Earlier this year, New Hampshire Governor Maggie Hassan signed into law Senate Bill 41 (SB 41), which will significantly revise the Business Corporations Act when it goes into effect on January 1, 2014. The bill will update the laws that govern how corporations form, operate and dissolve in the state. Originally passed in 1993, the Business Corporations Act has undergone only minor changes since its inception. In a press release dated June 27, 2013, Governor Hassan was quoted as saying:
“Our focus remains on supporting New Hampshire’s existing businesses and attracting new companies so we can create good jobs and build a more innovative economic future. SB 41 is an important part of these efforts, providing much-needed updates to the New Hampshire Corporations Act that will help spur economic development, create jobs and make New Hampshire an even more desirable place to do business.”
Among other changes, the revised act will allow shareholders to attend shareholder meetings via remote participation (phone and Internet); change the standard for when a sale of assets by a corporation requires shareholder approval; and make it clear that directors have broad-ranging inspection rights to a corporation’s books, records and other documents.
Supporters of the revised act hope that the updates will make doing business in the state more appealing–potentially drawing more out-of-state business to the Granite State.
For more on SB 41 and the impending changes it will implement, read the bill in its entirety here.