- Ratification of Defective Corporate Acts – The proposed legislation would allow corporations to ratify and correct corporate acts if they are found to be defective. Currently there is no recourse for these defective acts.
- Formula for Consideration in Stock Issuance – The board would have the authority to establish a formula to be used when determining what consideration the corporation should receive for stock issuance.
- Public Benefit Corporations – A new section would be added specifically governing public benefit corporations and their uses.
- Shelf Corporations – An important piece of this proposed legislation is the limitation on shelf corporations. Incorporators would only be allowed to sign the initial annual franchise tax report and only the directors or stockholders would be allowed to authorize revival of a corporation which is no longer in good standing.