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Legislative Year: 2020 Change
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Bill Detail: HB20-1013

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Title Specify Procedure Ratify Defective Corporate Actions
Status Governor Signed (03/20/2020)
Bill Subjects
  • Financial Services & Commerce
House Sponsors M. Snyder (D)
Senate Sponsors P. Lee (D)
House Committee Business Affairs and Labor
Senate Committee Business, Labor and Technology
Date Introduced 01/08/2020
Description

The bill provides a statutory procedure for the ratification or
validation of corporate actions that may not have been properly
authorized and for shares that may not have been properly issued. The
statutory ratification procedure supplements common-law ratification and
is available only when the board of directors specifies the nature of the
defective authorization. Prompt judicial review and validation of the

ratification process is available when a listed person claims to be
substantially and adversely affected by the ratification.

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Fiscal Notes Fiscal Notes (01/15/2020) (most recent)  
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