SB566: Bill Text

SB566,164,2 179.1011 Withdrawal of registration of registered foreign limited partnership. (1) A registered foreign limited partnership may withdraw its registration by delivering a statement of withdrawal to the department for filing. The statement of withdrawal must state all of the following:

SB566,164,3 (a) The name of the partnership and the jurisdiction of its governing law.

SB566,164,5 (b) That the partnership is not doing business in this state and that it withdraws its registration to do business in this state.

SB566,164,10 (c) Whether the partnership revokes the authority of its registered agent to accept service on its behalf and, in any event, that it also consents to service of process under sub. (2) in any civil, criminal, administrative, or investigatory proceeding based on a cause of action arising during the time the partnership was registered to do business in this state.

SB566,164,13 (d) The mailing address of its principal office or, if it has no principal office, an address to which service of process may be made under sub. (2), and a commitment to notify the department in the future of any change in such address.

SB566,164,17 (2) After the withdrawal of the registration of a foreign limited partnership, service of process in any action or proceeding based on a cause of action arising during the time the partnership was registered to do business in this state may be made pursuant to s. 179.0121.

SB566,164,20 179.1012 Action by attorney general. The attorney general may maintain an action to enjoin a foreign limited partnership from doing business in this state in violation of this subchapter.

SB566,164,21 subchapter XI

SB566,164,23 MERGER, INTEREST EXCHANGE, CONVERSION, AND DOMESTICATION

SB566,164,24 179.1101 Definitions. In this subchapter:

SB566,165,2 (1) “Acquired entity" means the entity all of one or more classes or series of interests of which are acquired in an interest exchange.

SB566,165,4 (2) “Acquiring entity" means the entity that acquires all of one or more classes or series of interests of the acquired entity in an interest exchange.

SB566,165,6 (2m) “Constituent entity" means a merging entity or a surviving entity in a merger.

SB566,165,7 (3) “Conversion" means a transaction authorized by ss. 179.1141 to 179.1145.

SB566,165,9 (4) “Converted entity" means the converting entity as it continues in existence after a conversion.

SB566,165,10 (5) “Converting entity" means an entity that engages in a conversion.

SB566,165,12 (8) “Domesticated entity" means the domesticating entity as it continues in existence after a domestication.

SB566,165,14 (9) “Domesticating entity" means either a non-United States entity or a Wisconsin limited partnership that engages in a domestication.

SB566,165,16 (10) “Domestication" means a transaction authorized by ss. 179.1151 to 179.1155.

SB566,165,17 (16) “Interest" means any of the following:

SB566,165,18 (a) A share in a business corporation.

SB566,165,19 (b) A membership in a nonprofit or nonstock corporation.

SB566,165,20 (c) A partnership interest in a general partnership.

SB566,165,21 (d) A partnership interest in a limited partnership.

SB566,165,22 (e) A membership interest in a limited liability company.

SB566,165,23 (f) A membership interest or stock in a general cooperative association.

SB566,165,24 (g) A membership interest in a limited cooperative association.

SB566,165,25 (h) A membership in an unincorporated association.

SB566,166,2 (i) A beneficial interest in a statutory trust, business trust, or common-law business trust.

SB566,166,3 (j) A comparable interest in any other type of unincorporated entity.

SB566,166,5 (17) “Interest exchange" means a transaction authorized by ss. 179.1131 to 179.1135.

SB566,166,6 (18) “Interest holder" means any of the following:

SB566,166,7 (a) A shareholder of a business corporation.

SB566,166,8 (b) A member of a nonprofit or nonstock corporation.

SB566,166,9 (c) A general partner of a general partnership.

SB566,166,10 (d) A general partner of a limited partnership.

SB566,166,11 (e) A limited partner of a limited partnership.

SB566,166,12 (f) A member of a limited liability company.

SB566,166,13 (g) A member or stockholder of a general cooperative association.

SB566,166,14 (h) A member of a limited cooperative association.

SB566,166,15 (i) A member of an unincorporated association.

SB566,166,17 (j) A beneficiary or beneficial owner of a statutory trust, business trust, or common-law business trust.

SB566,166,18 (k) Any other direct holder of an interest.

SB566,166,19 (19) “Interest holder liability" means any of the following:

SB566,166,21 (a) Personal liability for a debt, obligation, or other liability of an entity which is imposed on a person under any of the following circumstances:

SB566,166,23 1. Solely by reason of the status of the person as an interest holder of the entity under its governing law.

SB566,167,2 2. Under the organizational documents of the entity in accordance with its governing law which make one or more specified interest holders or categories of interest holders liable in their capacity as interest holders for all or specified liabilities of the entity.

SB566,167,4 (b) An obligation of an interest holder of an entity under its organizational documents to contribute to the entity.

SB566,167,5 (20) “Merger" means a transaction authorized by ss. 179.1121 to 179.1125.

SB566,167,7 (21) “Merging entity" means an entity that is a party to a merger and exists immediately before the merger becomes effective.

SB566,167,10 (22m) “Non-United States entity" means an entity whose governing law is the law of any jurisdiction other than the United States or any state, but does not include an entity that has domesticated under the law of any other state.

SB566,167,13 (23m) “Organizational documents" means, with respect to an entity, whether in a record or, to the extent permitted under the entity's governing law, other than in a record, the following or its equivalent under the entity's governing law:

SB566,167,15 (a) For a domestic or foreign corporation, whether or not for profit, its articles of incorporation and bylaws.

SB566,167,19 (b) For a domestic or foreign partnership, its partnership agreement and, in the case of a domestic or foreign limited liability partnership, its statement of qualification as a limited liability partnership or foreign limited liability partnership.

SB566,167,21 (c) For a domestic or foreign limited partnership, its certificate of limited partnership and partnership agreement.

SB566,167,23 (d) For a domestic or foreign limited liability company, its certificate or articles of organization and operating agreement.

SB566,167,24 (e) For a business trust, its agreement of trust and declaration of trust.

SB566,168,3 (f) For any other entity, the basic records, agreements, or other items that create the entity and control its internal governance and the relations among its interest holders.

SB566,168,6 (24) “Plan" means a plan of merger under s. 179.1122, a plan of interest exchange under s. 179.1132, a plan of conversion under s. 179.1142, or a plan of domestication under s. 179.1152.

SB566,168,8 (37) “Surviving entity" means the entity that continues in existence after or is created by a merger.

SB566,168,9 (38) “Type of entity" means a generic form of entity that is any of the following:

SB566,168,10 (a) Recognized at common law.

SB566,168,11 (b) Recognized under a governing law.

SB566,168,14 179.1102 Relationship of subchapter to other laws. (1) This subchapter does not authorize an act prohibited by, and does not affect the application or requirements of, law other than this subchapter.

SB566,168,19 (2) A transaction effected under this subchapter may not create or impair a right, duty, or obligation of a person under the law of this state, other than this subchapter, relating to a change in control, takeover, business combination, control-share acquisition, or similar transaction involving a domestic constituent, acquired, or converting entity.

SB566,169,2 179.1103 Existing purpose. (2) Property held for a charitable purpose under the law of this state by a domestic or foreign entity immediately before a transaction under this subchapter becomes effective may not, as a result of the transaction, be diverted from the objects for which it was donated, granted, devised, or otherwise transferred. An entity that is or plans to be engaged in a transaction covered by this subchapter may apply to the circuit court for a determination regarding the transaction's compliance with cy pres or other law dealing with nondiversion of charitable assets.

SB566,169,6 (3) A bequest, devise, gift, grant, or promise contained in a will or other instrument of donation, subscription, or conveyance that is made to a merging entity which is not the surviving entity and that takes effect or remains payable after the merger inures to the surviving entity.

SB566,169,9 (4) A trust obligation that would govern property if transferred to a nonsurviving entity applies to property that is transferred to the surviving entity under this section.

SB566,169,12 179.1104 Nonexclusivity. The fact that a transaction under this subchapter produces a certain result does not preclude the same result from being accomplished in any other manner permitted by law other than this subchapter.

SB566,169,17 179.1105 Reference to external facts. A plan may refer to facts ascertainable outside the plan if the manner in which the facts will operate upon the plan is specified in the plan. The facts may include the occurrence of an event or a determination or action by a person, whether or not the event, determination, or action is within the control of a party to the transaction.

SB566,169,22 179.1121 Merger authorized. (1) One or more domestic limited partnerships may merge with or into one or more other constituent entities pursuant to ss. 179.1121 to 179.1125 and a plan of merger if the merger is permitted under the governing law of each constituent entity and each constituent entity approves the plan of merger in the manner required by its governing law.

SB566,170,2 (2) One or more other domestic or foreign entities may merge with or into a domestic limited partnership pursuant to ss. 179.1121 to 179.1125 and a plan of merger if the merger is permitted under the governing law of each constituent entity and each constituent entity approves the plan of merger in the manner required by its governing law.

SB566,170,4 179.1122 Plan of merger. (1) A plan of merger must be in a record and contain all of the following:

SB566,170,5 (a) As to each constituent entity, its name, type of entity, and governing law.

SB566,170,6 (b) The terms and conditions of the merger.

SB566,170,9 (c) The manner and basis of converting the interests in each constituent entity into interests, securities, or obligations of the surviving entity, rights to acquire such interests or securities, money, other property, or any combination of the foregoing.

SB566,170,12 (d) If the surviving entity preexists the merger, any proposed amendments to its organizational documents that are to be in a record immediately after the merger becomes effective.

SB566,170,14 (e) If the surviving entity is to be created in the merger, any of its organizational documents that are to be in a record immediately after the merger becomes effective.

SB566,170,16 (f) Any other matters required under the governing law of any constituent entity.

SB566,170,18 (2) In addition to the requirements of sub. (1), a plan of merger may contain any other provision relating to the merger and not prohibited by law.

SB566,170,22 179.1123 Approval of merger; amendment; abandonment. (1) Subject to s. 179.1161, a plan of merger must be approved by a vote or consent of all of the following with respect to each domestic limited partnership that is a constituent entity:

SB566,170,23 (a) All general partners.

SB566,170,25 (b) Partners owning a majority of the rights to receive distributions, whether as a general partner, a limited partner, or both.

SB566,171,5 (2) Subject to s. 179.1161 and the governing law of each constituent entity, after a plan of merger is approved, and at any time before a merger becomes effective, the constituent entities may amend the plan of merger or abandon the merger as provided in the plan of merger or, except as otherwise provided in the plan of merger, with the same vote or consent as was required to approve the plan of merger.

SB566,171,13 (3) If, after articles of merger have been delivered to the department for filing and before the merger becomes effective, the plan of merger is amended in a manner that requires an amendment to the articles of merger or if the merger is abandoned, a statement of amendment or abandonment, signed by a constituent entity, must be delivered to the department for filing before the merger becomes effective. When the statement of abandonment becomes effective, the merger is abandoned and does not become effective. The statement of amendment or abandonment must contain all of the following:

SB566,171,14 (a) The name of each constituent entity.

SB566,171,15 (b) The amendment to or the abandonment of the articles of merger.

SB566,171,17 (c) A statement that the amendment or abandonment was approved in accordance with this section.

SB566,171,20 (4) In addition to approval under sub. (1), a plan of merger must be approved by each constituent entity that is not a domestic limited partnership in accordance with any requirements of its governing law.