Louisiana House Bill HR136

Louisiana 2015 Regular Session

• Introduced: 6/1/15
• Passed: 6/10/15

Caption

Requests the Louisiana State Law Institute to study and make recommendations with respect to the implementation of laws relative to minority shareholders in closely held corporations

Impact

The potential impact of HR136 on Louisiana state laws revolves around the implementation of enhanced legal protections for minority shareholders. The resolution calls for the establishment of rights such as a first right of refusal to purchase property held by closely held corporations and improved rights to inspect corporate records. These changes aim to ensure fair treatment and greater participation of minority shareholders in corporate affairs, helping to prevent marginalization by majority shareholders who often dominate decision-making.

Summary

House Resolution 136 (HR136) seeks to address the rights and protections of minority shareholders in closely held corporations in Louisiana. The resolution urges the Louisiana State Law Institute to study the existing laws and make recommendations for improvements. Notably, HR136 highlights the current inadequacies in Louisiana's legislation concerning minority shareholders, particularly regarding issues of corporate governance and the influence of majority shareholders on corporate decision-making processes.

Sentiment

The sentiment surrounding HR136 is largely supportive among lawmakers, as evidenced by the unanimous vote of 98 in favor during the final consideration. Advocates for the resolution argue that the protections for minority shareholders are necessary to foster an equitable business environment and ensure that shareholders have a voice in corporate governance. However, there may be concerns regarding the potential implementation of such laws and how they could affect the operational dynamics of closely held corporations.

Contention

Notable points of contention may arise during discussions on HR136 as stakeholders debate the balance between minority shareholder rights and the operational flexibility of closely held corporations. While proponents contend that the proposed changes will enhance fairness, critics might express concerns about the burdens that increased legal requirements could impose on businesses. There is also the potential for disagreement on the specific provisions that should be included in the new regulations, emphasizing the need to carefully consider the implications for both shareholders and corporate management.