MODEL ENTITY TRANSACTIONS ACT

(Last Revised or Amended in 2007)

 

 

 

 

 

 

                            NATIONAL CONFERENCE OF COMMISSIONERS

                                                      ON UNIFORM STATE LAWS

 

 

 

            MEETING IN ITS ONE-HUNDRED-AND-SIXTEENTH YEAR

PASADENA, CALIFORNIA

 

            July 27 – August 3, 2007

_____________________________________________________

 

 

 

 

_____________________________________________________

 

AMERICAN BAR ASSOCIATION

_____________________________________________________

 

 

 

 

                            WITH PREFATORY NOTE AND COMMENTS

 

 

 

 

Copyright © 2004, 2005, 2007

Jointly By

NATIONAL CONFERENCE OF COMMISSIONERS

ON UNIFORM STATE LAWS

and

AMERICAN BAR ASSOCIATION

 

ABOUT ULC

 

            The Uniform Law Commission (ULC), also known as National Conference of Commissioners on Uniform State Laws (NCCUSL), now in its 116^th year, provides states with non-partisan, well-conceived and well-drafted legislation that brings clarity and stability to critical areas of state statutory law.

 

            ULC members must be lawyers, qualified to practice law. They are practicing lawyers, judges, legislators and legislative staff and law professors, who have been appointed by state governments as well as the District of Columbia, Puerto Rico and the U.S. Virgin Islands to research, draft and promote enactment of uniform state laws in areas of state law where uniformity is desirable and practical.

 

•                     ULC strengthens the federal system by providing rules and procedures that are consistent from state to state but that also reflect the diverse experience of the states.

 

•                     ULC statutes are representative of state experience, because the organization is made up of representatives from each state, appointed by state government.

 

•                     ULC keeps state law up-to-date by addressing important and timely legal issues.

 

•                     ULC’s efforts reduce the need for individuals and businesses to deal with different laws as they move and do business in different states.

 

•                     ULC’s work facilitates economic development and provides a legal platform for foreign entities to deal with U.S. citizens and businesses.

 

•                     Uniform Law Commissioners donate thousands of hours of their time and legal and drafting expertise every year as a public service, and receive no salary or compensation for their work.

 

•                     ULC’s deliberative and uniquely open drafting process draws on the expertise of commissioners, but also utilizes input from legal experts, and advisors and observers representing the views of other legal organizations or interests that will be subject to the proposed laws.

 

•                     ULC is a state-supported organization that represents true value for the states, providing services that most states could not otherwise afford or duplicate.

DRAFTING COMMITTEE OF NATIONAL CONFERENCE OF

COMMISSIONERS ON UNIFORM STATE LAWS

 

HARRY J. HAYNSWORTH, IV, 2200 IDS Center, 80 S. 8th St., Minneapolis, MN 55402, Chair

K. KING BURNETT, P.O. Box 910, Salisbury, MD 21803-0910

RONALD W. DEL SESTO, Del Sesto-Hall’s Building, 49 Weybosset St., Providence, RI 02903

STANLEY M. FISHER, 23240 Chagrin Blvd., Suite 450, Beachwood, OH 44122

STEVEN G. FROST, Suite 1400, 111 W. Monroe St., Chicago, IL 60603‑4080

CULLEN M. GODFREY, John B. Connally Bldg. 7th Flr., 301 Tarrow, College Station, TX 77840-7896

WILLIAM H. HENNING, University of Alabama, School of Law, P.O. Box 870382, Tuscaloosa, AL 35487-0382

DALE G. HIGER, 1302 Warm Springs Ave., Boise, ID 83712

HENRY M. KITTLESON, Winter Park Towers, 1111 S. Lakemont Ave., Apt. 511, Winter Park, FL 32792

LEON M. McCORKLE, JR., P.O. Box 256, One Dave Thomas Blvd., Dublin, OH 43017

DAVID S. WALKER, Drake University Law School, 2507 University Ave., Des Moines, IA 50311

ANN E. CONAWAY, Widener University, School of Law, 4601 Concord Pike, Wilmington, DE 19803, National Conference Reporter

 

EX OFFICIO

HOWARD J. SWIBEL, 120 S. Riverside Plaza, Suite 1200, Chicago, IL 60606, President

LANI LIU EWART, 1099 Alakea St., Suite 1800, Honolulu, HI 96813, Division Chair

 

EXECUTIVE DIRECTOR

JOHN A. SEBERT, 211 E. Ontario St., Suite 1300, Chicago, IL 60611, Executive Director

 

 

 

DRAFTING COMMITTEE OF AMERICAN BAR ASSOCIATION

 

GEORGE W. COLEMAN, 2626 Cole Ave., Suite 400, Dallas, TX 75204, Chair

WILLIAM H. CLARK, JR., One Logan Square, 18th & Cherry Streets, Philadelphia, PA 19103‑6996, ABA Reporter

 

SECTION ON BUSINESS LAW

JON T. HIRSCHOFF, 177 Broad St., 15th Floor, Stamford, CT 06901, Committee on Negotiated Acquisitions

PAUL L. LION, III, 755 Page Mill Rd., Palo Alto, CA 94304-1018, Committee on Venture Capital and Private Equity

LIZABETH A. MOODY, Stetson University College of Law, 1401 61^st St. S., Gulfport, FL 33706, Committee on Nonprofit Corporations

THOMAS E. RUTLEDGE, 2000 PNC Plaza, 500 W. Jefferson St., Louisville, KY 40202-2874, Committee on Partnerships and Unincorporated Business Entities

BRYN VAALER, 50 S. Sixth St., Minneapolis, MN 55402, Committee on Corporate Laws

 

SECTION ON REAL PROPERTY, PROBATE AND TRUST LAW

THOMAS EARL GEU, University of South Dakota, School of Law, 414 Clark St., Suite 214, Vermillion, SD 57069‑2390

ROBERT R. KEATINGE, Suite 3200, 555 17^th Street, Denver, CO 80202‑3979

CAROL G. KROCH, 1100 Market St., Rodney Square North, Wilmington, DE 19890

BARRY B. NEKRITZ, 8000 Sears Tower, 233 S. Wacker Dr., Chicago, IL 60606

 

SECTION ON TAX LAW

ROBERT R. CASEY, 8555 United Plaza Blvd, Suite 500, Baton Rouge, LA 70809

 

 

 

OBSERVERS

 

CARTER G. BISHOP, American University Law School, 4801 Massachusetts Ave. NW, Washington, DC 20016-8181

DANIEL S. KLEINBERGER, William Mitchell College of Law, 875 Summit Ave., St. Paul, MN 55105

MELISSA WANGEMANN, Kansas Secretary of State, 120 SW 10^th Ave., Topeka, KS 66612-1594

 

 

 

 

 

Copies of this Act may be obtained from:

 

NATIONAL CONFERENCE OF COMMISSIONERS

ON UNIFORM STATE LAWS

211 E. Ontario Street, Suite 1300,

Chicago, Illinois  60611

312/915‑0195

www.nccusl.org

 

AMERICAN BAR ASSOCIATION

SECTION ON BUSINESS LAW

321 N. Clark St.

Chicago, Illinois  60610

312/988-6244

www.abanet.org

MODEL ENTITY TRANSACTIONS ACT

 

TABLE OF CONTENTS

 

Prefatory Note.............................................................................................................................. 1

 

[ARTICLE]  1

GENERAL PROVISIONS

SECTION 101.  SHORT TITLE.................................................................................................. 5

SECTION 102.  DEFINITIONS.................................................................................................. 5

SECTION 103.  RELATIONSHIP OF [ACT] TO OTHER LAWS........................................... 19

SECTION 104.  REQUIRED NOTICE OR APPROVAL......................................................... 21

SECTION 105.  STATUS OF FILINGS................................................................................... 22

SECTION 106.  NONEXCLUSIVITY...................................................................................... 22

SECTION 107.  REFERENCE TO EXTERNAL FACTS.......................................................... 23

SECTION 108.  ALTERNATIVE MEANS OF APPROVAL OF TRANSACTIONS................ 23

[SECTION 109.  APPRAISAL RIGHTS.................................................................................... 23

[SECTION 110.  EXCLUDED ENTITIES AND TRANSACTIONS......................................... 25

 

[ARTICLE]  2

MERGER

SECTION 201.  MERGER AUTHORIZED............................................................................... 27

SECTION 202.  PLAN OF MERGER....................................................................................... 29

SECTION 203.  APPROVAL OF MERGER............................................................................. 31

SECTION 204.  AMENDMENT OR ABANDONMENT OF PLAN OF MERGER................ 33

SECTION 205.  STATEMENT OF MERGER; EFFECTIVE DATE......................................... 34

SECTION 206.  EFFECT OF MERGER................................................................................... 37

 

[ARTICLE] 3

INTEREST EXCHANGE

SECTION 301.  INTEREST EXCHANGE AUTHORIZED...................................................... 43

SECTION 302.  PLAN OF INTEREST EXCHANGE.............................................................. 45

SECTION 303.  APPROVAL OF INTEREST EXCHANGE.................................................... 46

SECTION 304.  AMENDMENT OR ABANDONMENT OF PLAN OF INTEREST EXCHANGE         50

SECTION 305.  STATEMENT OF INTEREST EXCHANGE; EFFECTIVE DATE................. 51

SECTION 306.  EFFECT OF INTEREST EXCHANGE........................................................... 52

 

 

 

 

[ARTICLE] 4

CONVERSION

SECTION 401.  CONVERSION AUTHORIZED..................................................................... 56

SECTION 402.  PLAN OF CONVERSION............................................................................. 57

SECTION 403.  APPROVAL OF CONVERSION................................................................... 58

SECTION 404.  AMENDMENT OR ABANDONMENT OF PLAN OF
CONVERSION................................................................................................................. 60

SECTION 405.  STATEMENT OF CONVERSION; EFFECTIVE DATE............................... 61

SECTION 406.  EFFECT OF CONVERSION......................................................................... 63

 

[ARTICLE] 5

DOMESTICATION

SECTION 501.  DOMESTICATION AUTHORIZED.............................................................. 68

SECTION 502.  PLAN OF DOMESTICATION...................................................................... 69

SECTION 503.  APPROVAL OF DOMESTICATION............................................................ 71

SECTION 504.  AMENDMENT OR ABANDONMENT OF PLAN OF
DOMESTICATION........................................................................................................... 72

SECTION 505.  STATEMENT OF DOMESTICATION; EFFECTIVE DATE......................... 74

SECTION 506.  EFFECT OF DOMESTICATION................................................................... 76

 

 [ARTICLE] 6

MISCELLANEOUS PROVISIONS

SECTION 601.  CONSISTENCY OF APPLICATION............................................................ 80

SECTION 602.  RELATION TO ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE ACT................................................................................................................................... 80

SECTION 603.  CONFORMING AMENDMENTS AND REPEALS...................................... 80

SECTION 604.  SAVINGS CLAUSE....................................................................................... 80

SECTION 605.  EFFECTIVE DATE......................................................................................... 80

 

APPENDIX 1

FILINGS

SECTION A1-1.  REQUIREMENTS FOR DOCUMENTS...................................................... 81

SECTION A1-2.  FORMS........................................................................................................ 83