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GA HB1658

Bill

Status

Introduced

4/4/2022

Primary Sponsor

Marvin Lim

Click for details

Origin

House of Representatives

2021-2022 Regular Session

AI Summary

  • Requires that articles of incorporation or bylaws authorize a corporation's employees to fix or change the number of directors, whereas current law grants this authority only to shareholders or the board of directors
  • Mandates that not less than two-fifths (40%) of a corporation's board of directors be elected by the employees of the corporation
  • Changes cumulative voting provisions so that "shareholders" (rather than "shares") voting against a proposal to decrease the number of directors determines whether the amendment is blocked
  • Removes the existing provision allowing the number of directors to be increased or decreased simply by amendment to the articles of incorporation or bylaws, replacing it with the new employee-authorization requirement
  • Amends Code Section 14-2-803 of Title 14 of the Official Code of Georgia Annotated, governing the number and election of directors of business corporations

Legislative Description

Business corporations; board of directors; change certain provisions

Last Action

House Hopper

4/4/2022

Full Bill Text

No bill text available