Senate Bill 507 Summary

• Clarifies that shares of a corporation controlled by another corporation are not entitled to vote in shareholder meetings, effective October 1, 2021.

• Allows boards of directors to fix director compensation for services without shareholder approval and presumes such compensation fair unless proven otherwise, effective October 1, 2021.

• Establishes that board quorum is a majority of directors unless otherwise fixed, with minimum quorum of one-third, and clarifies voting requirements, effective October 1, 2021.

• Authorizes corporations with one class of shares to change corporate name by board action without shareholder approval (such as changing "corporation" to "company"), effective October 1, 2021.

• Modernizes corporate records requirements to specify what records must be maintained (articles, bylaws, shareholder communications, meeting minutes, director/officer lists, financial statements) and clarifies inspection rights for "qualified shareholders" (those owning 6+ months tenure or 5%+ shares), effective October 1, 2021.