- Primary Sponsor
- Co-Sponsors
- 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
SB96 updates Alabama's Corporate and Nonprofit Entities Code to clarify chapter relationships, modernize definitions, and add a new rule for reinstating dissolved entities' names.
What This Bill Does
It clarifies how Chapter 1's general provisions interact with other chapters, stating that the other chapters supersede Chapter 1 where there is a conflict and that governing documents can supersede provisions in this title. It adds a new section (10A-1-5.18) governing the naming of entities that are reinstated after dissolution, preserving the original name if allowed or appending 'reinstated' otherwise. It updates definitions and filing/notice requirements across multiple chapters to standardize terms and streamline processes, including electronic filing and notices. It revises the nonprofit tax-exemption definitions in Section 40-9-12 to better define exemptions for certain nonprofit entities, including United Way organizations and related funds, with accompanying reporting and refund provisions.
Who It Affects
- Corporations and nonprofit entities governed by the Alabama Business and Nonprofit Entities Code will see changes to conflict resolution rules, definitions, and filing/notice processes.
- Nonprofit organizations involved in fundraising and tax-exemption structures, such as United Way organizations, united appeal funds, and supported charities, will be affected by expanded exemption definitions and related reporting requirements.
Key Provisions
- Adds Section 10A-1-5.18 establishing naming rules for dissolved entities that are reinstated, using the former name if compliant or appending 'reinstated' otherwise.
- Clarifies that the general provisions in Chapter 1 apply unless this act specifies otherwise, and that other chapters can supersede Chapter 1 when in conflict; governing documents may override chapter provisions.
- Adds and updates numerous definitions (e.g., certificate of incorporation, distribution, governing documents, and related terms) to standardize terms across the Code and align cross-chapter references.
- Updates notice, filing, and electronic transmission provisions (across 10A-2A-1.41 and related sections) to expand or clarify how notices and filings may be delivered and recorded.
- Revises Section 40-9-12 to refine nonprofit tax exemptions, including detailed treatment of United Way organizations, united appeal funds, supported charities, and related reporting requirements and refunds.
- Broadly updates various cross-references (e.g., sections in 10A-2A, 10A-3, 10A-5A, and 10A-8A) to improve consistency in how transactions, dissolutions, reorganizations, and governance are handled under the Alabama Business and Nonprofit Entities Code.
AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.
- Subjects
- Corporations
