Senate Bill No. 279, introduced by Senator Morris, amends existing laws regarding the issuance of stock certificates and the use of uncertificated shares for financial institutions in Louisiana. The bill modifies R.S. 6:255(A) and (G) and R.S. 12:1-625(A) to allow the board of directors of a corporation to authorize the issuance of shares as uncertificated shares, which can be documented through electronic methods or book entries. This change aims to modernize the process of share ownership documentation and provides a mechanism for converting existing stock certificates into uncertificated shares. The provisions of this bill will apply to state-chartered banks, bank holding companies, capital stock associations, and state-chartered savings banks.

Additionally, the bill clarifies that shares must be represented by certificates unless the issuing corporation participates in the Direct Registration System or similar systems. It also ensures that the rights and obligations of shareholders remain unchanged regardless of whether their shares are represented by certificates or not. The effective date for these changes is set for August 1, 2026.

Statutes affected:
SB279 Original: 6:255(A)
SB279 Engrossed: 6:255(A)