VA HB2478 | 2019 | Regular Session

Status

Spectrum: Partisan Bill (Republican 1-0)
Status: Enrolled on March 7 2019 - 75% progression
Action: 2019-03-11 - Governor: Governor's Action Deadline Midnight, March 26, 2019
Text: Latest bill text (Enrolled) [HTML]

Summary

Virginia Stock Corporation Act. Updates and modernizes the Virginia Stock Corporation Act (the Act) to conform to many provisions of the 2016 revision of the Model Business Corporation Act produced by the Corporate Laws Committee of the American Bar Association's Business Law Section. The Act is amended to, among other things, (i) provide corporations greater authorization to combine with or convert into noncorporate entities, whether domiciled in Virginia or in another jurisdiction; (ii) provide that a combination or conversion with a business entity that would expose a shareholder to personal liability for the entity's liabilities requires the prior consent of each affected shareholder; (iii) define "expenses" as including reasonable expenses of any kind, including attorney fees; (iv) specify that notices to a corporation be delivered to the corporation's secretary; (v) add an article that establishes processes a corporation may follow to correct a failure to properly authorize a corporate actor an over-issuance of shares; (vi) confirm that a corporation's designation of an exclusive forum for resolution of internal corporate claims trumps any other provision in the Act that permits the action to be brought in another forum; (vii) authorize the articles of incorporation to provide whether shareholders have the right to cumulate their votes in the election of directors; (viii) require that the plaintiff in a derivative suit be a shareholder at the time he made the requisite demand on the corporation to take suitable action, as well as at the time of the commencement of, and during, the proceeding; (ix) clarify that if a shareholder demand for a derivative suit is rejected and a derivative suit is commenced, the plaintiff's right of discovery is limited to facts that are alleged with particularity in the complaint; (x) permit the appropriate circuit court to remove a director who has defrauded the corporation, grossly abused his power, or intentionally inflicted harm to the corporation; (xi) provide officers with protection from liability to the extent that they relied in good faith on the advice or performance of others; (xii) spell out the relief that a court can grant in a proceeding by a director or officer for advance, reimbursement, or indemnity; (xiii) establish a process by which a corporation may abandon an amendment or restatement of its articles of incorporation after it has been adopted by shareholders but prior to its effective date; (xiv) reduce the amount of detail that is required to be included in the articles of amendment regarding the shareholder vote to approve an amendment of the articles of incorporation; (xv) establish requirements for approval of a plan of domestication or conversion by the holders of outstanding shares of each class and series voting as separate voting groups; (xvi) permit a domestic corporation to convert to a type of eligible entity, including a nonstock corporation, partnership, or limited liability company, other than only a limited liability company as is currently permitted; (xvii) limit the appraisal rights on the sale of substantially all assets to a sale to an interested person; (xviii) provide appraisal rights on a conversion to any unincorporated entity; and (xix) permit a corporation to impose reasonable restrictions on the confidential use and distribution of financial statements and other records that a shareholder receives in the exercise of inspection rights. The measure incudes technical changes. Several provisions have a delayed effective date of July 1, 2020.

Tracking Information

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Title

Virginia Stock Corporation Act; modernizes and updates Act.

Sponsors


Roll Calls

2019-02-15 - Senate - Senate: Passed Senate (39-Y 0-N) (Y: 39 N: 0 NV: 1 Abs: 0) [PASS]
2019-02-14 - Senate - Senate: Constitutional reading dispensed (40-Y 0-N) (Y: 40 N: 0 NV: 0 Abs: 0) [PASS]
2019-02-13 - Senate - Senate: Reported from Finance (16-Y 0-N) (Y: 16 N: 0 NV: 0 Abs: 0) [PASS]
2019-02-11 - Senate - Senate: Reported from Commerce and Labor (13-Y 0-N 1-A) (Y: 13 N: 0 NV: 0 Abs: 1) [PASS]
2019-02-05 - House - House: VOTE: BLOCK VOTE PASSAGE (99-Y 0-N) (Y: 99 N: 0 NV: 0 Abs: 0) [PASS]
2019-01-31 - House - House: Reported from Commerce and Labor with substitute (16-Y 0-N) (Y: 16 N: 0 NV: 6 Abs: 0) [PASS]

History

DateChamberAction
2019-03-11 Governor: Governor's Action Deadline Midnight, March 26, 2019
2019-03-11HouseEnrolled Bill communicated to Governor on March 11, 2019
2019-03-09SenateSigned by President
2019-03-07HouseSigned by Speaker
2019-03-07HouseBill text as passed House and Senate (HB2478ER)
2019-03-07HouseEnrolled
2019-02-15SenatePassed Senate (39-Y 0-N)
2019-02-15SenateRead third time
2019-02-14SenateConstitutional reading dispensed (40-Y 0-N)
2019-02-13SenateReported from Finance (16-Y 0-N)
2019-02-11SenateRereferred to Finance
2019-02-11SenateReported from Commerce and Labor (13-Y 0-N 1-A)
2019-02-06SenateReferred to Committee on Commerce and Labor
2019-02-06SenateConstitutional reading dispensed
2019-02-05HouseVOTE: BLOCK VOTE PASSAGE (99-Y 0-N)
2019-02-05HouseRead third time and passed House BLOCK VOTE (99-Y 0-N)
2019-02-04HouseEngrossed by House - committee substitute HB2478H1
2019-02-04HouseCommittee substitute agreed to 19104722D-H1
2019-02-04HouseRead second time
2019-02-03HouseRead first time
2019-01-31HouseCommittee substitute printed 19104722D-H1
2019-01-31HouseReported from Commerce and Labor with substitute (16-Y 0-N)
2019-01-09HouseReferred to Committee on Commerce and Labor
2019-01-09HousePrefiled and ordered printed; offered 01/09/19 19102512D

Code Citations

ChapterArticleSectionCitation TypeStatute Text
131603(n/a)See Bill Text
131604(n/a)See Bill Text
131604.1(n/a)See Bill Text
131606(n/a)See Bill Text
131612(n/a)See Bill Text
131614(n/a)See Bill Text
131614.1(n/a)See Bill Text
131614.8(n/a)See Bill Text
131616(n/a)See Bill Text
131619(n/a)See Bill Text
131623(n/a)See Bill Text
131624(n/a)See Bill Text
131625(n/a)See Bill Text
131627(n/a)See Bill Text
131629(n/a)See Bill Text
131632(n/a)See Bill Text
131634(n/a)See Bill Text
131635(n/a)See Bill Text
131636(n/a)See Bill Text
131638(n/a)See Bill Text
131649(n/a)See Bill Text
131651(n/a)See Bill Text
131670(n/a)See Bill Text
131671.1(n/a)See Bill Text
131672.1(n/a)See Bill Text
131672.7(n/a)See Bill Text
131680(n/a)See Bill Text
131681.1(n/a)See Bill Text
131682(n/a)See Bill Text
131685(n/a)See Bill Text
131687(n/a)See Bill Text
131690.1(n/a)See Bill Text
131692(n/a)See Bill Text
131699(n/a)See Bill Text
131700.1(n/a)See Bill Text
131711(n/a)See Bill Text
131712.1(n/a)See Bill Text
131713(n/a)See Bill Text
131721.1(n/a)See Bill Text
131722.12:1(n/a)See Bill Text
131722.13(n/a)See Bill Text
131722.14(n/a)See Bill Text
131722.1:1(n/a)See Bill Text
131722.2(n/a)See Bill Text
131722.3(n/a)See Bill Text
131722.4(n/a)See Bill Text
131722.5(n/a)See Bill Text
131722.6(n/a)See Bill Text
131722.7(n/a)See Bill Text
131722.7:1(n/a)See Bill Text
131722.8(n/a)See Bill Text
131723(n/a)See Bill Text
131724(n/a)See Bill Text
131725(n/a)See Bill Text
131727(n/a)See Bill Text
131728.1(n/a)See Bill Text
131728.4(n/a)See Bill Text
131728.7(n/a)See Bill Text
131728.9(n/a)See Bill Text
131734(n/a)See Bill Text
131735.1(n/a)See Bill Text
131737(n/a)See Bill Text
131746.1(n/a)See Bill Text
131746.3(n/a)See Bill Text
131747(n/a)See Bill Text
131748(n/a)See Bill Text
131749.1(n/a)See Bill Text
131750(n/a)See Bill Text
131751(n/a)See Bill Text
131755(n/a)See Bill Text
131757(n/a)See Bill Text
131761(n/a)See Bill Text
131763(n/a)See Bill Text
131768.1(n/a)See Bill Text
131775(n/a)See Bill Text

Virginia State Sources


Bill Comments

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