Alabama Business and Nonprofit Entity Code revised; makes technical changes and corrects references, and codifies practices relating to electronic filing and name reservations

Senate Bill 197 revises the Alabama Business and Nonprofit Entity Code, impacting various business structures including corporations, limited liability companies, and partnerships. The bill makes technical corrections, codifies existing practices for electronic filing and name reservations, and formalizes the common law doctrine of independent legal significance. It clarifies procedures for approving, naming, and setting termination fees in merger agreements, and establishes a ratification process for improperly approved documents. Additionally, the bill simplifies the process for purchasing ownership interests upon the death or disqualification of a stockholder or member in professional corporations, LLCs, and partnerships, and allows for the transfer of transferable interests upon death in certain entities.