The bill HB230 amends several sections of the Code of Alabama 1975, specifically targeting Sections 10A-1-7.12, 10A-2A-1.40, 10A-2A-1.41, and 10A-2A-16.01, while repealing Section 10A-2A-16.11. The primary objective of this legislation is to eliminate the requirement for corporations to file an annual report with the Secretary of State, thereby streamlining the regulatory process. This includes the deletion of language that mandated foreign entities to submit their annual reports within 180 days after the due date. The bill aims to reduce administrative burdens on corporations, allowing them to focus more on their core activities rather than compliance with annual reporting obligations.

Additionally, the bill introduces new legal language that redefines key terms related to corporate governance, such as "PRINCIPAL OFFICE" and "RECORD DATE," and clarifies the definition of "PRIVATE ORGANIZATIONAL DOCUMENTS." It modernizes communication requirements by allowing electronic delivery of notices unless a stockholder opts out, and it specifies that electronic communications are considered received upon entering the designated information processing system. The bill also mandates that corporations maintain specific records, including a list of current directors and officers, while removing the previous requirement for annual report filings. These changes are set to take effect on October 1, 2024, reflecting a broader trend towards deregulation and simplification in corporate governance practices in Alabama.

Statutes affected:
Introduced: 10A-1-7, 10A-2A-1, 10A-2A-1, 10A-2A-16, 10A-2A-16, 10A-1-7, 10A-2A-1, 10A-2A-1, 10A-2A-16
Engrossed: 10A-1-7, 10A-2A-1, 10A-2A-1, 10A-2A-16, 10A-2A-16, 10A-1-7, 10A-2A-1, 10A-2A-1, 10A-2A-16
Enrolled: 10A-1-7, 10A-2A-1, 10A-2A-1, 10A-2A-16, 10A-2A-16, 10A-1-7, 10A-2A-1, 10A-2A-1, 10A-2A-16