The bill SB112 Enrolled proposes comprehensive amendments to the Alabama Business and Nonprofit Entities Code. It includes changes to the definitions and governance of business entities such as corporations, nonprofit corporations, and professional corporations, as well as partnerships and limited liability companies (LLCs). The bill clarifies and updates terms, aligns certain provisions with Delaware law, and introduces new chapters, such as the Alabama Statewide Trade Association Law. Notable changes include the deletion of references to "Chapter 3" in the context of nonprofit corporations, the clarification of the definition of "certificate of incorporation," and the expansion of provisions to limit the liability of directors and officers. The bill also addresses the ratification of defective corporate actions, the issuance and transfer of stock, and the procedures for member consent and notice requirements within nonprofit corporations.

Furthermore, SB112 Enrolled modifies the law regarding professional corporations, including the handling of stock following the death or disqualification of a stockholder, and the liability of individuals rendering professional services. It also amends the procedures for foreign professional corporations to operate within the state. For LLCs and partnerships, the bill allows for the expansion, restriction, or elimination of fiduciary duties through written agreements, and outlines the process for amending or restating certificates of formation. The bill includes provisions for the ratification or waiver of void or voidable acts or transactions and sets forth requirements for Alabama statewide trade associations regarding record maintenance, inspection rights, and the use of membership lists. The effective dates for the various sections of the bill range from June 1, 2024, to January 1, 2025.

Statutes affected:
Introduced: 10A-1-1, 10A-1-1, 10A-1-3, 10A-1-5, 10A-2A-1, 10A-2A-1, 10A-2A-1, 10A-2A-2, 10A-2A-6, 10A-2A-6, 10A-2A-6, 10A-2A-7, 10A-2A-7, 10A-2A-10, 10A-2A-10, 10A-2A-10, 10A-2A-12, 10A-2A-13, 10A-2A-14, 10A-3A-1, 10A-3A-1, 10A-3A-1, 10A-3A-2, 10A-3A-7, 10A-3A-7, 10A-3A-9, 10A-3A-9, 10A-3A-10, 10A-3A-10, 10A-3A-10, 10A-3A-11, 10A-4-1, 10A-4-2, 10A-4-2, 10A-4-2, 10A-4-2, 10A-4-3, 10A-4-3, 10A-4-3, 10A-4-3, 10A-4-3, 10A-4-4, 10A-4-4, 10A-4-5, 10A-4-5, 10A-4-5, 10A-4-5, 10A-4-5, 10A-4-5, 10A-4-5, 10A-5A-1, 10A-5A-2, 10A-5A-2, 10A-5A-3, 10A-5A-8, 10A-8A-1, 10A-8A-10, 10A-9A-1, 10A-9A-2, 10A-9A-2, 10A-5A-1, 10A-8A-1, 10A-9A-1
Engrossed: 10A-1-1, 10A-1-1, 10A-1-3, 10A-1-5, 10A-2A-1, 10A-2A-1, 10A-2A-1, 10A-2A-2, 10A-2A-6, 10A-2A-6, 10A-2A-6, 10A-2A-7, 10A-2A-7, 10A-2A-10, 10A-2A-10, 10A-2A-10, 10A-2A-12, 10A-2A-13, 10A-2A-14, 10A-3A-1, 10A-3A-1, 10A-3A-1, 10A-3A-2, 10A-3A-7, 10A-3A-7, 10A-3A-9, 10A-3A-9, 10A-3A-10, 10A-3A-10, 10A-3A-10, 10A-3A-11, 10A-4-1, 10A-4-2, 10A-4-2, 10A-4-2, 10A-4-2, 10A-4-3, 10A-4-3, 10A-4-3, 10A-4-3, 10A-4-3, 10A-4-4, 10A-4-4, 10A-4-5, 10A-4-5, 10A-4-5, 10A-4-5, 10A-4-5, 10A-4-5, 10A-4-5, 10A-5A-1, 10A-5A-2, 10A-5A-2, 10A-5A-3, 10A-5A-8, 10A-8A-1, 10A-8A-10, 10A-9A-1, 10A-9A-2, 10A-9A-2, 10A-5A-1, 10A-8A-1, 10A-9A-1
Enrolled: 10A-1-1, 10A-1-1, 10A-1-3, 10A-1-5, 10A-2A-1, 10A-2A-1, 10A-2A-1, 10A-2A-2, 10A-2A-6, 10A-2A-6, 10A-2A-6, 10A-2A-7, 10A-2A-7, 10A-2A-10, 10A-2A-10, 10A-2A-10, 10A-2A-12, 10A-2A-13, 10A-2A-14, 10A-3A-1, 10A-3A-1, 10A-3A-1, 10A-3A-2, 10A-3A-7, 10A-3A-7, 10A-3A-9, 10A-3A-9, 10A-3A-10, 10A-3A-10, 10A-3A-10, 10A-3A-11, 10A-4-1, 10A-4-2, 10A-4-2, 10A-4-2, 10A-4-2, 10A-4-3, 10A-4-3, 10A-4-3, 10A-4-3, 10A-4-3, 10A-4-4, 10A-4-4, 10A-4-5, 10A-4-5, 10A-4-5, 10A-4-5, 10A-4-5, 10A-4-5, 10A-4-5, 10A-5A-1, 10A-5A-2, 10A-5A-2, 10A-5A-3, 10A-5A-8, 10A-8A-1, 10A-8A-10, 10A-9A-1, 10A-9A-2, 10A-9A-2, 10A-5A-1, 10A-8A-1, 10A-9A-1