The bill HB200 amends various sections of the Alabama Business Corporation Law, Nonprofit Corporation Law, Professional Corporation Law, Limited Liability Company Law, Partnership Law, and Limited Partnership Law to implement technical corrections and clarify existing practices. Key changes include the codification of the common law doctrine of independent legal significance, simplified purchase processes upon the death or disqualification of stockholders or members, and provisions for the transfer of interests in limited liability companies and partnerships. Significant legal language changes include the insertion of "Chapters 17 and 18" in Section 10A-1-1.02, expanding the applicability of the chapter, and the addition of a new subsection (k) in Section 10A-1-1.08, allowing for the citation of the Alabama Statewide Trade Association Law. The bill also clarifies the powers of domestic entities in Section 10A-1-2.11, ensuring they have the same powers as individuals to conduct business.

Additionally, the bill modifies the approval processes for mergers and conversions, specifying that plans must be approved by governing authorities and that certain documents, such as disclosure letters, are not required at the time of approval. It introduces provisions for penalties against parties that fail to comply with merger terms and allows for the appointment of representatives for owners of constituent organizations. The bill aims to streamline corporate governance, enhance operational efficiency, and clarify the legal framework surrounding mergers, conversions, and the transfer of interests in various business entities. The amendments will take effect on August 1, 2025, and are applicable only after this date.

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