Chapter 178

178.1155(1)(am) (am)

178.1155(1)(am)1. 1. Except as provided in this paragraph, no interest holder shall have interest holder liability with respect to the domesticating or domesticated entity.

178.1155(1)(am)2. 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.

178.1155(1)(am)3. 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.

178.1155(1)(am)4. 4. This paragraph does not affect liability under any taxation laws.

178.1155(1)(b) (b) The title to all property owned by the domesticating entity is vested in the domesticated entity without transfer, reversion, or impairment.

178.1155(1)(c) (c) The domesticated entity has all debts, obligations, or other liabilities of the domesticating entity.

178.1155(1)(d) (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.

178.1155(1)(e) (e) The organizational documents of the domesticated 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.

178.1155(1)(f) (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.

178.1155(1)(g) (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.

178.1155(2) (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.

178.1155(3) (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.

178.1155 History History: 2015 a. 295; 2021 a. 258.

178.1161 178.1161 Restrictions on approval of mergers, interest exchanges, conversions and domestications.

178.1161(1) (1) This section shall apply with respect to a partner in connection with a merger, interest exchange, conversion, or domestication transaction of a domestic 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:

178.1161(1)(a) (a) Materially increase the current or potential obligations of the partner in the constituent, acquiring, acquired, converting, or domesticating partnership, whether as a result of becoming subject to interest holder liability with respect to the obligations of the surviving, acquiring, converted, or domesticated 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.

178.1161(1)(b) (b) Treat the partner’s interests in the partnership in a manner different from the interests of the same class held by any other partner.

178.1161(2) (2) If this section applies with respect to a partner in connection with a 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 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 such 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.

178.1161(3) (3) 

178.1161(3)(a) (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 entire business as a going concern without the partner.

178.1161(3)(b) (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.

178.1161(3)(c) (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.

178.1161(3)(d) (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).

178.1161(3)(e) (e) The payment required by par. (d) must be accompanied by all of the following:

178.1161(3)(e)1. 1. A statement of partnership assets and liabilities as of the date of the transaction.

178.1161(3)(e)2. 2. The latest available partnership balance sheet and income statement, if any.

178.1161(3)(e)3. 3. An explanation of how the estimated amount of the payment was calculated.

178.1161(3)(e)4. 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.

178.1161(4) (4) The partner may maintain an action against the partnership, pursuant to s. 178.0307, 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).

178.1161(5) (5) A partner does not give the consent required by sub. (1) merely by consenting to a provision of the written partnership agreement.

178.1161 History History: 2015 a. 295; 2021 a. 258.

subch. XII of ch. 178 SUBCHAPTER XII

MISCELLANEOUS PROVISIONS

178.1201 178.1201 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.

178.1201 History History: 2015 a. 295.

178.1202 178.1202 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).

178.1202 History History: 2015 a. 295.