SB566: Bill Text

SB566,299,2 (d) A partnership interest in a limited partnership.

SB566,299,3 (e) A membership interest in a limited liability company.

SB566,299,4 (f) A membership interest or stock in a general cooperative association.

SB566,299,5 (g) A membership interest in a limited cooperative association.

SB566,299,6 (h) A membership in an unincorporated association.

SB566,299,8 (i) A beneficial interest in a statutory trust, business trust, or common-law business trust.

SB566,299,9 (j) A comparable interest in any other type of unincorporated entity.

SB566,299,11 (5) “Interest exchange" means a transaction authorized by ss. 181.1131 to 181.1135.

SB566,299,12 (6) “Interest holder" means any of the following:

SB566,299,13 (a) A shareholder of a business corporation.

SB566,299,14 (b) A member of a nonprofit or nonstock corporation.

SB566,299,15 (c) A general partner of a general partnership.

SB566,299,16 (d) A general partner of a limited partnership.

SB566,299,17 (e) A limited partner of a limited partnership.

SB566,299,18 (f) A member of a limited liability company.

SB566,299,19 (g) A member or stockholder of a general cooperative association.

SB566,299,20 (h) A member of a limited cooperative association.

SB566,299,21 (i) A member of an unincorporated association.

SB566,299,23 (j) A beneficiary or beneficial owner of a statutory trust, business trust, or common-law business trust.

SB566,299,24 (k) Any other direct holder of an interest.

SB566,299,25 (7) “Interest holder liability" means any of the following:

SB566,300,2 (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:

SB566,300,4 1. Solely by reason of the status of the person as an interest holder of the entity under its governing law.

SB566,300,8 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.

SB566,300,10 (b) An obligation of an interest holder of an entity under its organizational documents to contribute to the entity.

SB566,300,11 (8) “Merger" means a transaction authorized by ss. 181.1101 to 181.11055.

SB566,300,13 (9) “Merging entity" means an entity that is a party to a merger and exists immediately before the merger becomes effective.

SB566,300,16 (10) “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.

SB566,300,19 (11) “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:

SB566,300,21 (a) For a domestic or foreign corporation, whether or not for profit or stock or nonstock, its articles of incorporation and bylaws.

SB566,300,25 (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.

SB566,301,2 (c) For a domestic or foreign limited partnership, its certificate of limited partnership and partnership agreement.

SB566,301,4 (d) For a domestic or foreign limited liability company, its certificate or articles of organization and operating agreement.

SB566,301,5 (e) For a business trust, its agreement of trust and declaration of trust.

SB566,301,8 (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.

SB566,301,11 (12) “Plan" means a plan of merger under s. 181.1102, a plan of interest exchange under s. 181.1132, a plan of conversion under s. 181.1162, or a plan of domestication under s. 181.1172.

SB566,301,13 (13) “Surviving entity" means the entity that continues in existence after or is created by a merger.

SB566,301,14 (14) “Type of entity" means a generic form of entity that is any of the following:

SB566,301,15 (a) Recognized at common law.

SB566,301,16 (b) Recognized under a governing law.

SB566,506 Section 506. 181.11001 of the statutes is created to read:

SB566,301,20 181.11001 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.

SB566,301,25 (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.

SB566,507 Section 507. 181.11002 of the statutes is created to read:

SB566,302,9 181.11002 Existing purpose. (1) 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.

SB566,302,13 (2) 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.

SB566,302,16 (3) 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.

SB566,508 Section 508. 181.11003 of the statutes is created to read:

SB566,302,20 181.11003 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.

SB566,509 Section 509. 181.11004 of the statutes is created to read:

SB566,303,2 181.11004 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.

SB566,510 Section 510. 181.1101 (title) of the statutes is repealed and recreated to read:

SB566,303,4 181.1101 (title) Merger authorized.

SB566,511 Section 511. 181.1101 (1) (title) of the statutes is repealed.

SB566,512 Section 512. 181.1101 (1) of the statutes is amended to read:

SB566,303,13 181.1101 (1) One or more domestic corporations may merge with or into one or more other business constituent entities pursuant to ss. 181.1101 to 181.11055 and a plan of merger if the plan of merger is approved as provided in s. 181.1103 and if the merger is permitted under the applicable governing law of the jurisdiction that governs each other business constituent entity that is a party to the merger and each business constituent entity approves the plan of merger in the manner required by the laws applicable to the business entity its governing law.

SB566,513 Section 513. 181.1101 (2) of the statutes is repealed.

SB566,514 Section 514. 181.1101 (2m) of the statutes is created to read:

SB566,303,20 181.1101 (2m) One or more other domestic or foreign entities may merge with or into a domestic corporation pursuant to ss. 181.1101 to 181.11055 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.

SB566,515 Section 515. 181.1101 (3) of the statutes is repealed.

SB566,516 Section 516. 181.1102 of the statutes is created to read:

SB566,303,24 181.1102 Plan of merger. (1) A plan of merger must be in a record and contain all of the following:

SB566,303,25 (a) As to each constituent entity, its name, type of entity, and governing law.

SB566,304,1 (b) The terms and conditions of the merger.

SB566,304,4 (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.

SB566,304,7 (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.

SB566,304,9 (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.

SB566,304,11 (f) Any other matters required under the governing law of any constituent entity.

SB566,304,13 (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.

SB566,304,16 (3) This section does not limit the power of a corporation to acquire all or part of the interests of one or more classes or series of another constituent entity through a voluntary exchange or otherwise.

SB566,517 Section 517. 181.1103 (title) of the statutes is repealed and recreated to read:

SB566,304,18 181.1103 (title) Approval of merger; amendment; abandonment.

SB566,518 Section 518. 181.1103 (1) of the statutes is renumbered 181.1103 (1m) (b) and amended to read:

SB566,305,2 181.1103 (1m) (b) Corporations Domestic corporations without members with voting rights. If the domestic corporation does not have members with voting rights, the plan of merger must be approved by a majority of the directors in office at the time the plan of merger is approved. In addition the domestic corporation shall provide notice of any board meeting at which such approval is to be obtained in accordance with s. 181.0822 (3). The notice must also state that the purpose, or one of the purposes, of the meeting is to consider the proposed plan of merger.

SB566,519 Section 519 . 181.1103 (1m) (title) of the statutes is created to read:

SB566,305,4 181.1103 (1m) (title) Manner of approval of plan of merger.

SB566,520 Section 520. 181.1103 (1m) (a) of the statutes is created to read:

SB566,305,8 181.1103 (1m) (a) In general. Subject to s. 181.1180, a plan of merger must be approved in the manner provided by this subsection by each domestic corporation that is a constituent entity.

SB566,521 Section 521. 181.1103 (2) of the statutes is renumbered 181.1103 (1m) (c), and 181.1103 (1m) (c) (intro.), as renumbered, is amended to read:

SB566,305,14 181.1103 (1m) (c) Corporations Domestic corporations with voting members. (intro.) Unless this chapter, the articles of incorporation or the bylaws require a greater vote or voting by class, a plan of merger to be adopted by a domestic corporation with voting members shall be approved by all of the following:

SB566,522 Section 522. 181.1103 (2m), (3m) and (4m) of the statutes are created to read:

SB566,305,21 181.1103 (2m) Amending or abandoning plan of merger. Subject to s. 181.1180 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.

SB566,306,4 (3m) Statement of amendment or abandonment. 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:

SB566,306,5 (a) The name of each constituent entity.

SB566,306,6 (b) The amendment to or the abandonment of the articles of merger.

SB566,306,8 (c) A statement that the amendment or abandonment was approved in accordance with this section.

SB566,306,11 (4m) Additional approval of plan of merger. In addition to approval under sub. (1m), a plan of merger must be approved by each constituent entity that is not a domestic corporation in accordance with any requirements of its governing law.

SB566,523 Section 523. 181.1103 (3) of the statutes is renumbered 181.1103 (1m) (d) and amended to read:

SB566,307,2 181.1103 (1m) (d) Notice requirements. If the board seeks to have the plan of merger approved by the members at a membership meeting, the domestic corporation shall give notice, to its members with voting rights, of the proposed membership meeting in accordance with s. 181.0705, except that the notice shall be given at least 20 days before the meeting date. The notice must also state that the purpose, or one of the purposes, of the meeting is to consider the plan of merger and contain or be accompanied by a copy or summary of the plan. The copy or summary of the plan for members of the surviving domestic corporation shall include any provision that, if contained in a proposed amendment to the articles of incorporation or bylaws, would entitle members to vote on the provision. The copy or summary of the plan for members of the disappearing domestic corporation shall include a copy or summary of the articles of incorporation and bylaws that will be in effect immediately after the merger takes effect.