S507 - Modify Business Corporation Act. (SL 2021-106)

Overview: S.L. 2021-106 makes various clarifying and updating changes to the Business Corporation Act, including:

• Provisions governing superior court proceedings brought by a shareholder seeking an appraisal
• Provisions relating to voting of shares held by a subsidiary
• Quorum requirements applicable to the board of directors
• Authority of board of directors to change corporate name without shareholder approval
• Provisions governing corporate records and shareholder inspection rights

The changes to provisions governing shareholder appraisal proceedings became effective August 16, 2021, and apply to proceedings commenced on or after that date. The other changes to the Business Corporation Act became effective October 1, 2021, and the changes relating to shareholder rights to inspect records and to obtain financial statements apply to demands to inspect and requests for financial statements received by a corporation on or after that date.