HB163 Summary

• Amends Alabama's Business and Nonprofit Entities Code to revise merger and conversion procedures for various entity types including corporations, partnerships, LLCs, and real estate investment trusts.

• Changes filing requirements so that certificates or articles of merger, statements of conversion, and share exchange documents are delivered to the Secretary of State rather than judges of probate.

• Modifies conversion approval thresholds for real estate investment trusts from two-thirds to a simple majority shareholder vote.

• Establishes that conversions take effect upon filing the statement of conversion with the Secretary of State, and allows for delayed effective dates if foreign entity filings are completed beforehand.

• Becomes effective on the first day of the third month following passage and gubernatorial approval.