HB230 Alabama 2021 Session

Summary

Primary Sponsor

Bill Poole

Republican

Session

Regular Session 2021

Title

Corporations, AL Business and Nonprofit Entities Code, subtantially amended to clarify relationship between chapters and various sections in Tilte 10A, Secs. 10A-1-5.18, 10A-2A-2.01,10A-2A-8.30, 10A-2A-8.31, 10A-2A-8.42, 10A-2A-8.43, 10A-2A-8.59, 10A-2A-9.01, 10A-2A-10.06, 10A-2A-10.07, 10A-2A-10.08, 10A-2A-11.01, 10A-2A-13.01, 10A-2A-16.01,10A-3-1.05, 10A-8A-4.10, 10A-8A-8.06, 10A-8A-8.09, 10A-8A-8.10, 10A-8A-9.01 added; Secs 10A-1-1.02, 10A-1-1.03, and 10A-1-4.02, 10A-2A-1.40,10A-2A-1.41, 10A-2A-2.02,10A-2A-7.20, 10A-3-1.02, 10A-3-2.02, 10A-3-2.03, 10A-3-2.09, 10A-3-2.21, 10A-5A-1.02, 10A-5A-2.01, 10A-5A-2.02, 10A-5A-7.02, 10A-5A-7.04, 10A-5A-7.05, 10A-5A-7.06, 10A-5A-7.07, 10A-5A-11.10, 10A-5A-11.12, 10A-5A-11.13, 10A-5A-11.14, 10A-5A-11.15, 10A-8A-1.02, 10A-8A-8.02, 10A-8A-8.07, 10A-9A-1.02, 10A-9A-2.01, 10A-9A-2.02, 10A-9A-4.06, 10A-9A-4.07, 10A-9A-8.02, 10A-9A-8.06, 10A-9A-8.07, 10A-9A-8.09, 10A-9A-8.10, 10A-9A-10.01 am'd.

Summary

HB230 clarifies how the general provisions in Chapter 1 relate to the rest of the Alabama Business and Nonprofit Entities Code, including when other chapters override Chapter 1 and how dissolved entities are named if reinstated.

What This Bill Does

It sets out that when there is a conflict between Chapter 1 and another chapter, the other chapter's provisions can prevail or modify how Chapter 1 applies. It adds a new section on reinstatement of dissolved entities that governs the name used after reinstatement. It also updates numerous definitions and cross-references across Chapters 1 and 2A-... to standardize terminology, improve filing and notice processes (including electronic methods), and clarify which provisions govern which types of entities.

Who It Affects

• Businesses and organizations formed under Alabama's corporate and nonprofit codes (including corporations, nonprofit corporations, LLCs, partnerships, and unincorporated associations) would be affected by changes to how Chapter 1 interacts with other chapters and by updated definitions and filing/notice rules.
• Governing bodies and filing/record-keeping officials (such as boards of directors, officers, members, the Secretary of State, and judges of probate) would be affected by new notices rules (including electronic notices), record-keeping requirements, and name reinstatement rules for dissolved and reinstated entities.

Key Provisions

• Adds §10A-1-5.18 establishing reinstatement naming rule: an entity that is reinstated after dissolution uses its pre-dissolution name if that name complies with the article; otherwise it appends the word 'reinstated'.
• Extensive amendments to §§ 10A-1-1.02, 10A-1-1.03, 10A-1-4.02 and related sections to clarify Chapter 1's relationship to other chapters, standardize terms (e.g., 'certificate of incorporation' vs 'certificate of formation'), and update filing, notice, and governance provisions across corporations, nonprofits, LLCs, and partnerships.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Corporations