SB112 Alabama 2024 Session

Updated Jan 14, 2026

Senate Bill

Enacted

Current Status

Regular Session 2024

Session

Sponsor

Summary

Primary Sponsor: Sam Givhan Senator
Republican
Session: Regular Session 2024
Title: Alabama Business and Nonprofit Entities Code; amended to delete references to Alabama Nonprofit Corporation Law, clarify and streamline certain provisions in accordance with changes in Delaware law and the Model Business Corporation Act
Description: Relating to the Alabama Business and Nonprofit Entities Code.
This bill would eliminate references to the old Alabama Nonprofit Corporation Law, clarify that the address of registered agents must be in this state, clarify that the certificate of formation must set forth the county of the registered agent in accordance with current practice, and streamline and clarify the ratification process of certain actions in accordance with Delaware law changes.
This bill would provide that business and nonprofit corporations may provide for exculpation of certain officers for certain actions in accordance with changes to Delaware law and the Model Business Corporation Act.
This bill would clarify the amendment and restatement process and would clarify the provisions regarding the sale of property by business and nonprofit corporations in accordance with changes to Delaware law.
This bill would conform the professional corporation law to recent changes in the business and nonprofit corporation laws, and would provide a process for the ratification of certain actions and SB112 INTRODUCED transactions for limited liability companies, limited partnerships, and partnerships.
Section 111.05 of the Constitution of Alabama of 2022, prohibits a general law whose purpose or effect would be to require a new or increased expenditure of local funds from becoming effective with regard to a local governmental entity without enactment by a 2/3 vote unless: it comes within one of a number of specified exceptions; it is approved by the affected entity; or the Legislature appropriates funds, or provides a local source of revenue, to the entity for the purpose.
The purpose or effect of this bill would be to require a new or increased expenditure of local funds within the meaning of the section. However, the bill does not require approval of a local governmental entity or enactment by a 2/3 vote to become effective because it comes within one of the specified exceptions contained in the section.
Subjects: Businesses & Financial Institutions