Bill 81

                    Current Status

Bill Number:                       81
Type of Legislation:               General Bill GB
Introducing Body:                  Senate
Introduced Date:                   19970114
Primary Sponsor:                   Rose 
All Sponsors:                      Rose 
Drafted Document Number:           s-res\rose\res1124.mtr
Residing Body:                     Senate
Current Committee:                 Judiciary Committee 11 SJ
Subject:                           Incorporation, articles of;
                                   attorney not required to file
                                   certificate when, businesses and
                                   corporations

Body    Date      Action Description                       Com     Leg Involved
______  ________  _______________________________________  _______ ____________

Senate  19970114  Introduced, read first time,             11 SJ
                  referred to Committee

A BILL

TO AMEND SECTION 33-2-102, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ARTICLES OF INCORPORATION, SO AS TO DELETE THE REQUIREMENT THAT A LICENSED ATTORNEY FILE A CERTIFICATION THAT THE REQUIREMENTS FOR INCORPORATION HAVE BEEN MET.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Section 33-2-102 of the 1976 Code is amended to read:

"Section 33-2-102. (a) The articles of incorporation must set forth:

(1) a corporate name for the corporation that satisfies the requirements of Section 33-4-101;

(2) the number of shares the corporation is authorized to issue, itemized by classes;

(3) the street address of the corporation's initial registered office and the name of its initial registered agent at that office;

(4) the name and address of each incorporator; and

(5) the signature of each incorporator; and.

(6) a certificate, signed by an attorney licensed to practice in this State, that all of the requirements of this section have been complied with.

(b) The articles of incorporation may set forth:

(1) The the names and addresses of the individuals who are to serve as the initial directors;

(2) Provisions provisions not inconsistent with the law regarding:

(i) the purpose for which the corporation is organized;

(ii) managing the business and regulating the affairs of the corporation;

(iii) defining, limiting, and regulating the powers of the corporation, its board of directors, and shareholders;

(iv) a par value for authorized shares or classes of shares;

(v) the imposition of personal liability on shareholders for the debts of the corporation to a specified extent and upon specified conditions; and

(3) any provision that under Chapters 1 through 20 of this Title title is required or permitted to be set forth in the bylaws.

(c) The articles of incorporation need not set forth any of the corporate powers enumerated in Chapters 1 through 20 of this Title title.

(d) To be filed, the articles of incorporation must additionally be accompanied by the initial annual report of the corporation as specified in Section 12-19-20.

(e) The articles of incorporation of any corporation that either has a class of voting shares registered with the Securities and Exchange Commission or another federal agency under Section 12 of the Securities Exchange Act of 1934, has gross assets at the end of its most recent fiscal year totaling twenty-five million dollars or more or having five hundred or more shareholders of any class of stock, may also contain a provision eliminating or limiting the personal liability of a director to the corporation or its shareholders for monetary damages for breach of fiduciary duty as a director, provided that the provision shall not eliminate or limit the liability of a director (i) for any breach of the director's duty of loyalty to the corporation or its stockholders; (ii) for acts or omissions not in good faith or which involve gross negligence, intentional misconduct, or a knowing violation of law; (iii) imposed under Section 33-8-330; or (iv) for any transaction from which the director derived an improper personal benefit. No such provision shall eliminate or limit the liability of a director for any act or omission occurring prior to the date when the provision becomes effective. If any provision of this subsection or its application to any person is held invalid, unenforceable, or unconstitutional, this invalidity, unenforceability, or unconstitutionality shall negate the other provisions or applications of this subsection, and to this end, the provisions of this subsection are not severable."

SECTION 2. This act takes effect upon approval by the Governor.