profit partnership, or statement of limited liability
849	849	393
850	850	394
851	851	395
852	852	396
853	853	397
854	854	398
855	855	399
856	856	400
857	857	401
858	858	402
859	859	403
860	860	404
861	861	405
862	862	406
863	863	407
864	864	408
865	865	409
866	866	410
867	867	411
868	868	412
869	869	413
870	870	414
871	871	415
872	872	416
873	873	417
874	874	418
875	875	419
876	876	420 HB200 INTRODUCED
877	877	Page 16
878	878	profit partnership, or statement of limited liability
879	879	partnership on file with the Secretary of State, effective to
880	880	make the change its registered agent or registered office, or
881	881	both, or changes set forth in the statement of change without
882	882	the necessity of amending its statement of partnership,
883	883	statement of not for profit partnership, or statement of
884	884	limited liability partnership under Chapter 8A;
885	885	(3) in the case of a foreign filing entity with an
886	886	effective application for registration , effective to make the
887	887	change or changes set forth in the statement , and effective as
888	888	an amendment of of change, without the necessity of amending
889	889	its application for registration as a foreign entity under
890	890	Article 7; or
891	891	(4) in the case of a foreign limited liability
892	892	partnership with an effective statement of limited liability
893	893	partnership, effective to make the change or changes set forth
894	894	in the statement , and effective as an amendment to of change,
895	895	without the necessity of amending or restating its statement
896	896	of foreign limited liability partnership under Article 7.
897	897	(d) A registered agent may file deliver a statement of
898	898	change to the Secretary of State for filing under this section
899	899	that applies to more than one entity , and if the registered
900	900	agent does so, the registered agent must include the unique
901	901	identifying number assigned by the Secretary of State to each
902	902	entity in the statement of change ."
903	903	"§10A-1-5.34
904	904	(a) A registered agent of any entity required by
905	905	Section 10A-1-5.31 to designate and maintain a registered
906	906	agent or registered office may resign as the registered agent
907	907	421
908	908	422
909	909	423
910	910	424
911	911	425
912	912	426
913	913	427
914	914	428
915	915	429
916	916	430
917	917	431
918	918	432
919	919	433
920	920	434
921	921	435
922	922	436
923	923	437
924	924	438
925	925	439
926	926	440
927	927	441
928	928	442
929	929	443
930	930	444
931	931	445
932	932	446
933	933	447
934	934	448 HB200 INTRODUCED
935	935	Page 17
936	936	agent or registered office may resign as the registered agent
937	937	by giving written notice to that entity and delivering a
938	938	statement of resignation to the Secretary of State for filing.
939	939	(b) Notice Written notice to the entity must be given
940	940	to the entity at the address of the entity most recently known
941	941	by the agent prior to the delivery of the statement of
942	942	resignation to the Secretary of State for filing .
943	943	(c) Notice The statement of resignation shall be
944	944	delivered to the Secretary of State must be given before the
945	945	11th day after the date notice under subsection (b) is mailed
946	946	or delivered for filing and must include:
947	947	(1) the address of the entity most recently known by
948	948	the agent;
949	949	(2) a statement that written notice of the resignation
950	950	has been given to the entity; and
951	951	(3) the date on which that written notice of
952	952	resignation was given.
953	953	(d) On compliance with subsections (b) and (c), the
954	954	appointment of the registered agent terminates. The
955	955	termination is effective on the 31st day after the date the
956	956	Secretary of State receives the notice.
957	957	(1) the name of the entity;
958	958	(2) the unique identifying number of the entity
959	959	assigned by the Secretary of State;
960	960	(3) the name of the agent;
961	961	(4) that the agent resigns from serving as registered
962	962	agent for the entity; and
963	963	(5) the address of the entity to which the agent
964	964	delivered the written notice required by subsection (b).
965	965	449
966	966	450
967	967	451
968	968	452
969	969	453
970	970	454
971	971	455
972	972	456
973	973	457
974	974	458
975	975	459
976	976	460
977	977	461
978	978	462
979	979	463
980	980	464
981	981	465
982	982	466
983	983	467
984	984	468
985	985	469
986	986	470
987	987	471
988	988	472
989	989	473
990	990	474
991	991	475
992	992	476 HB200 INTRODUCED
993	993	Page 18
994	994	delivered the written notice required by subsection (b).
995	995	(d) A statement of resignation takes effect on the
996	996	earlier of:
997	997	(1) 12:01 a.m. on the 31st day after the day on which
998	998	it is delivered to the Secretary of State for filing; or
999	999	(2) the designation of a new registered agent by the
1000	1000	entity.
1001	1001	(e) When a statement of resignation takes effect, the
1002	1002	person that resigned ceases to have responsibility under this
1003	1003	title for any matter thereafter tendered to it as registered
1004	1004	agent for the entity. The resignation does not affect any
1005	1005	contractual rights the entity has against the registered agent
1006	1006	or that the registered agent has against the entity.
1007	1007	(f) A registered agent may resign with respect to an
1008	1008	entity regardless of whether the entity is in good standing.
1009	1009	(e) If(g) Upon the receipt of the statement of
1010	1010	resignation by the Secretary of State finds that a notice of
1011	1011	resignation received by the filing officer conforms to
1012	1012	subsections (b) and (c) , the Secretary of State shall:
1013	1013	(1) notify the entity of the registered agent's
1014	1014	resignation; and
1015	1015	(2) file the statement of resignation in accordance
1016	1016	with Article 4, except that a fee is not required to file the
1017	1017	statement of resignation."
1018	1018	"§10A-1-7.01
1019	1019	(a)(1) For purposes of this Article 7, the terms
1020	1020	register, registering, and registered include (i) a foreign
1021	1021	entity other than a foreign limited liability partnership
1022	1022	delivering to the Secretary of State for filing an application
1023	1023	477
1024	1024	478
1025	1025	479
1026	1026	480
1027	1027	481
1028	1028	482
1029	1029	483
1030	1030	484
1031	1031	485
1032	1032	486
1033	1033	487
1034	1034	488
1035	1035	489
1036	1036	490
1037	1037	491
1038	1038	492
1039	1039	493
1040	1040	494
1041	1041	495
1042	1042	496
1043	1043	497
1044	1044	498
1045	1045	499
1046	1046	500
1047	1047	501
1048	1048	502
1049	1049	503
1050	1050	504 HB200 INTRODUCED
1051	1051	Page 19
1052	1052	delivering to the Secretary of State for filing an application
1053	1053	for registration and the Secretary of State filing the
1054	1054	application for registration, and (ii) a foreign limited
1055	1055	liability partnership delivering to the Secretary of State for
1056	1056	filing a statement of foreign limited liability partnership
1057	1057	and the Secretary of State filing the statement of foreign
1058	1058	limited liability partnership.
1059	1059	(2) For purposes of this Article 7, the term
1060	1060	registration includes (i) a filed application for registration
1061	1061	and (ii) a filed statement of foreign limited liability
1062	1062	partnership.
1063	1063	(b) For purposes of this Article 7, the terms transact
1064	1064	business and transacting business shall include conducting a
1065	1065	business, activity, not for profit activity, and any other
1066	1066	activity, whether or not for profit.
1067	1067	(c) To transact business in this state, a foreign
1068	1068	entity must register under this chapter if the foreign entity:
1069	1069	(1) is a foreign entity, the formation of which, if
1070	1070	formed in this state, would require the filing under Article 3
1071	1071	of a certificate of formation;
1072	1072	(2) is a foreign limited liability partnership; or
1073	1073	(3) affords limited liability under the law of its
1074	1074	jurisdiction of formation for any owner or member.
1075	1075	(d) A foreign entity described by subsection (b) must
1076	1076	maintain the foreign entity's registration while transacting
1077	1077	business in this state.
1078	1078	(e) For purposes of this Article 7, a foreign entity
1079	1079	must reserve a name with the Secretary of State in accordance
1080	1080	with Article 5 and when a foreign entity delivers its
1081	1081	505
1082	1082	506
1083	1083	507
1084	1084	508
1085	1085	509
1086	1086	510
1087	1087	511
1088	1088	512
1089	1089	513
1090	1090	514
1091	1091	515
1092	1092	516
1093	1093	517
1094	1094	518
1095	1095	519
1096	1096	520
1097	1097	521
1098	1098	522
1099	1099	523
1100	1100	524
1101	1101	525
1102	1102	526
1103	1103	527
1104	1104	528
1105	1105	529
1106	1106	530
1107	1107	531
1108	1108	532 HB200 INTRODUCED
1109	1109	Page 20
1110	1110	with Article 5 and when a foreign entity delivers its
1111	1111	application for registration to the Secretary of State for
1112	1112	filing, that foreign entity must attach its name reservation
1113	1113	certificate to its application for registration. "
1114	1114	"§10A-1-7.04
1115	1115	(a)(1) A foreign entity described in Section
1116	1116	10A-1-7.01(c), other than a foreign limited liability
1117	1117	partnership, registers by delivering to the Secretary of State
1118	1118	for filing an application for registration in accordance with
1119	1119	the procedures in Article 4.
1120	1120	(2) A foreign limited liability partnership registers
1121	1121	by delivering to the Secretary of State for filing a statement
1122	1122	of foreign limited liability partnership in accordance with
1123	1123	the procedures in Article 4.
1124	1124	(b) The application for registration of a foreign
1125	1125	entity described in Section 10A-1-7.01(c) other than a foreign
1126	1126	limited liability partnership must state:
1127	1127	(1) the foreign entity's name or, if that name is not
1128	1128	available for use in this state or otherwise would not comply
1129	1129	with Article 5, a name that satisfies the requirements of
1130	1130	Section 10A-1-7.07 under which the foreign entity will
1131	1131	transact business in this state;
1132	1132	(2) the foreign entity's type;
1133	1133	(3) the foreign entity's jurisdiction of formation;
1134	1134	(4) the date of the foreign entity's formation;
1135	1135	(5) that the foreign entity exists as a valid foreign
1136	1136	entity of the stated type under the laws of the foreign
1137	1137	entity's jurisdiction of formation;
1138	1138	(6) the date the foreign entity began or will begin to
1139	1139	533
1140	1140	534
1141	1141	535
1142	1142	536
1143	1143	537
1144	1144	538
1145	1145	539
1146	1146	540
1147	1147	541
1148	1148	542
1149	1149	543
1150	1150	544
1151	1151	545
1152	1152	546
1153	1153	547
1154	1154	548
1155	1155	549
1156	1156	550
1157	1157	551
1158	1158	552
1159	1159	553
1160	1160	554
1161	1161	555
1162	1162	556
1163	1163	557
1164	1164	558
1165	1165	559
1166	1166	560 HB200 INTRODUCED
1167	1167	Page 21
1168	1168	(6) the date the foreign entity began or will begin to
1169	1169	transact business in this state;
1170	1170	(7) the street address and mailing address, if
1171	1171	different, of the principal office of the foreign entity ; and;
1172	1172	(8) the street address and mailing address, if
1173	1173	different, of the initial registered office and the name of
1174	1174	the initial registered agent for service of process which
1175	1175	Article 5 requires to be maintained at that office.
1176	1176	(c) The statement of foreign limited liability
1177	1177	partnership must state:
1178	1178	(1) the foreign limited liability partnership's name
1179	1179	or, if that name is not available for use in this state or
1180	1180	otherwise would not comply with Article 5, a name that
1181	1181	satisfies the requirements of Section 10A-1-7.07 under which
1182	1182	the foreign entity will transact business in this state;
1183	1183	(2) the jurisdiction which governs the foreign limited
1184	1184	liability partnership's partnership agreement and under which
1185	1185	it is a limited liability partnership;
1186	1186	(3) the date of the foreign limited liability
1187	1187	partnership's formation;
1188	1188	(4) that the foreign limited liability partnership
1189	1189	exists as a valid foreign limited liability partnership under
1190	1190	the laws of the jurisdiction which governs the foreign limited
1191	1191	liability partnership's partnership agreement and under which
1192	1192	it is a limited liability partnership;
1193	1193	(5) the date the foreign limited liability partnership
1194	1194	will begin to transact business in this state;
1195	1195	(6) the street address and mailing address, if
1196	1196	different, of the principal office of the foreign limited
1197	1197	561
1198	1198	562
1199	1199	563
1200	1200	564
1201	1201	565
1202	1202	566
1203	1203	567
1204	1204	568
1205	1205	569
1206	1206	570
1207	1207	571
1208	1208	572
1209	1209	573
1210	1210	574
1211	1211	575
1212	1212	576
1213	1213	577
1214	1214	578
1215	1215	579
1216	1216	580
1217	1217	581
1218	1218	582
1219	1219	583
1220	1220	584
1221	1221	585
1222	1222	586
1223	1223	587
1224	1224	588 HB200 INTRODUCED
1225	1225	Page 22
1226	1226	different, of the principal office of the foreign limited
1227	1227	liability partnership;
1228	1228	(7) the street address and mailing address, if
1229	1229	different, of the initial registered office and the name of
1230	1230	the initial registered agent for service of process which
1231	1231	Article 5 requires to be maintained at that office ;.
1232	1232	(d) The application for registration of a foreign
1233	1233	entity described in Section 10A-1-7.01(c) other than a foreign
1234	1234	limited liability partnership shall be executed by one or more
1235	1235	persons authorized to execute an application for registration.
1236	1236	The statement of foreign limited liability partnership shall
1237	1237	be executed by one or more partners authorized to execute a
1238	1238	statement of foreign limited liability partnership.
1239	1239	(e) The status of the foreign entity after registration
1240	1240	and the liability of its owners, managers, members, or
1241	1241	managerial officials shall not be adversely affected by error
1242	1242	or subsequent changes in the information stated in the
1243	1243	application for registration or statement of foreign limited
1244	1244	liability partnership, as applicable.
1245	1245	(f) The fact that an application for registration or a
1246	1246	statement of foreign limited liability partnership, as
1247	1247	applicable, is on file with the Secretary of State is notice
1248	1248	that the foreign entity is authorized to transact business in
1249	1249	this state and as notice of all facts required to be set forth
1250	1250	in the application for registration or the statement of
1251	1251	foreign limited liability partnership, as applicable.
1252	1252	(g) A foreign entity may register regardless of any
1253	1253	differences between the law of the foreign entity's
1254	1254	jurisdiction and of this state applicable to the governing of
1255	1255	589
1256	1256	590
1257	1257	591
1258	1258	592
1259	1259	593
1260	1260	594
1261	1261	595
1262	1262	596
1263	1263	597
1264	1264	598
1265	1265	599
1266	1266	600
1267	1267	601
1268	1268	602
1269	1269	603
1270	1270	604
1271	1271	605
1272	1272	606
1273	1273	607
1274	1274	608
1275	1275	609
1276	1276	610
1277	1277	611
1278	1278	612
1279	1279	613
1280	1280	614
1281	1281	615
1282	1282	616 HB200 INTRODUCED
1283	1283	Page 23
1284	1284	jurisdiction and of this state applicable to the governing of
1285	1285	the internal affairs or to the liability of an owner, member,
1286	1286	or managerial official. Notwithstanding the foregoing, no
1287	1287	foreign entity may carry on in this state any business of a
1288	1288	character that may not lawfully be carried on by a domestic
1289	1289	entity of the same type.
1290	1290	(h) A statement of foreign limited liability
1291	1291	partnership is a filing instrument."
1292	1292	"§10A-1-8.01
1293	1293	A conversion of an entity may be accomplished as
1294	1294	provided in this section:
1295	1295	(a) The plan of conversion must be in writing, and:
1296	1296	(1) must include the following:
1297	1297	(A) the name, type of entity, and mailing address of
1298	1298	the principal office of the converting entity, and its unique
1299	1299	identifying number or other designation as assigned by the
1300	1300	Secretary of State, if any, before conversion;
1301	1301	(B) the name, type of entity, and mailing address of
1302	1302	the principal office of the converted entity after conversion;
1303	1303	(C) the terms and conditions of the conversion,
1304	1304	including the manner and basis for converting interests in the
1305	1305	converting entity into any combination of money, interests in
1306	1306	the converted entity, and other consideration allowed in
1307	1307	subsection (b); and
1308	1308	(D) the organizational documents of the converted
1309	1309	entity; and
1310	1310	(2) may include other provisions relating to the
1311	1311	conversion not prohibited by law .; and
1312	1312	(3) at the time of the approval of the plan of
1313	1313	617
1314	1314	618
1315	1315	619
1316	1316	620
1317	1317	621
1318	1318	622
1319	1319	623
1320	1320	624
1321	1321	625
1322	1322	626
1323	1323	627
1324	1324	628
1325	1325	629
1326	1326	630
1327	1327	631
1328	1328	632
1329	1329	633
1330	1330	634
1331	1331	635
1332	1332	636
1333	1333	637
1334	1334	638
1335	1335	639
1336	1336	640
1337	1337	641
1338	1338	642
1339	1339	643
1340	1340	644 HB200 INTRODUCED
1341	1341	Page 24
1342	1342	(3) at the time of the approval of the plan of
1343	1343	conversion in accordance with subsection (c), the plan of
1344	1344	conversion is not required to contain or have attached thereto
1345	1345	any disclosure letter, disclosure schedules, or similar
1346	1346	documents or instruments contemplated by the plan of
1347	1347	conversion that modify, supplement, qualify, or make
1348	1348	exceptions to representations, warranties, covenants, or
1349	1349	conditions contained in the plan of conversion.
1350	1350	(b) In connection with a conversion, rights or
1351	1351	securities of or interests in a converting entity may be
1352	1352	exchanged for or converted into cash, property, or rights or
1353	1353	securities of or interests in the converted entity, or, in
1354	1354	addition to or in lieu thereof, may be exchanged for or
1355	1355	converted into cash, property, or rights or securities of or
1356	1356	interests in another entity, or may be cancelled.
1357	1357	(c) The plan of conversion of an entity must be
1358	1358	approved as follows:
1359	1359	(1) CORPORATIONS.
1360	1360	(A) If a corporation is governed by Chapter 2A and that
1361	1361	corporation is a converting entity, the plan of conversion
1362	1362	under subsection (a) must be approved in accordance with
1363	1363	Article 9 of Chapter 2A. If the conversion is a corporate
1364	1364	action as described in Section 10A-2A-13.02, then the rights,
1365	1365	obligations, and procedures under Article 13 of Chapter 2A
1366	1366	shall be applicable to that conversion.
1367	1367	(B) If a corporation is governed by Chapter 3A and that
1368	1368	corporation is a converting entity, the plan of conversion
1369	1369	under subsection (a) must be approved in accordance with
1370	1370	Article 13 of Chapter 3A.
1371	1371	645
1372	1372	646
1373	1373	647
1374	1374	648
1375	1375	649
1376	1376	650
1377	1377	651
1378	1378	652
1379	1379	653
1380	1380	654
1381	1381	655
1382	1382	656
1383	1383	657
1384	1384	658
1385	1385	659
1386	1386	660
1387	1387	661
1388	1388	662
1389	1389	663
1390	1390	664
1391	1391	665
1392	1392	666
1393	1393	667
1394	1394	668
1395	1395	669
1396	1396	670
1397	1397	671
1398	1398	672 HB200 INTRODUCED
1399	1399	Page 25
1400	1400	Article 13 of Chapter 3A.
1401	1401	(C) If a corporation is not governed by Chapter 2A or
1402	1402	Chapter 3A and that corporation is a converting entity, the
1403	1403	plan of conversion under subsection (a) must be approved in
1404	1404	accordance with the law of the jurisdiction of formation of
1405	1405	that corporation.
1406	1406	(2) LIMITED PARTNERSHIPS, INCLUDING LIMITED LIABILITY
1407	1407	LIMITED PARTNERSHIPS. If a limited partnership is a converting
1408	1408	entity, the plan of conversion under subsection (a) must be
1409	1409	approved in accordance with Article 10 of Chapter 9A.
1410	1410	(3) LIMITED LIABILITY COMPANIES. If a limited liability
1411	1411	company is a converting entity, the plan of conversion under
1412	1412	subsection (a) must be approved in accordance with Article 10
1413	1413	of Chapter 5A.
1414	1414	(4) GENERAL PARTNERSHIPS, INCLUDING LIMITED LIABILITY
1415	1415	PARTNERSHIPS. If a general partnership is a converting entity,
1416	1416	the plan of conversion under subsection (a) must be approved
1417	1417	in accordance with Article 9 of Chapter 8A. If a general
1418	1418	partnership is the converting entity and that general
1419	1419	partnership does not have an effective statement of
1420	1420	partnership, statement of not for profit partnership, or
1421	1421	statement of limited liability partnership on file with the
1422	1422	Secretary of State, then that general partnership must, before
1423	1423	proceeding with a conversion deliver to the Secretary of State
1424	1424	for filing, a statement of partnership, statement of not for
1425	1425	profit partnership, or statement of limited liability
1426	1426	partnership simultaneously with the delivery to the Secretary
1427	1427	of State for filing, of a statement of conversion.
1428	1428	(5) REAL ESTATE INVESTMENT TRUST. The terms and
1429	1429	673
1430	1430	674
1431	1431	675
1432	1432	676
1433	1433	677
1434	1434	678
1435	1435	679
1436	1436	680
1437	1437	681
1438	1438	682
1439	1439	683
1440	1440	684
1441	1441	685
1442	1442	686
1443	1443	687
1444	1444	688
1445	1445	689
1446	1446	690
1447	1447	691
1448	1448	692
1449	1449	693
1450	1450	694
1451	1451	695
1452	1452	696
1453	1453	697
1454	1454	698
1455	1455	699
1456	1456	700 HB200 INTRODUCED
1457	1457	Page 26
1458	1458	(5) REAL ESTATE INVESTMENT TRUST. The terms and
1459	1459	conditions of the plan of conversion under subsection (a) of a
1460	1460	real estate investment trust must be approved by all of the
1461	1461	trust's shareholders or as otherwise provided in the trust's
1462	1462	declaration of trust; but in no case may the vote required for
1463	1463	shareholder approval be set at less than a majority of all the
1464	1464	votes entitled to be cast. No conversion of a real estate
1465	1465	investment trust to a general or limited partnership may be
1466	1466	effected without the consent in writing of each shareholder
1467	1467	who will have personal liability with respect to the converted
1468	1468	entity, notwithstanding any provision in the declaration of
1469	1469	trust of the converting real estate investment trust providing
1470	1470	for less than unanimous shareholder approval for the
1471	1471	conversion.
1472	1472	(6) OTHER ENTITY. In the case of an entity not
1473	1473	specified in subdivisions (1) through (5), a plan of
1474	1474	conversion under subsection (a) must be approved in writing by
1475	1475	all owners of that entity or, if the entity has no owners,
1476	1476	then by all members of the governing authority of that entity.
1477	1477	(d) After the plan of conversion is approved pursuant
1478	1478	to subsection (c):
1479	1479	(1) if the converting entity is a filing entity, the
1480	1480	converting entity shall deliver to the Secretary of State for
1481	1481	filing, a statement of conversion, which must include:
1482	1482	(A) the name, type of entity, and mailing address of
1483	1483	the principal office of the converting entity, and its unique
1484	1484	identifying number or other designation as assigned by the
1485	1485	Secretary of State, if any, before conversion;
1486	1486	(B) a statement that the converting entity has been
1487	1487	701
1488	1488	702
1489	1489	703
1490	1490	704
1491	1491	705
1492	1492	706
1493	1493	707
1494	1494	708
1495	1495	709
1496	1496	710
1497	1497	711
1498	1498	712
1499	1499	713
1500	1500	714
1501	1501	715
1502	1502	716
1503	1503	717
1504	1504	718
1505	1505	719
1506	1506	720
1507	1507	721
1508	1508	722
1509	1509	723
1510	1510	724
1511	1511	725
1512	1512	726
1513	1513	727
1514	1514	728 HB200 INTRODUCED
1515	1515	Page 27
1516	1516	(B) a statement that the converting entity has been
1517	1517	converted into the converted entity;
1518	1518	(C) the name and type of entity of the converted entity
1519	1519	and the jurisdiction of its governing statute;
1520	1520	(D) the street and mailing address of the principal
1521	1521	office of the converted entity;
1522	1522	(E) the date the conversion is effective under the
1523	1523	governing statute of the converted entity;
1524	1524	(F) a statement that the conversion was approved as
1525	1525	required by this chapter;
1526	1526	(G) a statement that the conversion was approved as
1527	1527	required by the governing statute of the converted entity;
1528	1528	(H) a statement that a copy of the plan of conversion
1529	1529	will be furnished by the converted entity, on request and
1530	1530	without cost, to any owner of the converted or converting
1531	1531	entity; and
1532	1532	(I) if the converted entity is a foreign entity not
1533	1533	authorized to conduct activities and affairs in this state,
1534	1534	the street and mailing address of an office for the purposes
1535	1535	of Section 10A-1-8.04(b); and
1536	1536	(2) if the converted entity is (I) a filing entity, the
1537	1537	converting entity shall deliver to the Secretary of State for
1538	1538	filing a certificate of formation or (II) a general
1539	1539	partnership, the converting entity shall deliver to the
1540	1540	Secretary of State for filing a statement of partnership, a
1541	1541	statement of not for profit partnership, or a statement of
1542	1542	limited liability partnership, as applicable, which
1543	1543	certificate of formation or statement of partnership,
1544	1544	statement of not for profit partnership, or statement of
1545	1545	729
1546	1546	730
1547	1547	731
1548	1548	732
1549	1549	733
1550	1550	734
1551	1551	735
1552	1552	736
1553	1553	737
1554	1554	738
1555	1555	739
1556	1556	740
1557	1557	741
1558	1558	742
1559	1559	743
1560	1560	744
1561	1561	745
1562	1562	746
1563	1563	747
1564	1564	748
1565	1565	749
1566	1566	750
1567	1567	751
1568	1568	752
1569	1569	753
1570	1570	754
1571	1571	755
1572	1572	756 HB200 INTRODUCED
1573	1573	Page 28
1574	1574	statement of not for profit partnership, or statement of
1575	1575	limited liability partnership, as applicable, must include, in
1576	1576	addition to the information required in the chapter governing
1577	1577	the certificate of formation of the converted entity, the
1578	1578	following:
1579	1579	(A) The name, mailing address of the principal office
1580	1580	of, type of entity, and the jurisdiction of the governing
1581	1581	statute of the converting entity and its unique identifying
1582	1582	number or other designation as assigned by the Secretary of
1583	1583	State, if any, before conversion;
1584	1584	(B) A statement that the converting entity has been
1585	1585	converted into the converted entity;
1586	1586	(C) The filing office where the certificate of
1587	1587	formation, if any, of the converting entity is filed and the
1588	1588	date of the filing thereof;
1589	1589	(D) If the converted entity is one in which one or more
1590	1590	owners lack limited liability protection, a statement that
1591	1591	each owner of the converting entity who is to become an owner
1592	1592	without limited liability protection of the converted entity
1593	1593	has consented in writing to the conversion as required by this
1594	1594	section; and
1595	1595	(E) A statement that the conversion was approved
1596	1596	pursuant to this section and, if the converting entity is a
1597	1597	foreign entity, that the conversion was approved as required
1598	1598	by the governing statute of such foreign entity;
1599	1599	(3) if the converting entity is required pursuant to
1600	1600	subdivisions (1) and (2) to deliver to the Secretary of State
1601	1601	for filing both (I) a statement of conversion and (II)(A) a
1602	1602	certificate of formation , or (B) a statement of partnership,
1603	1603	757
1604	1604	758
1605	1605	759
1606	1606	760
1607	1607	761
1608	1608	762
1609	1609	763
1610	1610	764
1611	1611	765
1612	1612	766
1613	1613	767
1614	1614	768
1615	1615	769
1616	1616	770
1617	1617	771
1618	1618	772
1619	1619	773
1620	1620	774
1621	1621	775
1622	1622	776
1623	1623	777
1624	1624	778
1625	1625	779
1626	1626	780
1627	1627	781
1628	1628	782
1629	1629	783
1630	1630	784 HB200 INTRODUCED
1631	1631	Page 29
1632	1632	certificate of formation , or (B) a statement of partnership,
1633	1633	statement of not for profit partnership, or statement of
1634	1634	limited liability partnership, as applicable, then the
1635	1635	converting entity shall deliver the statement of conversion
1636	1636	and the certificate of formation or the statement of
1637	1637	partnership, statement of not for profit partnership, or
1638	1638	statement of limited liability partnership, as applicable, to
1639	1639	the Secretary of State simultaneously; and
1640	1640	(4) if the converting entity is a general partnership
1641	1641	and that partnership does not have an effective statement of
1642	1642	partnership, statement of not for profit partnership, or
1643	1643	statement of limited liability partnership on file with the
1644	1644	Secretary of State, then the converting entity must deliver to
1645	1645	the Secretary of State for filing, a statement of partnership,
1646	1646	statement of not for profit partnership, or statement of
1647	1647	limited liability partnership simultaneously with the delivery
1648	1648	to the Secretary of State for filing, of a statement of
1649	1649	conversion.
1650	1650	(e) After a plan of conversion is approved and before
1651	1651	the conversion takes effect, the plan may be amended or
1652	1652	abandoned as provided in the plan, or if the plan does not
1653	1653	provide for amendment or abandonment, in the same manner as
1654	1654	required for the approval of the plan of conversion
1655	1655	originally.
1656	1656	(f) A conversion becomes effective:
1657	1657	(1) if the converted entity is a filing entity, the
1658	1658	effective date determined in accordance with Article 4 of this
1659	1659	chapter; and
1660	1660	(2) if the converted entity is not a domestic filing
1661	1661	785
1662	1662	786
1663	1663	787
1664	1664	788
1665	1665	789
1666	1666	790
1667	1667	791
1668	1668	792
1669	1669	793
1670	1670	794
1671	1671	795
1672	1672	796
1673	1673	797
1674	1674	798
1675	1675	799
1676	1676	800
1677	1677	801
1678	1678	802
1679	1679	803
1680	1680	804
1681	1681	805
1682	1682	806
1683	1683	807
1684	1684	808
1685	1685	809
1686	1686	810
1687	1687	811
1688	1688	812 HB200 INTRODUCED
1689	1689	Page 30
1690	1690	(2) if the converted entity is not a domestic filing
1691	1691	entity, as provided by the governing statute of the converted
1692	1692	entity.
1693	1693	(g) When a conversion becomes effective:
1694	1694	(1) all property and contract rights owned by the
1695	1695	converting entity remain vested in the converted entity
1696	1696	without transfer, reversion, or impairment, and the title to
1697	1697	any property vested by deed or otherwise in the converting
1698	1698	entity shall not revert or be in any way impaired by reason of
1699	1699	the conversion;
1700	1700	(2) all debts, obligations, or other liabilities of the
1701	1701	converting entity continue as debts, obligations, or other
1702	1702	liabilities of the converted entity and neither the rights of
1703	1703	creditors nor the liens upon the property of the converting
1704	1704	entity shall be impaired by the conversion;
1705	1705	(3) an action or proceeding pending by or against the
1706	1706	converting entity continues as if the conversion had not
1707	1707	occurred and the name of the converted entity may, but need
1708	1708	not, be substituted for the name of the converting entity in
1709	1709	any pending action or proceeding;
1710	1710	(4) except as prohibited by law other than this
1711	1711	chapter, all of the rights, privileges, immunities, powers,
1712	1712	and purposes of the converting entity remain vested in the
1713	1713	converted entity;
1714	1714	(5) except as otherwise provided in the statement of
1715	1715	conversion, the terms and conditions of the statement of
1716	1716	conversion take effect;
1717	1717	(6) except as otherwise agreed, for all purposes of the
1718	1718	laws of this state, the converting entity shall not be
1719	1719	813
1720	1720	814
1721	1721	815
1722	1722	816
1723	1723	817
1724	1724	818
1725	1725	819
1726	1726	820
1727	1727	821
1728	1728	822
1729	1729	823
1730	1730	824
1731	1731	825
1732	1732	826
1733	1733	827
1734	1734	828
1735	1735	829
1736	1736	830
1737	1737	831
1738	1738	832
1739	1739	833
1740	1740	834
1741	1741	835
1742	1742	836
1743	1743	837
1744	1744	838
1745	1745	839
1746	1746	840 HB200 INTRODUCED
1747	1747	Page 31
1748	1748	laws of this state, the converting entity shall not be
1749	1749	required to wind up its affairs or pay its liabilities and
1750	1750	distribute its assets, and the conversion shall not be deemed
1751	1751	to constitute a dissolution of the converting entity;
1752	1752	(7) for all purposes of the laws of this state, the
1753	1753	rights, privileges, powers, interests in property, debts,
1754	1754	liabilities, and duties of the converting entity, shall be the
1755	1755	rights, privileges, powers, interests in property, debts,
1756	1756	liabilities, and duties of the converted entity, and shall not
1757	1757	be deemed as a consequence of the conversion, to have been
1758	1758	transferred to the converted entity;
1759	1759	(8) if the converted entity is a domestic entity, for
1760	1760	all purposes of the laws of this state, the converted entity
1761	1761	shall be deemed to be the same entity as the converting
1762	1762	entity, and the conversion shall constitute a continuation of
1763	1763	the existence of the converting entity in the form of the
1764	1764	converted entity;
1765	1765	(9) if the converting entity is a domestic entity, the
1766	1766	existence of the converted entity shall be deemed to have
1767	1767	commenced on the date the converting entity commenced its
1768	1768	existence in the jurisdiction in which the converting entity
1769	1769	was first created, formed, organized, incorporated, or
1770	1770	otherwise came into being;
1771	1771	(10) the conversion shall not affect the choice of law
1772	1772	applicable to matters arising prior to conversion;
1773	1773	(11) if the Secretary of State has assigned a unique
1774	1774	identifying number or other designation to the converting
1775	1775	entity and (i) the converted entity is formed pursuant to the
1776	1776	laws of this state, or (ii) the converted entity is, within 30
1777	1777	841
1778	1778	842
1779	1779	843
1780	1780	844
1781	1781	845
1782	1782	846
1783	1783	847
1784	1784	848
1785	1785	849
1786	1786	850
1787	1787	851
1788	1788	852
1789	1789	853
1790	1790	854
1791	1791	855
1792	1792	856
1793	1793	857
1794	1794	858
1795	1795	859
1796	1796	860
1797	1797	861
1798	1798	862
1799	1799	863
1800	1800	864
1801	1801	865
1802	1802	866
1803	1803	867
1804	1804	868 HB200 INTRODUCED
1805	1805	Page 32
1806	1806	laws of this state, or (ii) the converted entity is, within 30
1807	1807	days after the effective date of the conversion, registered to
1808	1808	transact business in this state, then that unique identifying
1809	1809	number or other designation shall continue to be assigned to
1810	1810	the converted entity; and
1811	1811	(12)(A) An owner with limited liability protection
1812	1812	remains liable, if at all, for an obligation incurred by the
1813	1813	converting entity before the conversion takes effect only to
1814	1814	the extent, if any, the owner would have been liable if the
1815	1815	conversion had not occurred.
1816	1816	(B) An owner with limited liability protection who
1817	1817	becomes an owner without limited liability protection is
1818	1818	liable for an obligation of the converted entity incurred
1819	1819	after conversion to the extent provided for by the laws
1820	1820	applicable to the converted entity.
1821	1821	(13) An owner without limited liability protection who
1822	1822	as a result of a conversion becomes an owner of a converted
1823	1823	entity with limited liability protection remains liable for an
1824	1824	obligation incurred by the converting entity before the
1825	1825	conversion takes effect only to the extent, if any, the owner
1826	1826	would have been liable if the conversion had not occurred.
1827	1827	(h) If:
1828	1828	(1) the converting entity is a filing entity, a general
1829	1829	partnership with an effective statement of partnership,
1830	1830	statement of not for profit partnership, or statement of
1831	1831	limited liability partnership on file with the Secretary of
1832	1832	State, a foreign filing entity registered to transact business
1833	1833	or not for profit activity in this state, or a qualified
1834	1834	foreign limited liability partnership;
1835	1835	869
1836	1836	870
1837	1837	871
1838	1838	872
1839	1839	873
1840	1840	874
1841	1841	875
1842	1842	876
1843	1843	877
1844	1844	878
1845	1845	879
1846	1846	880
1847	1847	881
1848	1848	882
1849	1849	883
1850	1850	884
1851	1851	885
1852	1852	886
1853	1853	887
1854	1854	888
1855	1855	889
1856	1856	890
1857	1857	891
1858	1858	892
1859	1859	893
1860	1860	894
1861	1861	895
1862	1862	896 HB200 INTRODUCED
1863	1863	Page 33
1864	1864	foreign limited liability partnership;
1865	1865	(2) the converted entity will be a filing entity, a
1866	1866	general partnership with an effective statement of
1867	1867	partnership, statement of not for profit partnership, or
1868	1868	statement of limited liability partnership on file with the
1869	1869	Secretary of State, a foreign filing entity registered to
1870	1870	transact business or not for profit activity in this state, or
1871	1871	a qualified foreign limited liability partnership;
1872	1872	(3) the name of the converting entity and the converted
1873	1873	entity are to be the same, other than words, phrases, or
1874	1874	abbreviations indicating the type of entity; and
1875	1875	(4) the name of the converted entity complies with
1876	1876	Division A of Article 5 or Section 10A-1-7.07, as the case may
1877	1877	be;
1878	1878	then, notwithstanding Division B of Article 5, no name
1879	1879	reservation shall be required and the converted entity shall
1880	1880	for all purposes of this title be entitled to utilize the name
1881	1881	of the converting entity without any further action by the
1882	1882	converting entity or the converted entity.
1883	1883	(i) A certified copy of the statement of conversion may
1884	1884	be delivered to the office of the judge of probate in any
1885	1885	county in which the converting entity owned real property, to
1886	1886	be recorded without payment and without collection by the
1887	1887	judge of probate of any deed or other transfer tax or fee. The
1888	1888	judge of probate shall, however, be entitled to collect a
1889	1889	filing fee of five dollars ($5). Any filing shall evidence
1890	1890	chain of title, but lack of filing shall not affect the
1891	1891	converted entity's title to the real property."
1892	1892	"§10A-1-8.02
1893	1893	897
1894	1894	898
1895	1895	899
1896	1896	900
1897	1897	901
1898	1898	902
1899	1899	903
1900	1900	904
1901	1901	905
1902	1902	906
1903	1903	907
1904	1904	908
1905	1905	909
1906	1906	910
1907	1907	911
1908	1908	912
1909	1909	913
1910	1910	914
1911	1911	915
1912	1912	916
1913	1913	917
1914	1914	918
1915	1915	919
1916	1916	920
1917	1917	921
1918	1918	922
1919	1919	923
1920	1920	924 HB200 INTRODUCED
1921	1921	Page 34
1922	1922	"§10A-1-8.02
1923	1923	A merger of two or more entities, whether the other
1924	1924	entity or entities are the same or another form of entity, may
1925	1925	be accomplished as provided in this section.
1926	1926	(a) The plan of merger must be in writing, and:
1927	1927	(1) must include the following:
1928	1928	(A) the name, type of entity, and mailing address of
1929	1929	the principal office of each entity that is a party to the
1930	1930	merger, the jurisdiction of the governing statute of each
1931	1931	entity that is a party to the merger, and the respective
1932	1932	unique identifying number or other designation as assigned by
1933	1933	the Secretary of State, if any, of each entity that is a party
1934	1934	to the merger;
1935	1935	(B) the name, type of entity, and mailing address of
1936	1936	the principal office of the surviving entity and, if the
1937	1937	surviving entity is to be created pursuant to the merger, the
1938	1938	surviving entity's organizational documents;
1939	1939	(C) the terms and conditions of the merger, including
1940	1940	the manner and basis for converting the interests in each
1941	1941	entity that is a party to the merger into any combination of
1942	1942	money, interests in the surviving entity, and other
1943	1943	consideration as allowed by subsection (b); and
1944	1944	(D) if the surviving entity is not to be created
1945	1945	pursuant to the merger, any amendments to be made by the
1946	1946	merger to the surviving entity's organizational documents; and
1947	1947	(2) with respect to all entities other than nonprofit
1948	1948	entities, a plan of merger may provide:
1949	1949	(A) that (i) any party to the plan of merger that fails
1950	1950	to perform its obligations under the plan of merger in
1951	1951	925
1952	1952	926
1953	1953	927
1954	1954	928
1955	1955	929
1956	1956	930
1957	1957	931
1958	1958	932
1959	1959	933
1960	1960	934
1961	1961	935
1962	1962	936
1963	1963	937
1964	1964	938
1965	1965	939
1966	1966	940
1967	1967	941
1968	1968	942
1969	1969	943
1970	1970	944
1971	1971	945
1972	1972	946
1973	1973	947
1974	1974	948
1975	1975	949
1976	1976	950
1977	1977	951
1978	1978	952 HB200 INTRODUCED
1979	1979	Page 35
1980	1980	to perform its obligations under the plan of merger in
1981	1981	accordance with the terms and conditions of the plan of
1982	1982	merger, or that otherwise fails to comply with the terms and
1983	1983	conditions of the plan of merger, in each case, required to be
1984	1984	performed or complied with prior to the time the merger
1985	1985	becomes effective, or that otherwise fails to consummate, or
1986	1986	fails to cause the consummation of, the merger (whether prior
1987	1987	to a specified date, upon satisfaction or, to the extent
1988	1988	permitted by law, waiver of all conditions to consummation set
1989	1989	forth in the plan of merger, or otherwise) shall be subject,
1990	1990	in addition to any other remedies available at law or in
1991	1991	equity, to the penalties or consequences as are set forth in
1992	1992	the plan of merger (which penalties or consequences may
1993	1993	include an obligation to pay to the other party or parties to
1994	1994	the plan of merger an amount representing, or based on the
1995	1995	loss of, any premium or other economic entitlement the owners
1996	1996	of the other party would be entitled to receive pursuant to
1997	1997	the terms of the plan of merger if the merger were consummated
1998	1998	in accordance with the terms of the plan of merger) and (ii)
1999	1999	if, pursuant to the terms of the plan of merger, an entity is
2000	2000	entitled to receive payment from another party to the plan of
2001	2001	merger of any amount representing a penalty or consequence (as
2002	2002	specified in clause (i) of this Section 10A-1-8.02(a)(2)(A)),
2003	2003	the entity shall be entitled to enforce the other party's
2004	2004	payment obligation and, upon receipt of any payment, shall be
2005	2005	entitled to retain the amount of the payment so received;
2006	2006	(B)(i) for the appointment, at or after the time at
2007	2007	which the plan of merger is adopted by the owners of a
2008	2008	domestic entity that is a party to the merger in accordance
2009	2009	953
2010	2010	954
2011	2011	955
2012	2012	956
2013	2013	957
2014	2014	958
2015	2015	959
2016	2016	960
2017	2017	961
2018	2018	962
2019	2019	963
2020	2020	964
2021	2021	965
2022	2022	966
2023	2023	967
2024	2024	968
2025	2025	969
2026	2026	970
2027	2027	971
2028	2028	972
2029	2029	973
2030	2030	974
2031	2031	975
2032	2032	976
2033	2033	977
2034	2034	978
2035	2035	979
2036	2036	980 HB200 INTRODUCED
2037	2037	Page 36
2038	2038	domestic entity that is a party to the merger in accordance
2039	2039	with the requirements of the statute governing that party, of
2040	2040	one or more persons (which may include the surviving or
2041	2041	resulting domestic entity or any officer, manager,
2042	2042	representative or agent thereof) as representative of the
2043	2043	owners of that domestic entity that is a party to the merger,
2044	2044	including those whose ownership interests shall be cancelled,
2045	2045	converted, or exchanged in the merger, and for the delegation
2046	2046	to that person or persons of the sole and exclusive authority
2047	2047	to take action on behalf of the owners pursuant to the plan of
2048	2048	merger, including taking such actions as the representative
2049	2049	determines to enforce (including by entering into settlements
2050	2050	with respect to) the rights of the owners under the plan of
2051	2051	merger, on the terms and subject to the conditions set forth
2052	2052	in the plan of merger, and (ii) that any appointment pursuant
2053	2053	to clause (i) of this Section 10A-1-8.02(a)(2)(B) shall be
2054	2054	irrevocable and binding on all owners from and after the
2055	2055	adoption of the plan of merger by the requisite vote of the
2056	2056	owners pursuant to the statute governing that entity; and
2057	2057	(C) that any provision adopted pursuant to Section
2058	2058	10A-1-8.02(a)(2)(B) may not be amended after the merger has
2059	2059	become effective or may be amended only with the consent or
2060	2060	approval of persons specified in the plan of merger;
2061	2061	(3) a plan of merger may include other provisions
2062	2062	relating to the merger not prohibited by law .; and
2063	2063	(4) at the time of the approval of the plan of merger
2064	2064	in accordance with subsection (c), the plan of merger is not
2065	2065	required to contain or have attached thereto any disclosure
2066	2066	letter, disclosure schedules, or similar documents or
2067	2067	981
2068	2068	982
2069	2069	983
2070	2070	984
2071	2071	985
2072	2072	986
2073	2073	987
2074	2074	988
2075	2075	989
2076	2076	990
2077	2077	991
2078	2078	992
2079	2079	993
2080	2080	994
2081	2081	995
2082	2082	996
2083	2083	997
2084	2084	998
2085	2085	999
2086	2086	1000
2087	2087	1001
2088	2088	1002
2089	2089	1003
2090	2090	1004
2091	2091	1005
2092	2092	1006
2093	2093	1007
2094	2094	1008 HB200 INTRODUCED
2095	2095	Page 37
2096	2096	letter, disclosure schedules, or similar documents or
2097	2097	instruments contemplated by the plan of merger that modify,
2098	2098	supplement, qualify, or make exceptions to representations,
2099	2099	warranties, covenants, or conditions contained in the plan of
2100	2100	merger.
2101	2101	(b) In connection with a merger, rights or securities
2102	2102	of or interests in a merged entity may be exchanged for or
2103	2103	converted into cash, property, or rights or securities of or
2104	2104	interests in the surviving entity, or, in addition to or in
2105	2105	lieu thereof, may be exchanged for or converted into cash,
2106	2106	property, or rights or securities of or interests in another
2107	2107	entity, or may be cancelled.
2108	2108	(c) The plan of merger of an entity must be approved as
2109	2109	follows:
2110	2110	(1) CORPORATIONS.
2111	2111	(A) If a corporation is governed by Chapter 2A and that
2112	2112	corporation is a party to a merger, a plan of merger under
2113	2113	subsection (a) must be approved in accordance with Article 11
2114	2114	of Chapter 2A. If the merger is a corporate action as
2115	2115	described in Section 10A-2A-13.02, then the rights,
2116	2116	obligations, and procedures under Article 13 of Chapter 2A
2117	2117	shall be applicable to that merger.
2118	2118	(B) If a nonprofit corporation is governed by Chapter
2119	2119	3A and that corporation is a party to a merger, a plan of
2120	2120	merger under subsection (a) must be approved in accordance
2121	2121	with Article 12 of Chapter 3A.
2122	2122	(C) If a corporation is not governed by Chapter 2A or
2123	2123	Chapter 3A and that corporation is a party to a merger, the
2124	2124	plan of merger under subsection (a) must be approved in
2125	2125	1009
2126	2126	1010
2127	2127	1011
2128	2128	1012
2129	2129	1013
2130	2130	1014
2131	2131	1015
2132	2132	1016
2133	2133	1017
2134	2134	1018
2135	2135	1019
2136	2136	1020
2137	2137	1021
2138	2138	1022
2139	2139	1023
2140	2140	1024
2141	2141	1025
2142	2142	1026
2143	2143	1027
2144	2144	1028
2145	2145	1029
2146	2146	1030
2147	2147	1031
2148	2148	1032
2149	2149	1033
2150	2150	1034
2151	2151	1035
2152	2152	1036 HB200 INTRODUCED
2153	2153	Page 38
2154	2154	plan of merger under subsection (a) must be approved in
2155	2155	accordance with the law of the jurisdiction of formation of
2156	2156	that corporation.
2157	2157	(2) LIMITED PARTNERSHIPS. In the case of a limited
2158	2158	partnership that is a party to the merger, a plan of merger
2159	2159	under subsection (a) must be approved in accordance with
2160	2160	Article 10 of Chapter 9A.
2161	2161	(3) LIMITED LIABILITY COMPANIES. In the case of a
2162	2162	limited liability company that is a party to the merger, a
2163	2163	plan of merger under subsection (a) must be approved in
2164	2164	accordance with Article 10 of Chapter 5A.
2165	2165	(4) GENERAL PARTNERSHIPS, INCLUDING LIMITED LIABILITY
2166	2166	PARTNERSHIPS. In the case of a general partnership that is a
2167	2167	party to the merger, a plan of merger under subsection (a)
2168	2168	must be approved in accordance with Article 9 of Chapter 8A.
2169	2169	All general partnerships, other than a general partnership
2170	2170	that is created pursuant to the merger, that are parties to a
2171	2171	merger must have on file with the Secretary of State a
2172	2172	statement of partnership, statement of not for profit
2173	2173	partnership, or statement of limited liability partnership
2174	2174	prior to delivering the statement of merger to the Secretary
2175	2175	of State for filing.
2176	2176	(5) REAL ESTATE INVESTMENT TRUST. In the case of a real
2177	2177	estate investment trust that is a party to the merger, a plan
2178	2178	of merger under subsection (a) must be approved in writing by
2179	2179	all of the trust's shareholders or as otherwise provided in
2180	2180	the trust's declaration of trust, but in no case may the vote
2181	2181	required for shareholder approval be set at less than a
2182	2182	majority of all the votes entitled to be cast. No merger of a
2183	2183	1037
2184	2184	1038
2185	2185	1039
2186	2186	1040
2187	2187	1041
2188	2188	1042
2189	2189	1043
2190	2190	1044
2191	2191	1045
2192	2192	1046
2193	2193	1047
2194	2194	1048
2195	2195	1049
2196	2196	1050
2197	2197	1051
2198	2198	1052
2199	2199	1053
2200	2200	1054
2201	2201	1055
2202	2202	1056
2203	2203	1057
2204	2204	1058
2205	2205	1059
2206	2206	1060
2207	2207	1061
2208	2208	1062
2209	2209	1063
2210	2210	1064 HB200 INTRODUCED
2211	2211	Page 39
2212	2212	majority of all the votes entitled to be cast. No merger of a
2213	2213	real estate investment trust with a general or limited
2214	2214	partnership that is to be the surviving entity may be effected
2215	2215	without the consent in writing of each shareholder who will
2216	2216	have personal liability with respect to the surviving entity,
2217	2217	notwithstanding any provision in the declaration of trust of
2218	2218	the converting real estate investment trust providing for less
2219	2219	than unanimous shareholder approval for the merger.
2220	2220	(6) OTHER ENTITY. In the case of an entity not
2221	2221	specified in paragraphs (1) through (5) above, a plan of
2222	2222	merger under subsection (a) must be approved in writing by all
2223	2223	owners of that entity or, if the entity has no owners, then by
2224	2224	all members of the governing authority of that entity.
2225	2225	(d) After each entity has approved the plan of merger
2226	2226	pursuant to subsection (c), the entities must deliver to the
2227	2227	Secretary of State for filing a statement of merger signed on
2228	2228	behalf of each entity as provided by its governing statute
2229	2229	which must include:
2230	2230	(1) the name, type of entity, and mailing address of
2231	2231	the principal office of each entity that is a party to the
2232	2232	merger, the jurisdiction of the governing statute of each
2233	2233	entity that is a party to the merger, and the respective
2234	2234	unique identifying number or other designation as assigned by
2235	2235	the Secretary of State, if any, of each entity that is a party
2236	2236	to the merger;
2237	2237	(2) the name, type of entity, and mailing address of
2238	2238	the principal office of the surviving entity, the unique
2239	2239	identifying number or other designation as assigned by the
2240	2240	Secretary of State, if any, of the surviving entity, the
2241	2241	1065
2242	2242	1066
2243	2243	1067
2244	2244	1068
2245	2245	1069
2246	2246	1070
2247	2247	1071
2248	2248	1072
2249	2249	1073
2250	2250	1074
2251	2251	1075
2252	2252	1076
2253	2253	1077
2254	2254	1078
2255	2255	1079
2256	2256	1080
2257	2257	1081
2258	2258	1082
2259	2259	1083
2260	2260	1084
2261	2261	1085
2262	2262	1086
2263	2263	1087
2264	2264	1088
2265	2265	1089
2266	2266	1090
2267	2267	1091
2268	2268	1092 HB200 INTRODUCED
2269	2269	Page 40
2270	2270	Secretary of State, if any, of the surviving entity, the
2271	2271	jurisdiction of the governing statute of the surviving entity,
2272	2272	and, if the surviving entity is created pursuant to the
2273	2273	merger, a statement to that effect;
2274	2274	(3) for each general partnership, the date of the
2275	2275	filing of the statement of partnership, statement of not for
2276	2276	profit partnership, or statement of limited liability
2277	2277	partnership, if any, and all prior amendments and the filing
2278	2278	office or offices, if any, where such is filed;
2279	2279	(4) the date the merger is effective under the
2280	2280	governing statute of the surviving entity;
2281	2281	(5) if the surviving entity is to be created pursuant
2282	2282	to the merger, (i) if it will be a filing entity, its
2283	2283	certificate of formation; or (ii) if it will be a non-filing
2284	2284	entity, any document that creates the entity that is required
2285	2285	to be in a public writing or in the case of a general
2286	2286	partnership, its statement of partnership, statement of not
2287	2287	for profit partnership, or statement of limited liability
2288	2288	partnership, as applicable;
2289	2289	(6) if the surviving entity is a domestic entity that
2290	2290	exists before the merger, any amendments provided for in the
2291	2291	plan of merger for the organizational documents that created
2292	2292	the domestic entity that are required to be in a public
2293	2293	writing, or in the case of a general partnership, its
2294	2294	statement of partnership, statement of not for profit
2295	2295	partnership, or statement of limited liability partnership, as
2296	2296	applicable;
2297	2297	(7) a statement as to each entity that the merger was
2298	2298	approved as required by the entity's governing statute;
2299	2299	1093
2300	2300	1094
2301	2301	1095
2302	2302	1096
2303	2303	1097
2304	2304	1098
2305	2305	1099
2306	2306	1100
2307	2307	1101
2308	2308	1102
2309	2309	1103
2310	2310	1104
2311	2311	1105
2312	2312	1106
2313	2313	1107
2314	2314	1108
2315	2315	1109
2316	2316	1110
2317	2317	1111
2318	2318	1112
2319	2319	1113
2320	2320	1114
2321	2321	1115
2322	2322	1116
2323	2323	1117
2324	2324	1118
2325	2325	1119
2326	2326	1120 HB200 INTRODUCED
2327	2327	Page 41
2328	2328	approved as required by the entity's governing statute;
2329	2329	(8) a statement that a copy of the plan of merger will
2330	2330	be furnished by the surviving entity, on request and without
2331	2331	cost, to any owner of any entity which is a party to the
2332	2332	merger;
2333	2333	(9) if the surviving entity is a foreign entity not
2334	2334	authorized to conduct activities and affairs in this state,
2335	2335	the street and mailing address of an office for the purposes
2336	2336	of Section 10A-1-8.04; and
2337	2337	(10) any additional information required by the
2338	2338	governing statute of any entity that is a party to the merger.
2339	2339	(e) Prior to the statement of merger being delivered
2340	2340	for filing to the Secretary of State in accordance with
2341	2341	subsection (d), all parties to the merger that are general
2342	2342	partnerships, other than a general partnership that is created
2343	2343	pursuant to the merger, must have on file with the Secretary
2344	2344	of State a statement of partnership, statement of not for
2345	2345	profit partnership, or statement of limited liability
2346	2346	partnership.
2347	2347	(f) After a plan of merger is approved and before the
2348	2348	merger takes effect, the plan may be amended or abandoned as
2349	2349	provided in the plan, or if the plan does not provide for
2350	2350	amendment or abandonment, in the same manner as required for
2351	2351	the approval of the plan of merger originally.
2352	2352	(g) If all of the entities that are parties to the
2353	2353	merger are domestic entities, the merger becomes effective on
2354	2354	the effective date determined in accordance with Article 4. If
2355	2355	one or more parties to the merger is a foreign entity, or a
2356	2356	foreign entity created by the merger is the surviving entity,
2357	2357	1121
2358	2358	1122
2359	2359	1123
2360	2360	1124
2361	2361	1125
2362	2362	1126
2363	2363	1127
2364	2364	1128
2365	2365	1129
2366	2366	1130
2367	2367	1131
2368	2368	1132
2369	2369	1133
2370	2370	1134
2371	2371	1135
2372	2372	1136
2373	2373	1137
2374	2374	1138
2375	2375	1139
2376	2376	1140
2377	2377	1141
2378	2378	1142
2379	2379	1143
2380	2380	1144
2381	2381	1145
2382	2382	1146
2383	2383	1147
2384	2384	1148 HB200 INTRODUCED
2385	2385	Page 42
2386	2386	foreign entity created by the merger is the surviving entity,
2387	2387	the merger shall become effective at the later of:
2388	2388	(1) when all documents required to be filed in foreign
2389	2389	jurisdictions to effect the merger have become effective, or
2390	2390	(2) the effective date determined in accordance with
2391	2391	Article 4.
2392	2392	(h) When a merger becomes effective:
2393	2393	(1) the surviving entity continues or, in the case of a
2394	2394	surviving entity created pursuant to the merger, comes into
2395	2395	existence;
2396	2396	(2) each entity that merges into the surviving entity
2397	2397	ceases to exist as a separate entity;
2398	2398	(3) except as provided in the plan of merger, all
2399	2399	property owned by, and every contract right possessed by, each
2400	2400	merging entity that ceases to exist vests in the surviving
2401	2401	entity without transfer, reversion, or impairment and the
2402	2402	title to any property and contract rights vested by deed or
2403	2403	otherwise in the surviving entity shall not revert, be in any
2404	2404	way impaired, or be deemed to be a transfer by reason of the
2405	2405	merger;
2406	2406	(4) all debts, obligations, and other liabilities of
2407	2407	each merging entity, other than the surviving entity, are
2408	2408	debts, obligations, and liabilities of the surviving entity,
2409	2409	and neither the rights of creditors, nor any liens upon the
2410	2410	property of any entity that is a party to the merger, shall be
2411	2411	impaired by the merger;
2412	2412	(5) an action or proceeding, pending by or against any
2413	2413	merging entity that ceases to exist continues as if the merger
2414	2414	had not occurred and the name of the surviving entity may, but
2415	2415	1149
2416	2416	1150
2417	2417	1151
2418	2418	1152
2419	2419	1153
2420	2420	1154
2421	2421	1155
2422	2422	1156
2423	2423	1157
2424	2424	1158
2425	2425	1159
2426	2426	1160
2427	2427	1161
2428	2428	1162
2429	2429	1163
2430	2430	1164
2431	2431	1165
2432	2432	1166
2433	2433	1167
2434	2434	1168
2435	2435	1169
2436	2436	1170
2437	2437	1171
2438	2438	1172
2439	2439	1173
2440	2440	1174
2441	2441	1175
2442	2442	1176 HB200 INTRODUCED
2443	2443	Page 43
2444	2444	had not occurred and the name of the surviving entity may, but
2445	2445	need not be substituted in any pending proceeding for the name
2446	2446	of any merging entity whose separate existence ceased in the
2447	2447	merger;
2448	2448	(6) except as prohibited by law other than this chapter
2449	2449	or as provided in the plan of merger, all the rights,
2450	2450	privileges, franchises, immunities, powers, and purposes of
2451	2451	each merging entity, other than the surviving entity, vest in
2452	2452	the surviving entity;
2453	2453	(7) except as otherwise provided in the plan of merger,
2454	2454	the terms and conditions of the plan of merger take effect;
2455	2455	(8) except as otherwise agreed, if a merged entity
2456	2456	ceases to exist, the merger does not dissolve the merged
2457	2457	entity;
2458	2458	(9) if the surviving entity is created pursuant to the
2459	2459	merger:
2460	2460	(A) if it is a general partnership, the statement of
2461	2461	partnership, statement of not for profit partnership, or
2462	2462	statement of limited liability partnership becomes effective;
2463	2463	or
2464	2464	(B) if it is an entity other than a partnership, the
2465	2465	organizational documents that create the entity become
2466	2466	effective;
2467	2467	(10) the interests in a merging entity that are to be
2468	2468	converted in accordance with the terms of the merger into
2469	2469	interests, obligations, rights to acquire interests, cash,
2470	2470	other property, or any combination of the foregoing, are
2471	2471	converted as provided in the plan of merger, and the former
2472	2472	holders of interests are entitled only to the rights provided
2473	2473	1177
2474	2474	1178
2475	2475	1179
2476	2476	1180
2477	2477	1181
2478	2478	1182
2479	2479	1183
2480	2480	1184
2481	2481	1185
2482	2482	1186
2483	2483	1187
2484	2484	1188
2485	2485	1189
2486	2486	1190
2487	2487	1191
2488	2488	1192
2489	2489	1193
2490	2490	1194
2491	2491	1195
2492	2492	1196
2493	2493	1197
2494	2494	1198
2495	2495	1199
2496	2496	1200
2497	2497	1201
2498	2498	1202
2499	2499	1203
2500	2500	1204 HB200 INTRODUCED
2501	2501	Page 44
2502	2502	holders of interests are entitled only to the rights provided
2503	2503	to them by those terms or to any appraisal or dissenters'
2504	2504	rights they may have under the governing statute governing the
2505	2505	merging entity;
2506	2506	(11) if the surviving entity exists before the merger:
2507	2507	(A) except as provided in the plan of merger, all the
2508	2508	property and contract rights of the surviving entity remain
2509	2509	its property and contract rights without transfer, reversion,
2510	2510	or impairment;
2511	2511	(B) the surviving entity remains subject to all its
2512	2512	debts, obligations, and other liabilities; and
2513	2513	(C) except as provided by law other than this chapter
2514	2514	or the plan of merger, the surviving entity continues to hold
2515	2515	all of its rights, privileges, franchises, immunities, powers,
2516	2516	and purposes.
2517	2517	(12) Service of process in an action or proceeding
2518	2518	against a surviving foreign entity to enforce an obligation of
2519	2519	a domestic entity that is a party to a merger may be made by
2520	2520	registered mail addressed to the surviving entity at the
2521	2521	address set forth in the statement of merger or by any method
2522	2522	provided by the Alabama Rules of Civil Procedure. Any notice
2523	2523	or demand required or permitted by law to be served on a
2524	2524	domestic entity may be served on the surviving foreign entity
2525	2525	by registered mail addressed to the surviving entity at the
2526	2526	address set forth in the statement of merger or in any other
2527	2527	manner similar to the procedure provided by the Alabama Rules
2528	2528	of Civil Procedure for the service of process.
2529	2529	(13)(A) An owner of an entity with limited liability
2530	2530	protection remains liable, if at all, for an obligation
2531	2531	1205
2532	2532	1206
2533	2533	1207
2534	2534	1208
2535	2535	1209
2536	2536	1210
2537	2537	1211
2538	2538	1212
2539	2539	1213
2540	2540	1214
2541	2541	1215
2542	2542	1216
2543	2543	1217
2544	2544	1218
2545	2545	1219
2546	2546	1220
2547	2547	1221
2548	2548	1222
2549	2549	1223
2550	2550	1224
2551	2551	1225
2552	2552	1226
2553	2553	1227
2554	2554	1228
2555	2555	1229
2556	2556	1230
2557	2557	1231
2558	2558	1232 HB200 INTRODUCED
2559	2559	Page 45
2560	2560	protection remains liable, if at all, for an obligation
2561	2561	incurred prior to the merger by an entity that ceases to exist
2562	2562	as a result of the merger only to the extent, if any, that the
2563	2563	owner would have been liable under the laws applicable to
2564	2564	owners of the form of entity that ceased to exist if the
2565	2565	merger had not occurred.
2566	2566	(B) An owner with limited liability protection who, as
2567	2567	a result of the merger, becomes an owner without limited
2568	2568	liability protection of the surviving entity is liable for an
2569	2569	obligation of the surviving entity incurred after merger to
2570	2570	the extent provided for by the laws applicable to the
2571	2571	surviving entity.
2572	2572	(14) An owner without limited liability protection of
2573	2573	an entity that ceases to exist as a result of a merger and who
2574	2574	as a result of the merger becomes an owner of a surviving
2575	2575	entity with limited liability protection remains liable for an
2576	2576	obligation of the entity that ceases to exist incurred before
2577	2577	the merger takes effect only to the extent, if any, that the
2578	2578	owner would have been liable if the merger had not occurred.
2579	2579	(i) A certified copy of the statement of merger
2580	2580	required to be filed under this section may be filed in the
2581	2581	real estate records in the office of the judge of probate in
2582	2582	any county in which any merged entity owned real property,
2583	2583	without payment and without collection by the judge of probate
2584	2584	of any deed or other transfer tax or fee. The judge of
2585	2585	probate, however, shall be entitled to collect a filing fee of
2586	2586	five dollars ($5). Any such filing shall evidence chain of
2587	2587	title, but lack of filing shall not affect the surviving
2588	2588	entity's title to such real property.
2589	2589	1233
2590	2590	1234
2591	2591	1235
2592	2592	1236
2593	2593	1237
2594	2594	1238
2595	2595	1239
2596	2596	1240
2597	2597	1241
2598	2598	1242
2599	2599	1243
2600	2600	1244
2601	2601	1245
2602	2602	1246
2603	2603	1247
2604	2604	1248
2605	2605	1249
2606	2606	1250
2607	2607	1251
2608	2608	1252
2609	2609	1253
2610	2610	1254
2611	2611	1255
2612	2612	1256
2613	2613	1257
2614	2614	1258
2615	2615	1259
2616	2616	1260 HB200 INTRODUCED
2617	2617	Page 46
2618	2618	entity's title to such real property.
2619	2619	(j) Except as set forth in Section 10A-1-8.02(a)(4),
2620	2620	for purposes of this Section 10A-1-8.02, a plan of merger,
2621	2621	whether referred to as a plan of merger, an agreement of
2622	2622	merger, a merger agreement, a plan and agreement of merger, an
2623	2623	agreement and plan of merger, or otherwise, means a writing
2624	2624	that includes the items required or allowed to be set forth
2625	2625	therein and includes any agreement, instrument, or other
2626	2626	document referenced therein or associated therewith that sets
2627	2627	forth the terms and conditions of the merger. "
2628	2628	Section 2. Sections 10A-2A-7.40, 10A-2A-9.11,
2629	2629	10A-2A-11.01, 10A-2A-11.02, and 10A-2A-11.03, Code of Alabama
2630	2630	1975, are amended to read as follows:
2631	2631	"§10A-2A-7.40
2632	2632	In this division:
2633	2633	(1) COURT means the designated court, and if none, the
2634	2634	circuit court for the county in which the corporation's
2635	2635	principal office is located in this state, and if none in this
2636	2636	state, the circuit court for the county in which the
2637	2637	corporation's most recent registered office is located.
2638	2638	(2) DERIVATIVE ACTION means a civil suit in the right
2639	2639	of a corporation or, to the extent provided in Section
2640	2640	10A-2A-7.48, in the right of a foreign corporation , to recover
2641	2641	for an injury to the corporation or foreign corporation .
2642	2642	(3) STOCKHOLDER means a record stockholder, a
2643	2643	beneficial stockholder, and an unrestricted voting trust
2644	2644	beneficial owner."
2645	2645	"§10A-2A-9.11
2646	2646	(a) An organization other than a corporation may
2647	2647	1261
2648	2648	1262
2649	2649	1263
2650	2650	1264
2651	2651	1265
2652	2652	1266
2653	2653	1267
2654	2654	1268
2655	2655	1269
2656	2656	1270
2657	2657	1271
2658	2658	1272
2659	2659	1273
2660	2660	1274
2661	2661	1275
2662	2662	1276
2663	2663	1277
2664	2664	1278
2665	2665	1279
2666	2666	1280
2667	2667	1281
2668	2668	1282
2669	2669	1283
2670	2670	1284
2671	2671	1285
2672	2672	1286
2673	2673	1287
2674	2674	1288 HB200 INTRODUCED
2675	2675	Page 47
2676	2676	(a) An organization other than a corporation may
2677	2677	convert to a corporation, and a corporation may convert to an
2678	2678	organization other than a corporation pursuant to this
2679	2679	article, and a plan of conversion, if:
2680	2680	(1) the governing statute of the organization that is
2681	2681	not a corporation authorizes the conversion;
2682	2682	(2) the law of the jurisdiction governing the
2683	2683	converting organization and the converted organization does
2684	2684	not prohibit the conversion; and
2685	2685	(3) the converting organization and the converted
2686	2686	organization each comply with the governing statute and
2687	2687	organizational documents applicable to that organization in
2688	2688	effecting the conversion.
2689	2689	(b) A plan of conversion must be in writing and must
2690	2690	include:
2691	2691	(1) the name, type of organization, and mailing address
2692	2692	of the principal office of the converting organization and its
2693	2693	unique identifying number or other designation as assigned by
2694	2694	the Secretary of State, if any, before conversion;
2695	2695	(2) the name, type of organization, and mailing address
2696	2696	of the principal office of the converted organization after
2697	2697	conversion;
2698	2698	(3) the terms and conditions of the conversion,
2699	2699	including the manner and basis for converting interests in the
2700	2700	converting organization into any combination of money,
2701	2701	interests in the converted organization, and other
2702	2702	consideration allowed in Section 10A-9A-10.02(c); and
2703	2703	(4) the organizational documents of the converted
2704	2704	organization.
2705	2705	1289
2706	2706	1290
2707	2707	1291
2708	2708	1292
2709	2709	1293
2710	2710	1294
2711	2711	1295
2712	2712	1296
2713	2713	1297
2714	2714	1298
2715	2715	1299
2716	2716	1300
2717	2717	1301
2718	2718	1302
2719	2719	1303
2720	2720	1304
2721	2721	1305
2722	2722	1306
2723	2723	1307
2724	2724	1308
2725	2725	1309
2726	2726	1310
2727	2727	1311
2728	2728	1312
2729	2729	1313
2730	2730	1314
2731	2731	1315
2732	2732	1316 HB200 INTRODUCED
2733	2733	Page 48
2734	2734	organization.
2735	2735	(c) In connection with a conversion, rights or
2736	2736	securities of or interests in the converting organization may
2737	2737	be exchanged for or converted into cash, property, or rights
2738	2738	or securities of or interests in the converted organization,
2739	2739	or, in addition to or in lieu thereof, may be exchanged for or
2740	2740	converted into cash, property, or rights or securities of or
2741	2741	interests in another organization or may be cancelled.
2742	2742	(d) In addition to the requirements of subsection (a),
2743	2743	a plan of conversion may contain any other provision not
2744	2744	prohibited by law.
2745	2745	(e) The terms of a plan of conversion may be made
2746	2746	dependent upon facts objectively ascertainable outside the
2747	2747	plan in accordance with Section 10A-2A-1.20(c).
2748	2748	(f) At the time of the approval of the plan of
2749	2749	conversion in accordance with this chapter, the plan of
2750	2750	conversion is not required to contain or have attached thereto
2751	2751	any disclosure letter, disclosure schedules, or similar
2752	2752	documents or instruments contemplated by the plan of
2753	2753	conversion that modify, supplement, qualify, or make
2754	2754	exceptions to representations, warranties, covenants, or
2755	2755	conditions contained in the plan of conversion. "
2756	2756	"§10A-2A-11.01
2757	2757	As used in this article, unless the context otherwise
2758	2758	requires, the following terms mean:
2759	2759	(1) ACQUIRED ENTITY means the corporation or foreign
2760	2760	corporation that will have all of one or more classes or
2761	2761	series of its stock acquired in a stock exchange.
2762	2762	(2) ACQUIRING ENTITY means the corporation or foreign
2763	2763	1317
2764	2764	1318
2765	2765	1319
2766	2766	1320
2767	2767	1321
2768	2768	1322
2769	2769	1323
2770	2770	1324
2771	2771	1325
2772	2772	1326
2773	2773	1327
2774	2774	1328
2775	2775	1329
2776	2776	1330
2777	2777	1331
2778	2778	1332
2779	2779	1333
2780	2780	1334
2781	2781	1335
2782	2782	1336
2783	2783	1337
2784	2784	1338
2785	2785	1339
2786	2786	1340
2787	2787	1341
2788	2788	1342
2789	2789	1343
2790	2790	1344 HB200 INTRODUCED
2791	2791	Page 49
2792	2792	(2) ACQUIRING ENTITY means the corporation or foreign
2793	2793	corporation that will acquire all of one or more classes or
2794	2794	series of stock of the acquired entity in a stock exchange.
2795	2795	(3) CONSTITUENT CORPORATION means a constituent
2796	2796	organization that is a corporation.
2797	2797	(4) CONSTITUENT ORGANIZATION means an organization that
2798	2798	is party to a merger under this article.
2799	2799	(5) GOVERNING STATUTE of an organization means the
2800	2800	statute that governs the organization's internal affairs.
2801	2801	(6) ORGANIZATION means a general partnership, including
2802	2802	a limited liability partnership; limited partnership,
2803	2803	including a limited liability limited partnership; limited
2804	2804	liability company; business trust; corporation; nonprofit
2805	2805	corporation; professional corporation; or any other person
2806	2806	having a governing statute. The term includes domestic and
2807	2807	foreign organizations whether or not organized for profit.
2808	2808	(7) ORGANIZATIONAL DOCUMENTS means:
2809	2809	(A) for a general partnership or foreign general
2810	2810	partnership, its partnership agreement and if applicable, its
2811	2811	registration as a limited liability partnership or a foreign
2812	2812	limited liability partnership;
2813	2813	(B) for a limited partnership or foreign limited
2814	2814	partnership, its certificate of formation and partnership
2815	2815	agreement, or comparable writings as provided in its governing
2816	2816	statute;
2817	2817	(C) for a limited liability company or foreign limited
2818	2818	liability company, its certificate of formation and limited
2819	2819	liability company agreement, or comparable writings as
2820	2820	provided in its governing statute;
2821	2821	1345
2822	2822	1346
2823	2823	1347
2824	2824	1348
2825	2825	1349
2826	2826	1350
2827	2827	1351
2828	2828	1352
2829	2829	1353
2830	2830	1354
2831	2831	1355
2832	2832	1356
2833	2833	1357
2834	2834	1358
2835	2835	1359
2836	2836	1360
2837	2837	1361
2838	2838	1362
2839	2839	1363
2840	2840	1364
2841	2841	1365
2842	2842	1366
2843	2843	1367
2844	2844	1368
2845	2845	1369
2846	2846	1370
2847	2847	1371
2848	2848	1372 HB200 INTRODUCED
2849	2849	Page 50
2850	2850	provided in its governing statute;
2851	2851	(D) for a business or statutory trust or foreign
2852	2852	business or statutory trust its agreement of trust and
2853	2853	declaration of trust, or comparable writings as provided in
2854	2854	its governing statute;
2855	2855	(E) for a corporation or foreign corporation, its
2856	2856	certificate of incorporation, bylaws, and other agreements
2857	2857	among its stockholders that are authorized by its governing
2858	2858	statute, or comparable writings as provided in its governing
2859	2859	statute;
2860	2860	(F) for a nonprofit corporation or foreign nonprofit
2861	2861	corporation, its certificate of incorporation, bylaws, and
2862	2862	other agreements that are authorized by its governing statute,
2863	2863	or comparable writings as provided in its governing statute;
2864	2864	(G) for a professional corporation or foreign
2865	2865	professional corporation, its certificate of incorporation,
2866	2866	bylaws, and other agreements among its stockholders that are
2867	2867	authorized by its governing statute, or comparable writings as
2868	2868	provided in its governing statute; and
2869	2869	(H) for any other organization, the basic writings that
2870	2870	create the organization and determine its internal governance
2871	2871	and the relations among the persons that own it, have an
2872	2872	interest in it, or are members of it.
2873	2873	(8) NEW PERSONAL LIABILITY means personal liability of
2874	2874	a person, resulting from a merger or stock exchange, that is
2875	2875	(i)(A) in respect of an entity which is different from the
2876	2876	entity in which the person held stock or eligible interests
2877	2877	immediately before the merger became effective, or (B) in
2878	2878	respect of an entity which is different from the entity in
2879	2879	1373
2880	2880	1374
2881	2881	1375
2882	2882	1376
2883	2883	1377
2884	2884	1378
2885	2885	1379
2886	2886	1380
2887	2887	1381
2888	2888	1382
2889	2889	1383
2890	2890	1384
2891	2891	1385
2892	2892	1386
2893	2893	1387
2894	2894	1388
2895	2895	1389
2896	2896	1390
2897	2897	1391
2898	2898	1392
2899	2899	1393
2900	2900	1394
2901	2901	1395
2902	2902	1396
2903	2903	1397
2904	2904	1398
2905	2905	1399
2906	2906	1400 HB200 INTRODUCED
2907	2907	Page 51
2908	2908	respect of an entity which is different from the entity in
2909	2909	which the person held stock immediately before the stock
2910	2910	exchange became effective; or (ii) in respect of the same
2911	2911	entity as the one in which the person held stock or eligible
2912	2912	interests immediately before the merger became effective if
2913	2913	(A) the person did not have personal liability immediately
2914	2914	before the merger became effective, or (B) the person had
2915	2915	personal liability immediately before the merger became
2916	2916	effective, the terms and conditions of which were changed when
2917	2917	the merger became effective; or (iii) in respect of the same
2918	2918	entity as the one in which the person held stock immediately
2919	2919	before the stock exchange became effective if (A) the person
2920	2920	did not have personal liability immediately before the stock
2921	2921	exchange became effective, or (B) the person had personal
2922	2922	liability immediately before the stock exchange became
2923	2923	effective, the terms and conditions of which were changed when
2924	2924	the stock exchange became effective.
2925	2925	(9) PLAN OF MERGER. Except as set forth in Section
2926	2926	10A-2A-11.02(g), a plan of merger, whether referred to as a
2927	2927	plan of merger, an agreement of merger, a merger agreement, a
2928	2928	plan and agreement of merger, an agreement and plan of merger,
2929	2929	or otherwise, means a writing described in Section
2930	2930	10A-2A-11.02 and includes any agreement, instrument, or other
2931	2931	document referenced therein or associated therewith that sets
2932	2932	forth the terms and conditions of the merger.
2933	2933	(9)(10) SURVIVING ORGANIZATION means an organization
2934	2934	into which one or more other organizations are merged under
2935	2935	this article, whether the organization pre-existed the merger
2936	2936	or was created pursuant to the merger."
2937	2937	1401
2938	2938	1402
2939	2939	1403
2940	2940	1404
2941	2941	1405
2942	2942	1406
2943	2943	1407
2944	2944	1408
2945	2945	1409
2946	2946	1410
2947	2947	1411
2948	2948	1412
2949	2949	1413
2950	2950	1414
2951	2951	1415
2952	2952	1416
2953	2953	1417
2954	2954	1418
2955	2955	1419
2956	2956	1420
2957	2957	1421
2958	2958	1422
2959	2959	1423
2960	2960	1424
2961	2961	1425
2962	2962	1426
2963	2963	1427
2964	2964	1428 HB200 INTRODUCED
2965	2965	Page 52
2966	2966	or was created pursuant to the merger."
2967	2967	"§10A-2A-11.02
2968	2968	(a) A corporation may merge with one or more other
2969	2969	constituent organizations pursuant to this article, and a plan
2970	2970	of merger, if:
2971	2971	(1) the governing statute of each of the other
2972	2972	organizations authorizes the merger;
2973	2973	(2) the merger is not prohibited by the law of a
2974	2974	jurisdiction that enacted any of those governing statutes; and
2975	2975	(3) each of the other organizations complies with its
2976	2976	governing statute in effecting the merger.
2977	2977	(b) A plan of merger must be in writing and must
2978	2978	include:
2979	2979	(1) the name, type of organization, and mailing address
2980	2980	of the principal office of each constituent organization, the
2981	2981	jurisdiction of the governing statute of each constituent
2982	2982	organization, and the respective unique identifying number or
2983	2983	other designation as assigned by the Secretary of State, if
2984	2984	any, of each constituent organization;
2985	2985	(2) the name, type of organization, and mailing address
2986	2986	of the principal office of the surviving organization, the
2987	2987	unique identifying number or other designation as assigned by
2988	2988	the Secretary of State, if any, of the surviving organization,
2989	2989	the jurisdiction of the governing statute of the surviving
2990	2990	organization, and, if the surviving organization is created
2991	2991	pursuant to the merger, a statement to that effect;
2992	2992	(3) the terms and conditions of the merger, including
2993	2993	the manner and basis for converting the stock or eligible
2994	2994	interests in each constituent organization into any
2995	2995	1429
2996	2996	1430
2997	2997	1431
2998	2998	1432
2999	2999	1433
3000	3000	1434
3001	3001	1435
3002	3002	1436
3003	3003	1437
3004	3004	1438
3005	3005	1439
3006	3006	1440
3007	3007	1441
3008	3008	1442
3009	3009	1443
3010	3010	1444
3011	3011	1445
3012	3012	1446
3013	3013	1447
3014	3014	1448
3015	3015	1449
3016	3016	1450
3017	3017	1451
3018	3018	1452
3019	3019	1453
3020	3020	1454
3021	3021	1455
3022	3022	1456 HB200 INTRODUCED
3023	3023	Page 53
3024	3024	interests in each constituent organization into any
3025	3025	combination of money, stock, eligible interests in the
3026	3026	surviving organization, and other consideration as allowed by
3027	3027	subsection (c);
3028	3028	(4) if the surviving organization is to be created
3029	3029	pursuant to the merger, the surviving organization's
3030	3030	organizational documents; and
3031	3031	(5) if the surviving organization is not to be created
3032	3032	pursuant to the merger, any amendments to be made by the
3033	3033	merger to the surviving organization's organizational
3034	3034	documents.
3035	3035	(c) In connection with a merger, rights, securities,
3036	3036	stock, or eligible interests, if any, in a constituent
3037	3037	organization may be exchanged for or converted into cash,
3038	3038	property, rights, securities, stock, or eligible interests, if
3039	3039	any, in the surviving organization, or, in addition to or in
3040	3040	lieu thereof, may be exchanged for or converted into cash,
3041	3041	property, rights, securities, stock, or eligible interests, if
3042	3042	any, in another organization, or may be cancelled.
3043	3043	(d) In addition to the requirements of subsection (b),
3044	3044	a plan of merger may :
3045	3045	(1) provide that (i) a constituent organization or any
3046	3046	other party to the plan of merger that fails to perform its
3047	3047	obligations under the plan of merger in accordance with the
3048	3048	terms and conditions of the plan of merger, or that otherwise
3049	3049	fails to comply with the terms and conditions of the plan of
3050	3050	merger, in each case, required to be performed or complied
3051	3051	with prior to the time the merger becomes effective, or that
3052	3052	otherwise fails to consummate, or fails to cause the
3053	3053	1457
3054	3054	1458
3055	3055	1459
3056	3056	1460
3057	3057	1461
3058	3058	1462
3059	3059	1463
3060	3060	1464
3061	3061	1465
3062	3062	1466
3063	3063	1467
3064	3064	1468
3065	3065	1469
3066	3066	1470
3067	3067	1471
3068	3068	1472
3069	3069	1473
3070	3070	1474
3071	3071	1475
3072	3072	1476
3073	3073	1477
3074	3074	1478
3075	3075	1479
3076	3076	1480
3077	3077	1481
3078	3078	1482
3079	3079	1483
3080	3080	1484 HB200 INTRODUCED
3081	3081	Page 54
3082	3082	otherwise fails to consummate, or fails to cause the
3083	3083	consummation of, the merger (whether prior to a specified
3084	3084	date, upon satisfaction or, to the extent permitted by law,
3085	3085	waiver of all conditions to consummation set forth in the plan
3086	3086	of merger, or otherwise) shall be subject, in addition to any
3087	3087	other remedies available at law or in equity, to the penalties
3088	3088	or consequences as are set forth in the plan of merger (which
3089	3089	penalties or consequences may include an obligation to pay to
3090	3090	the other party or parties to the plan of merger an amount
3091	3091	representing, or based on the loss of, any premium or other
3092	3092	economic entitlement the stockholders or owners, as the case
3093	3093	may be, of the other party would be entitled to receive
3094	3094	pursuant to the terms of the plan of merger if the merger were
3095	3095	consummated in accordance with the terms of the plan of
3096	3096	merger) and (ii) if, pursuant to the terms of the plan of
3097	3097	merger, a corporation is entitled to receive payment from
3098	3098	another party to the plan of merger of any amount representing
3099	3099	a penalty or consequence (as specified in clause (i) of this
3100	3100	Section 10A-2A-11.02(d)(1)), the corporation shall be entitled
3101	3101	to enforce the other party's payment obligation and, upon
3102	3102	receipt of any payment, shall be entitled to retain the amount
3103	3103	of the payment so received;
3104	3104	(2) provide (i) for the appointment, at or after the
3105	3105	time at which the plan of merger is adopted by the
3106	3106	stockholders of a constituent corporation in accordance with
3107	3107	the requirements of Section 10A-2A-11.04, of one or more
3108	3108	persons (which may include the surviving or resulting entity
3109	3109	or any officer, manager, representative or agent thereof) as
3110	3110	representative of the stockholders of a constituent
3111	3111	1485
3112	3112	1486
3113	3113	1487
3114	3114	1488
3115	3115	1489
3116	3116	1490
3117	3117	1491
3118	3118	1492
3119	3119	1493
3120	3120	1494
3121	3121	1495
3122	3122	1496
3123	3123	1497
3124	3124	1498
3125	3125	1499
3126	3126	1500
3127	3127	1501
3128	3128	1502
3129	3129	1503
3130	3130	1504
3131	3131	1505
3132	3132	1506
3133	3133	1507
3134	3134	1508
3135	3135	1509
3136	3136	1510
3137	3137	1511
3138	3138	1512 HB200 INTRODUCED
3139	3139	Page 55
3140	3140	representative of the stockholders of a constituent
3141	3141	corporation of this state, including those whose shares of
3142	3142	capital stock shall be cancelled, converted, or exchanged in
3143	3143	the merger, and for the delegation to that person or persons
3144	3144	of the sole and exclusive authority to take action on behalf
3145	3145	of the stockholders pursuant to the plan of merger, including
3146	3146	taking such actions as the representative determines to
3147	3147	enforce (including by entering into settlements with respect
3148	3148	to) the rights of the stockholders under the plan of merger,
3149	3149	on the terms and subject to the conditions set forth in the
3150	3150	plan of merger, (ii) that any appointment pursuant to clause
3151	3151	(i) of this Section 10A-2A-11.02(d)(2) shall be irrevocable
3152	3152	and binding on all stockholders from and after the adoption of
3153	3153	the plan of merger by the requisite vote of the stockholders
3154	3154	pursuant to Section 10A-2A-11.04, and (iii) that any provision
3155	3155	adopted pursuant to this Section 10A-2A-11.02(d)(2) may not be
3156	3156	amended after the merger has become effective or may be
3157	3157	amended only with the consent or approval of persons specified
3158	3158	in the plan of merger; and
3159	3159	(3) contain any other provision not prohibited by law.
3160	3160	(e) Terms of a plan of merger may be made dependent on
3161	3161	facts objectively ascertainable outside the plan in accordance
3162	3162	with Section 10A-2A-1.20(c).
3163	3163	(f) A plan of merger may be amended only with the
3164	3164	consent of each constituent organization, except as provided
3165	3165	in the plan. A domestic constituent organization may approve
3166	3166	an amendment to a plan:
3167	3167	(1) in the same manner as the plan was approved, if the
3168	3168	plan does not provide for the manner in which it may be
3169	3169	1513
3170	3170	1514
3171	3171	1515
3172	3172	1516
3173	3173	1517
3174	3174	1518
3175	3175	1519
3176	3176	1520
3177	3177	1521
3178	3178	1522
3179	3179	1523
3180	3180	1524
3181	3181	1525
3182	3182	1526
3183	3183	1527
3184	3184	1528
3185	3185	1529
3186	3186	1530
3187	3187	1531
3188	3188	1532
3189	3189	1533
3190	3190	1534
3191	3191	1535
3192	3192	1536
3193	3193	1537
3194	3194	1538
3195	3195	1539
3196	3196	1540 HB200 INTRODUCED
3197	3197	Page 56
3198	3198	plan does not provide for the manner in which it may be
3199	3199	amended; or
3200	3200	(2) in the manner provided in the plan, except that if
3201	3201	the plan has been approved by the stockholders, members, or
3202	3202	interest holders that were entitled to vote on, consent to, or
3203	3203	approve of, the plan, then those stockholders, members, or
3204	3204	interest holders are entitled to vote on, consent to, or
3205	3205	approve of any amendment of the plan that will change:
3206	3206	(i) the amount or kind of stock or other securities,
3207	3207	eligible interests, obligations, rights to acquire stock,
3208	3208	other securities or eligible interests, cash, or other
3209	3209	property to be received under the plan by the stockholders,
3210	3210	members, or interest holders of a constituent organization;
3211	3211	(ii) the certificate of incorporation of any
3212	3212	corporation, foreign corporation, nonprofit corporation,
3213	3213	foreign nonprofit corporation or the organizational documents
3214	3214	of any unincorporated entity or foreign unincorporated entity,
3215	3215	that will be the surviving organization, except for changes
3216	3216	permitted by Section 10A-2A-10.05 or by comparable provisions
3217	3217	of the governing statute of the foreign corporation, nonprofit
3218	3218	corporation, foreign nonprofit corporation, unincorporated
3219	3219	entity, or foreign unincorporated entity; or
3220	3220	(iii) any of the other terms or conditions of the plan
3221	3221	if the change would adversely affect the stockholders,
3222	3222	members, or interest holders in any material respect.
3223	3223	(g) At the time of the approval of the plan of merger
3224	3224	in accordance with this chapter, the plan of merger is not
3225	3225	required to contain or have attached thereto any disclosure
3226	3226	letter, disclosure schedules, or similar documents or
3227	3227	1541
3228	3228	1542
3229	3229	1543
3230	3230	1544
3231	3231	1545
3232	3232	1546
3233	3233	1547
3234	3234	1548
3235	3235	1549
3236	3236	1550
3237	3237	1551
3238	3238	1552
3239	3239	1553
3240	3240	1554
3241	3241	1555
3242	3242	1556
3243	3243	1557
3244	3244	1558
3245	3245	1559
3246	3246	1560
3247	3247	1561
3248	3248	1562
3249	3249	1563
3250	3250	1564
3251	3251	1565
3252	3252	1566
3253	3253	1567
3254	3254	1568 HB200 INTRODUCED
3255	3255	Page 57
3256	3256	letter, disclosure schedules, or similar documents or
3257	3257	instruments contemplated by the plan of merger that modify,
3258	3258	supplement, qualify, or make exceptions to representations,
3259	3259	warranties, covenants, or conditions contained in the plan of
3260	3260	merger."
3261	3261	"§10A-2A-11.03
3262	3262	(a) By complying with this Article 11:
3263	3263	(1) a corporation may acquire all of the stock of one
3264	3264	or more classes or series of stock, of another corporation or
3265	3265	foreign corporation, in exchange for stock or other
3266	3266	securities, obligations, rights to acquire stock or other
3267	3267	securities, cash, other property, or any combination of the
3268	3268	foregoing, pursuant to a plan of stock exchange; or
3269	3269	(2) all of the stock of one or more classes or series
3270	3270	of stock of a corporation may be acquired by another
3271	3271	corporation or foreign corporation, in exchange for stock or
3272	3272	other securities, obligations, rights to acquire stock or
3273	3273	other securities, cash, other property, or any combination of
3274	3274	the foregoing, pursuant to a plan of stock exchange.
3275	3275	(b) A foreign corporation may be the acquired entity in
3276	3276	a stock exchange only if the stock exchange is permitted by
3277	3277	the governing statute of that foreign corporation.
3278	3278	(c) The plan of stock exchange must include:
3279	3279	(1) the name of each corporation or foreign corporation
3280	3280	the stock of which will be acquired, the name of the
3281	3281	corporation or foreign corporation that will acquire that
3282	3282	stock, and the respective unique identifying numbers or other
3283	3283	designations as assigned by the Secretary of State, if any, of
3284	3284	the corporation or foreign corporation;
3285	3285	1569
3286	3286	1570
3287	3287	1571
3288	3288	1572
3289	3289	1573
3290	3290	1574
3291	3291	1575
3292	3292	1576
3293	3293	1577
3294	3294	1578
3295	3295	1579
3296	3296	1580
3297	3297	1581
3298	3298	1582
3299	3299	1583
3300	3300	1584
3301	3301	1585
3302	3302	1586
3303	3303	1587
3304	3304	1588
3305	3305	1589
3306	3306	1590
3307	3307	1591
3308	3308	1592
3309	3309	1593
3310	3310	1594
3311	3311	1595
3312	3312	1596 HB200 INTRODUCED
3313	3313	Page 58
3314	3314	the corporation or foreign corporation;
3315	3315	(2) the terms and conditions of the stock exchange;
3316	3316	(3) the manner and basis of exchanging stock of a
3317	3317	corporation or foreign corporation, the stock of which will be
3318	3318	acquired under the stock exchange for stock or other
3319	3319	securities, obligations, rights to acquire stock, other
3320	3320	securities, cash, other property, or any combination of the
3321	3321	foregoing; and
3322	3322	(4) any other provisions required by the governing
3323	3323	statute governing the acquired entity or its certificate of
3324	3324	incorporation or organizational documents.
3325	3325	(d) Terms of a plan of stock exchange may be made
3326	3326	dependent on facts objectively ascertainable outside the plan
3327	3327	in accordance with Section 10A-2A-1.20(c).
3328	3328	(e) A plan of stock exchange may be amended only with
3329	3329	the consent of each party to the stock exchange, except as
3330	3330	provided in the plan. A corporation may approve an amendment
3331	3331	to a plan:
3332	3332	(1) in the same manner as the plan was approved, if the
3333	3333	plan does not provide for the manner in which it may be
3334	3334	amended; or
3335	3335	(2) in the manner provided in the plan, except that if
3336	3336	the plan has been approved by the stockholders that were
3337	3337	entitled to vote on, consent to, or approve of the plan then
3338	3338	those stockholders are entitled to vote on, consent to, or
3339	3339	approve of any amendment of the plan that will change:
3340	3340	(i) the amount or kind of stock or other securities,
3341	3341	obligations, rights to acquire stock, other securities, cash,
3342	3342	or other property to be received under the plan by the
3343	3343	1597
3344	3344	1598
3345	3345	1599
3346	3346	1600
3347	3347	1601
3348	3348	1602
3349	3349	1603
3350	3350	1604
3351	3351	1605
3352	3352	1606
3353	3353	1607
3354	3354	1608
3355	3355	1609
3356	3356	1610
3357	3357	1611
3358	3358	1612
3359	3359	1613
3360	3360	1614
3361	3361	1615
3362	3362	1616
3363	3363	1617
3364	3364	1618
3365	3365	1619
3366	3366	1620
3367	3367	1621
3368	3368	1622
3369	3369	1623
3370	3370	1624 HB200 INTRODUCED
3371	3371	Page 59
3372	3372	or other property to be received under the plan by the
3373	3373	stockholders of the acquired entity; or
3374	3374	(ii) any of the other terms or conditions of the plan
3375	3375	if the change would adversely affect the stockholders in any
3376	3376	material respect.
3377	3377	(f) At the time of the approval of the plan of stock
3378	3378	exchange in accordance with this chapter, the plan of stock
3379	3379	exchange is not required to contain or have attached thereto
3380	3380	any disclosure letter, disclosure schedules, or similar
3381	3381	documents or instruments contemplated by the plan of stock
3382	3382	exchange that modify, supplement, qualify, or make exceptions
3383	3383	to representations, warranties, covenants, or conditions
3384	3384	contained in the plan of stock exchange. "
3385	3385	Section 3. Sections 10A-3A-12.01, 10A-3A-12.02, and
3386	3386	10A-3A-13.02, Code of Alabama 1975, are amended to read as
3387	3387	follows:
3388	3388	"§10A-3A-12.01
3389	3389	As used in this article, unless the context otherwise
3390	3390	requires, the following terms mean:
3391	3391	(1) CONSTITUENT CORPORATION means a constituent
3392	3392	organization that is a nonprofit corporation.
3393	3393	(2) CONSTITUENT ORGANIZATION means an organization that
3394	3394	is party to a merger under this article.
3395	3395	(3) GOVERNING STATUTE of an organization means the
3396	3396	statute that governs the organization's internal affairs.
3397	3397	(4) ORGANIZATION means a general partnership, including
3398	3398	a limited liability partnership; limited partnership,
3399	3399	including a limited liability limited partnership; limited
3400	3400	liability company; business trust; business corporation;
3401	3401	1625
3402	3402	1626
3403	3403	1627
3404	3404	1628
3405	3405	1629
3406	3406	1630
3407	3407	1631
3408	3408	1632
3409	3409	1633
3410	3410	1634
3411	3411	1635
3412	3412	1636
3413	3413	1637
3414	3414	1638
3415	3415	1639
3416	3416	1640
3417	3417	1641
3418	3418	1642
3419	3419	1643
3420	3420	1644
3421	3421	1645
3422	3422	1646
3423	3423	1647
3424	3424	1648
3425	3425	1649
3426	3426	1650
3427	3427	1651
3428	3428	1652 HB200 INTRODUCED
3429	3429	Page 60
3430	3430	liability company; business trust; business corporation;
3431	3431	nonprofit corporation; professional corporation; or any other
3432	3432	person having a governing statute. The term includes domestic
3433	3433	and foreign organizations whether or not organized for profit.
3434	3434	(5) ORGANIZATIONAL DOCUMENTS means:
3435	3435	(A) for a general partnership or foreign general
3436	3436	partnership, its partnership agreement and if applicable, its
3437	3437	registration as a limited liability partnership or a foreign
3438	3438	limited liability partnership;
3439	3439	(B) for a limited partnership or foreign limited
3440	3440	partnership, its certificate of formation and partnership
3441	3441	agreement, or comparable writings as provided in its governing
3442	3442	statute;
3443	3443	(C) for a limited liability company or foreign limited
3444	3444	liability company, its certificate of formation and limited
3445	3445	liability company agreement, or comparable writings as
3446	3446	provided in its governing statute;
3447	3447	(D) for a business or statutory trust or foreign
3448	3448	business or statutory trust its agreement of trust and
3449	3449	declaration of trust, or comparable writings as provided in
3450	3450	its governing statute;
3451	3451	(E) for a business corporation or foreign business
3452	3452	corporation, its certificate of incorporation, bylaws, and
3453	3453	other agreements among its stockholders that are authorized by
3454	3454	its governing statute, or comparable writings as provided in
3455	3455	its governing statute;
3456	3456	(F) for a nonprofit corporation or foreign nonprofit
3457	3457	corporation, its certificate of incorporation, bylaws, and
3458	3458	other agreements that are authorized by its governing statute,
3459	3459	1653
3460	3460	1654
3461	3461	1655
3462	3462	1656
3463	3463	1657
3464	3464	1658
3465	3465	1659
3466	3466	1660
3467	3467	1661
3468	3468	1662
3469	3469	1663
3470	3470	1664
3471	3471	1665
3472	3472	1666
3473	3473	1667
3474	3474	1668
3475	3475	1669
3476	3476	1670
3477	3477	1671
3478	3478	1672
3479	3479	1673
3480	3480	1674
3481	3481	1675
3482	3482	1676
3483	3483	1677
3484	3484	1678
3485	3485	1679
3486	3486	1680 HB200 INTRODUCED
3487	3487	Page 61
3488	3488	other agreements that are authorized by its governing statute,
3489	3489	or comparable writings as provided in its governing statute;
3490	3490	(G) for a professional corporation or foreign
3491	3491	professional corporation, its certificate of incorporation,
3492	3492	bylaws, and other agreements among its stockholders that are
3493	3493	authorized by its governing statute, or comparable writings as
3494	3494	provided in its governing statute; and
3495	3495	(H) for any other organization, the basic writings that
3496	3496	create the organization and determine its internal governance
3497	3497	and the relations among the persons that own it, have an
3498	3498	interest in it, or are members of it.
3499	3499	(6) PLAN OF MERGER. Except as set forth in Section
3500	3500	10A-3A-12.02(g), a plan of merger, whether referred to as a
3501	3501	plan of merger, an agreement of merger, a merger agreement, a
3502	3502	plan and agreement of merger, an agreement and plan of merger,
3503	3503	or otherwise, means a writing described in Section
3504	3504	10A-3A-12.02 and includes any agreement, instrument, or other
3505	3505	document referenced therein or associated therewith that sets
3506	3506	forth the terms and conditions of the merger.
3507	3507	(6)(7) SURVIVING ORGANIZATION means an organization
3508	3508	into which one or more other organizations are merged under
3509	3509	this article, whether the organization pre-existed the merger
3510	3510	or was created pursuant to the merger.
3511	3511	"§10A-3A-12.02
3512	3512	(a) A nonprofit corporation may merge with one or more
3513	3513	other constituent organizations pursuant to this article, and
3514	3514	a plan of merger, if:
3515	3515	(1) the governing statute of each of the other
3516	3516	organizations authorizes the merger;
3517	3517	1681
3518	3518	1682
3519	3519	1683
3520	3520	1684
3521	3521	1685
3522	3522	1686
3523	3523	1687
3524	3524	1688
3525	3525	1689
3526	3526	1690
3527	3527	1691
3528	3528	1692
3529	3529	1693
3530	3530	1694
3531	3531	1695
3532	3532	1696
3533	3533	1697
3534	3534	1698
3535	3535	1699
3536	3536	1700
3537	3537	1701
3538	3538	1702
3539	3539	1703
3540	3540	1704
3541	3541	1705
3542	3542	1706
3543	3543	1707
3544	3544	1708 HB200 INTRODUCED
3545	3545	Page 62
3546	3546	organizations authorizes the merger;
3547	3547	(2) the merger is not prohibited by the law of a
3548	3548	jurisdiction that enacted any of those governing statutes; and
3549	3549	(3) each of the other organizations complies with its
3550	3550	governing statute in effecting the merger.
3551	3551	(b) A plan of merger must be in writing and must
3552	3552	include:
3553	3553	(1) the name, type of organization, and mailing address
3554	3554	of the principal office of each constituent organization, the
3555	3555	jurisdiction of the governing statute of each constituent
3556	3556	organization, and the respective unique identifying number or
3557	3557	other designation as assigned by the Secretary of State, if
3558	3558	any, of each constituent organization;
3559	3559	(2) the name, type of organization, and mailing address
3560	3560	of the principal office of the surviving organization, the
3561	3561	unique identifying number or other designation as assigned by
3562	3562	the Secretary of State, if any, of the surviving organization,
3563	3563	the jurisdiction of the governing statute of the surviving
3564	3564	organization, and, if the surviving organization is created
3565	3565	pursuant to the merger, a statement to that effect;
3566	3566	(3) the terms and conditions of the merger, including
3567	3567	the manner and basis for converting the interests in each
3568	3568	constituent organization into any combination of money,
3569	3569	securities, interests in the surviving organization, and other
3570	3570	consideration as allowed by subsection (c);
3571	3571	(4) if the surviving organization is to be created
3572	3572	pursuant to the merger, the surviving organization's
3573	3573	organizational documents; and
3574	3574	(5) if the surviving organization is not to be created
3575	3575	1709
3576	3576	1710
3577	3577	1711
3578	3578	1712
3579	3579	1713
3580	3580	1714
3581	3581	1715
3582	3582	1716
3583	3583	1717
3584	3584	1718
3585	3585	1719
3586	3586	1720
3587	3587	1721
3588	3588	1722
3589	3589	1723
3590	3590	1724
3591	3591	1725
3592	3592	1726
3593	3593	1727
3594	3594	1728
3595	3595	1729
3596	3596	1730
3597	3597	1731
3598	3598	1732
3599	3599	1733
3600	3600	1734
3601	3601	1735
3602	3602	1736 HB200 INTRODUCED
3603	3603	Page 63
3604	3604	(5) if the surviving organization is not to be created
3605	3605	pursuant to the merger, any amendments to be made by the
3606	3606	merger to the surviving organization's organizational
3607	3607	documents.
3608	3608	(c) In connection with a merger, rights, securities, or
3609	3609	interests, if any, in a constituent organization may be
3610	3610	exchanged for or converted into cash, property, rights,
3611	3611	securities, or interests, if any, in the surviving
3612	3612	organization, or, in addition to or in lieu thereof, may be
3613	3613	exchanged for or converted into cash, property, rights,
3614	3614	securities, or interests, if any, in another organization, or
3615	3615	may be cancelled.
3616	3616	(d) In addition to the requirements of subsection (b),
3617	3617	a plan of merger may contain any other provision not
3618	3618	prohibited by law.
3619	3619	(e) Terms of a plan of merger may be made dependent on
3620	3620	facts objectively ascertainable outside the plan in accordance
3621	3621	with Section 10A-3A-1.04(c)(5).
3622	3622	(f) A plan of merger may be amended only with the
3623	3623	consent of each constituent organization, except as provided
3624	3624	in the plan. A domestic constituent organization may approve
3625	3625	an amendment to a plan:
3626	3626	(1) in the same manner as the plan was approved, if the
3627	3627	plan does not provide for the manner in which it may be
3628	3628	amended; or
3629	3629	(2) in the manner provided in the plan, except that if
3630	3630	the plan has been approved by the interest holders that were
3631	3631	entitled to vote on, consent to, or approve of, the plan, then
3632	3632	those interest holders are entitled to vote on, consent to, or
3633	3633	1737
3634	3634	1738
3635	3635	1739
3636	3636	1740
3637	3637	1741
3638	3638	1742
3639	3639	1743
3640	3640	1744
3641	3641	1745
3642	3642	1746
3643	3643	1747
3644	3644	1748
3645	3645	1749
3646	3646	1750
3647	3647	1751
3648	3648	1752
3649	3649	1753
3650	3650	1754
3651	3651	1755
3652	3652	1756
3653	3653	1757
3654	3654	1758
3655	3655	1759
3656	3656	1760
3657	3657	1761
3658	3658	1762
3659	3659	1763
3660	3660	1764 HB200 INTRODUCED
3661	3661	Page 64
3662	3662	those interest holders are entitled to vote on, consent to, or
3663	3663	approve of any amendment of the plan that will change:
3664	3664	(i) the amount or kind of securities, interests,
3665	3665	obligations, rights to acquire other interests or securities,
3666	3666	cash, or other property to be received under the plan by the
3667	3667	interest holders of a constituent organization;
3668	3668	(ii) the certificate of incorporation of any nonprofit
3669	3669	corporation, foreign nonprofit corporation, business
3670	3670	corporation, or foreign business corporation, or the
3671	3671	organizational documents of any other organization, that will
3672	3672	be the surviving organization, except for changes permitted by
3673	3673	Section 10A-3A-9.03(g) or by comparable provisions of the
3674	3674	governing statute of the foreign nonprofit corporation,
3675	3675	business corporation, foreign business corporation, or other
3676	3676	organization; or
3677	3677	(iii) any of the other terms or conditions of the plan
3678	3678	if the change would adversely affect the interest holders in
3679	3679	any material respect.
3680	3680	(g) At the time of the approval of the plan of merger
3681	3681	in accordance with this chapter, the plan of merger is not
3682	3682	required to contain or have attached thereto any disclosure
3683	3683	letter, disclosure schedules, or similar documents or
3684	3684	instruments contemplated by the plan of merger that modify,
3685	3685	supplement, qualify, or make exceptions to representations,
3686	3686	warranties, covenants, or conditions contained in the plan of
3687	3687	merger."
3688	3688	"§10A-3A-13.02
3689	3689	(a) An organization other than a nonprofit corporation
3690	3690	may convert to a nonprofit corporation, and a nonprofit
3691	3691	1765
3692	3692	1766
3693	3693	1767
3694	3694	1768
3695	3695	1769
3696	3696	1770
3697	3697	1771
3698	3698	1772
3699	3699	1773
3700	3700	1774
3701	3701	1775
3702	3702	1776
3703	3703	1777
3704	3704	1778
3705	3705	1779
3706	3706	1780
3707	3707	1781
3708	3708	1782
3709	3709	1783
3710	3710	1784
3711	3711	1785
3712	3712	1786
3713	3713	1787
3714	3714	1788
3715	3715	1789
3716	3716	1790
3717	3717	1791
3718	3718	1792 HB200 INTRODUCED
3719	3719	Page 65
3720	3720	may convert to a nonprofit corporation, and a nonprofit
3721	3721	corporation may convert to an organization other than a
3722	3722	nonprofit corporation pursuant to this article, and a plan of
3723	3723	conversion, if:
3724	3724	(1) the governing statute of the organization that is
3725	3725	not a nonprofit corporation authorizes the conversion;
3726	3726	(2) the law of the jurisdiction governing the
3727	3727	converting organization and the converted organization does
3728	3728	not prohibit the conversion; and
3729	3729	(3) the converting organization and the converted
3730	3730	organization each comply with the governing statute and
3731	3731	organizational documents applicable to that organization in
3732	3732	effecting the conversion.
3733	3733	(b) A plan of conversion must be in writing and must
3734	3734	include:
3735	3735	(1) the name, type of organization, and mailing address
3736	3736	of the principal office of the converting organization and its
3737	3737	unique identifying number or other designation as assigned by
3738	3738	the Secretary of State, if any, before conversion;
3739	3739	(2) the name, type of organization, and mailing address
3740	3740	of the principal office of the converted organization after
3741	3741	conversion;
3742	3742	(3) the terms and conditions of the conversion,
3743	3743	including the manner and basis for converting interests, if
3744	3744	any, in the converting organization into any combination of
3745	3745	money, interests in the converted organization, and other
3746	3746	consideration allowed in subsection (c); and
3747	3747	(4) the organizational documents of the converted
3748	3748	organization.
3749	3749	1793
3750	3750	1794
3751	3751	1795
3752	3752	1796
3753	3753	1797
3754	3754	1798
3755	3755	1799
3756	3756	1800
3757	3757	1801
3758	3758	1802
3759	3759	1803
3760	3760	1804
3761	3761	1805
3762	3762	1806
3763	3763	1807
3764	3764	1808
3765	3765	1809
3766	3766	1810
3767	3767	1811
3768	3768	1812
3769	3769	1813
3770	3770	1814
3771	3771	1815
3772	3772	1816
3773	3773	1817
3774	3774	1818
3775	3775	1819
3776	3776	1820 HB200 INTRODUCED
3777	3777	Page 66
3778	3778	organization.
3779	3779	(c) In connection with a conversion, rights or
3780	3780	securities of or interests, if any, in the converting
3781	3781	organization may be exchanged for or converted into cash,
3782	3782	property, or rights or securities of or interests, if any, in
3783	3783	the converted organization, or, in addition to or in lieu
3784	3784	thereof, may be exchanged for or converted into cash,
3785	3785	property, rights, securities, or interests, if any, in another
3786	3786	organization, or may be cancelled.
3787	3787	(d) In addition to the requirements of subsection (b),
3788	3788	a plan of conversion may contain any other provision not
3789	3789	prohibited by law.
3790	3790	(e) Terms of a plan of conversion may be made dependent
3791	3791	on facts objectively ascertainable outside the plan in
3792	3792	accordance with Section 10A-3A-1.04(c).
3793	3793	(f) At the time of the approval of the plan of
3794	3794	conversion in accordance with this chapter, the plan of
3795	3795	conversion is not required to contain or have attached thereto
3796	3796	any disclosure letter, disclosure schedules, or similar
3797	3797	documents or instruments contemplated by the plan of
3798	3798	conversion that modify, supplement, qualify, or make
3799	3799	exceptions to representations, warranties, covenants, or
3800	3800	conditions contained in the plan of conversion. "
3801	3801	Section 4. Section 10A-4-3.02, as amended by Act
3802	3802	2024-413, 2024 Regular Session, Code of Alabama 1975, is
3803	3803	amended to read as follows:
3804	3804	"§10A-4-3.02
3805	3805	(a) Upon the death of a stockholder of a domestic
3806	3806	professional corporation, or if upon a stockholder of a
3807	3807	1821
3808	3808	1822
3809	3809	1823
3810	3810	1824
3811	3811	1825
3812	3812	1826
3813	3813	1827
3814	3814	1828
3815	3815	1829
3816	3816	1830
3817	3817	1831
3818	3818	1832
3819	3819	1833
3820	3820	1834
3821	3821	1835
3822	3822	1836
3823	3823	1837
3824	3824	1838
3825	3825	1839
3826	3826	1840
3827	3827	1841
3828	3828	1842
3829	3829	1843
3830	3830	1844
3831	3831	1845
3832	3832	1846
3833	3833	1847
3834	3834	1848 HB200 INTRODUCED
3835	3835	Page 67
3836	3836	professional corporation, or if upon a stockholder of a
3837	3837	domestic professional corporation becomes becoming a
3838	3838	disqualified person, or if upon stock of a domestic
3839	3839	professional corporation is being transferred by operation of
3840	3840	law or court decree to a disqualified person, the stock owned
3841	3841	by the deceased stockholder or the disqualified person may be
3842	3842	transferred to a qualified person and, if not so transferred,
3843	3843	shall be purchased or redeemed by the domestic professional
3844	3844	corporation to the extent of funds which may be legally made
3845	3845	available for the purchase as provided in this section .
3846	3846	(b) If the purchase price for of the stock is not fixed
3847	3847	by determined in accordance with the governing documents of
3848	3848	the domestic professional corporation or by private agreement,
3849	3849	the domestic professional corporation, within six months after
3850	3850	the death or 30 days after the disqualification or transfer,
3851	3851	as the case may be, shall make a written offer to pay for the
3852	3852	stock at a specified price deemed by the domestic professional
3853	3853	corporation to be the fair value thereof of the stock as of
3854	3854	the date of the death, disqualification, or transfer. The
3855	3855	offer shall be given delivered to the executor or
3856	3856	administrator personal representative of the estate of a the
3857	3857	deceased stockholder or to, the disqualified person , or the
3858	3858	transferee, as the case may be, and shall be accompanied by a
3859	3859	balance sheet of the domestic professional corporation, as of
3860	3860	the latest available date and not more than 12 months prior to
3861	3861	the making of the offer, and a profit and loss statement of
3862	3862	the domestic professional corporation for the 12 months'
3863	3863	period ended on the date of the balance sheet.
3864	3864	(c) If within 30 days after the date of the written
3865	3865	1849
3866	3866	1850
3867	3867	1851
3868	3868	1852
3869	3869	1853
3870	3870	1854
3871	3871	1855
3872	3872	1856
3873	3873	1857
3874	3874	1858
3875	3875	1859
3876	3876	1860
3877	3877	1861
3878	3878	1862
3879	3879	1863
3880	3880	1864
3881	3881	1865
3882	3882	1866
3883	3883	1867
3884	3884	1868
3885	3885	1869
3886	3886	1870
3887	3887	1871
3888	3888	1872
3889	3889	1873
3890	3890	1874
3891	3891	1875
3892	3892	1876 HB200 INTRODUCED
3893	3893	Page 68
3894	3894	(c) If within 30 days after the date of the written
3895	3895	offer from the domestic professional corporation the fair
3896	3896	value of the stock is agreed upon between the personal
3897	3897	representative of the estate of the deceased stockholder, the
3898	3898	disqualified person , or the transferee, as the case may be,
3899	3899	and the domestic professional corporation, payment therefor
3900	3900	shall be made within 90 days after the date of the offer , or
3901	3901	other period as the parties may fix by agreement, after the
3902	3902	date of the offer, upon surrender of the certificate or
3903	3903	certificates representing the stock agree. Upon payment of the
3904	3904	agreed value the personal representative of the estate of the
3905	3905	deceased member, the disqualified persons person, or the
3906	3906	transferee, as the case may be, shall cease to have any
3907	3907	interest in, or claim to, the stock.
3908	3908	(d) If within 30 days from the date of the written
3909	3909	offer from the domestic professional corporation, the fair
3910	3910	value of the stock is not agreed upon between the personal
3911	3911	representative of the estate of the deceased stockholder, the
3912	3912	disqualified person , or the transferee, as the case may be,
3913	3913	and the domestic professional corporation do not so agree
3914	3914	within 30 days of the delivery of the written offer , then
3915	3915	either party may commence a civil action in the designated
3916	3916	court, and if none, in the circuit court for the county in
3917	3917	which the domestic professional corporation's principal office
3918	3918	is located in this state, and if none in this state, in the
3919	3919	circuit court for the county in which the domestic
3920	3920	professional corporation's most recent registered office is
3921	3921	located requesting that the fair value of the stock be found
3922	3922	and determined. If the domestic professional corporation does
3923	3923	1877
3924	3924	1878
3925	3925	1879
3926	3926	1880
3927	3927	1881
3928	3928	1882
3929	3929	1883
3930	3930	1884
3931	3931	1885
3932	3932	1886
3933	3933	1887
3934	3934	1888
3935	3935	1889
3936	3936	1890
3937	3937	1891
3938	3938	1892
3939	3939	1893
3940	3940	1894
3941	3941	1895
3942	3942	1896
3943	3943	1897
3944	3944	1898
3945	3945	1899
3946	3946	1900
3947	3947	1901
3948	3948	1902
3949	3949	1903
3950	3950	1904 HB200 INTRODUCED
3951	3951	Page 69
3952	3952	and determined. If the domestic professional corporation does
3953	3953	not deliver a written offer in accordance with subsection (b),
3954	3954	then the personal representative of the estate of the deceased
3955	3955	stockholder, the disqualified person, or the transferee, as
3956	3956	the case may be, may commence a civil action in the designated
3957	3957	court, and if none, in the circuit court for the county in
3958	3958	which the domestic professional corporation's principal office
3959	3959	is located in this state, and if none in this state, in the
3960	3960	circuit court for the county in which the domestic
3961	3961	professional corporation's most recent registered office is
3962	3962	located requesting that the fair value of the stock be found
3963	3963	and determined. The personal representative of the estate of
3964	3964	the deceased stockholder, the disqualified person, or the
3965	3965	transferee, as the case may be, wherever residing, shall be
3966	3966	made a party to the proceeding as an action against the
3967	3967	disqualified that person's stock quasi in rem. Service shall
3968	3968	be made in accordance with the rules of civil procedure. The
3969	3969	personal representative of the estate of the deceased
3970	3970	stockholder, the disqualified person , or the transferee, as
3971	3971	the case may be, shall be entitled to a judgment against the
3972	3972	domestic professional corporation for the amount of the fair
3973	3973	value of the disqualified that person's stock as of the date
3974	3974	of death, disqualification, or transfer upon surrender to the
3975	3975	domestic professional corporation of the certificate or
3976	3976	certificates representing the stock . The court may, in its
3977	3977	discretion, order that the judgment be paid in installments
3978	3978	and with interest and on terms as the court may determine. The
3979	3979	court may, if it so elects, appoint one or more persons as
3980	3980	appraisers to receive evidence and recommend a decision on the
3981	3981	1905
3982	3982	1906
3983	3983	1907
3984	3984	1908
3985	3985	1909
3986	3986	1910
3987	3987	1911
3988	3988	1912
3989	3989	1913
3990	3990	1914
3991	3991	1915
3992	3992	1916
3993	3993	1917
3994	3994	1918
3995	3995	1919
3996	3996	1920
3997	3997	1921
3998	3998	1922
3999	3999	1923
4000	4000	1924
4001	4001	1925
4002	4002	1926
4003	4003	1927
4004	4004	1928
4005	4005	1929
4006	4006	1930
4007	4007	1931
4008	4008	1932 HB200 INTRODUCED
4009	4009	Page 70
4010	4010	appraisers to receive evidence and recommend a decision on the
4011	4011	question of fair value. The appraisers shall have the power
4012	4012	and authority as shall be specified in the order of their
4013	4013	appointment or an amendment thereof.
4014	4014	(e) The judgment shall include an allowance for
4015	4015	interest at the rate the court finds to be fair and equitable
4016	4016	in all the circumstances, from the date of death,
4017	4017	disqualification, or transfer.
4018	4018	(f) The costs and expenses of any proceeding shall be
4019	4019	determined by the court and shall be assessed against the
4020	4020	domestic professional corporation, but all or any part of the
4021	4021	costs and expenses may be apportioned and assessed as the
4022	4022	court may deem equitable against the disqualified person if
4023	4023	the court shall find that the action of the disqualified
4024	4024	person in failing to accept the offer was arbitrary or
4025	4025	vexatious or not in good faith. The expenses shall include
4026	4026	reasonable compensation for and reasonable expenses of the
4027	4027	appraisers and a reasonable attorney's fee but shall exclude
4028	4028	the fees and expenses of counsel for and of experts employed
4029	4029	by any party; but if the fair value of the stock as determined
4030	4030	materially exceeds the amount which the domestic professional
4031	4031	corporation offered to pay therefor, or if no offer was made,
4032	4032	the court in its discretion may award to the disqualified
4033	4033	person the sum the court determines to be reasonable
4034	4034	compensation to any expert or experts employed by the
4035	4035	disqualified person in the proceeding. (1) The court in a
4036	4036	proceeding commenced under subsection (d) shall determine all
4037	4037	court costs of the proceeding, including the reasonable
4038	4038	compensation and expenses of appraisers appointed by the
4039	4039	1933
4040	4040	1934
4041	4041	1935
4042	4042	1936
4043	4043	1937
4044	4044	1938
4045	4045	1939
4046	4046	1940
4047	4047	1941
4048	4048	1942
4049	4049	1943
4050	4050	1944
4051	4051	1945
4052	4052	1946
4053	4053	1947
4054	4054	1948
4055	4055	1949
4056	4056	1950
4057	4057	1951
4058	4058	1952
4059	4059	1953
4060	4060	1954
4061	4061	1955
4062	4062	1956
4063	4063	1957
4064	4064	1958
4065	4065	1959
4066	4066	1960 HB200 INTRODUCED
4067	4067	Page 71
4068	4068	compensation and expenses of appraisers appointed by the
4069	4069	court. The court shall assess the court costs against the
4070	4070	domestic professional corporation, except that the court may
4071	4071	assess court costs against the personal representative of the
4072	4072	estate of the deceased stockholder, the disqualified person,
4073	4073	or the transferee, as the case may be, in amounts which the
4074	4074	court finds equitable, to the extent the court finds the
4075	4075	personal representative of the estate of the deceased
4076	4076	stockholder, the disqualified person, or the transferee, as
4077	4077	the case may be, acted arbitrarily, vexatiously, or not in
4078	4078	good faith with respect to the rights provided by this
4079	4079	section.
4080	4080	(2) The court in a proceeding commenced under
4081	4081	subsection (d) may also assess the expenses of the respective
4082	4082	parties in amounts the court finds equitable:
4083	4083	(A) against the domestic professional corporation and
4084	4084	in favor of the personal representative of the estate of the
4085	4085	deceased stockholder, the disqualified person, or the
4086	4086	transferee, as the case may be, if the court finds the
4087	4087	domestic professional corporation did not substantially comply
4088	4088	with the requirements of this section; or
4089	4089	(B) against either the domestic professional
4090	4090	corporation or the personal representative of the estate of
4091	4091	the deceased stockholder, the disqualified person, or the
4092	4092	transferee, as the case may be, in favor of the other party,
4093	4093	if the court finds the party against whom expenses are
4094	4094	assessed acted arbitrarily, vexatiously, or not in good faith
4095	4095	with respect to the rights provided by this section.
4096	4096	(3) For purposes of this subsection (f), expenses means
4097	4097	1961
4098	4098	1962
4099	4099	1963
4100	4100	1964
4101	4101	1965
4102	4102	1966
4103	4103	1967
4104	4104	1968
4105	4105	1969
4106	4106	1970
4107	4107	1971
4108	4108	1972
4109	4109	1973
4110	4110	1974
4111	4111	1975
4112	4112	1976
4113	4113	1977
4114	4114	1978
4115	4115	1979
4116	4116	1980
4117	4117	1981
4118	4118	1982
4119	4119	1983
4120	4120	1984
4121	4121	1985
4122	4122	1986
4123	4123	1987
4124	4124	1988 HB200 INTRODUCED
4125	4125	Page 72
4126	4126	(3) For purposes of this subsection (f), expenses means
4127	4127	reasonable expenses of any kind that are incurred in
4128	4128	connection with a proceeding brought under subsection (d).
4129	4129	(g) If a purchase, redemption, or transfer of the stock
4130	4130	of a deceased stockholder or, disqualified person , or of a
4131	4131	transferee who is a disqualified person is not completed
4132	4132	within 12 months after the death of the deceased stockholder
4133	4133	or 12 months after the disqualification or transfer, as the
4134	4134	case may be, the domestic professional corporation shall
4135	4135	forthwith cancel the stock on its books and the personal
4136	4136	representative of the estate of the deceased stockholder, the
4137	4137	disqualified person , or the transferee, as the case may be,
4138	4138	shall have no further interest as a stockholder in the
4139	4139	domestic professional corporation other than the disqualified
4140	4140	that person's right to payment for the stock under this
4141	4141	section.
4142	4142	(h)(1) A professional corporation may acquire its own
4143	4143	stock, and, the stock so acquired shall constitute authorized
4144	4144	but unissued stock, provided however:
4145	4145	(A) the certificate of incorporation may provide that
4146	4146	the acquired stock shall constitute authorized, issued, but
4147	4147	not outstanding stock;
4148	4148	(B) the certificate of incorporation may prohibit the
4149	4149	reissue of the acquired stock, in which case, the number of
4150	4150	authorized shares of stock is reduced by the number of shares
4151	4151	of stock acquired; or
4152	4152	(C) if the certificate of incorporation does not (i)
4153	4153	provide that the acquired stock shall constitute authorized
4154	4154	but unissued stock, (ii) prohibit the reissuance of the
4155	4155	1989
4156	4156	1990
4157	4157	1991
4158	4158	1992
4159	4159	1993
4160	4160	1994
4161	4161	1995
4162	4162	1996
4163	4163	1997
4164	4164	1998
4165	4165	1999
4166	4166	2000
4167	4167	2001
4168	4168	2002
4169	4169	2003
4170	4170	2004
4171	4171	2005
4172	4172	2006
4173	4173	2007
4174	4174	2008
4175	4175	2009
4176	4176	2010
4177	4177	2011
4178	4178	2012
4179	4179	2013
4180	4180	2014
4181	4181	2015
4182	4182	2016 HB200 INTRODUCED
4183	4183	Page 73
4184	4184	but unissued stock, (ii) prohibit the reissuance of the
4185	4185	acquired stock, or (iii) provide that the acquired stock shall
4186	4186	constitute authorized, issued, but not outstanding stock, then
4187	4187	the board of directors may determine, at or prior to the time
4188	4188	of the acquisition, that the acquired stock will constitute
4189	4189	authorized, issued, but not outstanding stock.
4190	4190	(2) If the board of directors determines that any
4191	4191	acquired stock was to be authorized, issued, but not
4192	4192	outstanding in accordance with subsection (h)(1)(C), then the
4193	4193	board of directors may thereafter determine that the acquired
4194	4194	stock shall be converted to stock that is authorized but not
4195	4195	issued.
4196	4196	(i) This section shall not be deemed to require the a
4197	4197	domestic professional corporation to purchase of the stock of
4198	4198	a disqualified person where the period of if the
4199	4199	disqualification is for less than 12 months from the date of
4200	4200	disqualification or transfer. A domestic professional
4201	4201	corporation may require the disqualified person to sell the
4202	4202	disqualified person's stock to the domestic professional
4203	4203	corporation upon any disqualification.
4204	4204	(j) Any provision regarding purchase, redemption, or
4205	4205	transfer of stock of a domestic professional corporation
4206	4206	contained in the certificate of incorporation, bylaws, or any
4207	4207	private agreement shall be specifically enforceable in the
4208	4208	courts of this state.
4209	4209	(k) Nothing herein contained in this section shall
4210	4210	prevent or relieve a domestic professional corporation from
4211	4211	paying pension benefits or other deferred compensation for
4212	4212	services rendered to or on behalf of a former stockholder as
4213	4213	2017
4214	4214	2018
4215	4215	2019
4216	4216	2020
4217	4217	2021
4218	4218	2022
4219	4219	2023
4220	4220	2024
4221	4221	2025
4222	4222	2026
4223	4223	2027
4224	4224	2028
4225	4225	2029
4226	4226	2030
4227	4227	2031
4228	4228	2032
4229	4229	2033
4230	4230	2034
4231	4231	2035
4232	4232	2036
4233	4233	2037
4234	4234	2038
4235	4235	2039
4236	4236	2040
4237	4237	2041
4238	4238	2042
4239	4239	2043
4240	4240	2044 HB200 INTRODUCED
4241	4241	Page 74
4242	4242	services rendered to or on behalf of a former stockholder as
4243	4243	otherwise permitted by law.
4244	4244	(l) A domestic professional corporation may purchase
4245	4245	its own stock from a disqualified person without regard to the
4246	4246	availability of capital or surplus for the purchase; however,
4247	4247	no purchase of or payment for the stock shall be made at a
4248	4248	time when the domestic professional corporation is insolvent
4249	4249	or when the purchase or payment would make it insolvent.
4250	4250	(m) The foregoing provisions of this section shall not
4251	4251	apply to a domestic nonprofit professional corporation. Any
4252	4252	member of a domestic nonprofit corporation who becomes a
4253	4253	disqualified person must cease being a member not more than 12
4254	4254	months after the date of disqualification if he or she is then
4255	4255	a disqualified person."
4256	4256	Section 5. Sections 10A-5A-1.02, 10A-5A-1.06,
4257	4257	10A-5A-2.02, as amended by Act 2024-413, 2024 Regular Session,
4258	4258	10A-5A-5.02, 10A-5A-5.04, 10A-5A-8.02, 10A-5A-10.01, and
4259	4259	10A-5A-10.05, Code of Alabama 1975, are amended to read as
4260	4260	follows:
4261	4261	"§10A-5A-1.02
4262	4262	As used in this chapter, unless the context otherwise
4263	4263	requires, the following terms mean:
4264	4264	(a) CERTIFICATE OF FORMATION, with respect to a limited
4265	4265	liability company, means the certificate provided for by
4266	4266	Section 10A-5A-2.01, and the certificate as amended or
4267	4267	restated.
4268	4268	(b) CONSTITUENT LIMITED LIABILITY COMPANY means a
4269	4269	constituent organization that is a limited liability company.
4270	4270	(c) CONSTITUENT ORGANIZATION means an organization that
4271	4271	2045
4272	4272	2046
4273	4273	2047
4274	4274	2048
4275	4275	2049
4276	4276	2050
4277	4277	2051
4278	4278	2052
4279	4279	2053
4280	4280	2054
4281	4281	2055
4282	4282	2056
4283	4283	2057
4284	4284	2058
4285	4285	2059
4286	4286	2060
4287	4287	2061
4288	4288	2062
4289	4289	2063
4290	4290	2064
4291	4291	2065
4292	4292	2066
4293	4293	2067
4294	4294	2068
4295	4295	2069
4296	4296	2070
4297	4297	2071
4298	4298	2072 HB200 INTRODUCED
4299	4299	Page 75
4300	4300	(c) CONSTITUENT ORGANIZATION means an organization that
4301	4301	is party to a merger under Article 10.
4302	4302	(d) CONVERTED ORGANIZATION means the organization into
4303	4303	which a converting organization converts pursuant to Article
4304	4304	10.
4305	4305	(e) CONVERTING LIMITED LIABILITY COMPANY means a
4306	4306	converting organization that is a limited liability company.
4307	4307	(f) CONVERTING ORGANIZATION means an organization that
4308	4308	converts into another organization pursuant to Article 10.
4309	4309	(g) DISQUALIFIED PERSON means any person who is not a
4310	4310	qualified person.
4311	4311	(h) DISTRIBUTION except as otherwise provided in
4312	4312	Section 10A-5A-4.06(e), means a transfer of money or other
4313	4313	property from a limited liability company, or series thereof,
4314	4314	to another person on account of a transferable interest.
4315	4315	(i) FOREIGN LIMITED LIABILITY COMPANY means a limited
4316	4316	liability company governed by the laws of a jurisdiction other
4317	4317	than this state which would be a limited liability company if
4318	4318	governed by the laws of this state.
4319	4319	(j) GOVERNING STATUTE means the statute that governs an
4320	4320	organization's internal affairs.
4321	4321	(k) LIMITED LIABILITY COMPANY, except in the phrase
4322	4322	"foreign limited liability company," means an entity formed or
4323	4323	existing under this chapter.
4324	4324	(l) LIMITED LIABILITY COMPANY AGREEMENT means any
4325	4325	agreement (whether referred to as a limited liability company
4326	4326	agreement, operating agreement or otherwise), written, oral or
4327	4327	implied, of the member or members as to the activities and
4328	4328	affairs of a limited liability company or series thereof. The
4329	4329	2073
4330	4330	2074
4331	4331	2075
4332	4332	2076
4333	4333	2077
4334	4334	2078
4335	4335	2079
4336	4336	2080
4337	4337	2081
4338	4338	2082
4339	4339	2083
4340	4340	2084
4341	4341	2085
4342	4342	2086
4343	4343	2087
4344	4344	2088
4345	4345	2089
4346	4346	2090
4347	4347	2091
4348	4348	2092
4349	4349	2093
4350	4350	2094
4351	4351	2095
4352	4352	2096
4353	4353	2097
4354	4354	2098
4355	4355	2099
4356	4356	2100 HB200 INTRODUCED
4357	4357	Page 76
4358	4358	affairs of a limited liability company or series thereof. The
4359	4359	limited liability company agreement of a limited liability
4360	4360	company having only one member shall not be unenforceable by
4361	4361	reason of there being only one person who is a party to the
4362	4362	limited liability company agreement. The limited liability
4363	4363	company agreement includes any amendments to the limited
4364	4364	liability company agreement.
4365	4365	(m) MEMBER means a person admitted under Section
4366	4366	10A-5A-4.01 and not dissociated under Section 10A-5A-6.02.
4367	4367	(n) ORGANIZATION means a general partnership, including
4368	4368	a limited liability partnership; limited partnership,
4369	4369	including a limited liability limited partnership; limited
4370	4370	liability company; business trust; corporation; nonprofit
4371	4371	corporation; professional corporation; or any other person
4372	4372	having a governing statute. The term includes domestic and
4373	4373	foreign organizations whether or not organized for profit.
4374	4374	(o) ORGANIZATIONAL DOCUMENTS means:
4375	4375	(1) for a general partnership or foreign general
4376	4376	partnership, its partnership agreement and if applicable, its
4377	4377	registration as a limited liability partnership or a foreign
4378	4378	limited liability partnership;
4379	4379	(2) for a limited partnership or foreign limited
4380	4380	partnership, its certificate of formation and partnership
4381	4381	agreement, or comparable writings as provided in its governing
4382	4382	statute;
4383	4383	(3) for a limited liability company or foreign limited
4384	4384	liability company, its certificate of formation and limited
4385	4385	liability company agreement, or comparable writings as
4386	4386	provided in its governing statute;
4387	4387	2101
4388	4388	2102
4389	4389	2103
4390	4390	2104
4391	4391	2105
4392	4392	2106
4393	4393	2107
4394	4394	2108
4395	4395	2109
4396	4396	2110
4397	4397	2111
4398	4398	2112
4399	4399	2113
4400	4400	2114
4401	4401	2115
4402	4402	2116
4403	4403	2117
4404	4404	2118
4405	4405	2119
4406	4406	2120
4407	4407	2121
4408	4408	2122
4409	4409	2123
4410	4410	2124
4411	4411	2125
4412	4412	2126
4413	4413	2127
4414	4414	2128 HB200 INTRODUCED
4415	4415	Page 77
4416	4416	provided in its governing statute;
4417	4417	(4) for a business or statutory trust or foreign
4418	4418	business or statutory trust its agreement of trust and
4419	4419	declaration of trust, or comparable writings as provided in
4420	4420	its governing statute;
4421	4421	(5) for a corporation for profit or foreign corporation
4422	4422	for profit, its certificate of formation, bylaws, and other
4423	4423	agreements among its shareholders that are authorized by its
4424	4424	governing statute, or comparable writings as provided in its
4425	4425	governing statute;
4426	4426	(6) for a nonprofit corporation or foreign nonprofit
4427	4427	corporation, its certificate of formation, bylaws, and other
4428	4428	agreements that are authorized by its governing statute, or
4429	4429	comparable writings as provided in its governing statute;
4430	4430	(7) for a professional corporation or foreign
4431	4431	professional corporation, its certificate of formation,
4432	4432	bylaws, and other agreements among its shareholders that are
4433	4433	authorized by its governing statute, or comparable writings as
4434	4434	provided in its governing statute; and
4435	4435	(8) for any other organization, the basic writings that
4436	4436	create the organization and determine its internal governance
4437	4437	and the relations among the persons that own it, have an
4438	4438	interest in it, or are members of it.
4439	4439	(p) PLAN OF MERGER. Except as set forth in Section
4440	4440	10A-5A-10.05(e), a plan of merger, whether referred to as a
4441	4441	plan of merger, an agreement of merger, a merger agreement, a
4442	4442	plan and agreement of merger, an agreement and plan of merger,
4443	4443	or otherwise, means a writing described in Section
4444	4444	10A-5A-10.05 and includes any agreement, instrument, or other
4445	4445	2129
4446	4446	2130
4447	4447	2131
4448	4448	2132
4449	4449	2133
4450	4450	2134
4451	4451	2135
4452	4452	2136
4453	4453	2137
4454	4454	2138
4455	4455	2139
4456	4456	2140
4457	4457	2141
4458	4458	2142
4459	4459	2143
4460	4460	2144
4461	4461	2145
4462	4462	2146
4463	4463	2147
4464	4464	2148
4465	4465	2149
4466	4466	2150
4467	4467	2151
4468	4468	2152
4469	4469	2153
4470	4470	2154
4471	4471	2155
4472	4472	2156 HB200 INTRODUCED
4473	4473	Page 78
4474	4474	10A-5A-10.05 and includes any agreement, instrument, or other
4475	4475	document referenced therein or associated therewith that sets
4476	4476	forth the terms and conditions of the merger.
4477	4477	(p)(q) QUALIFIED PERSON, with respect to a limited
4478	4478	liability company rendering professional services in this
4479	4479	state, means a person authorized by this state or a regulatory
4480	4480	authority of this state to own a transferable interest in that
4481	4481	limited liability company.
4482	4482	(q)(r) SURVIVING ORGANIZATION means an organization
4483	4483	into which one or more other organizations are merged under
4484	4484	Article 10, whether the organization pre-existed the merger or
4485	4485	was created pursuant to the merger.
4486	4486	(r)(s) TRANSFER means an assignment, conveyance, deed,
4487	4487	bill of sale, lease, mortgage, security interest, encumbrance,
4488	4488	gift, or transfer by operation of law.
4489	4489	(s)(t) TRANSFEREE means a person to which all or part
4490	4490	of a transferable interest has been transferred, whether or
4491	4491	not the transferor is a member.
4492	4492	(t)(u) TRANSFERABLE INTEREST means a member's right to
4493	4493	receive distributions from a limited liability company or a
4494	4494	series thereof."
4495	4495	"§10A-5A-1.06
4496	4496	(a) It is the policy of this chapter and this state to
4497	4497	give maximum effect to the principles of freedom of contract
4498	4498	and to the enforceability of limited liability company
4499	4499	agreements.
4500	4500	(b) Unless displaced by particular provisions of this
4501	4501	chapter, the principles of law and equity supplement this
4502	4502	chapter.
4503	4503	2157
4504	4504	2158
4505	4505	2159
4506	4506	2160
4507	4507	2161
4508	4508	2162
4509	4509	2163
4510	4510	2164
4511	4511	2165
4512	4512	2166
4513	4513	2167
4514	4514	2168
4515	4515	2169
4516	4516	2170
4517	4517	2171
4518	4518	2172
4519	4519	2173
4520	4520	2174
4521	4521	2175
4522	4522	2176
4523	4523	2177
4524	4524	2178
4525	4525	2179
4526	4526	2180
4527	4527	2181
4528	4528	2182
4529	4529	2183
4530	4530	2184 HB200 INTRODUCED
4531	4531	Page 79
4532	4532	chapter.
4533	4533	(c) The rule that statutes in derogation of the common
4534	4534	law are to be strictly construed shall have no application to
4535	4535	this chapter.
4536	4536	(d) The use of any gender shall be applicable to all
4537	4537	genders. The captions contained in this chapter are for
4538	4538	purposes of convenience only and shall not control or affect
4539	4539	the construction of this chapter.
4540	4540	(e) Sections 7-9A-406 and 7-9A-408 of the Uniform
4541	4541	Commercial Code, and all successor statutes thereto, do not
4542	4542	apply to any interest in a limited liability company,
4543	4543	including all rights, powers, and interests arising under a
4544	4544	limited liability company agreement or this chapter. This
4545	4545	provision prevails over Sections 7-9A-406 and 7-9A-408 of the
4546	4546	Uniform Commercial Code, and all successor statutes thereto,
4547	4547	and is expressly intended to permit the enforcement of the
4548	4548	provisions of a limited liability company agreement that would
4549	4549	otherwise be ineffective under Sections 7-9A-406 and 7-9A-408
4550	4550	of the Uniform Commercial Code, and all successor statutes
4551	4551	thereto.
4552	4552	(f) Division E of Article 3 of Chapter 1 of this title
4553	4553	shall have no application to this chapter.
4554	4554	(g) The terms president, vice president, secretary, and
4555	4555	treasurer, as defined in Chapter 1, shall have no application
4556	4556	to this chapter.
4557	4557	(h) Section 10A-1-2.13(c) shall have no application to
4558	4558	this chapter.
4559	4559	(i) Action validly taken pursuant to one provision of
4560	4560	this chapter shall not be deemed invalid solely because it is
4561	4561	2185
4562	4562	2186
4563	4563	2187
4564	4564	2188
4565	4565	2189
4566	4566	2190
4567	4567	2191
4568	4568	2192
4569	4569	2193
4570	4570	2194
4571	4571	2195
4572	4572	2196
4573	4573	2197
4574	4574	2198
4575	4575	2199
4576	4576	2200
4577	4577	2201
4578	4578	2202
4579	4579	2203
4580	4580	2204
4581	4581	2205
4582	4582	2206
4583	4583	2207
4584	4584	2208
4585	4585	2209
4586	4586	2210
4587	4587	2211
4588	4588	2212 HB200 INTRODUCED
4589	4589	Page 80
4590	4590	this chapter shall not be deemed invalid solely because it is
4591	4591	identical or similar in substance to an action that could have
4592	4592	been taken pursuant to some other provision of this chapter
4593	4593	but fails to satisfy one or more requirements prescribed by
4594	4594	such other provision.
4595	4595	(j) The provisions of this chapter shall apply whether
4596	4596	a limited liability company has one member or more than one
4597	4597	member."
4598	4598	"§10A-5A-2.02
4599	4599	Division B of Article 3 of Chapter 1 shall not apply to
4600	4600	this chapter. Instead:
4601	4601	(a) A certificate of formation may be amended at any
4602	4602	time.
4603	4603	(b) A certificate of formation may be restated with or
4604	4604	without amendment at any time.
4605	4605	(c) To amend its certificate of formation, a limited
4606	4606	liability company must deliver a certificate of amendment for
4607	4607	filing to the Secretary of State which certificate of
4608	4608	amendment shall state:
4609	4609	(1) the name of the limited liability company;
4610	4610	(2) the unique identifying number or other designation
4611	4611	as assigned by the Secretary of State; and
4612	4612	(3) the changes the amendment makes to the certificate
4613	4613	of formation as most recently amended or restated.
4614	4614	(d) To restate its certificate of formation, a limited
4615	4615	liability company must deliver a restated certificate of
4616	4616	formation for filing to the Secretary of State. A restated
4617	4617	certificate of formation must:
4618	4618	(1) be designated as such in the heading;
4619	4619	2213
4620	4620	2214
4621	4621	2215
4622	4622	2216
4623	4623	2217
4624	4624	2218
4625	4625	2219
4626	4626	2220
4627	4627	2221
4628	4628	2222
4629	4629	2223
4630	4630	2224
4631	4631	2225
4632	4632	2226
4633	4633	2227
4634	4634	2228
4635	4635	2229
4636	4636	2230
4637	4637	2231
4638	4638	2232
4639	4639	2233
4640	4640	2234
4641	4641	2235
4642	4642	2236
4643	4643	2237
4644	4644	2238
4645	4645	2239
4646	4646	2240 HB200 INTRODUCED
4647	4647	Page 81
4648	4648	(1) be designated as such in the heading;
4649	4649	(2) state the limited liability company's name;
4650	4650	(3) state the unique identifying number or other
4651	4651	designation as assigned by the Secretary of State; and
4652	4652	(4) set forth any amendment or change effected in
4653	4653	connection with the restatement of the certificate of
4654	4654	formation.
4655	4655	Any such restatement that effects an amendment shall be
4656	4656	subject to any other provision of this chapter, not
4657	4657	inconsistent with this section, which would apply if a
4658	4658	separate certificate of amendment were filed to effect the
4659	4659	amendment or change.
4660	4660	(e) The original certificate of formation, as
4661	4661	theretofore amended, shall be superseded by the restated
4662	4662	certificate of formation and thenceforth, the restated
4663	4663	certificate of formation, including any further amendment or
4664	4664	changes made thereby, shall be the certificate of formation of
4665	4665	the limited liability company, but the original effective date
4666	4666	of formation shall remain unchanged.
4667	4667	(f) An amended or restated certificate of formation may
4668	4668	contain only provisions that would be permitted at the time of
4669	4669	the amendment if the amended or restated certificate of
4670	4670	formation were a newly filed original certificate of
4671	4671	formation.
4672	4672	(g) A restated certificate of formation may omit any
4673	4673	information that is not required to be in the certificate of
4674	4674	formation under this chapter, including the name and address
4675	4675	of the initial registered agent or registered office, if a
4676	4676	statement of change is on file with the Secretary of State.
4677	4677	2241
4678	4678	2242
4679	4679	2243
4680	4680	2244
4681	4681	2245
4682	4682	2246
4683	4683	2247
4684	4684	2248
4685	4685	2249
4686	4686	2250
4687	4687	2251
4688	4688	2252
4689	4689	2253
4690	4690	2254
4691	4691	2255
4692	4692	2256
4693	4693	2257
4694	4694	2258
4695	4695	2259
4696	4696	2260
4697	4697	2261
4698	4698	2262
4699	4699	2263
4700	4700	2264
4701	4701	2265
4702	4702	2266
4703	4703	2267
4704	4704	2268 HB200 INTRODUCED
4705	4705	Page 82
4706	4706	statement of change is on file with the Secretary of State.
4707	4707	Any omission other than the initial registered agent shall be
4708	4708	an amendment to the certificate of formation, which amendment
4709	4709	must be approved in accordance with the limited liability
4710	4710	company agreement, and if the limited liability company
4711	4711	agreement does not state the approval required for an
4712	4712	amendment of the certificate of formation, then the amendment
4713	4713	must be approved by all of the members."
4714	4714	"§10A-5A-5.02
4715	4715	(a) A transfer, in whole or in part, of a transferable
4716	4716	interest:
4717	4717	(1) is permissible;
4718	4718	(2)(A) does not by itself cause a member to cease to be
4719	4719	a member of the limited liability company; and
4720	4720	(B) does not by itself cause a member to cease to be
4721	4721	associated with a series of the limited liability company;
4722	4722	(3) does not by itself cause a dissolution and winding
4723	4723	up of the limited liability company, or a series thereof; and
4724	4724	(4) subject to Section 10A-5A-5.04, does not entitle
4725	4725	the transferee to:
4726	4726	(A) participate in the direction or oversight of the
4727	4727	activities and affairs of the limited liability company, or a
4728	4728	series thereof; or
4729	4729	(B) have access to records or other information
4730	4730	concerning the activities and affairs of the limited liability
4731	4731	company, or a series thereof.
4732	4732	(b) A transferee has the right to receive, in
4733	4733	accordance with the transfer, distributions to which the
4734	4734	transferor would otherwise be entitled.
4735	4735	2269
4736	4736	2270
4737	4737	2271
4738	4738	2272
4739	4739	2273
4740	4740	2274
4741	4741	2275
4742	4742	2276
4743	4743	2277
4744	4744	2278
4745	4745	2279
4746	4746	2280
4747	4747	2281
4748	4748	2282
4749	4749	2283
4750	4750	2284
4751	4751	2285
4752	4752	2286
4753	4753	2287
4754	4754	2288
4755	4755	2289
4756	4756	2290
4757	4757	2291
4758	4758	2292
4759	4759	2293
4760	4760	2294
4761	4761	2295
4762	4762	2296 HB200 INTRODUCED
4763	4763	Page 83
4764	4764	transferor would otherwise be entitled.
4765	4765	(c) A transferable interest may be evidenced by a
4766	4766	certificate of transferable interest issued by the limited
4767	4767	liability company, or a series thereof. A limited liability
4768	4768	company agreement may provide for the transfer of the
4769	4769	transferable interest represented by the certificate and make
4770	4770	other provisions with respect to the certificate. No
4771	4771	certificate of transferable interest shall be issued in bearer
4772	4772	form.
4773	4773	(d) A limited liability company, or a series thereof,
4774	4774	need not give effect to a transferee's rights under this
4775	4775	section until the limited liability company, or a series
4776	4776	thereof, has notice of the transfer.
4777	4777	(e) Except as otherwise provided in Sections
4778	4778	10A-5A-6.02(d)(2), 10A-5A-6.02(k), and 10A-5A-6.02(l) when a
4779	4779	member transfers a transferable interest, the transferor
4780	4780	retains the rights of a member other than the right to
4781	4781	distributions transferred and retains all duties and
4782	4782	obligations of a member.
4783	4783	(f) When a member transfers a transferable interest to
4784	4784	a person that is admitted as a member with respect to the
4785	4785	transferred interest, the transferee is liable for the
4786	4786	member's obligations under Sections 10A-5A-4.04,
4787	4787	10A-5A-4.06(a)(2), and 10A-5A-4.06(b)(2) to the extent that
4788	4788	the obligations are known to the transferee when the
4789	4789	transferee voluntarily accepts admission as a member.
4790	4790	(g) Notwithstanding anything in Title 43 to the
4791	4791	contrary, a limited liability company agreement may provide
4792	4792	that a transferable interest may or shall be transferred in
4793	4793	2297
4794	4794	2298
4795	4795	2299
4796	4796	2300
4797	4797	2301
4798	4798	2302
4799	4799	2303
4800	4800	2304
4801	4801	2305
4802	4802	2306
4803	4803	2307
4804	4804	2308
4805	4805	2309
4806	4806	2310
4807	4807	2311
4808	4808	2312
4809	4809	2313
4810	4810	2314
4811	4811	2315
4812	4812	2316
4813	4813	2317
4814	4814	2318
4815	4815	2319
4816	4816	2320
4817	4817	2321
4818	4818	2322
4819	4819	2323
4820	4820	2324 HB200 INTRODUCED
4821	4821	Page 84
4822	4822	that a transferable interest may or shall be transferred in
4823	4823	whole or in part, with or without consideration, to one or
4824	4824	more persons at the death of the holder of the transferable
4825	4825	interest. Any transferable interest transferred pursuant to
4826	4826	this subsection shall be subject to any outstanding charging
4827	4827	order under Section 10A-5A-5.03. This subsection does not
4828	4828	limit the rights of creditors of holders of transferable
4829	4829	interests against transferees under this chapter or other laws
4830	4830	of this state."
4831	4831	"§10A-5A-5.04
4832	4832	If a member dies, the deceased member's personal
4833	4833	representative or other legal representative may:
4834	4834	(a) for the period of time , if any, that the deceased
4835	4835	member's personal representative or other legal representative
4836	4836	holds the deceased member's transferable interest:
4837	4837	(1) exercise the rights of a holder of transferable
4838	4838	interests under this chapter;
4839	4839	(2) exercise the rights of a transferee under Section
4840	4840	10A-5A-5.02; and
4841	4841	(3) for purposes of settling the estate, exercise the
4842	4842	rights of a current member under Section 10A-5A-4.09; and
4843	4843	(b) for the period of time that the deceased member's
4844	4844	personal representative or other legal representative does not
4845	4845	hold the deceased member's transferable interest, for purposes
4846	4846	of settling the estate, exercise the rights of a dissociated
4847	4847	member under Section 10A-5A-4.09."
4848	4848	"§10A-5A-8.02
4849	4849	(a) In the case of a limited liability company
4850	4850	performing professional services, upon the death of a member,
4851	4851	2325
4852	4852	2326
4853	4853	2327
4854	4854	2328
4855	4855	2329
4856	4856	2330
4857	4857	2331
4858	4858	2332
4859	4859	2333
4860	4860	2334
4861	4861	2335
4862	4862	2336
4863	4863	2337
4864	4864	2338
4865	4865	2339
4866	4866	2340
4867	4867	2341
4868	4868	2342
4869	4869	2343
4870	4870	2344
4871	4871	2345
4872	4872	2346
4873	4873	2347
4874	4874	2348
4875	4875	2349
4876	4876	2350
4877	4877	2351
4878	4878	2352 HB200 INTRODUCED
4879	4879	Page 85
4880	4880	performing professional services, upon the death of a member,
4881	4881	upon a member becoming a disqualified person, or upon a
4882	4882	transferable interest being transferred by operation of law or
4883	4883	court decree to a disqualified person, the transferable
4884	4884	interest of the deceased member or of the disqualified person
4885	4885	may be transferred to a qualified person and, if not so
4886	4886	transferred, subject to Section 10A-5A-4.06, shall be
4887	4887	purchased by the limited liability company as provided in this
4888	4888	section.
4889	4889	(b) If the purchase price of the transferable interest
4890	4890	is not fixed by determined in accordance with the limited
4891	4891	liability company agreement, the limited liability company,
4892	4892	within six months after the death or 30 days after the
4893	4893	disqualification or transfer, as the case may be, shall make a
4894	4894	written offer to pay to the holder of for the transferable
4895	4895	interest a specified price deemed by the limited liability
4896	4896	company to be the fair value of the transferable interest as
4897	4897	of the date of the death, disqualification, or transfer. The
4898	4898	offer shall be given delivered to the personal representative
4899	4899	of the estate of the deceased member, the disqualified person,
4900	4900	or the transferee, as the case may be, and shall be
4901	4901	accompanied by a balance sheet of the limited liability
4902	4902	company, as of the latest available date and not more than 12
4903	4903	months prior to the making of the offer, and a profit and loss
4904	4904	statement of the limited liability company for the 12 months'
4905	4905	period ended on the date of the balance sheet.
4906	4906	(c) If within 30 days after the date of the written
4907	4907	offer from the limited liability company the fair value of the
4908	4908	transferable interest is agreed upon between the personal
4909	4909	2353
4910	4910	2354
4911	4911	2355
4912	4912	2356
4913	4913	2357
4914	4914	2358
4915	4915	2359
4916	4916	2360
4917	4917	2361
4918	4918	2362
4919	4919	2363
4920	4920	2364
4921	4921	2365
4922	4922	2366
4923	4923	2367
4924	4924	2368
4925	4925	2369
4926	4926	2370
4927	4927	2371
4928	4928	2372
4929	4929	2373
4930	4930	2374
4931	4931	2375
4932	4932	2376
4933	4933	2377
4934	4934	2378
4935	4935	2379
4936	4936	2380 HB200 INTRODUCED
4937	4937	Page 86
4938	4938	transferable interest is agreed upon between the personal
4939	4939	representative of the estate of the deceased member, the
4940	4940	disqualified person, or the transferee, as the case may be,
4941	4941	and the limited liability company, payment therefor shall be
4942	4942	made within 90 days, or such other period as the parties may
4943	4943	agree, after the date of the offer . Upon payment of the agreed
4944	4944	value, the personal representative of the estate of the
4945	4945	deceased member, the disqualified person, or the transferee,
4946	4946	as the case may be, shall cease to have any interest in, or
4947	4947	claim to, the transferable interest.
4948	4948	(d) If within 30 days from the date of the written
4949	4949	offer from the limited liability company, the fair value of
4950	4950	the transferable interest is not agreed upon between the
4951	4951	personal representative of the estate of the deceased member,
4952	4952	the disqualified person, or the transferee, as the case may
4953	4953	be, and the limited liability company do not so agree as to
4954	4954	the fair value of the transferable interest within 30 days of
4955	4955	the delivery of the written offer , then either party may
4956	4956	commence a civil action in the designated court, and if none,
4957	4957	in the circuit court for the county in which the limited
4958	4958	liability company's principal office within this state is
4959	4959	located, and if the limited liability company does not have a
4960	4960	principal office within this state, then in the circuit court
4961	4961	for the county in which the limited liability company's most
4962	4962	recent registered office is located requesting that the fair
4963	4963	value of the transferable interest be found and determined. If
4964	4964	the limited liability company does not deliver a written offer
4965	4965	in accordance with subsection (b), then the personal
4966	4966	representative of the estate of the deceased member, the
4967	4967	2381
4968	4968	2382
4969	4969	2383
4970	4970	2384
4971	4971	2385
4972	4972	2386
4973	4973	2387
4974	4974	2388
4975	4975	2389
4976	4976	2390
4977	4977	2391
4978	4978	2392
4979	4979	2393
4980	4980	2394
4981	4981	2395
4982	4982	2396
4983	4983	2397
4984	4984	2398
4985	4985	2399
4986	4986	2400
4987	4987	2401
4988	4988	2402
4989	4989	2403
4990	4990	2404
4991	4991	2405
4992	4992	2406
4993	4993	2407
4994	4994	2408 HB200 INTRODUCED
4995	4995	Page 87
4996	4996	representative of the estate of the deceased member, the
4997	4997	disqualified person, or the transferee, as the case may be,
4998	4998	may commence a civil action in the designated court, and if
4999	4999	none, in the circuit court for the county in which the limited
5000	5000	liability company's principal office is located in this state,
5001	5001	and if none in this state, in the circuit court for the county
5002	5002	in which the limited liability company's most recent
5003	5003	registered office is located requesting that the fair value of
5004	5004	the transferable interest be found and determined. The
5005	5005	personal representative of the estate of the deceased member,
5006	5006	the disqualified person, or the transferee, as the case may
5007	5007	be, wherever residing, shall be made a party to the proceeding
5008	5008	as an action against that person's transferable interest quasi
5009	5009	in rem. Service shall be made in accordance with the rules of
5010	5010	civil procedure. The personal representative of the estate of
5011	5011	the deceased member, the disqualified person, or the
5012	5012	transferee, as the case may be, shall be entitled to a
5013	5013	judgment against the limited liability company for the amount
5014	5014	of the fair value of that person's transferable interest as of
5015	5015	the date of death, disqualification, or transfer. The court,
5016	5016	in its discretion, may order that the judgment be paid in
5017	5017	installments and with interest and on terms as the court may
5018	5018	determine. The court, if it so elects, may appoint one or more
5019	5019	persons as appraisers to receive evidence and recommend a
5020	5020	decision on the question of fair value. The appraisers shall
5021	5021	have the power and authority as shall be specified in the
5022	5022	order of their appointment or an amendment thereof.
5023	5023	(e) The judgment shall include an allowance for
5024	5024	interest at the rate the court finds to be fair and equitable
5025	5025	2409
5026	5026	2410
5027	5027	2411
5028	5028	2412
5029	5029	2413
5030	5030	2414
5031	5031	2415
5032	5032	2416
5033	5033	2417
5034	5034	2418
5035	5035	2419
5036	5036	2420
5037	5037	2421
5038	5038	2422
5039	5039	2423
5040	5040	2424
5041	5041	2425
5042	5042	2426
5043	5043	2427
5044	5044	2428
5045	5045	2429
5046	5046	2430
5047	5047	2431
5048	5048	2432
5049	5049	2433
5050	5050	2434
5051	5051	2435
5052	5052	2436 HB200 INTRODUCED
5053	5053	Page 88
5054	5054	interest at the rate the court finds to be fair and equitable
5055	5055	in all the circumstances, from the date of death,
5056	5056	disqualification, or transfer.
5057	5057	(f) The costs and expenses of any proceeding shall be
5058	5058	determined by the court and shall be assessed against the
5059	5059	parties in a manner the court deems equitable.
5060	5060	(g) The expenses shall include reasonable compensation
5061	5061	for and reasonable expenses of the appraisers and a reasonable
5062	5062	attorney's fee but shall exclude the fees and expenses of
5063	5063	counsel for and of experts employed by any party, but: (1) if
5064	5064	the fair value of the transferable interest as determined
5065	5065	materially exceeds the amount which the limited liability
5066	5066	company offered to pay therefor, or if no offer was made by
5067	5067	the limited liability company, the court in its discretion may
5068	5068	award to the personal representative of the estate of the
5069	5069	deceased member, the disqualified person, or the transferee,
5070	5070	as the case may be, the sum the court determines to be
5071	5071	reasonable compensation to any expert or experts employed by
5072	5072	the personal representative of the estate of the deceased
5073	5073	member, the disqualified person, or the transferee, as the
5074	5074	case may be, in the proceeding; and (2) if the offer of the
5075	5075	limited liability company for the transferable interest
5076	5076	materially exceeds the amount of the fair value of the
5077	5077	transferable interest as determined, the court, in its
5078	5078	discretion, may award to the limited liability company the sum
5079	5079	the court determines to be reasonable compensation to any
5080	5080	expert or experts employed by the limited liability company in
5081	5081	the proceeding.
5082	5082	(f)(1) The court in a proceeding commenced under
5083	5083	2437
5084	5084	2438
5085	5085	2439
5086	5086	2440
5087	5087	2441
5088	5088	2442
5089	5089	2443
5090	5090	2444
5091	5091	2445
5092	5092	2446
5093	5093	2447
5094	5094	2448
5095	5095	2449
5096	5096	2450
5097	5097	2451
5098	5098	2452
5099	5099	2453
5100	5100	2454
5101	5101	2455
5102	5102	2456
5103	5103	2457
5104	5104	2458
5105	5105	2459
5106	5106	2460
5107	5107	2461
5108	5108	2462
5109	5109	2463
5110	5110	2464 HB200 INTRODUCED
5111	5111	Page 89
5112	5112	(f)(1) The court in a proceeding commenced under
5113	5113	subsection (d) shall determine all court costs of the
5114	5114	proceeding, including the reasonable compensation and expenses
5115	5115	of appraisers appointed by the court. The court shall assess
5116	5116	the court costs against the limited liability company, except
5117	5117	that the court may assess court costs against the personal
5118	5118	representative of the estate of the deceased member, the
5119	5119	disqualified person, or the transferee, as the case may be, in
5120	5120	amounts which the court finds equitable, to the extent the
5121	5121	court finds the personal representative of the estate of the
5122	5122	deceased member, the disqualified person, or the transferee,
5123	5123	as the case may be, acted arbitrarily, vexatiously, or not in
5124	5124	good faith with respect to the rights provided by this
5125	5125	section.
5126	5126	(2) The court in a proceeding commenced under
5127	5127	subsection (d) may also assess the expenses of the respective
5128	5128	parties in amounts the court finds equitable:
5129	5129	(A) against the limited liability company and in favor
5130	5130	of the personal representative of the estate of the deceased
5131	5131	member, the disqualified person, or the transferee, as the
5132	5132	case may be, if the court finds the limited liability company
5133	5133	did not substantially comply with the requirements of this
5134	5134	section; or
5135	5135	(B) against either the limited liability company or the
5136	5136	personal representative of the estate of the deceased member,
5137	5137	the disqualified person, or the transferee, as the case may
5138	5138	be, in favor of the other party, if the court finds the party
5139	5139	against whom expenses are assessed acted arbitrarily,
5140	5140	vexatiously, or not in good faith with respect to the rights
5141	5141	2465
5142	5142	2466
5143	5143	2467
5144	5144	2468
5145	5145	2469
5146	5146	2470
5147	5147	2471
5148	5148	2472
5149	5149	2473
5150	5150	2474
5151	5151	2475
5152	5152	2476
5153	5153	2477
5154	5154	2478
5155	5155	2479
5156	5156	2480
5157	5157	2481
5158	5158	2482
5159	5159	2483
5160	5160	2484
5161	5161	2485
5162	5162	2486
5163	5163	2487
5164	5164	2488
5165	5165	2489
5166	5166	2490
5167	5167	2491
5168	5168	2492 HB200 INTRODUCED
5169	5169	Page 90
5170	5170	vexatiously, or not in good faith with respect to the rights
5171	5171	provided by this section.
5172	5172	(3) For purposes of this subsection (f), expenses means
5173	5173	reasonable expenses of any kind that are incurred in
5174	5174	connection with a proceeding brought under subsection (d).
5175	5175	(h)(g) If the purchase or transfer of the transferable
5176	5176	interest of a deceased member, a disqualified person, or a
5177	5177	transferee is not completed within 12 months after the death
5178	5178	of the deceased member or 12 months after the disqualification
5179	5179	or transfer, as the case may be, the limited liability company
5180	5180	shall forthwith cancel the transferable interest on its books
5181	5181	and the personal representative of the estate of the deceased
5182	5182	member, the disqualified person, or the transferee, as the
5183	5183	case may be, shall have no further interest in the
5184	5184	transferable interest other than that person's right to
5185	5185	payment for the transferable interest under this section.
5186	5186	(i)(h) This section shall not require a limited
5187	5187	liability company to purchase a transferable interest of a
5188	5188	disqualified person if the disqualification is for less than
5189	5189	12 months from the date of disqualification. A limited
5190	5190	liability company may require the disqualified person to sell
5191	5191	the disqualified person's transferable interest to the limited
5192	5192	liability company upon any disqualification.
5193	5193	(j)(i) Any provision of a limited liability company
5194	5194	agreement regarding the purchase or transfer of a transferable
5195	5195	interest of a limited liability company performing
5196	5196	professional services shall be specifically enforceable in the
5197	5197	courts of Alabama.
5198	5198	(k)(j) Nothing in this section shall prevent or relieve
5199	5199	2493
5200	5200	2494
5201	5201	2495
5202	5202	2496
5203	5203	2497
5204	5204	2498
5205	5205	2499
5206	5206	2500
5207	5207	2501
5208	5208	2502
5209	5209	2503
5210	5210	2504
5211	5211	2505
5212	5212	2506
5213	5213	2507
5214	5214	2508
5215	5215	2509
5216	5216	2510
5217	5217	2511
5218	5218	2512
5219	5219	2513
5220	5220	2514
5221	5221	2515
5222	5222	2516
5223	5223	2517
5224	5224	2518
5225	5225	2519
5226	5226	2520 HB200 INTRODUCED
5227	5227	Page 91
5228	5228	(k)(j) Nothing in this section shall prevent or relieve
5229	5229	a limited liability company from paying pension benefits or
5230	5230	other deferred compensation for services rendered to or on
5231	5231	behalf of a former member as otherwise permitted by law ."
5232	5232	"§10A-5A-10.01
5233	5233	(a) An organization other than a limited liability
5234	5234	company may convert to a limited liability company, and a
5235	5235	limited liability company may convert to an organization other
5236	5236	than a limited liability company pursuant to this section,
5237	5237	Sections 10A-5A-10.02 through 10A-5A-10.03, and a plan of
5238	5238	conversion, if:
5239	5239	(1) the governing statute of the organization that is
5240	5240	not a limited liability company authorizes the conversion;
5241	5241	(2) the law of the jurisdiction governing the
5242	5242	converting organization and the converted organization does
5243	5243	not prohibit the conversion; and
5244	5244	(3) the converting organization and the converted
5245	5245	organization each comply with the governing statute and
5246	5246	organizational documents applicable to that organization in
5247	5247	effecting the conversion.
5248	5248	(b) A plan of conversion must be in writing and must
5249	5249	include:
5250	5250	(1) the name, type of organization, and mailing address
5251	5251	of the principal office of the converting organization, and
5252	5252	its unique identifying number or other designation as assigned
5253	5253	by the Secretary of State, if any, before conversion;
5254	5254	(2) the name, type of organization, and mailing address
5255	5255	of the principal office of the converted organization after
5256	5256	conversion;
5257	5257	2521
5258	5258	2522
5259	5259	2523
5260	5260	2524
5261	5261	2525
5262	5262	2526
5263	5263	2527
5264	5264	2528
5265	5265	2529
5266	5266	2530
5267	5267	2531
5268	5268	2532
5269	5269	2533
5270	5270	2534
5271	5271	2535
5272	5272	2536
5273	5273	2537
5274	5274	2538
5275	5275	2539
5276	5276	2540
5277	5277	2541
5278	5278	2542
5279	5279	2543
5280	5280	2544
5281	5281	2545
5282	5282	2546
5283	5283	2547
5284	5284	2548 HB200 INTRODUCED
5285	5285	Page 92
5286	5286	conversion;
5287	5287	(3) the terms and conditions of the conversion,
5288	5288	including the manner and basis for converting interests in the
5289	5289	converting organization into any combination of money,
5290	5290	interests in the converted organization, and other
5291	5291	consideration allowed in Section 10A-5A-10.01(c); and
5292	5292	(4) the organizational documents of the converted
5293	5293	organization.
5294	5294	(c) In connection with a conversion, rights or
5295	5295	securities of or interests in the converting organization may
5296	5296	be exchanged for or converted into cash, property, or rights
5297	5297	or securities of or interests in the converted organization,
5298	5298	or, in addition to or in lieu thereof, may be exchanged for or
5299	5299	converted into cash, property, or rights or securities of or
5300	5300	interests in another organization or may be cancelled.
5301	5301	(d) At the time of the approval of the plan of
5302	5302	conversion in accordance with Section 10A-5A-10.02, the plan
5303	5303	of conversion is not required to contain or have attached
5304	5304	thereto any disclosure letter, disclosure schedules, or
5305	5305	similar documents or instruments contemplated by the plan of
5306	5306	conversion that modify, supplement, qualify, or make
5307	5307	exceptions to representations, warranties, covenants, or
5308	5308	conditions contained in the plan of conversion. "
5309	5309	"§10A-5A-10.05
5310	5310	(a) A limited liability company may merge with one or
5311	5311	more other constituent organizations pursuant to this section,
5312	5312	Sections 10A-5A-10.06 through 10A-5A-10.08, and a plan of
5313	5313	merger, if:
5314	5314	(1) the governing statute of each of the other
5315	5315	2549
5316	5316	2550
5317	5317	2551
5318	5318	2552
5319	5319	2553
5320	5320	2554
5321	5321	2555
5322	5322	2556
5323	5323	2557
5324	5324	2558
5325	5325	2559
5326	5326	2560
5327	5327	2561
5328	5328	2562
5329	5329	2563
5330	5330	2564
5331	5331	2565
5332	5332	2566
5333	5333	2567
5334	5334	2568
5335	5335	2569
5336	5336	2570
5337	5337	2571
5338	5338	2572
5339	5339	2573
5340	5340	2574
5341	5341	2575
5342	5342	2576 HB200 INTRODUCED
5343	5343	Page 93
5344	5344	(1) the governing statute of each of the other
5345	5345	organizations authorizes the merger;
5346	5346	(2) the merger is not prohibited by the law of a
5347	5347	jurisdiction that enacted any of those governing statutes; and
5348	5348	(3) each of the other organizations complies with its
5349	5349	governing statute in effecting the merger.
5350	5350	(b) A plan of merger must be in writing and must
5351	5351	include:
5352	5352	(1) the name, type of organization, and mailing address
5353	5353	of the principal office of each constituent organization, the
5354	5354	jurisdiction of the governing statute of each constituent
5355	5355	organization, and the respective unique identifying number or
5356	5356	other designation as assigned by the Secretary of State, if
5357	5357	any, of each constituent organization;
5358	5358	(2) the name, type of organization, and mailing address
5359	5359	of the principal office of the surviving organization, the
5360	5360	unique identifying number or other designation as assigned by
5361	5361	the Secretary of State, if any, of the surviving organization,
5362	5362	the jurisdiction of the governing statute of the surviving
5363	5363	organization, and, if the surviving organization is to be
5364	5364	created pursuant to the merger, a statement to that effect;
5365	5365	(3) the terms and conditions of the merger, including
5366	5366	the manner and basis for converting the interests in each
5367	5367	constituent organization into any combination of money,
5368	5368	interests in the surviving organization, and other
5369	5369	consideration as allowed by subsection (c);
5370	5370	(4) if the surviving organization is to be created
5371	5371	pursuant to the merger, the surviving organization's
5372	5372	organizational documents; and
5373	5373	2577
5374	5374	2578
5375	5375	2579
5376	5376	2580
5377	5377	2581
5378	5378	2582
5379	5379	2583
5380	5380	2584
5381	5381	2585
5382	5382	2586
5383	5383	2587
5384	5384	2588
5385	5385	2589
5386	5386	2590
5387	5387	2591
5388	5388	2592
5389	5389	2593
5390	5390	2594
5391	5391	2595
5392	5392	2596
5393	5393	2597
5394	5394	2598
5395	5395	2599
5396	5396	2600
5397	5397	2601
5398	5398	2602
5399	5399	2603
5400	5400	2604 HB200 INTRODUCED
5401	5401	Page 94
5402	5402	organizational documents; and
5403	5403	(5) if the surviving organization is not to be created
5404	5404	pursuant to the merger, any amendments to be made by the
5405	5405	merger to the surviving organization's organizational
5406	5406	documents.
5407	5407	(c) In connection with a merger, rights or securities
5408	5408	of or interests in a constituent organization may be exchanged
5409	5409	for or converted into cash, property, or rights or securities
5410	5410	of or interests in the surviving organization, or, in addition
5411	5411	to or in lieu thereof, may be exchanged for or converted into
5412	5412	cash, property, or rights or securities of or interests in
5413	5413	another organization or may be cancelled.
5414	5414	(d) In addition to the requirements of subsection (b),
5415	5415	a plan of merger may:
5416	5416	(1) provide that (i) a constituent organization or any
5417	5417	other party to the plan of merger that fails to perform its
5418	5418	obligations under the plan of merger in accordance with the
5419	5419	terms and conditions of the plan of merger, or that otherwise
5420	5420	fails to comply with the terms and conditions of the plan of
5421	5421	merger, in each case, required to be performed or complied
5422	5422	with prior to the time the merger becomes effective, or that
5423	5423	otherwise fails to consummate, or fails to cause the
5424	5424	consummation of, the merger (whether prior to a specified
5425	5425	date, upon satisfaction or, to the extent permitted by law,
5426	5426	waiver of all conditions to consummation set forth in the plan
5427	5427	of merger, or otherwise) shall be subject, in addition to any
5428	5428	other remedies available at law or in equity, to the penalties
5429	5429	or consequences as are set forth in the plan of merger (which
5430	5430	penalties or consequences may include an obligation to pay to
5431	5431	2605
5432	5432	2606
5433	5433	2607
5434	5434	2608
5435	5435	2609
5436	5436	2610
5437	5437	2611
5438	5438	2612
5439	5439	2613
5440	5440	2614
5441	5441	2615
5442	5442	2616
5443	5443	2617
5444	5444	2618
5445	5445	2619
5446	5446	2620
5447	5447	2621
5448	5448	2622
5449	5449	2623
5450	5450	2624
5451	5451	2625
5452	5452	2626
5453	5453	2627
5454	5454	2628
5455	5455	2629
5456	5456	2630
5457	5457	2631
5458	5458	2632 HB200 INTRODUCED
5459	5459	Page 95
5460	5460	penalties or consequences may include an obligation to pay to
5461	5461	the other party or parties to the plan of merger an amount
5462	5462	representing, or based on the loss of, any premium or other
5463	5463	economic entitlement the owners of the other party would be
5464	5464	entitled to receive pursuant to the terms of the plan of
5465	5465	merger if the merger were consummated in accordance with the
5466	5466	terms of the plan of merger) and (ii) if, pursuant to the
5467	5467	terms of the plan of merger, a limited liability company is
5468	5468	entitled to receive payment from another party to the plan of
5469	5469	merger of any amount representing a penalty or consequence (as
5470	5470	specified in clause (i) of this Section 10A-5A-10.02(d)(1)),
5471	5471	the limited liability company shall be entitled to enforce the
5472	5472	other party's payment obligation and, upon receipt of any
5473	5473	payment, shall be entitled to retain the amount of the payment
5474	5474	so received;
5475	5475	(2) provide (i) for the appointment, at or after the
5476	5476	time at which the plan of merger is adopted by the members of
5477	5477	a constituent limited liability company in accordance with the
5478	5478	requirements of Section 10A-5A-10.06, of one or more persons
5479	5479	(which may include the surviving or resulting entity or any
5480	5480	officer, manager, representative, or agent thereof) as
5481	5481	representative of the members of a constituent limited
5482	5482	liability company, including those whose transferable interest
5483	5483	shall be cancelled, converted, or exchanged in the merger, and
5484	5484	for the delegation to that person or persons of the sole and
5485	5485	exclusive authority to take action on behalf of the members
5486	5486	pursuant to the plan of merger, including taking such actions
5487	5487	as the representative determines to enforce (including by
5488	5488	entering into settlements with respect to) the rights of the
5489	5489	2633
5490	5490	2634
5491	5491	2635
5492	5492	2636
5493	5493	2637
5494	5494	2638
5495	5495	2639
5496	5496	2640
5497	5497	2641
5498	5498	2642
5499	5499	2643
5500	5500	2644
5501	5501	2645
5502	5502	2646
5503	5503	2647
5504	5504	2648
5505	5505	2649
5506	5506	2650
5507	5507	2651
5508	5508	2652
5509	5509	2653
5510	5510	2654
5511	5511	2655
5512	5512	2656
5513	5513	2657
5514	5514	2658
5515	5515	2659
5516	5516	2660 HB200 INTRODUCED
5517	5517	Page 96
5518	5518	entering into settlements with respect to) the rights of the
5519	5519	members under the plan of merger, on the terms and subject to
5520	5520	the conditions set forth in the plan of merger, (ii) that any
5521	5521	appointment pursuant to clause (i) of this Section
5522	5522	10A-5A-10.02(d)(2) shall be irrevocable and binding on all
5523	5523	members from and after the adoption of the plan of merger by
5524	5524	the requisite vote of the members pursuant to Section
5525	5525	10A-5A-10.06, and (iii) that any provision adopted pursuant to
5526	5526	this Section 10A-5A-10.02(d)(2) may not be amended after the
5527	5527	merger has become effective or may be amended only with the
5528	5528	consent or approval of persons specified in the plan of
5529	5529	merger; and
5530	5530	(3) contain any other provision not prohibited by law.
5531	5531	(e) At the time of the approval of the plan of merger
5532	5532	in accordance with Section 10A-5A-10.06, the plan of merger is
5533	5533	not required to contain or have attached thereto any
5534	5534	disclosure letter, disclosure schedules, or similar documents
5535	5535	or instruments contemplated by the plan of merger that modify,
5536	5536	supplement, qualify, or make exceptions to representations,
5537	5537	warranties, covenants, or conditions contained in the plan of
5538	5538	merger."
5539	5539	Section 6. Sections 10A-8A-1.07, 10A-8A-2.02,
5540	5540	10A-8A-3.03, 10A-8A-3.04, 10A-8A-5.02, 10A-8A-5.04,
5541	5541	10A-8A-8.02, 10A-8A-8.03, 10A-8A-8.11, 10A-8A-9.01,
5542	5542	10A-8A-9.02, 10A-8A-9.06, 10A-8A-10.01, and 10A-8A-10.03 of
5543	5543	the Code of Alabama 1975, are amended to read as follows:
5544	5544	"§10A-8A-1.07
5545	5545	(a) It is the policy of this chapter and this state to
5546	5546	give maximum effect to the principles of freedom of contract
5547	5547	2661
5548	5548	2662
5549	5549	2663
5550	5550	2664
5551	5551	2665
5552	5552	2666
5553	5553	2667
5554	5554	2668
5555	5555	2669
5556	5556	2670
5557	5557	2671
5558	5558	2672
5559	5559	2673
5560	5560	2674
5561	5561	2675
5562	5562	2676
5563	5563	2677
5564	5564	2678
5565	5565	2679
5566	5566	2680
5567	5567	2681
5568	5568	2682
5569	5569	2683
5570	5570	2684
5571	5571	2685
5572	5572	2686
5573	5573	2687
5574	5574	2688 HB200 INTRODUCED
5575	5575	Page 97
5576	5576	give maximum effect to the principles of freedom of contract
5577	5577	and to the enforceability of partnership agreements.
5578	5578	(b) Unless displaced by particular provisions of this
5579	5579	chapter, the principles of law and equity supplement this
5580	5580	chapter.
5581	5581	(c) If an obligation to pay interest arises under this
5582	5582	chapter and the rate is not specified, the rate is the
5583	5583	applicable federal rate as determined from time to time by the
5584	5584	United States Treasury pursuant to 26 U.S.C. § 1274(d) or any
5585	5585	successor law.
5586	5586	(d) The rule that statutes in derogation of the common
5587	5587	law are to be strictly construed shall have no application to
5588	5588	this chapter.
5589	5589	(e) The use of any gender shall be applicable to all
5590	5590	genders. The captions contained in this chapter are for
5591	5591	purposes of convenience only and shall not control or affect
5592	5592	the construction of this chapter.
5593	5593	(f) Sections 7-9A-406 and 7-9A-408 of the Uniform
5594	5594	Commercial Code, and all successor statutes thereto, do not
5595	5595	apply to any interest in a partnership, including all rights,
5596	5596	powers, and interests arising under a partnership agreement or
5597	5597	this chapter. This provision prevails over Sections 7-9A-406
5598	5598	and 7-9A-408 of the Uniform Commercial Code, and all successor
5599	5599	statutes thereto, and is expressly intended to permit the
5600	5600	enforcement of the provisions of a partnership agreement that
5601	5601	would otherwise be ineffective under Sections 7-9A-406 and
5602	5602	7-9A-408 of the Uniform Commercial Code, and all successor
5603	5603	statutes thereto.
5604	5604	(g) Division E of Article 3 of Chapter 1 shall have no
5605	5605	2689
5606	5606	2690
5607	5607	2691
5608	5608	2692
5609	5609	2693
5610	5610	2694
5611	5611	2695
5612	5612	2696
5613	5613	2697
5614	5614	2698
5615	5615	2699
5616	5616	2700
5617	5617	2701
5618	5618	2702
5619	5619	2703
5620	5620	2704
5621	5621	2705
5622	5622	2706
5623	5623	2707
5624	5624	2708
5625	5625	2709
5626	5626	2710
5627	5627	2711
5628	5628	2712
5629	5629	2713
5630	5630	2714
5631	5631	2715
5632	5632	2716 HB200 INTRODUCED
5633	5633	Page 98
5634	5634	(g) Division E of Article 3 of Chapter 1 shall have no
5635	5635	application to this chapter.
5636	5636	(h) The terms president, vice-president vice president,
5637	5637	secretary, and treasurer, as defined in Chapter 1, shall have
5638	5638	no application to this chapter.
5639	5639	(i) Section 10A-1-2.13(c) shall have no application to
5640	5640	this chapter.
5641	5641	(j) Action validly taken pursuant to one provision of
5642	5642	this chapter shall not be deemed invalid solely because it is
5643	5643	identical or similar in substance to an action that could have
5644	5644	been taken pursuant to some other provision of this chapter
5645	5645	but fails to satisfy one or more requirements prescribed by
5646	5646	such other provision. "
5647	5647	"§10A-8A-2.02
5648	5648	(a) A partnership other than a partnership that has an
5649	5649	effective statement of not for profit partnership or an
5650	5650	effective statement of limited liability partnership on file
5651	5651	with the Secretary of State may deliver to the Secretary of
5652	5652	State for filing a statement of partnership for the purpose of
5653	5653	having its partnership agreement governed by the laws of this
5654	5654	state in accordance with Section 10A-8A-1.06(d) and providing
5655	5655	notice of its existence in accordance with Section
5656	5656	10A-8A-1.03(d)(1). A statement of partnership must contain all
5657	5657	of the following:
5658	5658	(1) the name of the partnership which name must comply
5659	5659	with Article 5 of Chapter 1;
5660	5660	(2) the date that the partnership was formed pursuant
5661	5661	to, or became governed by, the laws of this state a statement
5662	5662	that the partnership is governed by this chapter ;
5663	5663	2717
5664	5664	2718
5665	5665	2719
5666	5666	2720
5667	5667	2721
5668	5668	2722
5669	5669	2723
5670	5670	2724
5671	5671	2725
5672	5672	2726
5673	5673	2727
5674	5674	2728
5675	5675	2729
5676	5676	2730
5677	5677	2731
5678	5678	2732
5679	5679	2733
5680	5680	2734
5681	5681	2735
5682	5682	2736
5683	5683	2737
5684	5684	2738
5685	5685	2739
5686	5686	2740
5687	5687	2741
5688	5688	2742
5689	5689	2743
5690	5690	2744 HB200 INTRODUCED
5691	5691	Page 99
5692	5692	that the partnership is governed by this chapter ;
5693	5693	(3) the street and mailing address of its principal
5694	5694	office;
5695	5695	(4) the street and mailing address of a registered
5696	5696	office and the name of the registered agent at that office for
5697	5697	service of process in this state which the partnership shall
5698	5698	be required to maintain;
5699	5699	(5) a statement that the partnership was formed for the
5700	5700	purpose of carrying out on a for profit business;
5701	5701	(6) a statement that the partnership has two or more
5702	5702	partners; and
5703	5703	(7) a statement that the partnership agreement is
5704	5704	governed by the laws of this state, and if the partnership
5705	5705	agreement is a written partnership agreement, a declaration
5706	5706	that the written partnership agreement has a provision stating
5707	5707	that the partnership agreement is governed by the laws of this
5708	5708	state.
5709	5709	(b) A partnership other than a partnership that has an
5710	5710	effective statement of partnership or an effective statement
5711	5711	of limited liability partnership on file with the Secretary of
5712	5712	State may deliver to the Secretary of State for filing a
5713	5713	statement of not for profit partnership for the purpose of
5714	5714	setting forth the partners' intention to form a partnership to
5715	5715	carry on a not for profit activity in accordance with Section
5716	5716	10A-8A-2.01(a)(2), having its partnership agreement governed
5717	5717	by the laws of this state in accordance with Section
5718	5718	10A-8A-1.06(d), and providing notice of its existence in
5719	5719	accordance with Section 10A-8A-1.03(d)(2). A statement of not
5720	5720	for profit partnership must contain all of the following:
5721	5721	2745
5722	5722	2746
5723	5723	2747
5724	5724	2748
5725	5725	2749
5726	5726	2750
5727	5727	2751
5728	5728	2752
5729	5729	2753
5730	5730	2754
5731	5731	2755
5732	5732	2756
5733	5733	2757
5734	5734	2758
5735	5735	2759
5736	5736	2760
5737	5737	2761
5738	5738	2762
5739	5739	2763
5740	5740	2764
5741	5741	2765
5742	5742	2766
5743	5743	2767
5744	5744	2768
5745	5745	2769
5746	5746	2770
5747	5747	2771
5748	5748	2772 HB200 INTRODUCED
5749	5749	Page 100
5750	5750	for profit partnership must contain all of the following:
5751	5751	(1) the name of the partnership which name must comply
5752	5752	with Article 5 of Chapter 1;
5753	5753	(2) the date that the partnership was formed pursuant
5754	5754	to, or became governed by, the laws of this state;
5755	5755	(3) the street and mailing address of its principal
5756	5756	office;
5757	5757	(4) the street and mailing address of a registered
5758	5758	office and the name of the registered agent at that office for
5759	5759	service of process in this state which the partnership shall
5760	5760	be required to maintain;
5761	5761	(5) a statement that the partnership was formed for the
5762	5762	purpose of carrying out on a not for profit activity in
5763	5763	accordance with Section 10A-8A-2.01(a)(2);
5764	5764	(6) a statement that the partnership has two or more
5765	5765	partners; and
5766	5766	(7) a statement that the partnership agreement is
5767	5767	governed by the laws of this state, and if the partnership
5768	5768	agreement is a written partnership agreement, a declaration
5769	5769	that the written partnership agreement has a provision stating
5770	5770	that the partnership agreement is governed by the laws of this
5771	5771	state.
5772	5772	(c) A statement of partnership and a statement of not
5773	5773	for profit partnership may be amended or restated from time to
5774	5774	time in accordance with Section 10A-1-4.26.
5775	5775	(d) A statement of partnership and a statement of not
5776	5776	for profit partnership shall be executed by two or more
5777	5777	partners authorized to execute the statement of partnership or
5778	5778	statement of not for profit partnership.
5779	5779	2773
5780	5780	2774
5781	5781	2775
5782	5782	2776
5783	5783	2777
5784	5784	2778
5785	5785	2779
5786	5786	2780
5787	5787	2781
5788	5788	2782
5789	5789	2783
5790	5790	2784
5791	5791	2785
5792	5792	2786
5793	5793	2787
5794	5794	2788
5795	5795	2789
5796	5796	2790
5797	5797	2791
5798	5798	2792
5799	5799	2793
5800	5800	2794
5801	5801	2795
5802	5802	2796
5803	5803	2797
5804	5804	2798
5805	5805	2799
5806	5806	2800 HB200 INTRODUCED
5807	5807	Page 101
5808	5808	statement of not for profit partnership.
5809	5809	(e) A statement of partnership and a statement of not
5810	5810	for profit partnership shall be accompanied by a fee for the
5811	5811	Secretary of State in the amount prescribed by Section
5812	5812	10A-1-4.31.
5813	5813	(f) If a partnership complies with this section, the
5814	5814	Secretary of State shall file the statement of partnership or
5815	5815	the statement of not for profit partnership, as applicable.
5816	5816	(g) A statement of partnership or a statement of not
5817	5817	for profit partnership, as applicable, takes effect as
5818	5818	determined under Article 4 of Chapter 1.
5819	5819	(h) A partnership that has filed a statement of
5820	5820	partnership is for all purposes the same entity that existed
5821	5821	before the statement of partnership was filed and continues to
5822	5822	be a partnership under the laws of this state.
5823	5823	(i) A statement of partnership and a statement of not
5824	5824	for profit partnership are filing instruments for the purposes
5825	5825	of Chapter 1."
5826	5826	"§10A-8A-3.03
5827	5827	(a) A partnership may deliver to the Secretary of State
5828	5828	for filing a statement of authority, which:
5829	5829	(1) must include the name of the partnership and:
5830	5830	(A) if the partnership has not filed a statement of
5831	5831	partnership, a statement of not for profit partnership, or a
5832	5832	statement of limited liability partnership, (i) the street and
5833	5833	mailing addresses of its principal office and, (ii) the name,
5834	5834	street address, and mailing address of its registered agent,
5835	5835	and (iii) if the Secretary of State has assigned a unique
5836	5836	identifying number or other designation to the partnership,
5837	5837	2801
5838	5838	2802
5839	5839	2803
5840	5840	2804
5841	5841	2805
5842	5842	2806
5843	5843	2807
5844	5844	2808
5845	5845	2809
5846	5846	2810
5847	5847	2811
5848	5848	2812
5849	5849	2813
5850	5850	2814
5851	5851	2815
5852	5852	2816
5853	5853	2817
5854	5854	2818
5855	5855	2819
5856	5856	2820
5857	5857	2821
5858	5858	2822
5859	5859	2823
5860	5860	2824
5861	5861	2825
5862	5862	2826
5863	5863	2827
5864	5864	2828 HB200 INTRODUCED
5865	5865	Page 102
5866	5866	identifying number or other designation to the partnership,
5867	5867	that number or designation; or
5868	5868	(B) if the partnership has filed a statement of
5869	5869	partnership, a statement of not for profit partnership, or a
5870	5870	statement of limited liability partnership, (i) the street
5871	5871	address and mailing address of its principal office, (ii) the
5872	5872	name, street address, and mailing address of its registered
5873	5873	agent, and (iii) the unique identifying number or other
5874	5874	designation assigned to the partnership by the Secretary of
5875	5875	State.
5876	5876	(2) with respect to any position that exists in or with
5877	5877	respect to the partnership, may state the authority, or
5878	5878	limitations on the authority, of all persons holding the
5879	5879	position to:
5880	5880	(A) sign an instrument transferring real property held
5881	5881	in the name of the partnership; or
5882	5882	(B) enter into other transactions on behalf of, or
5883	5883	otherwise act for or bind, the partnership; and
5884	5884	(3) may state the authority, or limitations on the
5885	5885	authority, of a specific person to:
5886	5886	(A) sign an instrument transferring real property held
5887	5887	in the name of the partnership; or
5888	5888	(B) enter into other transactions on behalf of, or
5889	5889	otherwise act for or bind, the partnership.
5890	5890	(b) To amend or cancel a statement of authority filed
5891	5891	by the Secretary of State, a partnership must deliver to the
5892	5892	Secretary of State for filing an amendment or cancellation
5893	5893	stating:
5894	5894	(1) the name of the partnership;
5895	5895	2829
5896	5896	2830
5897	5897	2831
5898	5898	2832
5899	5899	2833
5900	5900	2834
5901	5901	2835
5902	5902	2836
5903	5903	2837
5904	5904	2838
5905	5905	2839
5906	5906	2840
5907	5907	2841
5908	5908	2842
5909	5909	2843
5910	5910	2844
5911	5911	2845
5912	5912	2846
5913	5913	2847
5914	5914	2848
5915	5915	2849
5916	5916	2850
5917	5917	2851
5918	5918	2852
5919	5919	2853
5920	5920	2854
5921	5921	2855
5922	5922	2856 HB200 INTRODUCED
5923	5923	Page 103
5924	5924	(1) the name of the partnership;
5925	5925	(2) if the partnership has not filed a statement of
5926	5926	partnership, a statement of not for profit partnership, or a
5927	5927	statement of limited liability partnership, the street and
5928	5928	mailing addresses of the partnership's principal office;
5929	5929	(3) if the partnership has filed a statement of
5930	5930	partnership, a statement of not for profit partnership, or a
5931	5931	statement of limited liability partnership, the name and
5932	5932	street and mailing addresses of its registered agent;
5933	5933	(4) the date the statement of authority being affected
5934	5934	became effective; and
5935	5935	(5) the contents of the amendment or a declaration that
5936	5936	the statement of authority is canceled .; and
5937	5937	(6) the unique identifying number or other designation
5938	5938	assigned to the partnership by the Secretary of State.
5939	5939	(c) A statement of authority affects only the power of
5940	5940	a person to bind a partnership to persons that are not
5941	5941	partners.
5942	5942	(d) Subject to subsection (c) and Section
5943	5943	10A-8A-1.03(d)(3) and except as otherwise provided in
5944	5944	subsections (f), (g), and (h), a limitation on the authority
5945	5945	of a person or a position contained in an effective statement
5946	5946	of authority is not by itself evidence of any person's
5947	5947	knowledge or notice of the limitation.
5948	5948	(e) Subject to subsection (c), a grant of authority not
5949	5949	pertaining to transfers of real property and contained in an
5950	5950	effective statement of authority is conclusive in favor of a
5951	5951	person that gives value in reliance on the grant, except to
5952	5952	the extent that when the person gives value:
5953	5953	2857
5954	5954	2858
5955	5955	2859
5956	5956	2860
5957	5957	2861
5958	5958	2862
5959	5959	2863
5960	5960	2864
5961	5961	2865
5962	5962	2866
5963	5963	2867
5964	5964	2868
5965	5965	2869
5966	5966	2870
5967	5967	2871
5968	5968	2872
5969	5969	2873
5970	5970	2874
5971	5971	2875
5972	5972	2876
5973	5973	2877
5974	5974	2878
5975	5975	2879
5976	5976	2880
5977	5977	2881
5978	5978	2882
5979	5979	2883
5980	5980	2884 HB200 INTRODUCED
5981	5981	Page 104
5982	5982	the extent that when the person gives value:
5983	5983	(1) the person has knowledge to the contrary;
5984	5984	(2) the statement of authority has been canceled or
5985	5985	restrictively amended under subsection (b); or
5986	5986	(3) a limitation on the grant is contained in another
5987	5987	statement of authority that became effective after the
5988	5988	statement of authority containing the grant became effective.
5989	5989	(f) Subject to subsection (c), an effective statement
5990	5990	of authority that grants authority to transfer real property
5991	5991	held in the name of the partnership, a certified copy of which
5992	5992	statement of authority is recorded in the office of the judge
5993	5993	of probate in the county in which the real property is
5994	5994	located, is conclusive in favor of a person that gives value
5995	5995	in reliance on the grant without knowledge to the contrary,
5996	5996	except to the extent that when the person gives value:
5997	5997	(1) the statement of authority has been canceled or
5998	5998	restrictively amended under subsection (b), and a certified
5999	5999	copy of the cancellation or restrictive amendment has been
6000	6000	recorded in the office of the judge of probate in the county
6001	6001	in which the real property is located; or
6002	6002	(2) a limitation on the grant is contained in another
6003	6003	statement of authority that became effective after the
6004	6004	statement of authority containing the grant became effective,
6005	6005	and a certified copy of the later-effective statement is
6006	6006	recorded in the office of the judge of probate in the county
6007	6007	in which the real property is located.
6008	6008	(g) Subject to subsection (c), if a certified copy of
6009	6009	an effective statement of authority containing a limitation on
6010	6010	the authority to transfer real property held in the name of a
6011	6011	2885
6012	6012	2886
6013	6013	2887
6014	6014	2888
6015	6015	2889
6016	6016	2890
6017	6017	2891
6018	6018	2892
6019	6019	2893
6020	6020	2894
6021	6021	2895
6022	6022	2896
6023	6023	2897
6024	6024	2898
6025	6025	2899
6026	6026	2900
6027	6027	2901
6028	6028	2902
6029	6029	2903
6030	6030	2904
6031	6031	2905
6032	6032	2906
6033	6033	2907
6034	6034	2908
6035	6035	2909
6036	6036	2910
6037	6037	2911
6038	6038	2912 HB200 INTRODUCED
6039	6039	Page 105
6040	6040	the authority to transfer real property held in the name of a
6041	6041	partnership is recorded in the office of the judge of probate
6042	6042	in the county in which the real property is located, all
6043	6043	persons are deemed to know of the limitation with respect to
6044	6044	the real property located in that county.
6045	6045	(h) Subject to subsection (i), an effective statement
6046	6046	of dissolution is a cancellation of any filed statement of
6047	6047	authority for the purposes of subsection (f) and is a
6048	6048	limitation on authority for purposes of subsection (g).
6049	6049	(i) After a statement of dissolution becomes effective,
6050	6050	a partnership may deliver to the Secretary of State for filing
6051	6051	and, if appropriate, may record a statement of authority that
6052	6052	is designated as a post-dissolution statement of authority.
6053	6053	The statement operates as provided in subsections (f) and (g).
6054	6054	(j) Unless canceled earlier, an effective statement of
6055	6055	authority is canceled by operation of law five years after the
6056	6056	date on which the statement, or its most recent amendment,
6057	6057	becomes effective. The cancellation is effective without
6058	6058	recording under subsection (f) or (g).
6059	6059	(k) An effective statement of denial operates as a
6060	6060	restrictive amendment under this section and may be recorded
6061	6061	by certified copy for purposes of subsection (f)(1).
6062	6062	(l) If a partnership has not filed a statement of
6063	6063	partnership, a statement of not for profit partnership, or a
6064	6064	statement of limited liability partnership and the Secretary
6065	6065	of State has not assigned a unique identifying number or other
6066	6066	designation to that partnership, then the Secretary of State
6067	6067	shall assign a unique identifying number or other designation
6068	6068	to that partnership when that partnership delivers to the
6069	6069	2913
6070	6070	2914
6071	6071	2915
6072	6072	2916
6073	6073	2917
6074	6074	2918
6075	6075	2919
6076	6076	2920
6077	6077	2921
6078	6078	2922
6079	6079	2923
6080	6080	2924
6081	6081	2925
6082	6082	2926
6083	6083	2927
6084	6084	2928
6085	6085	2929
6086	6086	2930
6087	6087	2931
6088	6088	2932
6089	6089	2933
6090	6090	2934
6091	6091	2935
6092	6092	2936
6093	6093	2937
6094	6094	2938
6095	6095	2939
6096	6096	2940 HB200 INTRODUCED
6097	6097	Page 106
6098	6098	to that partnership when that partnership delivers to the
6099	6099	Secretary of State for filing that partnership's statement of
6100	6100	authority without the need of the partnership delivering to
6101	6101	the Secretary of State for filing a statement of partnership,
6102	6102	a statement of not for profit partnership, or a statement of
6103	6103	limited liability partnership. "
6104	6104	"§10A-8A-3.04
6105	6105	A person named in a filed statement of authority
6106	6106	granting that person authority may deliver to the Secretary of
6107	6107	State for filing a statement of denial that:
6108	6108	(1) provides:
6109	6109	(A) the name of the partnership and the caption of ;
6110	6110	(B) the date the statement of authority to which the
6111	6111	statement of denial pertains was filed by the filing officer ;
6112	6112	and
6113	6113	(C) the unique identifying number or other designation
6114	6114	assigned by the partnership by the Secretary of State; and
6115	6115	(2) denies the grant of authority.
6116	6116	A statement of denial is a limitation on authority as
6117	6117	provided in Section 10A-8A-3.03."
6118	6118	"§10A-8A-5.02
6119	6119	(a) A transfer, in whole or in part, of a partner's
6120	6120	transferable interest:
6121	6121	(1) is permissible;
6122	6122	(2) does not by itself cause the partner's
6123	6123	dissociation;
6124	6124	(3) does not by itself cause a dissolution and winding
6125	6125	up of the partnership; and
6126	6126	(4) subject to Section 10A-8A-5.05, does not entitle
6127	6127	2941
6128	6128	2942
6129	6129	2943
6130	6130	2944
6131	6131	2945
6132	6132	2946
6133	6133	2947
6134	6134	2948
6135	6135	2949
6136	6136	2950
6137	6137	2951
6138	6138	2952
6139	6139	2953
6140	6140	2954
6141	6141	2955
6142	6142	2956
6143	6143	2957
6144	6144	2958
6145	6145	2959
6146	6146	2960
6147	6147	2961
6148	6148	2962
6149	6149	2963
6150	6150	2964
6151	6151	2965
6152	6152	2966
6153	6153	2967
6154	6154	2968 HB200 INTRODUCED
6155	6155	Page 107
6156	6156	(4) subject to Section 10A-8A-5.05, does not entitle
6157	6157	the transferee to:
6158	6158	(A) participate in the management or conduct of the
6159	6159	partnership's business or not for profit activity; or
6160	6160	(B) except as otherwise provided in subsection (d),
6161	6161	have access to required information, records, or other
6162	6162	information concerning the partnership's business or not for
6163	6163	profit activity.
6164	6164	(b) A transferee has a right:
6165	6165	(1) to receive, in accordance with the transfer,
6166	6166	distributions to which the transferor would otherwise be
6167	6167	entitled;
6168	6168	(2) to receive upon the dissolution and winding up of
6169	6169	the partnership, in accordance with the transfer, the net
6170	6170	amount otherwise distributable to the transferor; and
6171	6171	(3) to seek under Section 10A-8A-8.01(5) a judicial
6172	6172	determination that it is equitable to wind up the partnership
6173	6173	business or not for profit activity.
6174	6174	(c) A transferable interest may be evidenced by a
6175	6175	certificate of transferable interest issued by the
6176	6176	partnership. A partnership agreement may provide for the
6177	6177	transfer of the transferable interest represented by the
6178	6178	certificate and make other provisions with respect to the
6179	6179	certificate. No certificate of transferable interest shall be
6180	6180	issued in bearer form.
6181	6181	(d) In a dissolution and winding up, a transferee is
6182	6182	entitled to an account of the partnership's transactions only
6183	6183	from the date of dissolution.
6184	6184	(e) Except as otherwise provided in Sections
6185	6185	2969
6186	6186	2970
6187	6187	2971
6188	6188	2972
6189	6189	2973
6190	6190	2974
6191	6191	2975
6192	6192	2976
6193	6193	2977
6194	6194	2978
6195	6195	2979
6196	6196	2980
6197	6197	2981
6198	6198	2982
6199	6199	2983
6200	6200	2984
6201	6201	2985
6202	6202	2986
6203	6203	2987
6204	6204	2988
6205	6205	2989
6206	6206	2990
6207	6207	2991
6208	6208	2992
6209	6209	2993
6210	6210	2994
6211	6211	2995
6212	6212	2996 HB200 INTRODUCED
6213	6213	Page 108
6214	6214	(e) Except as otherwise provided in Sections
6215	6215	10A-8A-6.01(4), 10A-8A-6.01(11), and 10A-8A-6.01(12), when a
6216	6216	partner transfers a transferable interest, the transferor
6217	6217	retains the rights of a partner other than the right to
6218	6218	distributions transferred and retains all duties and
6219	6219	obligations of a partner.
6220	6220	(f) A partnership need not give effect to a
6221	6221	transferee's rights under this section until the partnership
6222	6222	has notice of the transfer.
6223	6223	(g) When a partner transfers a transferable interest to
6224	6224	a person that is admitted as a partner with respect to the
6225	6225	transferred interest, the transferee is liable for the
6226	6226	partner's obligations under Sections 10A-8A-4.04 and
6227	6227	10A-8A-4.09 to the extent that the obligations are known to
6228	6228	the transferee when the transferee voluntarily accepts
6229	6229	admission as a partner.
6230	6230	(h) Notwithstanding anything in Title 43 to the
6231	6231	contrary, a partnership agreement may provide that a
6232	6232	transferable interest may or shall be transferred in whole or
6233	6233	in part, with or without consideration, to one or more persons
6234	6234	at the death of the holder of the transferable interest. Any
6235	6235	transferable interest transferred pursuant to this subsection
6236	6236	shall be subject to any outstanding charging order under
6237	6237	Section 10A-8A-5.03. This subsection does not limit the rights
6238	6238	of creditors of holders of transferable interests against
6239	6239	transferees under this chapter or other laws of this state. "
6240	6240	"§10A-8A-5.04
6241	6241	If a partner dies, the deceased partner's personal
6242	6242	representative or other legal representative may:
6243	6243	2997
6244	6244	2998
6245	6245	2999
6246	6246	3000
6247	6247	3001
6248	6248	3002
6249	6249	3003
6250	6250	3004
6251	6251	3005
6252	6252	3006
6253	6253	3007
6254	6254	3008
6255	6255	3009
6256	6256	3010
6257	6257	3011
6258	6258	3012
6259	6259	3013
6260	6260	3014
6261	6261	3015
6262	6262	3016
6263	6263	3017
6264	6264	3018
6265	6265	3019
6266	6266	3020
6267	6267	3021
6268	6268	3022
6269	6269	3023
6270	6270	3024 HB200 INTRODUCED
6271	6271	Page 109
6272	6272	representative or other legal representative may:
6273	6273	(a) for the period of time , if any, that the deceased
6274	6274	partner's personal representative or other legal
6275	6275	representative holds the deceased partner's transferable
6276	6276	interest:
6277	6277	(1) exercise the rights of a holder of transferable
6278	6278	interests under this chapter;
6279	6279	(2) exercise the rights of a transferee under Section
6280	6280	10A-8A-5.02; and
6281	6281	(3) for purposes of settling the estate, exercise the
6282	6282	rights of a current partner under Section 10A-8A-4.10; and
6283	6283	(b) for the period of time that the deceased partner's
6284	6284	personal representative or other legal representative does not
6285	6285	hold the deceased partner's transferable interest, for
6286	6286	purposes of settling the estate, exercise the rights of a
6287	6287	person dissociated as a partner under Section 10A-8A-4.10."
6288	6288	"§10A-8A-8.02
6289	6289	(a) A dissolved partnership continues its existence as
6290	6290	a partnership but may not carry on any business or not for
6291	6291	profit activity except as is appropriate to wind up and
6292	6292	liquidate its business or not for profit activity, including:
6293	6293	(1) collecting its assets;
6294	6294	(2) disposing of its properties that will not be
6295	6295	distributed in kind to persons owning transferable interests;
6296	6296	(3) discharging or making provisions for discharging
6297	6297	its liabilities;
6298	6298	(4) distributing its remaining property in accordance
6299	6299	with Section 10A-8A-8.09; and
6300	6300	(5) doing every other act necessary to wind up and
6301	6301	3025
6302	6302	3026
6303	6303	3027
6304	6304	3028
6305	6305	3029
6306	6306	3030
6307	6307	3031
6308	6308	3032
6309	6309	3033
6310	6310	3034
6311	6311	3035
6312	6312	3036
6313	6313	3037
6314	6314	3038
6315	6315	3039
6316	6316	3040
6317	6317	3041
6318	6318	3042
6319	6319	3043
6320	6320	3044
6321	6321	3045
6322	6322	3046
6323	6323	3047
6324	6324	3048
6325	6325	3049
6326	6326	3050
6327	6327	3051
6328	6328	3052 HB200 INTRODUCED
6329	6329	Page 110
6330	6330	(5) doing every other act necessary to wind up and
6331	6331	liquidate its business or not for profit activity.
6332	6332	(b) In winding up its business or not for profit
6333	6333	activity, a partnership may:
6334	6334	(1) deliver to the Secretary of State for filing a
6335	6335	statement of dissolution setting forth:
6336	6336	(A) The name of the partnership;
6337	6337	(B) If the partnership has filed a statement of
6338	6338	partnership, a statement of not for profit partnership, a
6339	6339	statement of authority, or a statement of limited liability
6340	6340	partnership, the unique identifying number or other
6341	6341	designation as assigned by the Secretary of State;
6342	6342	(C) That the partnership has dissolved;
6343	6343	(D) The name, street address, and mailing address of
6344	6344	the partner who will be winding up the business or not for
6345	6345	profit activity of the partnership pursuant to Section
6346	6346	10A-8A-8.03(a), and if none, the name, street address, and
6347	6347	mailing address of the person appointed pursuant to Section
6348	6348	10A-8A-8.03(b) or (c) to wind up the business or not for
6349	6349	profit activity of the partnership;
6350	6350	(E) If the partnership has filed a statement of
6351	6351	partnership, a statement of not for profit partnership, or a
6352	6352	statement of limited liability partnership, the name, street
6353	6353	address, and mailing address of the partnership's registered
6354	6354	agent; and
6355	6355	(F) Any other information the partnership deems
6356	6356	appropriate;
6357	6357	(2) preserve the partnership's business or not for
6358	6358	profit activity as a going concern for a reasonable time;
6359	6359	3053
6360	6360	3054
6361	6361	3055
6362	6362	3056
6363	6363	3057
6364	6364	3058
6365	6365	3059
6366	6366	3060
6367	6367	3061
6368	6368	3062
6369	6369	3063
6370	6370	3064
6371	6371	3065
6372	6372	3066
6373	6373	3067
6374	6374	3068
6375	6375	3069
6376	6376	3070
6377	6377	3071
6378	6378	3072
6379	6379	3073
6380	6380	3074
6381	6381	3075
6382	6382	3076
6383	6383	3077
6384	6384	3078
6385	6385	3079
6386	6386	3080 HB200 INTRODUCED
6387	6387	Page 111
6388	6388	profit activity as a going concern for a reasonable time;
6389	6389	(3) prosecute, defend, or settle actions or
6390	6390	proceedings, whether civil, criminal, or administrative;
6391	6391	(4) transfer the partnership's assets;
6392	6392	(5) resolve disputes by mediation or arbitration; and
6393	6393	(6) merge or convert in accordance with Article 9 of
6394	6394	this chapter or Article 8 of Chapter 1.
6395	6395	(c) The dissolution of a partnership does not:
6396	6396	(1) transfer title to the partnership's property;
6397	6397	(2) prevent the commencement of a proceeding by or
6398	6398	against the partnership in its partnership name;
6399	6399	(3) terminate, abate, or suspend a proceeding pending
6400	6400	by or against the partnership on the effective date of
6401	6401	dissolution;
6402	6402	(4) terminate the authority of its registered agent; or
6403	6403	(5) abate, suspend, or otherwise alter the application
6404	6404	of Section 10A-8A-3.06.
6405	6405	(d) A statement of dissolution is a filing instrument
6406	6406	under Chapter 1.
6407	6407	(e) If a partnership has not filed a statement of
6408	6408	partnership, a statement of not for profit partnership, a
6409	6409	statement of limited liability partnership, or a statement of
6410	6410	authority and the Secretary of State has not assigned a unique
6411	6411	identifying number or other designation to that partnership,
6412	6412	then the Secretary of State shall assign a unique identifying
6413	6413	number or other designation to that partnership when that
6414	6414	partnership delivers to the Secretary of State for filing that
6415	6415	partnership's statement of dissolution without the need of
6416	6416	that partnership delivering to the Secretary of State for
6417	6417	3081
6418	6418	3082
6419	6419	3083
6420	6420	3084
6421	6421	3085
6422	6422	3086
6423	6423	3087
6424	6424	3088
6425	6425	3089
6426	6426	3090
6427	6427	3091
6428	6428	3092
6429	6429	3093
6430	6430	3094
6431	6431	3095
6432	6432	3096
6433	6433	3097
6434	6434	3098
6435	6435	3099
6436	6436	3100
6437	6437	3101
6438	6438	3102
6439	6439	3103
6440	6440	3104
6441	6441	3105
6442	6442	3106
6443	6443	3107
6444	6444	3108 HB200 INTRODUCED
6445	6445	Page 112
6446	6446	that partnership delivering to the Secretary of State for
6447	6447	filing a statement of partnership, a statement of not for
6448	6448	profit partnership, a statement of limited liability
6449	6449	partnership, or a statement of authority. "
6450	6450	"§10A-8A-8.03
6451	6451	(a) If a dissolved partnership has a partner or
6452	6452	partners that have not dissociated, that partner or those
6453	6453	partners shall wind up the business or not for profit activity
6454	6454	of the partnership and shall have the powers set forth in
6455	6455	Section 10A-8A-8.04. A person whose dissociation as a partner
6456	6456	resulted in the dissolution of the partnership may participate
6457	6457	in the winding up as if still a partner, unless the
6458	6458	dissociation was wrongful.
6459	6459	(b) If a dissolved partnership does not have a partner
6460	6460	and no person has the right to participate in winding up under
6461	6461	subsection (a), the personal or legal representative of the
6462	6462	last person to have been a partner may wind up the
6463	6463	partnership's business or not for profit activity. If the
6464	6464	representative does not exercise that right, a person to wind
6465	6465	up the partnership's business or not for profit activity may
6466	6466	be appointed by the affirmative vote or consent of transferees
6467	6467	owning a majority of the transferable interests at the time
6468	6468	the consent is to be effective.
6469	6469	(c) A court of competent jurisdiction may order
6470	6470	judicial supervision of the winding up of a dissolved
6471	6471	partnership, including the appointment of a person to wind up
6472	6472	the partnership's business or not for profit activity:
6473	6473	(1) on application of a partner or any person entitled
6474	6474	under the last sentence of subsection (a) to participate in
6475	6475	3109
6476	6476	3110
6477	6477	3111
6478	6478	3112
6479	6479	3113
6480	6480	3114
6481	6481	3115
6482	6482	3116
6483	6483	3117
6484	6484	3118
6485	6485	3119
6486	6486	3120
6487	6487	3121
6488	6488	3122
6489	6489	3123
6490	6490	3124
6491	6491	3125
6492	6492	3126
6493	6493	3127
6494	6494	3128
6495	6495	3129
6496	6496	3130
6497	6497	3131
6498	6498	3132
6499	6499	3133
6500	6500	3134
6501	6501	3135
6502	6502	3136 HB200 INTRODUCED
6503	6503	Page 113
6504	6504	under the last sentence of subsection (a) to participate in
6505	6505	the winding up of the dissolved partnership, if the applicant
6506	6506	establishes good cause;
6507	6507	(2) on application of a transferee, if the partnership
6508	6508	does not have a partner and within a reasonable time following
6509	6509	the dissolution no person having the authority to wind up the
6510	6510	business or not for profit activity of the partnership has
6511	6511	been appointed pursuant to subsection (b);
6512	6512	(3) on application of a transferee, if the partnership
6513	6513	does not have a partner and within a reasonable time following
6514	6514	the dissolution the person appointed pursuant to subsection
6515	6515	(b) is not winding up the business or not for profit activity
6516	6516	of the partnership; or
6517	6517	(4) in connection with a proceeding under Section
6518	6518	10A-8A-8.01(4) or (5).
6519	6519	(d) A person appointed under subsection (b) or (c) is
6520	6520	not a partner but:
6521	6521	(1) has the powers of a partner under Section
6522	6522	10A-8A-8.04 but is not liable for the debts, liabilities, and
6523	6523	other obligations of the partnership solely by reason of
6524	6524	having or exercising those powers or otherwise acting to wind
6525	6525	up the business or not for profit activity of the dissolved
6526	6526	partnership; and
6527	6527	(2) shall promptly deliver to the Secretary of State
6528	6528	for filing a statement of dissolution setting forth the items
6529	6529	listed in Section 10A-8A-8.02(b)(1) and the following:
6530	6530	(A) that the partnership does not have a partner;
6531	6531	(B) the name, street address, and mailing address of
6532	6532	each person that has been appointed to wind up the business or
6533	6533	3137
6534	6534	3138
6535	6535	3139
6536	6536	3140
6537	6537	3141
6538	6538	3142
6539	6539	3143
6540	6540	3144
6541	6541	3145
6542	6542	3146
6543	6543	3147
6544	6544	3148
6545	6545	3149
6546	6546	3150
6547	6547	3151
6548	6548	3152
6549	6549	3153
6550	6550	3154
6551	6551	3155
6552	6552	3156
6553	6553	3157
6554	6554	3158
6555	6555	3159
6556	6556	3160
6557	6557	3161
6558	6558	3162
6559	6559	3163
6560	6560	3164 HB200 INTRODUCED
6561	6561	Page 114
6562	6562	each person that has been appointed to wind up the business or
6563	6563	not for profit activity of the partnership;
6564	6564	(C) that each person has been appointed pursuant to
6565	6565	subsection (b) or (c), as applicable, to wind up the business
6566	6566	or not for profit activity of the partnership; and
6567	6567	(D) pursuant to this section, that each person has the
6568	6568	powers of a partner under Section 10A-8A-8.04 but is not
6569	6569	liable for the debts, liabilities, and other obligations of
6570	6570	the partnership solely by reason of having or exercising those
6571	6571	powers or otherwise acting to wind up the business or not for
6572	6572	profit activity of the dissolved partnership .; and
6573	6573	(E) if the partnership has filed a statement of
6574	6574	partnership, a statement of not for profit partnership, a
6575	6575	statement of limited liability partnership or a statement of
6576	6576	authority, the unique identifying number or other designation
6577	6577	as assigned by the Secretary of State.
6578	6578	(e) If a partnership has not filed a statement of
6579	6579	partnership, a statement of not for profit partnership, a
6580	6580	statement of limited liability partnership, or statement of
6581	6581	authority and the Secretary of State has not assigned a unique
6582	6582	identifying number or other designation to that partnership,
6583	6583	then the Secretary of State shall assign a unique identifying
6584	6584	number or other designation to that partnership when the
6585	6585	person required under subsection (d) delivers to the Secretary
6586	6586	of State for filing the statement of dissolution for that
6587	6587	partnership, without the need to deliver to the Secretary of
6588	6588	State for filing a statement of partnership, a statement of
6589	6589	not for profit partnership, a statement of limited liability
6590	6590	partnership, or a statement of authority. "
6591	6591	3165
6592	6592	3166
6593	6593	3167
6594	6594	3168
6595	6595	3169
6596	6596	3170
6597	6597	3171
6598	6598	3172
6599	6599	3173
6600	6600	3174
6601	6601	3175
6602	6602	3176
6603	6603	3177
6604	6604	3178
6605	6605	3179
6606	6606	3180
6607	6607	3181
6608	6608	3182
6609	6609	3183
6610	6610	3184
6611	6611	3185
6612	6612	3186
6613	6613	3187
6614	6614	3188
6615	6615	3189
6616	6616	3190
6617	6617	3191
6618	6618	3192 HB200 INTRODUCED
6619	6619	Page 115
6620	6620	partnership, or a statement of authority. "
6621	6621	"§10A-8A-8.11
6622	6622	A partnership that has dissolved, has filed a statement
6623	6623	of dissolution, and is seeking to reinstate in accordance with
6624	6624	Section 10A-8A-8.10, shall deliver to the Secretary of State
6625	6625	for filing a certificate of reinstatement in accordance with
6626	6626	the following:
6627	6627	(a) A certificate of reinstatement shall be delivered
6628	6628	to the Secretary of State for filing. The certificate of
6629	6629	reinstatement shall state:
6630	6630	(1) the name of the partnership before reinstatement;
6631	6631	(2) the name of the partnership following
6632	6632	reinstatement, which partnership name shall comply with
6633	6633	Section 10A-8A-8.12;
6634	6634	(3) the date of formation of the partnership if known;
6635	6635	(4) the date of filing its statement of dissolution, if
6636	6636	any, and all amendments and restatements thereof, and the
6637	6637	office or offices where filed;
6638	6638	(5) if the partnership has filed a statement of
6639	6639	partnership, a statement of not for profit partnership, a
6640	6640	statement of authority, or a statement of limited liability
6641	6641	partnership, the unique identifying number or other
6642	6642	designation as assigned by the Secretary of State;
6643	6643	(6) the date of dissolution of the partnership, if
6644	6644	known;
6645	6645	(7) a statement that all applicable conditions of
6646	6646	Section 10A-8A-8.10 have been satisfied; and
6647	6647	(8) the address of the registered office and the name
6648	6648	of the registered agent at that address in compliance with
6649	6649	3193
6650	6650	3194
6651	6651	3195
6652	6652	3196
6653	6653	3197
6654	6654	3198
6655	6655	3199
6656	6656	3200
6657	6657	3201
6658	6658	3202
6659	6659	3203
6660	6660	3204
6661	6661	3205
6662	6662	3206
6663	6663	3207
6664	6664	3208
6665	6665	3209
6666	6666	3210
6667	6667	3211
6668	6668	3212
6669	6669	3213
6670	6670	3214
6671	6671	3215
6672	6672	3216
6673	6673	3217
6674	6674	3218
6675	6675	3219
6676	6676	3220 HB200 INTRODUCED
6677	6677	Page 116
6678	6678	of the registered agent at that address in compliance with
6679	6679	Article 5 of Chapter 1.
6680	6680	(b) A partnership shall deliver to the Secretary of
6681	6681	State for filing a statement of dissolution prior to or
6682	6682	simultaneously with the certificate of reinstatement. If a
6683	6683	partnership has not filed a statement of partnership, a
6684	6684	statement of not for profit partnership, or a statement of
6685	6685	limited liability partnership prior to filing its , or a
6686	6686	statement of dissolution , the partnership must also deliver to
6687	6687	the Secretary of State for filing a statement of partnership,
6688	6688	a statement of not for profit partnership, or a statement of
6689	6689	limited liability partnership, simultaneously with the
6690	6690	certificate of reinstatement and the Secretary of State has
6691	6691	not assigned a unique identifying number or other designation
6692	6692	to that partnership, then the Secretary of State shall assign
6693	6693	a unique identifying number or other designation to that
6694	6694	partnership when the partnership delivers to the Secretary of
6695	6695	State for filing the certificate of reinstatement for that
6696	6696	partnership, without the need to deliver to the Secretary of
6697	6697	State for filing a statement of partnership, a statement of
6698	6698	not for profit partnership, a statement of limited liability
6699	6699	partnership, a statement of authority, or a statement of
6700	6700	dissolution.
6701	6701	(c) A certificate of reinstatement is a filing
6702	6702	instrument under Chapter 1."
6703	6703	"§10A-8A-9.01
6704	6704	As used in this article, unless the context otherwise
6705	6705	requires, the following terms mean:
6706	6706	(1) CONSTITUENT ORGANIZATION means an organization that
6707	6707	3221
6708	6708	3222
6709	6709	3223
6710	6710	3224
6711	6711	3225
6712	6712	3226
6713	6713	3227
6714	6714	3228
6715	6715	3229
6716	6716	3230
6717	6717	3231
6718	6718	3232
6719	6719	3233
6720	6720	3234
6721	6721	3235
6722	6722	3236
6723	6723	3237
6724	6724	3238
6725	6725	3239
6726	6726	3240
6727	6727	3241
6728	6728	3242
6729	6729	3243
6730	6730	3244
6731	6731	3245
6732	6732	3246
6733	6733	3247
6734	6734	3248 HB200 INTRODUCED
6735	6735	Page 117
6736	6736	(1) CONSTITUENT ORGANIZATION means an organization that
6737	6737	is party to a merger under this article.
6738	6738	(2) CONSTITUENT PARTNERSHIP means a constituent
6739	6739	organization that is a partnership.
6740	6740	(3) CONVERTED ORGANIZATION means the organization into
6741	6741	which a converting organization converts pursuant to this
6742	6742	article.
6743	6743	(4) CONVERTING ORGANIZATION means an organization that
6744	6744	converts into another organization pursuant to this article.
6745	6745	(5) CONVERTING PARTNERSHIP means a converting
6746	6746	organization that is a partnership.
6747	6747	(6) GOVERNING STATUTE of an organization means the
6748	6748	statute that governs the organization's internal affairs.
6749	6749	(7) ORGANIZATION means a partnership, including a
6750	6750	limited liability partnership; limited partnership, including
6751	6751	a limited liability limited partnership; limited liability
6752	6752	company; business trust; corporation; nonprofit corporation;
6753	6753	professional corporation; or any other person having a
6754	6754	governing statute. The term includes domestic and foreign
6755	6755	organizations whether or not organized for profit.
6756	6756	(8) ORGANIZATIONAL DOCUMENTS means:
6757	6757	(A)(i) for a partnership, its partnership agreement
6758	6758	and, if applicable, its statement of partnership, statement of
6759	6759	not for profit partnership, or statement of limited liability
6760	6760	partnership; and (ii) for a foreign partnership, its
6761	6761	partnership agreement and, if applicable, its statement of
6762	6762	foreign limited liability partnership;
6763	6763	(B) for a limited partnership or foreign limited
6764	6764	partnership, its certificate of formation and partnership
6765	6765	3249
6766	6766	3250
6767	6767	3251
6768	6768	3252
6769	6769	3253
6770	6770	3254
6771	6771	3255
6772	6772	3256
6773	6773	3257
6774	6774	3258
6775	6775	3259
6776	6776	3260
6777	6777	3261
6778	6778	3262
6779	6779	3263
6780	6780	3264
6781	6781	3265
6782	6782	3266
6783	6783	3267
6784	6784	3268
6785	6785	3269
6786	6786	3270
6787	6787	3271
6788	6788	3272
6789	6789	3273
6790	6790	3274
6791	6791	3275
6792	6792	3276 HB200 INTRODUCED
6793	6793	Page 118
6794	6794	partnership, its certificate of formation and partnership
6795	6795	agreement, or comparable writings as provided in its governing
6796	6796	statute;
6797	6797	(C) for a limited liability company or foreign limited
6798	6798	liability company, its certificate of formation and limited
6799	6799	liability company agreement, or comparable writings as
6800	6800	provided in its governing statute;
6801	6801	(D) for a business or statutory trust or foreign
6802	6802	business or statutory trust its agreement of trust and
6803	6803	declaration of trust, or comparable writings as provided in
6804	6804	its governing statute;
6805	6805	(E) for a corporation for profit or foreign corporation
6806	6806	for profit, its certificate of formation, bylaws, and other
6807	6807	agreements among its shareholders that are authorized by its
6808	6808	governing statute, or comparable writings as provided in its
6809	6809	governing statute;
6810	6810	(F) for a nonprofit corporation or foreign nonprofit
6811	6811	corporation, its certificate of formation, bylaws, and other
6812	6812	agreements that are authorized by its governing statute, or
6813	6813	comparable writings as provided in its governing statute;
6814	6814	(G) for a professional corporation or foreign
6815	6815	professional corporation, its certificate of formation,
6816	6816	bylaws, and other agreements among its shareholders that are
6817	6817	authorized by its governing statute, or comparable writings as
6818	6818	provided in its governing statute; and
6819	6819	(H) for any other organization, the basic writings that
6820	6820	create the organization and determine its internal governance
6821	6821	and the relations among the persons that own it, have an
6822	6822	interest in it, or are members of it.
6823	6823	3277
6824	6824	3278
6825	6825	3279
6826	6826	3280
6827	6827	3281
6828	6828	3282
6829	6829	3283
6830	6830	3284
6831	6831	3285
6832	6832	3286
6833	6833	3287
6834	6834	3288
6835	6835	3289
6836	6836	3290
6837	6837	3291
6838	6838	3292
6839	6839	3293
6840	6840	3294
6841	6841	3295
6842	6842	3296
6843	6843	3297
6844	6844	3298
6845	6845	3299
6846	6846	3300
6847	6847	3301
6848	6848	3302
6849	6849	3303
6850	6850	3304 HB200 INTRODUCED
6851	6851	Page 119
6852	6852	interest in it, or are members of it.
6853	6853	(9) PLAN OF MERGER. Except as set forth in Section
6854	6854	10A-8A-9.06(e), a plan of merger, whether referred to as a
6855	6855	plan of merger, an agreement of merger, a merger agreement, a
6856	6856	plan and agreement of merger, an agreement and plan of merger,
6857	6857	or otherwise, means a writing described in Section 10A-8A-9.06
6858	6858	and includes any agreement, instrument, or other document
6859	6859	referenced therein or associated therewith that sets forth the
6860	6860	terms and conditions of the merger.
6861	6861	(9)(10) SURVIVING ORGANIZATION means an organization
6862	6862	into which one or more other organizations are merged under
6863	6863	this article, whether the organization pre-existed the merger
6864	6864	or was created pursuant to the merger."
6865	6865	"§10A-8A-9.02
6866	6866	(a) An organization other than a partnership may
6867	6867	convert to a partnership, and a partnership may convert to an
6868	6868	organization other than a partnership pursuant to this
6869	6869	section, Sections 10A-8A-9.03 through 10A-8A-9.05, and a plan
6870	6870	of conversion, if:
6871	6871	(1) the governing statute of the organization that is
6872	6872	not a partnership authorizes the conversion;
6873	6873	(2) the law of the jurisdiction governing the
6874	6874	converting organization and the converted organization does
6875	6875	not prohibit the conversion; and
6876	6876	(3) the converting organization and the converted
6877	6877	organization each comply with the governing statute and
6878	6878	organizational documents applicable to that organization in
6879	6879	effecting the conversion.
6880	6880	(b) A plan of conversion must be in writing and must
6881	6881	3305
6882	6882	3306
6883	6883	3307
6884	6884	3308
6885	6885	3309
6886	6886	3310
6887	6887	3311
6888	6888	3312
6889	6889	3313
6890	6890	3314
6891	6891	3315
6892	6892	3316
6893	6893	3317
6894	6894	3318
6895	6895	3319
6896	6896	3320
6897	6897	3321
6898	6898	3322
6899	6899	3323
6900	6900	3324
6901	6901	3325
6902	6902	3326
6903	6903	3327
6904	6904	3328
6905	6905	3329
6906	6906	3330
6907	6907	3331
6908	6908	3332 HB200 INTRODUCED
6909	6909	Page 120
6910	6910	(b) A plan of conversion must be in writing and must
6911	6911	include:
6912	6912	(1) the name, type of organization, and mailing address
6913	6913	of the principal office of the converting organization, and
6914	6914	its unique identifying number or other designation as assigned
6915	6915	by the Secretary of State, if any, before conversion;
6916	6916	(2) the name, type of organization, and mailing address
6917	6917	of the principal office of the converted organization after
6918	6918	conversion;
6919	6919	(3) the terms and conditions of the conversion,
6920	6920	including the manner and basis for converting interests in the
6921	6921	converting organization into any combination of money,
6922	6922	interests in the converted organization, and other
6923	6923	consideration allowed in Section 10A-8A-9.02(c); and
6924	6924	(4) the organizational documents of the converted
6925	6925	organization.
6926	6926	(c) In connection with a conversion, rights or
6927	6927	securities of or interests in the converting organization may
6928	6928	be exchanged for or converted into cash, property, or rights
6929	6929	or securities of or interests in the converted organization,
6930	6930	or, in addition to or in lieu thereof, may be exchanged for or
6931	6931	converted into cash, property, or rights or securities of or
6932	6932	interests in another organization or may be cancelled.
6933	6933	(d) At the time of the approval of the plan of
6934	6934	conversion in accordance with Section 10A-8A-9.03, the plan of
6935	6935	conversion is not required to contain or have attached thereto
6936	6936	any disclosure letter, disclosure schedules, or similar
6937	6937	documents or instruments contemplated by the plan of
6938	6938	conversion that modify, supplement, qualify, or make
6939	6939	3333
6940	6940	3334
6941	6941	3335
6942	6942	3336
6943	6943	3337
6944	6944	3338
6945	6945	3339
6946	6946	3340
6947	6947	3341
6948	6948	3342
6949	6949	3343
6950	6950	3344
6951	6951	3345
6952	6952	3346
6953	6953	3347
6954	6954	3348
6955	6955	3349
6956	6956	3350
6957	6957	3351
6958	6958	3352
6959	6959	3353
6960	6960	3354
6961	6961	3355
6962	6962	3356
6963	6963	3357
6964	6964	3358
6965	6965	3359
6966	6966	3360 HB200 INTRODUCED
6967	6967	Page 121
6968	6968	conversion that modify, supplement, qualify, or make
6969	6969	exceptions to representations, warranties, covenants, or
6970	6970	conditions contained in the plan of conversion.
6971	6971	(d)(e) If a partnership is the converting organization
6972	6972	and that partnership does not have an effective statement of
6973	6973	partnership, statement of not for profit partnership, or
6974	6974	statement of limited liability partnership on file with the
6975	6975	Secretary of State, then that partnership must, before
6976	6976	proceeding with a conversion deliver to the Secretary of State
6977	6977	for filing, a statement of partnership, statement of not for
6978	6978	profit partnership, or statement of limited liability
6979	6979	partnership simultaneously with the delivery to the Secretary
6980	6980	of State for filing, of a statement of conversion.
6981	6981	(e)(f) If an organization is converting to a
6982	6982	partnership, the converting organization must deliver to the
6983	6983	Secretary of State for filing a statement of partnership,
6984	6984	statement of not for profit partnership, or a statement of
6985	6985	limited liability partnership in accordance with Section
6986	6986	10A-8A-9.04."
6987	6987	"§10A-8A-9.06
6988	6988	(a) A partnership may merge with one or more other
6989	6989	constituent organizations pursuant to this section, Sections
6990	6990	10A-8A-9.07 through 10A-8A-9.09, and a plan of merger, if:
6991	6991	(1) the governing statute of each of the other
6992	6992	organizations authorizes the merger;
6993	6993	(2) the merger is not prohibited by the law of a
6994	6994	jurisdiction that enacted any of those governing statutes; and
6995	6995	(3) each of the other organizations complies with its
6996	6996	governing statute in effecting the merger.
6997	6997	3361
6998	6998	3362
6999	6999	3363
7000	7000	3364
7001	7001	3365
7002	7002	3366
7003	7003	3367
7004	7004	3368
7005	7005	3369
7006	7006	3370
7007	7007	3371
7008	7008	3372
7009	7009	3373
7010	7010	3374
7011	7011	3375
7012	7012	3376
7013	7013	3377
7014	7014	3378
7015	7015	3379
7016	7016	3380
7017	7017	3381
7018	7018	3382
7019	7019	3383
7020	7020	3384
7021	7021	3385
7022	7022	3386
7023	7023	3387
7024	7024	3388 HB200 INTRODUCED
7025	7025	Page 122
7026	7026	governing statute in effecting the merger.
7027	7027	(b) A plan of merger must be in writing and must
7028	7028	include:
7029	7029	(1) the name, type of organization, and mailing address
7030	7030	of the principal office of each constituent organization, the
7031	7031	jurisdiction of the governing statute of each constituent
7032	7032	organization, and the respective unique identifying numbers or
7033	7033	other designations as assigned by the Secretary of State, if
7034	7034	any, of each constituent organization;
7035	7035	(2) the name, type of organization, and mailing address
7036	7036	of the principal office of the surviving organization, the
7037	7037	unique identifying number or other designation as assigned by
7038	7038	the Secretary of State, if any, of the surviving organization,
7039	7039	the jurisdiction of the governing statute of the surviving
7040	7040	organization, and, if the surviving organization is to be
7041	7041	created pursuant to the merger, a statement to that effect;
7042	7042	(3) the terms and conditions of the merger, including
7043	7043	the manner and basis for converting the interests in each
7044	7044	constituent organization into any combination of money,
7045	7045	interests in the surviving organization, and other
7046	7046	consideration as allowed by subsection (c);
7047	7047	(4) if the surviving organization is to be created
7048	7048	pursuant to the merger, the surviving organization's
7049	7049	organizational documents; and
7050	7050	(5) if the surviving organization is not to be created
7051	7051	pursuant to the merger, any amendments to be made by the
7052	7052	merger to the surviving organization's organizational
7053	7053	documents.
7054	7054	(c) In connection with a merger, rights or securities
7055	7055	3389
7056	7056	3390
7057	7057	3391
7058	7058	3392
7059	7059	3393
7060	7060	3394
7061	7061	3395
7062	7062	3396
7063	7063	3397
7064	7064	3398
7065	7065	3399
7066	7066	3400
7067	7067	3401
7068	7068	3402
7069	7069	3403
7070	7070	3404
7071	7071	3405
7072	7072	3406
7073	7073	3407
7074	7074	3408
7075	7075	3409
7076	7076	3410
7077	7077	3411
7078	7078	3412
7079	7079	3413
7080	7080	3414
7081	7081	3415
7082	7082	3416 HB200 INTRODUCED
7083	7083	Page 123
7084	7084	(c) In connection with a merger, rights or securities
7085	7085	of or interests in a constituent organization may be exchanged
7086	7086	for or converted into cash, property, or rights or securities
7087	7087	of or interests in the surviving organization, or, in addition
7088	7088	to or in lieu thereof, may be exchanged for or converted into
7089	7089	cash, property, or rights or securities of or interests in
7090	7090	another organization or may be cancelled.
7091	7091	(d) In addition to the requirements of subsection (b),
7092	7092	a plan of merger may:
7093	7093	(1) provide that (i) a constituent organization or any
7094	7094	other party to the plan of merger that fails to perform its
7095	7095	obligations under the plan of merger in accordance with the
7096	7096	terms and conditions of the plan of merger, or that otherwise
7097	7097	fails to comply with the terms and conditions of the plan of
7098	7098	merger, in each case, required to be performed or complied
7099	7099	with prior to the time the merger becomes effective, or that
7100	7100	otherwise fails to consummate, or fails to cause the
7101	7101	consummation of, the merger (whether prior to a specified
7102	7102	date, upon satisfaction or, to the extent permitted by law,
7103	7103	waiver of all conditions to consummation set forth in the plan
7104	7104	of merger, or otherwise) shall be subject, in addition to any
7105	7105	other remedies available at law or in equity, to the penalties
7106	7106	or consequences as are set forth in the plan of merger (which
7107	7107	penalties or consequences may include an obligation to pay to
7108	7108	the other party or parties to the plan of merger an amount
7109	7109	representing, or based on the loss of, any premium or other
7110	7110	economic entitlement the owners of the other party would be
7111	7111	entitled to receive pursuant to the terms of the plan of
7112	7112	merger if the merger were consummated in accordance with the
7113	7113	3417
7114	7114	3418
7115	7115	3419
7116	7116	3420
7117	7117	3421
7118	7118	3422
7119	7119	3423
7120	7120	3424
7121	7121	3425
7122	7122	3426
7123	7123	3427
7124	7124	3428
7125	7125	3429
7126	7126	3430
7127	7127	3431
7128	7128	3432
7129	7129	3433
7130	7130	3434
7131	7131	3435
7132	7132	3436
7133	7133	3437
7134	7134	3438
7135	7135	3439
7136	7136	3440
7137	7137	3441
7138	7138	3442
7139	7139	3443
7140	7140	3444 HB200 INTRODUCED
7141	7141	Page 124
7142	7142	merger if the merger were consummated in accordance with the
7143	7143	terms of the plan of merger) and (ii) if, pursuant to the
7144	7144	terms of the plan of merger, a constituent organization is
7145	7145	entitled to receive payment from another party to the plan of
7146	7146	merger of any amount representing a penalty or consequence (as
7147	7147	specified in clause (i) of this Section 10A-8A-9.06(d)(1)),
7148	7148	the constituent organization shall be entitled to enforce the
7149	7149	other party's payment obligation and, upon receipt of any
7150	7150	payment, shall be entitled to retain the amount of the payment
7151	7151	so received;
7152	7152	(2) provide (i) for the appointment, at or after the
7153	7153	time at which the plan of merger is adopted by the owners of a
7154	7154	constituent organization in accordance with the requirements
7155	7155	of Section 10A-8A-9.07, of one or more persons (which may
7156	7156	include the surviving or resulting entity or any officer,
7157	7157	partner, representative, or agent thereof) as representative
7158	7158	of the owners of a constituent organization, including those
7159	7159	whose ownership interests shall be cancelled, converted, or
7160	7160	exchanged in the merger, and for the delegation to that person
7161	7161	or persons of the sole and exclusive authority to take action
7162	7162	on behalf of the owners pursuant to the plan of merger,
7163	7163	including taking such actions as the representative determines
7164	7164	to enforce (including by entering into settlements with
7165	7165	respect to) the rights of the owners under the plan of merger,
7166	7166	on the terms and subject to the conditions set forth in the
7167	7167	plan of merger, (ii) that any appointment pursuant to clause
7168	7168	(i) of this Section 10A-8A-9.06(d)(2) shall be irrevocable and
7169	7169	binding on all owners from and after the adoption of the plan
7170	7170	of merger by the requisite vote of the partners pursuant to
7171	7171	3445
7172	7172	3446
7173	7173	3447
7174	7174	3448
7175	7175	3449
7176	7176	3450
7177	7177	3451
7178	7178	3452
7179	7179	3453
7180	7180	3454
7181	7181	3455
7182	7182	3456
7183	7183	3457
7184	7184	3458
7185	7185	3459
7186	7186	3460
7187	7187	3461
7188	7188	3462
7189	7189	3463
7190	7190	3464
7191	7191	3465
7192	7192	3466
7193	7193	3467
7194	7194	3468
7195	7195	3469
7196	7196	3470
7197	7197	3471
7198	7198	3472 HB200 INTRODUCED
7199	7199	Page 125
7200	7200	of merger by the requisite vote of the partners pursuant to
7201	7201	Section 10A-8A-9.07, and (iii) that any provision adopted
7202	7202	pursuant to this Section 10A-8A-9.06(d)(2) may not be amended
7203	7203	after the merger has become effective or may be amended only
7204	7204	with the consent or approval of persons specified in the plan
7205	7205	of merger; and
7206	7206	(3) contain any other provision not prohibited by law.
7207	7207	(e) At the time of the approval of the plan of merger
7208	7208	in accordance with Section 10A-8A-9.07, the plan of merger is
7209	7209	not required to contain or have attached thereto any
7210	7210	disclosure letter, disclosure schedules, or similar documents
7211	7211	or instruments contemplated by the plan of merger that modify,
7212	7212	supplement, qualify, or make exceptions to representations,
7213	7213	warranties, covenants, or conditions contained in the plan of
7214	7214	merger."
7215	7215	"§10A-8A-10.01
7216	7216	(a) A partnership may be formed as, or may become, a
7217	7217	limited liability partnership pursuant to this section.
7218	7218	(b) In order to form a limited liability partnership,
7219	7219	the original partnership agreement of the partnership shall
7220	7220	state that the partnership is formed as a limited liability
7221	7221	partnership, and the partnership shall deliver to the
7222	7222	Secretary of State for filing a statement of limited liability
7223	7223	partnership in accordance with subsection (d) of this section.
7224	7224	(c) In order for an existing partnership to become a
7225	7225	limited liability partnership, the terms and conditions on
7226	7226	which the partnership becomes a limited liability partnership
7227	7227	must be approved by the affirmative approval necessary to
7228	7228	amend the partnership agreement and, in the case of a
7229	7229	3473
7230	7230	3474
7231	7231	3475
7232	7232	3476
7233	7233	3477
7234	7234	3478
7235	7235	3479
7236	7236	3480
7237	7237	3481
7238	7238	3482
7239	7239	3483
7240	7240	3484
7241	7241	3485
7242	7242	3486
7243	7243	3487
7244	7244	3488
7245	7245	3489
7246	7246	3490
7247	7247	3491
7248	7248	3492
7249	7249	3493
7250	7250	3494
7251	7251	3495
7252	7252	3496
7253	7253	3497
7254	7254	3498
7255	7255	3499
7256	7256	3500 HB200 INTRODUCED
7257	7257	Page 126
7258	7258	amend the partnership agreement and, in the case of a
7259	7259	partnership agreement that expressly considers obligations to
7260	7260	contribute to the partnership, also the affirmative approval
7261	7261	necessary to amend those provisions, and after such approval,
7262	7262	the partnership shall deliver to the Secretary of State for
7263	7263	filing a statement of limited liability partnership in
7264	7264	accordance with subsection (d).
7265	7265	(d) A statement of limited liability partnership must
7266	7266	contain all of the following:
7267	7267	(1) the name of the limited liability partnership which
7268	7268	must comply with Article 5 of Chapter 1;
7269	7269	(2) the street, and mailing, if different, address of
7270	7270	its principal office .;
7271	7271	(3) the street and mailing address of a the registered
7272	7272	office and the name of the registered agent at that office for
7273	7273	service of process in this state which the partnership shall
7274	7274	be required to maintain in accordance with Chapter 1 ;
7275	7275	(4) a statement that the partnership was formed as a
7276	7276	limited liability partnership in accordance with subsection
7277	7277	(b) or a statement that the statement of limited liability
7278	7278	partnership was approved in accordance with subsection (c);
7279	7279	and
7280	7280	(5) a statement that the partnership is a limited
7281	7281	liability partnership .; and
7282	7282	(6) the unique identifying number or other designation,
7283	7283	if any, as assigned to the partnership by the Secretary of
7284	7284	State.
7285	7285	(e) A statement of limited liability partnership may be
7286	7286	amended or restated from time to time in accordance with
7287	7287	3501
7288	7288	3502
7289	7289	3503
7290	7290	3504
7291	7291	3505
7292	7292	3506
7293	7293	3507
7294	7294	3508
7295	7295	3509
7296	7296	3510
7297	7297	3511
7298	7298	3512
7299	7299	3513
7300	7300	3514
7301	7301	3515
7302	7302	3516
7303	7303	3517
7304	7304	3518
7305	7305	3519
7306	7306	3520
7307	7307	3521
7308	7308	3522
7309	7309	3523
7310	7310	3524
7311	7311	3525
7312	7312	3526
7313	7313	3527
7314	7314	3528 HB200 INTRODUCED
7315	7315	Page 127
7316	7316	amended or restated from time to time in accordance with
7317	7317	Section 10A-1-4.26.
7318	7318	(f) The statement of limited liability partnership
7319	7319	shall be executed by one or more partners authorized to
7320	7320	execute the statement of limited liability partnership.
7321	7321	(g) The statement of limited liability partnership
7322	7322	shall be accompanied by a fee for the Secretary of State in
7323	7323	the respective amounts prescribed by Section 10A-1-4.31.
7324	7324	(h) The Secretary of State shall file the statement of
7325	7325	limited liability partnership of any partnership as a limited
7326	7326	liability partnership that submits a completed statement of
7327	7327	limited liability partnership with the required fees. The
7328	7328	filing by the Secretary of State of a statement of limited
7329	7329	liability partnership is conclusive evidence that the
7330	7330	partnership has satisfied all conditions required to be a
7331	7331	limited liability partnership.
7332	7332	(i) The statement of limited liability partnership is
7333	7333	effective, and a partnership becomes a limited liability
7334	7334	partnership, immediately on the date the statement of limited
7335	7335	liability partnership is filed with the Secretary of State or
7336	7336	at any later date or time specified in the statement of
7337	7337	limited liability partnership in compliance with Article 4 of
7338	7338	Chapter 1. The status as a limited liability partnership
7339	7339	remains effective, regardless of changes in the partnership,
7340	7340	and partnership continues as a limited liability partnership
7341	7341	until a statement of cancellation is voluntarily filed in
7342	7342	accordance with subsection (m).
7343	7343	(j) The fact that a statement of limited liability
7344	7344	partnership is on file with the Secretary of State is notice
7345	7345	3529
7346	7346	3530
7347	7347	3531
7348	7348	3532
7349	7349	3533
7350	7350	3534
7351	7351	3535
7352	7352	3536
7353	7353	3537
7354	7354	3538
7355	7355	3539
7356	7356	3540
7357	7357	3541
7358	7358	3542
7359	7359	3543
7360	7360	3544
7361	7361	3545
7362	7362	3546
7363	7363	3547
7364	7364	3548
7365	7365	3549
7366	7366	3550
7367	7367	3551
7368	7368	3552
7369	7369	3553
7370	7370	3554
7371	7371	3555
7372	7372	3556 HB200 INTRODUCED
7373	7373	Page 128
7374	7374	partnership is on file with the Secretary of State is notice
7375	7375	that the partnership is a limited liability partnership and as
7376	7376	notice of the facts required to be set forth in the statement
7377	7377	of limited liability partnership.
7378	7378	(k) A partnership that has filed a statement of limited
7379	7379	liability partnership as a limited liability partnership is
7380	7380	for all purposes, except as provided in Section 10A-8A-3.06,
7381	7381	the same entity that existed before the statement of limited
7382	7382	liability partnership was filed and continues to be a
7383	7383	partnership under the laws of this state subject to the
7384	7384	limited liability partnership provisions of this chapter. If a
7385	7385	limited liability partnership dissolves and its business or
7386	7386	not for profit activity, or a portion of its business or not
7387	7387	for profit activity is continued without the complete winding
7388	7388	up of partnership's business or not for profit activity, a
7389	7389	partnership which is a successor to the limited liability
7390	7390	partnership shall not be required to file a new statement of
7391	7391	limited liability partnership.
7392	7392	(l) The status of the partnership as a limited
7393	7393	liability partnership and the liability of a partner of the
7394	7394	limited liability partnership shall not be adversely affected
7395	7395	by error or subsequent changes in the information stated in
7396	7396	the statement of limited liability partnership under
7397	7397	subsection (d).
7398	7398	(m) The decision to file a statement of cancellation
7399	7399	shall require the approval of all of the partners of the
7400	7400	partnership. The statement of cancellation must be delivered
7401	7401	for filing to the Secretary of State and must contain the
7402	7402	following:
7403	7403	3557
7404	7404	3558
7405	7405	3559
7406	7406	3560
7407	7407	3561
7408	7408	3562
7409	7409	3563
7410	7410	3564
7411	7411	3565
7412	7412	3566
7413	7413	3567
7414	7414	3568
7415	7415	3569
7416	7416	3570
7417	7417	3571
7418	7418	3572
7419	7419	3573
7420	7420	3574
7421	7421	3575
7422	7422	3576
7423	7423	3577
7424	7424	3578
7425	7425	3579
7426	7426	3580
7427	7427	3581
7428	7428	3582
7429	7429	3583
7430	7430	3584 HB200 INTRODUCED
7431	7431	Page 129
7432	7432	following:
7433	7433	(1) the name of the limited liability partnership;
7434	7434	(2) the date and office or offices in which it filed
7435	7435	its statement of limited liability partnership, and all
7436	7436	amendments and restatements thereof the unique identifying
7437	7437	number or other designation as assigned to the partnership by
7438	7438	the Secretary of State ;
7439	7439	(3) the street and mailing address of its principal
7440	7440	office;
7441	7441	(4) the street and mailing address of its registered
7442	7442	office and the name of the registered agent at that office for
7443	7443	service of process in this state which the partnership was
7444	7444	required to maintain;
7445	7445	(5) a statement that the statement of cancellation was
7446	7446	approved in accordance with this subsection; and
7447	7447	(6) any other information that the partners determine
7448	7448	to include.
7449	7449	(n) A statement of cancellation must be executed by one
7450	7450	or more partners authorized to execute the statement of
7451	7451	cancellation.
7452	7452	(o) The statement of cancellation is effective, and a
7453	7453	partnership ceases to be a limited liability partnership,
7454	7454	immediately on the date the statement of cancellation is
7455	7455	delivered to the Secretary of State for filing or at any later
7456	7456	date or time specified in the statement of cancellation in
7457	7457	compliance with Article 4 of Chapter 1. The statement of
7458	7458	cancellation shall not cause the dissolution of the
7459	7459	partnership.
7460	7460	(p) The filing of a statement of cancellation of a
7461	7461	3585
7462	7462	3586
7463	7463	3587
7464	7464	3588
7465	7465	3589
7466	7466	3590
7467	7467	3591
7468	7468	3592
7469	7469	3593
7470	7470	3594
7471	7471	3595
7472	7472	3596
7473	7473	3597
7474	7474	3598
7475	7475	3599
7476	7476	3600
7477	7477	3601
7478	7478	3602
7479	7479	3603
7480	7480	3604
7481	7481	3605
7482	7482	3606
7483	7483	3607
7484	7484	3608
7485	7485	3609
7486	7486	3610
7487	7487	3611
7488	7488	3612 HB200 INTRODUCED
7489	7489	Page 130
7490	7490	(p) The filing of a statement of cancellation of a
7491	7491	limited liability partnership does not affect the limited
7492	7492	liability of partners for debts, obligations or liabilities of
7493	7493	the partnership which occur or were incurred prior to the
7494	7494	filing of the statement of cancellation.
7495	7495	(q) A dissolved limited liability partnership shall
7496	7496	continue its status as a limited liability partnership unless
7497	7497	a statement of cancellation is voluntarily filed in accordance
7498	7498	with subsection (m).
7499	7499	(r) The statement of limited liability partnership and
7500	7500	the statement of cancellation are filing instruments for the
7501	7501	purposes of Chapter 1."
7502	7502	"§10A-8A-10.03
7503	7503	(a) In the case of a limited liability partnership
7504	7504	performing professional services, upon the death of a partner,
7505	7505	upon a partner becoming a disqualified person, or upon a
7506	7506	transferable interest being transferred by operation of law or
7507	7507	court decree to a disqualified person, the transferable
7508	7508	interest of the deceased partner or of the disqualified person
7509	7509	may be transferred to a qualified person and, if not so
7510	7510	transferred, subject to Section 10A-8A-4.09, shall be
7511	7511	purchased by the limited liability partnership as provided in
7512	7512	this section.
7513	7513	(b) If the purchase price of the transferable interest
7514	7514	is not fixed by determined in accordance with the partnership
7515	7515	agreement, the limited liability partnership, within six
7516	7516	months after the death or 30 days after the disqualification
7517	7517	or transfer, as the case may be, shall make a written offer to
7518	7518	pay to the holder of for the transferable interest a specified
7519	7519	3613
7520	7520	3614
7521	7521	3615
7522	7522	3616
7523	7523	3617
7524	7524	3618
7525	7525	3619
7526	7526	3620
7527	7527	3621
7528	7528	3622
7529	7529	3623
7530	7530	3624
7531	7531	3625
7532	7532	3626
7533	7533	3627
7534	7534	3628
7535	7535	3629
7536	7536	3630
7537	7537	3631
7538	7538	3632
7539	7539	3633
7540	7540	3634
7541	7541	3635
7542	7542	3636
7543	7543	3637
7544	7544	3638
7545	7545	3639
7546	7546	3640 HB200 INTRODUCED
7547	7547	Page 131
7548	7548	pay to the holder of for the transferable interest a specified
7549	7549	price deemed by the limited liability partnership to be the
7550	7550	fair value of the transferable interest as of the date of the
7551	7551	death, disqualification, or transfer. The offer shall be given
7552	7552	delivered to the personal representative of the estate of the
7553	7553	deceased partner, the disqualified person, or the transferee,
7554	7554	as the case may be, and shall be accompanied by a balance
7555	7555	sheet of the limited liability partnership, as of the latest
7556	7556	available date and not more than 12 months prior to the making
7557	7557	of the offer, and a profit and loss statement of the limited
7558	7558	liability partnership for the 12-month period ended on the
7559	7559	date of the balance sheet.
7560	7560	(c) If within 30 days after the date of the written
7561	7561	offer from the limited liability partnership the fair value of
7562	7562	the transferable interest is agreed upon between the personal
7563	7563	representative of the estate of the deceased partner, the
7564	7564	disqualified person, or the transferee, as the case may be,
7565	7565	and the limited liability partnership, payment therefor shall
7566	7566	be made within 90 days, or such other period as the parties
7567	7567	may agree, after the date of the offer . Upon payment of the
7568	7568	agreed value, the personal representative of the estate of the
7569	7569	deceased partner, the disqualified person, or the transferee,
7570	7570	as the case may be, shall cease to have any interest in, or
7571	7571	claim to, the transferable interest.
7572	7572	(d) If within 30 days from the date of the written
7573	7573	offer from the limited liability partnership, the fair value
7574	7574	of the transferable interest is not agreed upon between the
7575	7575	personal representative of the estate of the deceased partner,
7576	7576	the disqualified person, or the transferee, as the case may
7577	7577	3641
7578	7578	3642
7579	7579	3643
7580	7580	3644
7581	7581	3645
7582	7582	3646
7583	7583	3647
7584	7584	3648
7585	7585	3649
7586	7586	3650
7587	7587	3651
7588	7588	3652
7589	7589	3653
7590	7590	3654
7591	7591	3655
7592	7592	3656
7593	7593	3657
7594	7594	3658
7595	7595	3659
7596	7596	3660
7597	7597	3661
7598	7598	3662
7599	7599	3663
7600	7600	3664
7601	7601	3665
7602	7602	3666
7603	7603	3667
7604	7604	3668 HB200 INTRODUCED
7605	7605	Page 132
7606	7606	the disqualified person, or the transferee, as the case may
7607	7607	be, and the limited liability partnership do not so agree as
7608	7608	to the fair value of the transferable interest within 30 days
7609	7609	of the delivery of the written offer , then either party may
7610	7610	commence a civil action in the designated court, and if none,
7611	7611	in the circuit court for the county in which the limited
7612	7612	liability partnership's principal office within this state is
7613	7613	located, and if the limited liability partnership does not
7614	7614	have a principal office within this state, then in the circuit
7615	7615	court for the county in which the limited liability
7616	7616	partnership's most recent registered office is located
7617	7617	requesting that the fair value of the transferable interest be
7618	7618	found and determined. If the limited liability partnership
7619	7619	does not deliver a written offer in accordance with subsection
7620	7620	(b), then the personal representative of the estate of the
7621	7621	deceased partner, the disqualified person, or the transferee,
7622	7622	as the case may be, may commence a civil action in the
7623	7623	designated court, and if none, in the circuit court for the
7624	7624	county in which the limited liability partnership's principal
7625	7625	office is located in this state, and if none in this state, in
7626	7626	the circuit court for the county in which the limited
7627	7627	liability partnership's most recent registered office is
7628	7628	located requesting that the fair value of the transferable
7629	7629	interest be found and determined. The personal representative
7630	7630	of the estate of the deceased partner, the disqualified
7631	7631	person, or the transferee, as the case may be, wherever
7632	7632	residing, shall be made a party to the proceeding as an action
7633	7633	against that person's transferable interest quasi in rem.
7634	7634	Service shall be made in accordance with the rules of civil
7635	7635	3669
7636	7636	3670
7637	7637	3671
7638	7638	3672
7639	7639	3673
7640	7640	3674
7641	7641	3675
7642	7642	3676
7643	7643	3677
7644	7644	3678
7645	7645	3679
7646	7646	3680
7647	7647	3681
7648	7648	3682
7649	7649	3683
7650	7650	3684
7651	7651	3685
7652	7652	3686
7653	7653	3687
7654	7654	3688
7655	7655	3689
7656	7656	3690
7657	7657	3691
7658	7658	3692
7659	7659	3693
7660	7660	3694
7661	7661	3695
7662	7662	3696 HB200 INTRODUCED
7663	7663	Page 133
7664	7664	Service shall be made in accordance with the rules of civil
7665	7665	procedure. The personal representative of the estate of the
7666	7666	deceased partner, the disqualified person, or the transferee,
7667	7667	as the case may be, shall be entitled to a judgment against
7668	7668	the limited liability partnership for the amount of the fair
7669	7669	value of that person's transferable interest as of the date of
7670	7670	death, disqualification, or transfer. The court may order that
7671	7671	the judgment be paid in installments and with interest and on
7672	7672	terms as the court may determine. The court , if it so elects,
7673	7673	may appoint one or more persons as appraisers to receive
7674	7674	evidence and recommend a decision on the question of fair
7675	7675	value. The appraisers shall have the power and authority as
7676	7676	shall be specified in the order of their appointment or an
7677	7677	amendment thereof.
7678	7678	(e) The judgment shall include an allowance for
7679	7679	interest at the rate the court finds to be fair and equitable
7680	7680	in all the circumstances, from the date of death,
7681	7681	disqualification, or transfer.
7682	7682	(f) The costs and expenses of any proceeding shall be
7683	7683	determined by the court and shall be assessed against the
7684	7684	parties in a manner the court deems equitable.
7685	7685	(g) The expenses shall include reasonable compensation
7686	7686	for and reasonable expenses of the appraisers and a reasonable
7687	7687	attorney's fee but shall exclude the fees and expenses of
7688	7688	counsel for and of experts employed by any party; but:
7689	7689	(1) if the fair value of the transferable interest as
7690	7690	determined materially exceeds the amount which the limited
7691	7691	liability partnership offered to pay therefor, or if no offer
7692	7692	was made by the limited liability partnership, the court, in
7693	7693	3697
7694	7694	3698
7695	7695	3699
7696	7696	3700
7697	7697	3701
7698	7698	3702
7699	7699	3703
7700	7700	3704
7701	7701	3705
7702	7702	3706
7703	7703	3707
7704	7704	3708
7705	7705	3709
7706	7706	3710
7707	7707	3711
7708	7708	3712
7709	7709	3713
7710	7710	3714
7711	7711	3715
7712	7712	3716
7713	7713	3717
7714	7714	3718
7715	7715	3719
7716	7716	3720
7717	7717	3721
7718	7718	3722
7719	7719	3723
7720	7720	3724 HB200 INTRODUCED
7721	7721	Page 134
7722	7722	was made by the limited liability partnership, the court, in
7723	7723	its discretion, may award to the personal representative of
7724	7724	the estate of the deceased partner, the disqualified person,
7725	7725	or the transferee, as the case may be, the sum the court
7726	7726	determines to be reasonable compensation to any expert or
7727	7727	experts employed by the personal representative of the estate
7728	7728	of the deceased partner, the disqualified person, or the
7729	7729	transferee, as the case may be, in the proceeding; and
7730	7730	(2) if the offer of the limited liability partnership
7731	7731	for the transferable interest materially exceeds the amount of
7732	7732	the fair value of the transferable interest as determined, the
7733	7733	court, in its discretion, may award to the limited liability
7734	7734	partnership the sum the court determines to be reasonable
7735	7735	compensation to any expert or experts employed by the limited
7736	7736	liability partnership in the proceeding.
7737	7737	(f)(1) The court in a proceeding commenced under
7738	7738	subsection (d) shall determine all court costs of the
7739	7739	proceeding, including the reasonable compensation and expenses
7740	7740	of appraisers appointed by the court. The court shall assess
7741	7741	the court costs against the limited liability partnership,
7742	7742	except that the court may assess court costs against the
7743	7743	personal representative of the estate of the deceased partner,
7744	7744	the disqualified person, or the transferee, as the case may
7745	7745	be, in amounts which the court finds equitable, to the extent
7746	7746	the court finds the personal representative of the estate of
7747	7747	the deceased partner, the disqualified person, or the
7748	7748	transferee, as the case may be, acted arbitrarily,
7749	7749	vexatiously, or not in good faith with respect to the rights
7750	7750	provided by this section.
7751	7751	3725
7752	7752	3726
7753	7753	3727
7754	7754	3728
7755	7755	3729
7756	7756	3730
7757	7757	3731
7758	7758	3732
7759	7759	3733
7760	7760	3734
7761	7761	3735
7762	7762	3736
7763	7763	3737
7764	7764	3738
7765	7765	3739
7766	7766	3740
7767	7767	3741
7768	7768	3742
7769	7769	3743
7770	7770	3744
7771	7771	3745
7772	7772	3746
7773	7773	3747
7774	7774	3748
7775	7775	3749
7776	7776	3750
7777	7777	3751
7778	7778	3752 HB200 INTRODUCED
7779	7779	Page 135
7780	7780	provided by this section.
7781	7781	(2) The court in a proceeding commenced under
7782	7782	subsection (d) may also assess the expenses of the respective
7783	7783	parties in amounts the court finds equitable:
7784	7784	(A) against the limited liability partnership and in
7785	7785	favor of the personal representative of the estate of the
7786	7786	deceased partner, the disqualified person, or the transferee,
7787	7787	as the case may be, if the court finds the limited liability
7788	7788	partnership did not substantially comply with the requirements
7789	7789	of this section; or
7790	7790	(B) against either the limited liability partnership or
7791	7791	the personal representative of the estate of the deceased
7792	7792	partner, the disqualified person, or the transferee, as the
7793	7793	case may be, in favor of the other party, if the court finds
7794	7794	the party against whom expenses are assessed acted
7795	7795	arbitrarily, vexatiously, or not in good faith with respect to
7796	7796	the rights provided by this section.
7797	7797	(3) For purposes of this subsection (f), expenses means
7798	7798	reasonable expenses of any kind that are incurred in
7799	7799	connection with a proceeding brought under subsection (d).
7800	7800	(h)(g) If the purchase or transfer of the transferable
7801	7801	interest of a deceased partner, a disqualified person, or a
7802	7802	transferee is not completed within 12 months after the death
7803	7803	of the deceased partner or 12 months after the
7804	7804	disqualification or transfer, as the case may be, the limited
7805	7805	liability partnership shall forthwith cancel the transferable
7806	7806	interest on its books and the personal representative of the
7807	7807	estate of the deceased partner, the disqualified person, or
7808	7808	the transferee, as the case may be, shall have no further
7809	7809	3753
7810	7810	3754
7811	7811	3755
7812	7812	3756
7813	7813	3757
7814	7814	3758
7815	7815	3759
7816	7816	3760
7817	7817	3761
7818	7818	3762
7819	7819	3763
7820	7820	3764
7821	7821	3765
7822	7822	3766
7823	7823	3767
7824	7824	3768
7825	7825	3769
7826	7826	3770
7827	7827	3771
7828	7828	3772
7829	7829	3773
7830	7830	3774
7831	7831	3775
7832	7832	3776
7833	7833	3777
7834	7834	3778
7835	7835	3779
7836	7836	3780 HB200 INTRODUCED
7837	7837	Page 136
7838	7838	the transferee, as the case may be, shall have no further
7839	7839	interest in the transferable interest other than that person's
7840	7840	right to payment for the transferable interest under this
7841	7841	section.
7842	7842	(i)(h) This section shall not require a limited
7843	7843	liability partnership to purchase a transferable interest of a
7844	7844	disqualified person if the disqualification is for less than
7845	7845	12 months from the date of disqualification. A limited
7846	7846	liability partnership may require the disqualified person to
7847	7847	sell the disqualified person's transferable interest to the
7848	7848	limited liability partnership upon any disqualification.
7849	7849	(j)(i) Any provision of a partnership agreement
7850	7850	regarding the purchase or transfer of a transferable interest
7851	7851	of a limited liability partnership performing professional
7852	7852	services shall be specifically enforceable in the courts of
7853	7853	Alabama.
7854	7854	(k)(j) Nothing in this section shall prevent or relieve
7855	7855	a limited liability partnership from paying pension benefits
7856	7856	or other deferred compensation for services rendered to or on
7857	7857	behalf of a former partner as otherwise permitted by law ."
7858	7858	Section 7. Sections 10A-9A-1.07, 10A-9A-2.06,
7859	7859	10A-9A-7.02, 10A-9A-7.04, 10A-9A-9.02, 10A-9A-10.01,
7860	7860	10A-9A-10.02, and 10A-9A-10.06 of the Code of Alabama 1975,
7861	7861	are amended to read as follows:
7862	7862	"§10A-9A-1.07
7863	7863	(a) It is the policy of this chapter and this state to
7864	7864	give maximum effect to the principles of freedom of contract
7865	7865	and to the enforceability of partnership agreements.
7866	7866	(b) Unless displaced by particular provisions of this
7867	7867	3781
7868	7868	3782
7869	7869	3783
7870	7870	3784
7871	7871	3785
7872	7872	3786
7873	7873	3787
7874	7874	3788
7875	7875	3789
7876	7876	3790
7877	7877	3791
7878	7878	3792
7879	7879	3793
7880	7880	3794
7881	7881	3795
7882	7882	3796
7883	7883	3797
7884	7884	3798
7885	7885	3799
7886	7886	3800
7887	7887	3801
7888	7888	3802
7889	7889	3803
7890	7890	3804
7891	7891	3805
7892	7892	3806
7893	7893	3807
7894	7894	3808 HB200 INTRODUCED
7895	7895	Page 137
7896	7896	(b) Unless displaced by particular provisions of this
7897	7897	chapter, the principles of law and equity supplement this
7898	7898	chapter.
7899	7899	(c) If an obligation to pay interest arises under this
7900	7900	chapter and the rate is not specified, the rate is the
7901	7901	applicable federal rate as determined from time to time by the
7902	7902	United States Treasury pursuant to 26 U.S.C. § 1274(d) or any
7903	7903	successor law.
7904	7904	(d) The rule that statutes in derogation of the common
7905	7905	law are to be strictly construed shall have no application to
7906	7906	this chapter.
7907	7907	(e) The use of any gender shall be applicable to all
7908	7908	genders. The captions contained in this chapter are for
7909	7909	purposes of convenience only and shall not control or affect
7910	7910	the construction of this chapter.
7911	7911	(f) Sections 7-9A-406 and 7-9A-408 of the Uniform
7912	7912	Commercial Code, and all successor statutes thereto, do not
7913	7913	apply to any interest in a limited partnership, including all
7914	7914	rights, powers, and interests arising under a partnership
7915	7915	agreement or this chapter. This provision prevails over
7916	7916	Sections 7-9A-406 and 7-9A-408 of the Uniform Commercial Code,
7917	7917	and all successor statutes thereto, and is expressly intended
7918	7918	to permit the enforcement of the provisions of a partnership
7919	7919	agreement that would otherwise be ineffective under Sections
7920	7920	7-9A-406 and 7-9A-408 of the Uniform Commercial Code, and all
7921	7921	successor statutes thereto.
7922	7922	(g) Division E of Article 3 of Chapter 1 shall have no
7923	7923	application to this chapter.
7924	7924	(h) The terms president, vice president, secretary, and
7925	7925	3809
7926	7926	3810
7927	7927	3811
7928	7928	3812
7929	7929	3813
7930	7930	3814
7931	7931	3815
7932	7932	3816
7933	7933	3817
7934	7934	3818
7935	7935	3819
7936	7936	3820
7937	7937	3821
7938	7938	3822
7939	7939	3823
7940	7940	3824
7941	7941	3825
7942	7942	3826
7943	7943	3827
7944	7944	3828
7945	7945	3829
7946	7946	3830
7947	7947	3831
7948	7948	3832
7949	7949	3833
7950	7950	3834
7951	7951	3835
7952	7952	3836 HB200 INTRODUCED
7953	7953	Page 138
7954	7954	(h) The terms president, vice president, secretary, and
7955	7955	treasurer, as defined in Chapter 1, shall have no application
7956	7956	to this chapter.
7957	7957	(i) Section 10A-1-2.13(c) shall have no application to
7958	7958	this chapter.
7959	7959	(j) Action validly taken pursuant to one provision of
7960	7960	this chapter shall not be deemed invalid solely because it is
7961	7961	identical or similar in substance to an action that could have
7962	7962	been taken pursuant to some other provision of this chapter
7963	7963	but fails to satisfy one or more requirements prescribed by
7964	7964	such other provision. "
7965	7965	"§10A-9A-2.06
7966	7966	(a) The Secretary of State, upon request and payment of
7967	7967	the requisite fee, shall furnish to any person a certificate
7968	7968	of existence for a limited partnership if the writings filed
7969	7969	in the office of the Secretary of State show that the limited
7970	7970	partnership has been formed under the laws of this state. A
7971	7971	certificate of existence shall reflect only the information on
7972	7972	file with the Secretary of State. To the extent writings have
7973	7973	been delivered to the Secretary of State, the certificate of
7974	7974	existence must state:
7975	7975	(1) the limited partnership's name;
7976	7976	(2) that the limited partnership was formed under the
7977	7977	laws of this state, the date of formation, and the filing
7978	7978	office in which the certificate of formation was filed;
7979	7979	(3) whether a statement of dissolution of the limited
7980	7980	partnership has been delivered to the Secretary of State for
7981	7981	filing;
7982	7982	(4) whether the limited partnership has delivered to
7983	7983	3837
7984	7984	3838
7985	7985	3839
7986	7986	3840
7987	7987	3841
7988	7988	3842
7989	7989	3843
7990	7990	3844
7991	7991	3845
7992	7992	3846
7993	7993	3847
7994	7994	3848
7995	7995	3849
7996	7996	3850
7997	7997	3851
7998	7998	3852
7999	7999	3853
8000	8000	3854
8001	8001	3855
8002	8002	3856
8003	8003	3857
8004	8004	3858
8005	8005	3859
8006	8006	3860
8007	8007	3861
8008	8008	3862
8009	8009	3863
8010	8010	3864 HB200 INTRODUCED
8011	8011	Page 139
8012	8012	(4) whether the limited partnership has delivered to
8013	8013	the Secretary of State for filing a certificate of
8014	8014	reinstatement;
8015	8015	(5) the unique identifying number or other designation
8016	8016	as assigned by the Secretary of State; and
8017	8017	(6) other facts of record in the office of the
8018	8018	Secretary of State which may be requested by the applicant.
8019	8019	(b) The Secretary of State, upon request and payment of
8020	8020	the requisite fee, shall furnish to any person a certificate
8021	8021	of authorization for a foreign limited partnership if the
8022	8022	writings filed in the office of the Secretary of State show
8023	8023	that the Secretary of State has filed a certificate of
8024	8024	authority, has not revoked the certificate of authority, and
8025	8025	has not filed a notice of cancellation. A certificate of
8026	8026	authorization must state:
8027	8027	(1) the foreign limited partnership's name and any
8028	8028	alternate name for use in this state under Article 5 of
8029	8029	Chapter 1;
8030	8030	(2) that the foreign limited partnership is authorized
8031	8031	to conduct activities and affairs in this state;
8032	8032	(3) that the Secretary of State has not revoked the
8033	8033	foreign limited partnership's certificate of authority;
8034	8034	(4) that the foreign limited partnership has not filed
8035	8035	with the Secretary of State a certificate of withdrawal, a
8036	8036	notice of cancellation, or otherwise terminated its
8037	8037	certificate of authority;
8038	8038	(5) the unique identifying number or other designation
8039	8039	as assigned by the Secretary of State; and
8040	8040	(6) other facts of record in the office of the
8041	8041	3865
8042	8042	3866
8043	8043	3867
8044	8044	3868
8045	8045	3869
8046	8046	3870
8047	8047	3871
8048	8048	3872
8049	8049	3873
8050	8050	3874
8051	8051	3875
8052	8052	3876
8053	8053	3877
8054	8054	3878
8055	8055	3879
8056	8056	3880
8057	8057	3881
8058	8058	3882
8059	8059	3883
8060	8060	3884
8061	8061	3885
8062	8062	3886
8063	8063	3887
8064	8064	3888
8065	8065	3889
8066	8066	3890
8067	8067	3891
8068	8068	3892 HB200 INTRODUCED
8069	8069	Page 140
8070	8070	(6) other facts of record in the office of the
8071	8071	Secretary of State which may be requested by the applicant.
8072	8072	(c) Subject to any qualification stated in the
8073	8073	certificate, a certificate of existence or authorization
8074	8074	issued by the Secretary of State may be relied upon as
8075	8075	conclusive evidence that the limited partnership or foreign
8076	8076	limited partnership is in existence or is authorized to
8077	8077	transact activities and affairs in this state.
8078	8078	(d) The Secretary of State shall not be required to
8079	8079	issue a certificate of existence for a limited partnership if
8080	8080	its certificate of formation was filed prior to January 1,
8081	8081	2011; provided, however, that the Secretary of State shall
8082	8082	issue a certificate of existence upon the filing by the
8083	8083	limited partnership of a certificate of information with the
8084	8084	Secretary of State which must : comply with Section
8085	8085	10A-1-3.08(b).
8086	8086	(1) state all information required in Section
8087	8087	10A-9A-2.01(a)(1), (a)(2), (a)(3), (a)(4), (a)(5), and (a)(6);
8088	8088	and
8089	8089	(2) list and attach certified copies of all writings
8090	8090	filed as to the limited partnership. "
8091	8091	"§10A-9A-7.02
8092	8092	(a) A transfer, in whole or in part, of a partner's
8093	8093	transferable interest:
8094	8094	(1) is permissible;
8095	8095	(2) does not by itself cause the partner's
8096	8096	dissociation;
8097	8097	(3) does not by itself cause a dissolution and winding
8098	8098	up of the limited partnership; and
8099	8099	3893
8100	8100	3894
8101	8101	3895
8102	8102	3896
8103	8103	3897
8104	8104	3898
8105	8105	3899
8106	8106	3900
8107	8107	3901
8108	8108	3902
8109	8109	3903
8110	8110	3904
8111	8111	3905
8112	8112	3906
8113	8113	3907
8114	8114	3908
8115	8115	3909
8116	8116	3910
8117	8117	3911
8118	8118	3912
8119	8119	3913
8120	8120	3914
8121	8121	3915
8122	8122	3916
8123	8123	3917
8124	8124	3918
8125	8125	3919
8126	8126	3920 HB200 INTRODUCED
8127	8127	Page 141
8128	8128	up of the limited partnership; and
8129	8129	(4) subject to Section 10A-9A-7.04, does not entitle
8130	8130	the transferee to:
8131	8131	(A) participate in the management or conduct of the
8132	8132	limited partnership's activities and affairs; or
8133	8133	(B) except as otherwise provided in subsection (d),
8134	8134	have access to required information, records, or other
8135	8135	information concerning the partnership's activities and
8136	8136	affairs.
8137	8137	(b) A transferee has the right to receive, in
8138	8138	accordance with the transfer, distributions to which the
8139	8139	transferor would otherwise be entitled.
8140	8140	(c) A transferable interest may be evidenced by a
8141	8141	certificate of transferable interest issued by the limited
8142	8142	partnership. A partnership agreement may provide for the
8143	8143	transfer of the transferable interest represented by the
8144	8144	certificate and make other provisions with respect to the
8145	8145	certificate. No certificate of transferable interest shall be
8146	8146	issued in bearer form.
8147	8147	(d) In a dissolution and winding up, a transferee is
8148	8148	entitled to an account of the limited partnership's
8149	8149	transactions only from the date of dissolution.
8150	8150	(e) Except as otherwise provided in Sections
8151	8151	10A-9A-6.01(b)(3), 10A-9A-6.01(b)(10), 10A-9A-6.01(b)(11),
8152	8152	10A-9A-6.03(4)(B), 10A-9A-6.03(11), and 10A-9A-6.03(12) when a
8153	8153	partner transfers a transferable interest, the transferor
8154	8154	retains the rights of a partner other than the right to
8155	8155	distributions transferred and retains all duties and
8156	8156	obligations of a partner.
8157	8157	3921
8158	8158	3922
8159	8159	3923
8160	8160	3924
8161	8161	3925
8162	8162	3926
8163	8163	3927
8164	8164	3928
8165	8165	3929
8166	8166	3930
8167	8167	3931
8168	8168	3932
8169	8169	3933
8170	8170	3934
8171	8171	3935
8172	8172	3936
8173	8173	3937
8174	8174	3938
8175	8175	3939
8176	8176	3940
8177	8177	3941
8178	8178	3942
8179	8179	3943
8180	8180	3944
8181	8181	3945
8182	8182	3946
8183	8183	3947
8184	8184	3948 HB200 INTRODUCED
8185	8185	Page 142
8186	8186	obligations of a partner.
8187	8187	(f) A limited partnership need not give effect to a
8188	8188	transferee's rights under this section until the limited
8189	8189	partnership has notice of the transfer.
8190	8190	(g) When a partner transfers a transferable interest to
8191	8191	a person that is admitted as a partner with respect to the
8192	8192	transferred interest, the transferee is liable for the
8193	8193	partner's obligations under Sections 10A-9A-5.02 and
8194	8194	10A-9A-5.08 to the extent that the obligations are known to
8195	8195	the transferee when the transferee voluntarily accepts
8196	8196	admission as a partner.
8197	8197	(h) Notwithstanding anything in Title 43 to the
8198	8198	contrary, a partnership agreement may provide that a
8199	8199	transferable interest may or shall be transferred in whole or
8200	8200	in part, with or without consideration, to one or more persons
8201	8201	at the death of the holder of the transferable interest. Any
8202	8202	transferable interest transferred pursuant to this subsection
8203	8203	shall be subject to any outstanding charging order under
8204	8204	Section 10A-9A-7.03. This subsection does not limit the rights
8205	8205	of creditors of holders of transferable interests against
8206	8206	transferees under this chapter or other laws of this state. "
8207	8207	"§10A-9A-7.04
8208	8208	If a partner dies, the deceased partner's personal
8209	8209	representative or other legal representative may:
8210	8210	(a) for the period of time , if any, that the deceased
8211	8211	partner's personal representative or other legal
8212	8212	representative holds the deceased partner's transferable
8213	8213	interest:
8214	8214	(1) exercise the rights of a holder of transferable
8215	8215	3949
8216	8216	3950
8217	8217	3951
8218	8218	3952
8219	8219	3953
8220	8220	3954
8221	8221	3955
8222	8222	3956
8223	8223	3957
8224	8224	3958
8225	8225	3959
8226	8226	3960
8227	8227	3961
8228	8228	3962
8229	8229	3963
8230	8230	3964
8231	8231	3965
8232	8232	3966
8233	8233	3967
8234	8234	3968
8235	8235	3969
8236	8236	3970
8237	8237	3971
8238	8238	3972
8239	8239	3973
8240	8240	3974
8241	8241	3975
8242	8242	3976 HB200 INTRODUCED
8243	8243	Page 143
8244	8244	(1) exercise the rights of a holder of transferable
8245	8245	interests under this chapter;
8246	8246	(2) exercise the rights of a transferee under Section
8247	8247	10A-9A-7.02; and
8248	8248	(3) for purposes of settling the estate, exercise the
8249	8249	rights of a current limited partner under Section 10A-9A-3.04;
8250	8250	and
8251	8251	(b) for the period of time that the deceased partner's
8252	8252	personal representative or other legal representative does not
8253	8253	hold the deceased partner's transferable interest, for
8254	8254	purposes of settling the estate, exercise the rights of a
8255	8255	person dissociated as a limited partner under Section
8256	8256	10A-9A-3.04."
8257	8257	"§10A-9A-9.02
8258	8258	A partner may commence or maintain a derivative action
8259	8259	in the right of a limited partnership to enforce a right of
8260	8260	the limited partnership recover for an injury to the limited
8261	8261	partnership by complying with this article."
8262	8262	"§10A-9A-10.01
8263	8263	As used in this article, unless the context otherwise
8264	8264	requires, the following terms mean:
8265	8265	(1) CONSTITUENT LIMITED PARTNERSHIP means a constituent
8266	8266	organization that is a limited partnership.
8267	8267	(2) CONSTITUENT ORGANIZATION means an organization that
8268	8268	is party to a merger under this article.
8269	8269	(3) CONVERTED ORGANIZATION means the organization into
8270	8270	which a converting organization converts pursuant to this
8271	8271	article.
8272	8272	(4) CONVERTING LIMITED PARTNERSHIP means a converting
8273	8273	3977
8274	8274	3978
8275	8275	3979
8276	8276	3980
8277	8277	3981
8278	8278	3982
8279	8279	3983
8280	8280	3984
8281	8281	3985
8282	8282	3986
8283	8283	3987
8284	8284	3988
8285	8285	3989
8286	8286	3990
8287	8287	3991
8288	8288	3992
8289	8289	3993
8290	8290	3994
8291	8291	3995
8292	8292	3996
8293	8293	3997
8294	8294	3998
8295	8295	3999
8296	8296	4000
8297	8297	4001
8298	8298	4002
8299	8299	4003
8300	8300	4004 HB200 INTRODUCED
8301	8301	Page 144
8302	8302	(4) CONVERTING LIMITED PARTNERSHIP means a converting
8303	8303	organization that is a limited partnership.
8304	8304	(5) CONVERTING ORGANIZATION means an organization that
8305	8305	converts into another organization pursuant to this article.
8306	8306	(6) GENERAL PARTNER means a general partner of a
8307	8307	limited partnership.
8308	8308	(7) GOVERNING STATUTE of an organization means the
8309	8309	statute that governs the organization's internal affairs.
8310	8310	(8) ORGANIZATION means a general partnership, including
8311	8311	a limited liability partnership; limited partnership,
8312	8312	including a limited liability limited partnership; limited
8313	8313	liability company; business trust; corporation; nonprofit
8314	8314	corporation; professional corporation; or any other person
8315	8315	having a governing statute. The term includes domestic and
8316	8316	foreign organizations whether or not organized for profit.
8317	8317	(9) ORGANIZATIONAL DOCUMENTS means:
8318	8318	(A) for a general partnership or foreign general
8319	8319	partnership, its partnership agreement and if applicable, its
8320	8320	registration as a limited liability partnership or a foreign
8321	8321	limited liability partnership;
8322	8322	(B) for a limited partnership or foreign limited
8323	8323	partnership, its certificate of formation and partnership
8324	8324	agreement, or comparable writings as provided in its governing
8325	8325	statute;
8326	8326	(C) for a limited liability company or foreign limited
8327	8327	liability company, its certificate of formation and limited
8328	8328	liability company agreement, or comparable writings as
8329	8329	provided in its governing statute;
8330	8330	(D) for a business or statutory trust or foreign
8331	8331	4005
8332	8332	4006
8333	8333	4007
8334	8334	4008
8335	8335	4009
8336	8336	4010
8337	8337	4011
8338	8338	4012
8339	8339	4013
8340	8340	4014
8341	8341	4015
8342	8342	4016
8343	8343	4017
8344	8344	4018
8345	8345	4019
8346	8346	4020
8347	8347	4021
8348	8348	4022
8349	8349	4023
8350	8350	4024
8351	8351	4025
8352	8352	4026
8353	8353	4027
8354	8354	4028
8355	8355	4029
8356	8356	4030
8357	8357	4031
8358	8358	4032 HB200 INTRODUCED
8359	8359	Page 145
8360	8360	(D) for a business or statutory trust or foreign
8361	8361	business or statutory trust its agreement of trust and
8362	8362	declaration of trust, or comparable writings as provided in
8363	8363	its governing statute;
8364	8364	(E) for a corporation for profit or foreign corporation
8365	8365	for profit, its certificate of formation, bylaws, and other
8366	8366	agreements among its shareholders that are authorized by its
8367	8367	governing statute, or comparable writings as provided in its
8368	8368	governing statute;
8369	8369	(F) for a nonprofit corporation or foreign nonprofit
8370	8370	corporation, its certificate of formation, bylaws, and other
8371	8371	agreements that are authorized by its governing statute, or
8372	8372	comparable writings as provided in its governing statute;
8373	8373	(G) for a professional corporation or foreign
8374	8374	professional corporation, its certificate of formation,
8375	8375	bylaws, and other agreements among its shareholders that are
8376	8376	authorized by its governing statute, or comparable writings as
8377	8377	provided in its governing statute; and
8378	8378	(H) for any other organization, the basic writings that
8379	8379	create the organization and determine its internal governance
8380	8380	and the relations among the persons that own it, have an
8381	8381	interest in it, or are members of it.
8382	8382	(10) PLAN OF MERGER. Except as set forth in Section
8383	8383	10A-9A-10.06(e), a plan of merger, whether referred to as a
8384	8384	plan of merger, an agreement of merger, a merger agreement, a
8385	8385	plan and agreement of merger, an agreement and plan of merger,
8386	8386	or otherwise, means a writing described in Section
8387	8387	10A-9A-10.06 and includes any agreement, instrument, or other
8388	8388	document referenced therein or associated therewith that sets
8389	8389	4033
8390	8390	4034
8391	8391	4035
8392	8392	4036
8393	8393	4037
8394	8394	4038
8395	8395	4039
8396	8396	4040
8397	8397	4041
8398	8398	4042
8399	8399	4043
8400	8400	4044
8401	8401	4045
8402	8402	4046
8403	8403	4047
8404	8404	4048
8405	8405	4049
8406	8406	4050
8407	8407	4051
8408	8408	4052
8409	8409	4053
8410	8410	4054
8411	8411	4055
8412	8412	4056
8413	8413	4057
8414	8414	4058
8415	8415	4059
8416	8416	4060 HB200 INTRODUCED
8417	8417	Page 146
8418	8418	document referenced therein or associated therewith that sets
8419	8419	forth the terms and conditions of the merger.
8420	8420	(10)(11) SURVIVING ORGANIZATION means an organization
8421	8421	into which one or more other organizations are merged under
8422	8422	this article, whether the organization pre-existed the merger
8423	8423	or was created pursuant to the merger. "
8424	8424	"§10A-9A-10.02
8425	8425	(a) An organization other than a limited partnership
8426	8426	may convert to a limited partnership, and a limited
8427	8427	partnership may convert to an organization other than a
8428	8428	limited partnership pursuant to this section, Sections
8429	8429	10A-9A-10.03 through 10A-9A-10.05, and a plan of conversion,
8430	8430	if:
8431	8431	(1) the governing statute of the organization that is
8432	8432	not a limited partnership authorizes the conversion;
8433	8433	(2) the law of the jurisdiction governing the
8434	8434	converting organization and the converted organization does
8435	8435	not prohibit the conversion; and
8436	8436	(3) the converting organization and the converted
8437	8437	organization each comply with the governing statute and
8438	8438	organizational documents applicable to that organization in
8439	8439	effecting the conversion.
8440	8440	(b) A plan of conversion must be in writing and must
8441	8441	include:
8442	8442	(1) the name, type of organization, and mailing address
8443	8443	of the principal office of the converting organization, and
8444	8444	its unique identifying number or other designation as assigned
8445	8445	by the Secretary of State, if any, before conversion;
8446	8446	(2) the name, type of organization, and mailing address
8447	8447	4061
8448	8448	4062
8449	8449	4063
8450	8450	4064
8451	8451	4065
8452	8452	4066
8453	8453	4067
8454	8454	4068
8455	8455	4069
8456	8456	4070
8457	8457	4071
8458	8458	4072
8459	8459	4073
8460	8460	4074
8461	8461	4075
8462	8462	4076
8463	8463	4077
8464	8464	4078
8465	8465	4079
8466	8466	4080
8467	8467	4081
8468	8468	4082
8469	8469	4083
8470	8470	4084
8471	8471	4085
8472	8472	4086
8473	8473	4087
8474	8474	4088 HB200 INTRODUCED
8475	8475	Page 147
8476	8476	(2) the name, type of organization, and mailing address
8477	8477	of the principal office of the converted organization after
8478	8478	conversion;
8479	8479	(3) the terms and conditions of the conversion,
8480	8480	including the manner and basis for converting interests in the
8481	8481	converting organization into any combination of money,
8482	8482	interests in the converted organization, and other
8483	8483	consideration allowed in Section 10A-9A-10.02(c); and
8484	8484	(4) the organizational documents of the converted
8485	8485	organization.
8486	8486	(c) In connection with a conversion, rights or
8487	8487	securities of or interests in the converting organization may
8488	8488	be exchanged for or converted into cash, property, or rights
8489	8489	or securities of or interests in the converted organization,
8490	8490	or, in addition to or in lieu thereof, may be exchanged for or
8491	8491	converted into cash, property, or rights or securities of or
8492	8492	interests in another organization or may be cancelled.
8493	8493	(d) At the time of the approval of the plan of
8494	8494	conversion in accordance with Section 10A-9A-10.03, the plan
8495	8495	of conversion is not required to contain or have attached
8496	8496	thereto any disclosure letter, disclosure schedules, or
8497	8497	similar documents or instruments contemplated by the plan of
8498	8498	conversion that modify, supplement, qualify, or make
8499	8499	exceptions to representations, warranties, covenants, or
8500	8500	conditions contained in the plan of conversion. "
8501	8501	"§10A-9A-10.06
8502	8502	(a) A limited partnership may merge with one or more
8503	8503	other constituent organizations pursuant to this section,
8504	8504	Sections 10A-9A-10.07 through 10A-9A-10.09, and a plan of
8505	8505	4089
8506	8506	4090
8507	8507	4091
8508	8508	4092
8509	8509	4093
8510	8510	4094
8511	8511	4095
8512	8512	4096
8513	8513	4097
8514	8514	4098
8515	8515	4099
8516	8516	4100
8517	8517	4101
8518	8518	4102
8519	8519	4103
8520	8520	4104
8521	8521	4105
8522	8522	4106
8523	8523	4107
8524	8524	4108
8525	8525	4109
8526	8526	4110
8527	8527	4111
8528	8528	4112
8529	8529	4113
8530	8530	4114
8531	8531	4115
8532	8532	4116 HB200 INTRODUCED
8533	8533	Page 148
8534	8534	Sections 10A-9A-10.07 through 10A-9A-10.09, and a plan of
8535	8535	merger, if:
8536	8536	(1) the governing statute of each of the other
8537	8537	organizations authorizes the merger;
8538	8538	(2) the merger is not prohibited by the law of a
8539	8539	jurisdiction that enacted any of those governing statutes; and
8540	8540	(3) each of the other organizations complies with its
8541	8541	governing statute in effecting the merger.
8542	8542	(b) A plan of merger must be in writing and must
8543	8543	include:
8544	8544	(1) the name, type of organization, and mailing address
8545	8545	of the principal office of each constituent organization, the
8546	8546	jurisdiction of the governing statute of each constituent
8547	8547	organization, and the respective unique identifying numbers or
8548	8548	other designations as assigned by the Secretary of State, if
8549	8549	any, of each constituent organization;
8550	8550	(2) the name, type of organization, and mailing address
8551	8551	of the principal office of the surviving organization, the
8552	8552	unique identifying number or other designation as assigned by
8553	8553	the Secretary of State, if any, of the surviving organization,
8554	8554	the jurisdiction of the governing statute of the surviving
8555	8555	organization, and, if the surviving organization is to be
8556	8556	created pursuant to the merger, a statement to that effect;
8557	8557	(3) the terms and conditions of the merger, including
8558	8558	the manner and basis for converting the interests in each
8559	8559	constituent organization into any combination of money,
8560	8560	interests in the surviving organization, and other
8561	8561	consideration as allowed by subsection (c);
8562	8562	(4) if the surviving organization is to be created
8563	8563	4117
8564	8564	4118
8565	8565	4119
8566	8566	4120
8567	8567	4121
8568	8568	4122
8569	8569	4123
8570	8570	4124
8571	8571	4125
8572	8572	4126
8573	8573	4127
8574	8574	4128
8575	8575	4129
8576	8576	4130
8577	8577	4131
8578	8578	4132
8579	8579	4133
8580	8580	4134
8581	8581	4135
8582	8582	4136
8583	8583	4137
8584	8584	4138
8585	8585	4139
8586	8586	4140
8587	8587	4141
8588	8588	4142
8589	8589	4143
8590	8590	4144 HB200 INTRODUCED
8591	8591	Page 149
8592	8592	(4) if the surviving organization is to be created
8593	8593	pursuant to the merger, the surviving organization's
8594	8594	organizational documents; and
8595	8595	(5) if the surviving organization is not to be created
8596	8596	pursuant to the merger, any amendments to be made by the
8597	8597	merger to the surviving organization's organizational
8598	8598	documents.
8599	8599	(c) In connection with a merger, rights or securities
8600	8600	of or interests in a constituent organization may be exchanged
8601	8601	for or converted into cash, property, or rights or securities
8602	8602	of or interests in the surviving organization, or, in addition
8603	8603	to or in lieu thereof, may be exchanged for or converted into
8604	8604	cash, property, or rights or securities of or interests in
8605	8605	another organization or may be cancelled.
8606	8606	(d) In addition to the requirements of subsection (b),
8607	8607	a plan of merger may:
8608	8608	(1) provide that (i) a constituent organization or any
8609	8609	other party to the plan of merger that fails to perform its
8610	8610	obligations under the plan of merger in accordance with the
8611	8611	terms and conditions of the plan of merger, or that otherwise
8612	8612	fails to comply with the terms and conditions of the plan of
8613	8613	merger, in each case, required to be performed or complied
8614	8614	with prior to the time the merger becomes effective, or that
8615	8615	otherwise fails to consummate, or fails to cause the
8616	8616	consummation of, the merger (whether prior to a specified
8617	8617	date, upon satisfaction or, to the extent permitted by law,
8618	8618	waiver of all conditions to consummation set forth in the plan
8619	8619	of merger, or otherwise) shall be subject, in addition to any
8620	8620	other remedies available at law or in equity, to the penalties
8621	8621	4145
8622	8622	4146
8623	8623	4147
8624	8624	4148
8625	8625	4149
8626	8626	4150
8627	8627	4151
8628	8628	4152
8629	8629	4153
8630	8630	4154
8631	8631	4155
8632	8632	4156
8633	8633	4157
8634	8634	4158
8635	8635	4159
8636	8636	4160
8637	8637	4161
8638	8638	4162
8639	8639	4163
8640	8640	4164
8641	8641	4165
8642	8642	4166
8643	8643	4167
8644	8644	4168
8645	8645	4169
8646	8646	4170
8647	8647	4171
8648	8648	4172 HB200 INTRODUCED
8649	8649	Page 150
8650	8650	other remedies available at law or in equity, to the penalties
8651	8651	or consequences as are set forth in the plan of merger (which
8652	8652	penalties or consequences may include an obligation to pay to
8653	8653	the other party or parties to the plan of merger an amount
8654	8654	representing, or based on the loss of, any premium or other
8655	8655	economic entitlement the owners of the other party would be
8656	8656	entitled to receive pursuant to the terms of the plan of
8657	8657	merger if the merger were consummated in accordance with the
8658	8658	terms of the plan of merger) and (ii) if, pursuant to the
8659	8659	terms of the plan of merger, a constituent organization is
8660	8660	entitled to receive payment from another party to the plan of
8661	8661	merger of any amount representing a penalty or consequence (as
8662	8662	specified in clause (i) of this Section 10A-9A-10.06(d)(1),
8663	8663	the constituent organization shall be entitled to enforce the
8664	8664	other party's payment obligation and, upon receipt of any
8665	8665	payment, shall be entitled to retain the amount of the payment
8666	8666	so received;
8667	8667	(2) provide (i) for the appointment, at or after the
8668	8668	time at which the plan of merger is adopted by the owners of a
8669	8669	constituent organization in accordance with the requirements
8670	8670	of Section 10A-9A-10.07, of one or more persons (which may
8671	8671	include the surviving or resulting entity or any officer,
8672	8672	partner, manager, representative, or agent thereof) as
8673	8673	representative of the owners of a constituent organization,
8674	8674	including those whose ownership interests shall be cancelled,
8675	8675	converted, or exchanged in the merger, and for the delegation
8676	8676	to that person or persons of the sole and exclusive authority
8677	8677	to take action on behalf of the owners pursuant to the plan of
8678	8678	merger, including taking such actions as the representative
8679	8679	4173
8680	8680	4174
8681	8681	4175
8682	8682	4176
8683	8683	4177
8684	8684	4178
8685	8685	4179
8686	8686	4180
8687	8687	4181
8688	8688	4182
8689	8689	4183
8690	8690	4184
8691	8691	4185
8692	8692	4186
8693	8693	4187
8694	8694	4188
8695	8695	4189
8696	8696	4190
8697	8697	4191
8698	8698	4192
8699	8699	4193
8700	8700	4194
8701	8701	4195
8702	8702	4196
8703	8703	4197
8704	8704	4198
8705	8705	4199
8706	8706	4200 HB200 INTRODUCED
8707	8707	Page 151
8708	8708	merger, including taking such actions as the representative
8709	8709	determines to enforce (including by entering into settlements
8710	8710	with respect to) the rights of the owners under the plan of
8711	8711	merger, on the terms and subject to the conditions set forth
8712	8712	in the plan of merger, (ii) that any appointment pursuant to
8713	8713	clause (i) of this Section 10A-9A-10.06(d)(2) shall be
8714	8714	irrevocable and binding on all owners from and after the
8715	8715	adoption of the plan of merger by the requisite vote of the
8716	8716	partners pursuant to Section 10A-9A-10.07, and (iii) that any
8717	8717	provision adopted pursuant to this Section 10A-9A-10.06(d)(2)
8718	8718	may not be amended after the merger has become effective or
8719	8719	may be amended only with the consent or approval of persons
8720	8720	specified in the plan of merger; and
8721	8721	(3) contain any other provision not prohibited by law.
8722	8722	(e) At the time of the approval of the plan of merger
8723	8723	in accordance with Section 10A-9A-10.07, the plan of merger is
8724	8724	not required to contain or have attached thereto any
8725	8725	disclosure letter, disclosure schedules, or similar documents
8726	8726	or instruments contemplated by the plan of merger that modify,
8727	8727	supplement, qualify, or make exceptions to representations,
8728	8728	warranties, covenants, or conditions contained in the plan of
8729	8729	merger."
8730	8730	Section 8. Sections 10A-2A-3.05, 10A-2A-8.27,
8731	8731	10A-3A-3.05, and 10A-3A-8.26 are added to the Code of Alabama
8732	8732	1975, to read as follows:
8733	8733	§10A-2A-3.05. Independent legal significance.
8734	8734	Action validly taken pursuant to one provision of this
8735	8735	chapter shall not be deemed invalid solely because it is
8736	8736	identical or similar in substance to an action that could have
8737	8737	4201
8738	8738	4202
8739	8739	4203
8740	8740	4204
8741	8741	4205
8742	8742	4206
8743	8743	4207
8744	8744	4208
8745	8745	4209
8746	8746	4210
8747	8747	4211
8748	8748	4212
8749	8749	4213
8750	8750	4214
8751	8751	4215
8752	8752	4216
8753	8753	4217
8754	8754	4218
8755	8755	4219
8756	8756	4220
8757	8757	4221
8758	8758	4222
8759	8759	4223
8760	8760	4224
8761	8761	4225
8762	8762	4226
8763	8763	4227
8764	8764	4228 HB200 INTRODUCED
8765	8765	Page 152
8766	8766	identical or similar in substance to an action that could have
8767	8767	been taken pursuant to some other provision of this chapter
8768	8768	but fails to satisfy one or more requirements prescribed by
8769	8769	such other provision.
8770	8770	§10A-2A-8.27. Authorization of agreements and other
8771	8771	instruments.
8772	8772	(a) Whenever this chapter expressly requires the board
8773	8773	of directors to approve or take other action with respect to
8774	8774	any agreement, instrument, plan, or document, such agreement,
8775	8775	instrument, plan, or document may be approved by the board of
8776	8776	directors in final form or in substantially final form.
8777	8777	Substantially final form means that all of the material terms
8778	8778	are set forth in the agreement, instrument, plan, or document,
8779	8779	or are determinable through other information or materials
8780	8780	presented to or known by the board of directors, or are
8781	8781	determinable by a combination thereof.
8782	8782	(b) If the board of directors shall have acted to
8783	8783	approve or take other action with respect to an agreement,
8784	8784	instrument, plan, or document that is expressly required by
8785	8785	this chapter to be approved by the board of directors, the
8786	8786	board of directors may, but is not required to, at any time
8787	8787	after providing the approval or taking such other action adopt
8788	8788	a resolution ratifying the agreement, instrument, plan, or
8789	8789	document, and the ratification shall be deemed to be effective
8790	8790	as of the time of the original approval or other action by the
8791	8791	board of directors and to satisfy any requirement under this
8792	8792	chapter that the board of directors approve or take other
8793	8793	action with respect to the agreement, instrument, plan, or
8794	8794	document in a specific manner or sequence.
8795	8795	4229
8796	8796	4230
8797	8797	4231
8798	8798	4232
8799	8799	4233
8800	8800	4234
8801	8801	4235
8802	8802	4236
8803	8803	4237
8804	8804	4238
8805	8805	4239
8806	8806	4240
8807	8807	4241
8808	8808	4242
8809	8809	4243
8810	8810	4244
8811	8811	4245
8812	8812	4246
8813	8813	4247
8814	8814	4248
8815	8815	4249
8816	8816	4250
8817	8817	4251
8818	8818	4252
8819	8819	4253
8820	8820	4254
8821	8821	4255
8822	8822	4256 HB200 INTRODUCED
8823	8823	Page 153
8824	8824	document in a specific manner or sequence.
8825	8825	§10A-3A-3.05. Independent legal significance.
8826	8826	Action validly taken pursuant to one provision of this
8827	8827	chapter shall not be deemed invalid solely because it is
8828	8828	identical or similar in substance to an action that could have
8829	8829	been taken pursuant to some other provision of this chapter
8830	8830	but fails to satisfy one or more requirements prescribed by
8831	8831	such other provision.
8832	8832	§10A-3A-8.26. Authorization of agreements and other
8833	8833	instruments.
8834	8834	(a) Whenever this chapter expressly requires the board
8835	8835	of directors to approve or take other action with respect to
8836	8836	any agreement, instrument, plan, or document, such agreement,
8837	8837	instrument, plan, or document may be approved by the board of
8838	8838	directors in final form or in substantially final form.
8839	8839	Substantially final form means that all of the material terms
8840	8840	are set forth in the agreement, instrument, plan, or document,
8841	8841	or are determinable through other information or materials
8842	8842	presented to or known by the board of directors, or are
8843	8843	determinable by a combination thereof.
8844	8844	(b) If the board of directors shall have acted to
8845	8845	approve or take other action with respect to an agreement,
8846	8846	instrument, plan, or document that is expressly required by
8847	8847	this chapter to be approved by the board of directors, the
8848	8848	board of directors may, but is not required to, at any time
8849	8849	after providing the approval or taking such other action adopt
8850	8850	a resolution ratifying the agreement, instrument, plan, or
8851	8851	document, and the ratification shall be deemed to be effective
8852	8852	as of the time of the original approval or other action by the
8853	8853	4257
8854	8854	4258
8855	8855	4259
8856	8856	4260
8857	8857	4261
8858	8858	4262
8859	8859	4263
8860	8860	4264
8861	8861	4265
8862	8862	4266
8863	8863	4267
8864	8864	4268
8865	8865	4269
8866	8866	4270
8867	8867	4271
8868	8868	4272
8869	8869	4273
8870	8870	4274
8871	8871	4275
8872	8872	4276
8873	8873	4277
8874	8874	4278
8875	8875	4279
8876	8876	4280
8877	8877	4281
8878	8878	4282
8879	8879	4283
8880	8880	4284 HB200 INTRODUCED
8881	8881	Page 154
8882	8882	as of the time of the original approval or other action by the
8883	8883	board of directors and to satisfy any requirement under this
8884	8884	chapter that the board of directors approve or take other
8885	8885	action with respect to the agreement, instrument, plan, or
8886	8886	document in a specific manner or sequence.
8887	8887	Section 9. The amendments to Sections 10A-1-8.02,
8888	8888	10A-2A-11.02, 10A-5A-10.05, 10A-8A-9.06, and 10A-9A-10.06 made
8889	8889	by this act shall apply to all contracts made by a
8890	8890	corporation, nonprofit corporation, limited liability company,
8891	8891	partnership (including a limited liability partnership), and
8892	8892	limited partnership (including a limited liability limited
8893	8893	partnership) and all agreements, instruments, or documents
8894	8894	approved by the board of directors, governing authorities,
8895	8895	members, managers, partners, or person or group of persons
8896	8896	having approval rights of those entities and all plans of
8897	8897	merger and plans of conversion entered into by a corporation,
8898	8898	nonprofit corporation, limited liability company, partnership
8899	8899	(including a limited liability partnership), and limited
8900	8900	partnership (including a limited liability limited
8901	8901	partnership), in each case whether or not the contracts,
8902	8902	agreements, instruments, documents, plans of merger, or plans
8903	8903	of conversion are made, approved, or entered into on or before
8904	8904	August 1, 2025, except that the amendments to Sections
8905	8905	10A-1-8.02, 10A-2A-11.02, 10A-5A-10.05, 10A-8A-9.06, and
8906	8906	10A-9A-10.06 shall not apply to or affect any civil action or
8907	8907	proceeding completed or pending on or before August 1, 2025.
8908	8908	Section 10. This act shall be effective on August 1,
8909	8909	2025.
8910	8910	4285
8911	8911	4286
8912	8912	4287
8913	8913	4288
8914	8914	4289
8915	8915	4290
8916	8916	4291
8917	8917	4292
8918	8918	4293
8919	8919	4294
8920	8920	4295
8921	8921	4296
8922	8922	4297
8923	8923	4298
8924	8924	4299
8925	8925	4300
8926	8926	4301
8927	8927	4302
8928	8928	4303
8929	8929	4304
8930	8930	4305
8931	8931	4306
8932	8932	4307
8933	8933	4308
8934	8934	4309
8935	8935	4310
8936	8936	4311
8937	8937	4312