SB566: Bill Text

SB566,426,8 183.0905 Activities not constituting doing business. (1) Activities of a foreign limited liability company which do not constitute doing business in this state under this subchapter include all of the following:

SB566,426,10 (a) Maintaining, defending, mediating, arbitrating, or settling an action or proceeding.

SB566,426,12 (b) Carrying on any activity concerning its internal affairs, including holding meetings of its members or managers.

SB566,426,13 (c) Maintaining accounts in financial institutions.

SB566,426,16 (d) Maintaining offices or agencies for the transfer, exchange, and registration of securities of the company or maintaining trustees or depositaries with respect to those securities.

SB566,426,17 (e) Selling through independent contractors.

SB566,426,19 (f) Soliciting or obtaining orders by any means if the orders require acceptance outside this state before they become contracts.

SB566,426,21 (g) Creating or acquiring indebtedness, mortgages, or security interests in property.

SB566,426,23 (h) Securing or collecting debts or enforcing mortgages or security interests in property securing the debts and holding, protecting, or maintaining property.

SB566,426,25 (i) Conducting an isolated transaction that is not in the course of similar transactions.

SB566,427,1 (j) Owning, without more, property.

SB566,427,2 (k) Doing business in interstate commerce.

SB566,427,4 (2) A person does not do business in this state solely by being a member or manager of a foreign limited liability company that does business in this state.

SB566,427,7 (3) This section does not apply in determining the contacts or activities that may subject a foreign limited liability company to service of process, taxation, or regulation under law of this state other than this chapter.

SB566,427,13 183.0906 Noncomplying name of foreign limited liability company. (1) A foreign limited liability company whose name does not comply with s. 183.0112 may not register to do business in this state until it adopts, for the purpose of doing business in this state, a fictitious name that complies with s. 183.0112. After registering to do business in this state with a fictitious name, a company shall only do business in this state under the fictitious name.

SB566,427,17 (2) If a registered foreign limited liability company changes its name to one that does not comply with s. 183.0112, it may not do business in this state until it complies with sub. (1) by amending its registration to adopt a fictitious name that complies with s. 183.0112.

SB566,427,24 183.0907 Withdrawal deemed on conversion to or merger into domestic filing entity or domestic limited liability partnership. A registered foreign limited liability company that converts to, or merges into, a domestic limited liability partnership or to or into a domestic entity whose formation requires the delivery of a record to the department for filing is deemed to have withdrawn its registration on the effective date of the conversion or merger, unless the registration is transferred to such company pursuant to s. 183.0909.

SB566,428,7 183.0908 Withdrawal on dissolution or conversion to or merger into nonfiling entity other than limited liability partnership. (1) (a) A registered foreign limited liability company that has dissolved and completed winding up or has converted to, or merged into, a domestic or foreign entity whose formation does not require the delivery of a record for filing by the department, other than a limited liability partnership, shall deliver a statement of withdrawal to the department for filing, as provided in s. 183.0911.

SB566,428,10 (c) In the case of a merger or conversion, the statement under par. (a) must also state the name and type of entity to which or into which the limited liability company has converted or merged and the jurisdiction of its governing law.

SB566,428,14 (2) After a withdrawal under this section is effective, service of process in any action or proceeding based on a cause of action arising during the time the foreign limited liability company was registered to do business in this state may be made pursuant to s. 183.0119, as provided in s. 183.0911 (2).

SB566,428,20 183.0909 Transfer of registration. (1) When a registered foreign limited liability company has merged into a foreign entity that is not registered to do business in this state or has converted to a foreign entity required to register with the department to do business in this state, the foreign entity shall deliver to the department for filing an application for transfer of registration. The application must state all of the following:

SB566,428,22 (a) The name of the registered foreign limited liability company before the merger or conversion.

SB566,428,24 (b) That before the merger or conversion the registration pertained to a foreign limited liability company.

SB566,429,3 (c) The name of the applicant foreign entity into which the foreign limited liability company has merged or to which it has been converted and, if the name does not comply with s. 183.0112, a fictitious name adopted pursuant to s. 183.0906 (1).

SB566,429,5 (d) The type of entity of the applicant foreign entity and the jurisdiction of its governing law.

SB566,429,9 (e) The street and mailing addresses of the principal office of the applicant foreign entity and, if the entity's governing law requires the entity to maintain an office in the jurisdiction of that governing law, the street and mailing addresses of that office.

SB566,429,11 (f) The street address of the applicant foreign entity's registered office in this state and the name and e-mail address of its registered agent at that office.

SB566,429,15 (2) When an application for transfer of registration takes effect, the registration of the foreign limited liability company to do business in this state is transferred without interruption to the foreign entity into which the company has merged or to which it has been converted.

SB566,429,18 183.09101 Grounds for termination. (1) The department may terminate the registration of a registered foreign limited liability company in the manner provided in s. 183.09102 if any of the following applies:

SB566,429,20 (a) The foreign limited liability company fails to file its annual report with the department within 4 months after it is due.

SB566,429,22 (b) The foreign limited liability company does not pay, within 4 months after they are due, any fees or penalties due the department under this chapter.

SB566,429,24 (c) The foreign limited liability company is without a registered agent or registered office in this state for at least 6 months.

SB566,430,4 (d) The foreign limited liability company does not inform the department under s. 183.0116 or 183.0117 that its registered agent or registered office has changed, that its registered agent has resigned, or that its registered office has been discontinued, within 6 months of the change, resignation, or discontinuance.

SB566,430,6 (e) The foreign limited liability company's statement of foreign registration contains fraudulent or materially false information.

SB566,430,10 (f) The department receives a duly authenticated certificate from the secretary of state or other official having custody of company records in the jurisdiction of the foreign limited liability company's governing law stating that it has been dissolved or disappeared as the result of a merger or other event.

SB566,430,11 (g) The foreign limited liability company violates s. 940.302 (2) or 948.051 (2).

SB566,430,15 (2) If the department receives a certificate under sub. (1) (f) and a statement by the foreign limited liability company that the certificate is submitted to terminate its authority to do business in this state, the department shall terminate the foreign limited liability company's registration under s. 183.09102 (2) (b).

SB566,430,19 (3) A court may terminate under s. 946.87 the registration of a foreign limited liability company authorized to transact business in this state. The court shall notify the department of the action, and the department shall terminate the foreign limited liability company's registration under s. 183.09102.

SB566,430,24 183.09102 Procedure for and effect of termination. (1) If the department determines that one or more grounds exist under s. 183.09101 for termination of a foreign limited liability company's registration, the department may give the foreign limited liability company notice of the determination. The notice shall be in writing and addressed to the registered agent of the foreign limited liability company.

SB566,431,4 (2) (a) Within 60 days after the notice under sub. (1) takes effect under s. 183.0103 (5), the foreign limited liability company shall, with respect to each ground for termination, either correct it or demonstrate to the reasonable satisfaction of the department that it does not exist.

SB566,431,11 (b) If the foreign limited liability company fails to satisfy par. (a), the department may terminate the foreign limited liability company's registration by entering a notation in the department's records to reflect each ground for termination and the effective date of the termination. The department shall give the foreign limited liability company notice of each ground for termination and the effective date of the termination. The notice shall be in writing and addressed to the registered agent of the foreign limited liability company in this state.

SB566,431,14 (c) 1. The department shall reinstate the registration if the foreign limited liability company does all of the following within 6 months after the effective date of the termination:

SB566,431,15 a. Corrects each ground for termination.

SB566,431,17 b. Pays any fees or penalties due the department under this chapter or $5,000, whichever is less.

SB566,431,20 2. A reinstatement under this paragraph shall relate back to and take effect as of the effective date of the termination, and the foreign limited liability company may resume carrying on its business as if the termination never occurred.

SB566,431,24 (3) (a) If a notice under sub. (1) or (2) (b) is returned to the department as undeliverable, the department shall again give notice to the foreign limited liability company. Except as provided under par. (b), the notice shall be in writing and addressed to the principal office of the foreign limited liability company.

SB566,432,4 (b) If the notice under par. (a) is returned to the department as undeliverable or if the foreign limited liability company's principal office cannot be determined from the records of the department, the department shall give notice by posting the notice on the department's Internet site.

SB566,432,7 (4) The authority of a foreign limited liability company to transact business in this state, other than as provided in s. 183.0905 (1) and (2), ends on the effective date of the termination of its registration.

SB566,432,14 (5) If the department or a court terminates a foreign limited liability company's registration, the foreign limited liability company may be served under s. 183.0119 (2) or (3) or the foreign limited liability company's registered agent may be served until the registered agent's authority is terminated, in any civil, criminal, administrative, or investigatory proceeding based on a cause of action which arose while the foreign limited liability company was authorized to do business in this state.

SB566,432,16 (6) Termination of a foreign limited liability company's registration does not terminate the authority of its registered agent.

SB566,432,24 183.09103 Appeal from termination. (1) A foreign limited liability company may appeal the department's termination of its registration under s. 183.09102 to the circuit court for the county where the foreign limited liability company's principal office or, if none in this state, the office of its registered agent is located, within 30 days after the notice of termination takes effect under s. 183.0103 (5). The foreign limited liability company shall appeal by petitioning the court to set aside the termination and attaching to the petition copies of its registration and the department's notice of termination.

SB566,433,2 (2) The court may order the department to reinstate the registration or may take any other action that the court considers appropriate.

SB566,433,3 (3) The court's final decision may be appealed as in other civil proceedings.

SB566,433,7 183.0911 Withdrawal of registration of registered foreign limited liability company. (1) A registered foreign limited liability company 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:

SB566,433,8 (a) The name of the company and the jurisdiction of its governing law.

SB566,433,10 (b) That the company is not doing business in this state and that it withdraws its registration to do business in this state.

SB566,433,15 (c) Whether the company 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 company was registered to do business in this state.

SB566,433,18 (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.

SB566,433,22 (2) After the withdrawal of the registration of a foreign limited liability company, service of process in any action or proceeding based on a cause of action arising during the time the company was registered to do business in this state may be made pursuant to s. 183.0119.

SB566,433,25 183.0912 Action by attorney general. The attorney general may maintain an action to enjoin a foreign limited liability company from doing business in this state in violation of this subchapter.

SB566,434,1 subchapter X

SB566,434,3 MERGER, INTEREST EXCHANGE, CONVERSION, AND DOMESTICATION

SB566,434,4 183.1001 Definitions. In this subchapter:

SB566,434,6 (1) “Acquired entity" means the entity all of one or more classes or series of interests of which are acquired in an interest exchange.

SB566,434,8 (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.

SB566,434,10 (2m) “Constituent entity" means a merging entity or a surviving entity in a merger.

SB566,434,11 (3) “Conversion" means a transaction authorized by ss. 183.1041 to 183.1045.

SB566,434,13 (4) “Converted entity" means the converting entity as it continues in existence after a conversion.

SB566,434,14 (5) “Converting entity" means an entity that engages in a conversion.

SB566,434,16 (8) “Domesticated entity" means the domesticating entity as it continues in existence after a domestication.

SB566,434,18 (9) “Domesticating entity" means either a non-United States entity or a Wisconsin limited liability company that engages in a domestication.

SB566,434,20 (10) “Domestication" means a transaction authorized by ss. 183.1051 to 183.1055.

SB566,434,21 (16) “Interest" means any of the following:

SB566,434,22 (a) A share in a business corporation.

SB566,434,23 (b) A membership in a nonprofit or nonstock corporation.

SB566,434,24 (c) A partnership interest in a general partnership.

SB566,434,25 (d) A partnership interest in a limited partnership.

SB566,435,1 (e) A membership interest in a limited liability company.

SB566,435,2 (f) A membership interest or stock in a general cooperative association.

SB566,435,3 (g) A membership interest in a limited cooperative association.

SB566,435,4 (h) A membership in an unincorporated association.

SB566,435,6 (i) A beneficial interest in a statutory trust, business trust, or common-law business trust.

SB566,435,7 (j) A comparable interest in any other type of unincorporated entity.

SB566,435,9 (17) “Interest exchange" means a transaction authorized by ss. 183.1031 to 183.1035.

SB566,435,10 (18) “Interest holder" means any of the following:

SB566,435,11 (a) A shareholder of a business corporation.

SB566,435,12 (b) A member of a nonprofit or nonstock corporation.

SB566,435,13 (c) A general partner of a general partnership.

SB566,435,14 (d) A general partner of a limited partnership.