SB206 Alabama 2020 Session

Summary

Primary Sponsor

Sam Givhan Senator

Republican

Session

Regular Session 2020

Title

Business and Nonprofit Entities Code, substantially revised to allow corporations to elect to become benefit corporations, update definitions, allow for electronic filing, and provide standards for filing instruments, numerous sections of Title 10A added, amended, and renumbered

Description

This bill would make changes to the Alabama Business and Nonprofit Entities Code to allow business corporations to elect to become benefit corporations; allow electronic filing of all entity filings to increase the speed at which businesses may be formed and by which transactions may be accomplished; update definitions to include terms applicable to the allowance of electronic and digital transactions and transmissions of filings, notices, and data; establish certain basic standards for all filing instruments to allow for easier electronic transmission; provide a mechanism to allow the Secretary of State to reject certain filing instruments which are not accompanied by full payment, to assist in the electronic filing process; clarify the requirements of certificates of existence for entities; remove certain outdated definitions and matters to streamline the code; and to clarify that volunteer partners, managers, members, governing persons, and other members of a governing authority are considered officers of a qualifying nonprofit entity, thereby recognizing that there are nonprofit partnerships, nonprofit limited partnerships, and non-profit limited liability companies.

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Subjects

Business and Nonprofit Entities Code