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 allows the board of directors of a corporation to authorize the issuance of shares as uncertificated shares, which can be documented through electronic methods such as book entries. This change is significant as it provides flexibility for corporations in managing their shares and aligns with modern practices in stock ownership. The bill also establishes a process for converting existing stock certificates to uncertificated shares and ensures that these provisions apply to state-chartered banks, bank holding companies, capital stock associations, and state-chartered savings banks.

Additionally, the bill amends R.S. 6:255 to clarify that shares must be represented by certificates unless the corporation participates in the Direct Registration System or as specified in the new provisions. It retains the existing regulations regarding the form and content of certificates while incorporating the new rules for uncertificated shares. The effective date for these changes is set for August 1, 2026.

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