The bill HB267 proposes significant amendments to the Alabama Nonprofit Corporation Law by introducing Chapter 3A to Title 10A of the Code of Alabama 1975. This new chapter aims to modernize the legal framework governing nonprofit corporations in Alabama, aligning it with national standards such as the Model Nonprofit Corporation Act of 2021 and the Delaware General Corporation Law. Key provisions include the establishment of rights and privileges for nonprofit corporations, the clarification of terms related to membership, and the introduction of procedures for delivering notices and communications. The bill also addresses the effectiveness of corporate actions, including dissolution and mergers, and outlines the rights of members to inspect records and obtain financial statements.

Additionally, HB267 amends various sections of the Alabama Business and Nonprofit Entity Code to ensure consistency with the new provisions. It introduces new definitions, clarifies the roles and responsibilities of directors and officers, and streamlines the processes for mergers, conversions, and the dissolution of nonprofit corporations. The bill emphasizes the importance of transparency and accountability while providing flexibility in governance and operational procedures. Notably, it establishes that existing nonprofit corporations must comply with the new regulations by January 1, 2025, and prohibits the incorporation of new nonprofit entities under previous statutes after December 31, 2023. Overall, HB267 aims to enhance the clarity, efficiency, and functionality of nonprofit corporate governance in Alabama.

Statutes affected:
Introduced: 10A-1-1, 10A-1-1, 10A-1-3, 10A-1-8, 10A-1-8, 10A-1-9, 10A-2A-1, 10A-2A-1, 10A-2A-1, 10A-2A-2, 10A-2A-2, 10A-2A-7, 10A-2A-7, 10A-2A-7, 10A-2A-8, 10A-2A-8, 10A-2A-8, 10A-2A-8, 10A-2A-10, 10A-2A-10, 10A-2A-10, 10A-2A-11, 10A-2A-11, 10A-2A-12, 10A-2A-14
Engrossed: 10A-1-1, 10A-1-1, 10A-1-3, 10A-1-8, 10A-1-8, 10A-1-9, 10A-2A-1, 10A-2A-1, 10A-2A-1, 10A-2A-2, 10A-2A-2, 10A-2A-7, 10A-2A-7, 10A-2A-7, 10A-2A-8, 10A-2A-8, 10A-2A-8, 10A-2A-8, 10A-2A-10, 10A-2A-10, 10A-2A-10, 10A-2A-11, 10A-2A-11, 10A-2A-12, 10A-2A-14
Enrolled: 10A-1-1, 10A-1-1, 10A-1-3, 10A-1-8, 10A-1-8, 10A-1-9, 10A-2A-1, 10A-2A-1, 10A-2A-1, 10A-2A-2, 10A-2A-2, 10A-2A-7, 10A-2A-7, 10A-2A-7, 10A-2A-8, 10A-2A-8, 10A-2A-8, 10A-2A-8, 10A-2A-10, 10A-2A-10, 10A-2A-10, 10A-2A-11, 10A-2A-11, 10A-2A-12, 10A-2A-14