SB566: Bill Text

SB566,188,15 (f) A statement that upon request the domesticated entity will provide a copy of the plan of domestication to any interest holder in the domesticated entity.

SB566,188,16 (g) A statement whether s. 179.1161 applies to the domestication.

SB566,188,19 (2) In addition to the requirements of sub. (1), the articles of domestication may contain any other provisions relating to the domestication, as determined by the domesticating entity in accordance with the plan of domestication.

SB566,188,21 (3) A domestication takes effect at the effective date and time of the articles of domestication.

SB566,188,23 179.1155 Effect of domestication. (1) When a domestication becomes effective, all of the following apply:

SB566,189,2 (a) The domesticating entity becomes a domestic entity under and becomes subject to the governing law of the jurisdiction in which it has domesticated while continuing to be a domestic organization under and subject to the governing law of the domesticating entity.

SB566,189,4 (am) 1. Except as provided in this paragraph, no interest holder shall have interest holder liability with respect to the domesticating or domesticated entity.

SB566,189,10 2. If, under the governing law of the domesticating entity, one or more of the interest holders thereof has interest holder liability with respect to the domesticating entity, such interest holder or holders shall continue to have such liability and any associated contribution and other rights to the extent provided in such governing law with respect to the debts, obligations, and other liabilities of the domesticating entity.

SB566,189,16 3. If, under the governing law of the domesticated entity, one or more of the interest holders thereof will have interest holder liability after the domestication with respect to the domesticated entity, such interest holder or holders will have such liability and associated contribution and other rights to the extent provided in such governing law with respect to the debts, obligations, and other liabilities of the domesticated entity that accrue after the domestication.

SB566,189,17 4. This paragraph does not affect liability under any taxation laws.

SB566,189,19 (b) The title to all property owned by the domesticating entity is vested in the domesticated entity without transfer, reversion, or impairment.

SB566,189,21 (c) The domesticated entity has all debts, obligations, or other liabilities of the domesticating entity.

SB566,189,25 (d) A civil, criminal, or administrative proceeding pending by or against the domesticating entity may be continued as if the domestication did not occur, or the domesticated entity may be substituted in the proceeding for the domesticating entity.

SB566,190,4 (e) The organizational documents of the domesticating entity are amended to the extent, if any, provided in the plan of domestication and, to the extent such amendments are to be reflected in a public record, as provided in the articles of domestication.

SB566,190,7 (f) The organizational documents of the domesticated entity are as provided in the plan of domestication and, to the extent such organizational documents are to be reflected in a public record, as provided in the articles of domestication.

SB566,190,10 (g) Except as prohibited by other law or as otherwise provided in the articles and plan of domestication, all of the rights, privileges, immunities, powers, and purposes of the domesticating entity vest in the domesticated entity.

SB566,190,14 (2) Except as otherwise provided in the articles and plan of domestication, if the domesticating entity is a partnership, limited liability company, or other entity subject to dissolution under its governing law, the domestication does not dissolve the domesticating entity for the purposes of its governing law.

SB566,190,17 (3) A domesticated Wisconsin entity consents to the jurisdiction of the courts of this state to enforce any debt, obligation, or other liability owed by the domesticating or domesticated entity.

SB566,190,23 179.1161 Restrictions on approval of mergers, interest exchanges, conversions, and domestications. (1) This section shall apply with respect to a partner in connection with a merger, interest exchange, conversion, or domestication transaction of a domestic limited partnership if the partner does not vote for or consent to the transaction and the transaction would do any of the following with respect to the partner:

SB566,191,5 (a) Materially increase the current or potential obligations of the partner with respect to any constituent, surviving, acquiring, acquired, converting, converted, domesticating, or domesticated limited partnership, whether as a result of becoming subject to interest holder liability with respect to the entity as a consequence of being an owner of the entity, becoming subject to affirmative or negative obligations under the organizational documents of the entity, becoming subject to tax on the income of the entity, or otherwise.

SB566,191,7 (b) Treat the partner's interests in the limited partnership in a manner different from the interests of the same class held by any other partner.

SB566,191,17 (2) If this section applies with respect to a partner in connection with the transaction, the partnership must offer to purchase the partner's interest in the partnership as provided in sub. (3). Actual or alleged failure to comply with this section shall not have any impact on, and shall not constitute any basis for any person to challenge, the effectiveness of the transaction, and the partner's sole remedy with respect to such failure shall be to commence an action under sub. (4) and otherwise enforce the partner's rights under this section. In order to accept the partnership's offer, a partner must notify the partnership within 60 days of receipt of the offer. Both the offer and the acceptance may be conditioned upon consummation of the transaction.

SB566,191,23 (3) (a) The purchase price of the interest of the partner pursuant to this section is the amount that would be distributable to the partner if, on the date of the transaction, the assets of the partnership were sold and the partnership were wound up, with the sale price equal to the greater of the partnership's liquidation value or the value based on a sale of the partnership's entire activities and affairs as a going concern without the partner.

SB566,192,2 (b) Interest accrues on the purchase price from the date of the transaction to the date of payment. At the option of the partnership, some or all amounts owing, whether or not presently due, from the partner to the partnership may be offset against the purchase price.

SB566,192,6 (c) The partnership shall defend, indemnify, and hold the partner harmless against all liabilities of the surviving, acquiring, converted, or domesticated entity, as the case may be, incurred after the transaction, except liabilities incurred by an act of the partner.

SB566,192,11 (d) If no agreement for the purchase of the interest of the partner pursuant to this section is reached within 120 days of the date of the transaction, the partnership, or the surviving, acquiring, converted, or domesticated entity, as the case may be, shall pay, or cause to be paid, in money to the partner the amount it estimates to be the purchase price and accrued interest, reduced by any offsets under par. (b).

SB566,192,13 (e) The payment required by par. (d) must be accompanied by all of the following:

SB566,192,15 1. A statement of partnership assets and liabilities as of the date of the transaction.

SB566,192,16 2. The latest available partnership balance sheet and income statement, if any.

SB566,192,17 3. An explanation of how the estimated amount of the payment was calculated.

SB566,192,21 4. Written notice that the payment is in full satisfaction of the obligation to purchase unless, not later than 120 days after the written notice, the partner commences an action to determine the purchase price, any offsets and accrued interest under par. (b), or other terms of the obligation to purchase.

SB566,193,9 (4) The partner may maintain an action against the partnership, pursuant to s. 179.0111, to determine the purchase price of the partner's interest, any offsets and accrued interest under sub. (3) (b), or other terms of the obligation to purchase. The action must be commenced not later than 120 days after the partnership has made payment in accordance with sub. (3) (d) or within one year after written demand for payment if no offer is made in accordance with sub. (2). The court shall determine the purchase price of the partner's interest, any offset due under sub. (3) (b), and accrued interest, and enter judgment for any additional payment or refund. The court may assess reasonable attorney fees and the fees and expenses of appraisers or other experts for a party to the action, in amounts the court finds equitable, against a party that the court finds acted arbitrarily, vexatiously, or not in good faith. The finding may be based on the partnership's failure to make an offer or payment or to comply with sub. (3).

SB566,193,11 (5) A partner does not give the consent required by sub. (1) merely by consenting to a provision of the written partnership agreement.

SB566,193,12 subchapter XII

SB566,193,13 MISCELLANEOUS PROVISIONS

SB566,193,17 179.1201 Uniformity of application and construction. In applying and construing this chapter, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact the uniform law.

SB566,193,23 179.1202 Relation to Electronic Signatures in Global and National Commerce Act. This chapter modifies, limits, and supersedes the Electronic Signatures in Global and National Commerce Act, 15 USC 7001 to 7031, but does not modify, limit, or supersede section 101 (c) of that act, 15 USC 7001 (c), or authorize electronic delivery of any of the notices described in section 103 (b) of that act, 15 USC 7003 (b).

SB566,144 Section 144. 180.0103 (3m) of the statutes is created to read:

SB566,193,25 180.0103 (3m) “Business" includes every trade, occupation, and profession.

SB566,145 Section 145. 180.0103 (5) of the statutes is amended to read:

SB566,194,6 180.0103 (5) “Corporation" or “domestic corporation," except as used in sub. (9), means a corporation for profit that is not a foreign corporation and that is incorporated under or becomes subject to this chapter. “ Corporation" or “domestic corporation" includes, to the extent provided under s. 180.1703, a corporation with capital stock but not organized for profit.

SB566,146 Section 146. 180.0103 (7d) of the statutes is created to read:

SB566,194,9 180.0103 (7d) “Domestic" means, with respect to an entity, an entity whose governing law is the law of this state.

SB566,147 Section 147. 180.0103 (8) of the statutes is amended to read:

SB566,194,22 180.0103 (8) “Entity" means a person other than an individual and includes a domestic corporation; a foreign corporation; a limited liability company; a nonprofit or nonstock corporation; a limited partnership; a partnership; a stock or nonstock general cooperative association; an unincorporated a limited cooperative association; a profit or nonprofit unincorporated association; a statutory trust; a business trust; a business trust or common-law business trust; an estate; a partnership; a trust; 2 or more persons having a joint or common economic interest; a state or an agency, commission, department, authority, bureau or other instrumentality of a state; a governmental subdivision; the United States; and a foreign government an association, joint venture, public corporation, government or governmental subdivision, agency, or instrumentality; or any other legal or commercial entity.

SB566,148 Section 148. 180.0103 (8r) of the statutes is created to read:

SB566,194,25 180.0103 (8r) “Foreign" means, with respect to an entity, an entity whose governing law is other than the law of this state.

SB566,149 Section 149. 180.0103 (9) of the statutes is amended to read:

SB566,195,6 180.0103 (9) “Foreign corporation" means a corporation for profit incorporated under a law other than the law of this state and whose governing law is other than the law of this state, except a railroad corporation, an association created solely for religious or charitable purposes, an insurer or motor club, a savings and loan association, a savings bank or a common law trust.

SB566,150 Section 150. 180.0103 (9m) and (9r) of the statutes are created to read:

SB566,195,9 180.0103 (9m) “General cooperative association" means, with respect to a Wisconsin cooperative, a cooperative organized under ch. 185.

SB566,195,14 (9r) “Governing law" means, with respect to an entity, the law of the jurisdiction that collectively governs its internal affairs and the liability of the persons associated with the entity for a debt, obligation, or other liability of the entity under s. 180.0105 or the corresponding applicable law with respect to entities other than domestic corporations.

SB566,151 Section 151. 180.0103 (11g) and (11i) of the statutes are created to read:

SB566,195,18 180.0103 (11g) “Jurisdiction," used to refer to a political entity, means the United States, a state, a foreign country, or a political subdivision of a foreign country.

SB566,195,20 (11i) “Limited cooperative association" means, with respect to a Wisconsin cooperative, a cooperative organized under ch. 193.

SB566,152 Section 152. 180.0103 (11m) of the statutes is amended to read:

SB566,196,3 180.0103 (11m) “Person" includes means an individual and an entity , business corporation, nonprofit or nonstock corporation, partnership, limited partnership, limited liability company, general cooperative association, limited cooperative association, unincorporated association, statutory trust, business trust, common-law business trust, estate, trust, association, joint venture, public corporation, government or governmental subdivision, agency, or instrumentality, or any other legal or commercial entity.

SB566,153 Section 153. 180.0103 (12g) of the statutes is created to read:

SB566,196,6 180.0103 (12g) “Property" means all property, whether real, personal, or mixed or tangible or intangible, or any right or interest therein.

SB566,154 Section 154 . 180.0103 (12r) of the statutes is created to read:

SB566,196,10 180.0103 (12r) “Record," used as a noun, means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.

SB566,155 Section 155. 180.0103 (13m) of the statutes is created to read:

SB566,196,14 180.0103 (13m) “Registered agent" means an agent of a corporation or foreign corporation that is authorized to receive service of any process, notice, or demand required or permitted by law to be served on the corporation or foreign corporation.

SB566,156 Section 156. 180.0103 (16m) of the statutes is created to read:

SB566,196,18 180.0103 (16m) “State" means a state of the United States, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States.

SB566,157 Section 157. 180.0103 (17g) of the statutes is created to read:

SB566,196,20 180.0103 (17g) “Transfer" includes all of the following:

SB566,196,21 (a) An assignment.

SB566,196,22 (b) A conveyance.

SB566,196,23 (c) A sale.

SB566,196,24 (d) A lease.

SB566,196,25 (e) An encumbrance, including a mortgage or security interest.

SB566,197,1 (f) A gift.

SB566,197,2 (g) A transfer by operation of law.

SB566,158 Section 158. 180.0105 of the statutes is created to read:

SB566,197,5 180.0105 Governing law. (1) The law of this state governs all of the internal affairs of a corporation.

SB566,197,9 (2) The fact that one or more shareholders of a corporation are, or are not, subject to tax on the income of the corporation shall have no effect on the application of the law of this state under sub. (1) other than as a fact to be taken into account in the application of such law.

SB566,159 Section 159 . 180.0112 of the statutes is created to read:

SB566,197,13 180.0112 Delivery of a record. (1) Except as otherwise provided in this chapter, permissible means of delivery of a record include delivery by hand, mail, conventional commercial practice, and electronic transmission.

SB566,197,15 (2) Delivery to the department is effective only when a record is received by the department.

SB566,160 Section 160 . 180.0120 (1) (intro.) of the statutes is amended to read:

SB566,197,21 180.0120 (1) (intro.) Except as provided in Subject to sub. (4), a document required or permitted to be filed under by the department pursuant to this chapter with the department must, a record must be received by the department, comply with this chapter, and satisfy all of the following requirements to be filed under s. 180.0125 (2) (a):

SB566,161 Section 161. 180.0120 (1) (g) of the statutes is amended to read:

SB566,197,25 180.0120 (1) (g) Be delivered to the department for filing and be accompanied by one exact or conformed copy and the filing fee required by s. 180.0122 unless and to the extent the department permits electronic delivery of records.

SB566,162 Section 162. 180.0120 (3) (a) (intro.) of the statutes is amended to read:

SB566,198,3 180.0120 (3) (a) (intro.) Any of the following persons may execute a document described in s. 180.0122 (1) (a), (b), (h) to (j), (Lg), (m) to (r) and (u) to (ym) par. (am):

SB566,163 Section 163. 180.0120 (3) (am) of the statutes is created to read:

SB566,198,5 180.0120 (3) (am) The documents to which par. (a) applies are the following:

SB566,198,6 1. Articles of incorporation.