Chapter 2 — BUSINESS CORPORATIONS. - Alabama Statutes

Statutes > Alabama Statutes > Title 10A — ALABAMA BUSINESS AND NONPROFIT ENTITIES CODE. > Chapter 2 — BUSINESS CORPORATIONS.

Chapter 2 — BUSINESS CORPORATIONS.

Article 1 General Provisions.

Division A Short Title and Applicability.

Section 10A-2-1.01 Short title and applicability.

Division B Filing Instruments.

Section 10A-2-1.20
Section 10A-2-1.21 Filing fees.
Section 10A-2-1.22 Reserved.
Section 10A-2-1.40 Definitions applicable to business corporations.
Section 10A-2-1.41 Notice.

Article 2 Formation and Governing Documents.

Section 10A-2-2.01 Incorporators.
Section 10A-2-2.02 Supplemental provisions required or permitted in articles of incorporation.
Section 10A-2-2.03 Incorporation.
Section 10A-2-2.04 Liability for preincorporation transactions.
Section 10A-2-2.05 Organization of corporation.
Section 10A-2-2.06 Bylaws.
Section 10A-2-2.07 Emergency bylaws.
Section 10A-2-2.08 Incorporation by purchasers of property or franchise of corporation.

Article 3 Purposes and Powers.

Section 10A-2-3.01 Purpose.
Section 10A-2-3.02 General powers.
Section 10A-2-3.03 Emergency powers.
Section 10A-2-3.04 Ultra vires.

Article 4 Reserved.
Article 5 Reserved.
Article 6 Shares and Distributions.

Division A Shares.

Section 10A-2-6.01 Authorized shares.
Section 10A-2-6.02 Terms of class or series determined by board of directors.
Section 10A-2-6.03 Issued and outstanding shares.
Section 10A-2-6.04 Fractional shares.

Division B Issuance of Shares.

Section 10A-2-6.20 Subscription for shares before incorporation.
Section 10A-2-6.21 Issuance of shares.
Section 10A-2-6.22 Liability of shareholders and subscribers.
Section 10A-2-6.23 Share dividends.
Section 10A-2-6.24 Share options.
Section 10A-2-6.25 Corporate shares as personal property; transferability.
Section 10A-2-6.26 Reserved.
Section 10A-2-6.27 Restriction on transfer of shares and other securities.
Section 10A-2-6.28 Expense of issue.

Division C Subsequent Acquisition of Shares by Shareholders and Corporation.

Section 10A-2-6.30 Shareholders' preemptive rights.
Section 10A-2-6.31 Corporation's acquisition of its own shares.
Section 10A-2-6.32 Cancellation of reacquired shares.

Division D Distributions.

Section 10A-2-6.40 Distributions to shareholders.

Article 7 Shareholders.

Division A Meetings.

Section 10A-2-7.01 Annual meeting.
Section 10A-2-7.02 Special meeting.
Section 10A-2-7.03 Court-ordered meeting.
Section 10A-2-7.04 Action without meeting.
Section 10A-2-7.05 Notice of meeting.
Section 10A-2-7.06 Waiver of notice.
Section 10A-2-7.07 Record date.

Division B Voting.

Section 10A-2-7.20 Shareholders' list for meeting.
Section 10A-2-7.21 Voting entitlement of shares.
Section 10A-2-7.22 Proxies.
Section 10A-2-7.23 Shares held by nominees.
Section 10A-2-7.24 Corporation's acceptance of votes.
Section 10A-2-7.25 Quorum and voting requirements for voting groups.
Section 10A-2-7.26 Action by single and multiple voting groups.
Section 10A-2-7.27 Greater quorum or voting requirements.
Section 10A-2-7.28 Voting for directors; cumulative voting.

Division C Voting Trusts and Agreements.

Section 10A-2-7.30 Voting trust.
Section 10A-2-7.31 Voting agreements.
Section 10A-2-7.32 Shareholder agreements.

Division D Infant Stockholders.

Section 10A-2-7.33 Corporation without notice of infancy may treat infant as having capacity to vote, transfer, etc.
Section 10A-2-7.34 Infant not entitled to disaffirm as against corporation without notice of infancy.
Section 10A-2-7.35 Right of infant to receive dividends in own name.
Section 10A-2-7.36 Effect of chapter on Transfers to Minors Act, etc.

Article 8 Directors and Officers.

Division A Board of Directors.

Section 10A-2-8.01 Requirements for and duties of board of directors.
Section 10A-2-8.02 Qualifications of directors.
Section 10A-2-8.03 Number and election of directors.
Section 10A-2-8.04 Election of directors by certain classes of shareholders.
Section 10A-2-8.05 Terms of directors generally.
Section 10A-2-8.06 Staggered terms for directors.
Section 10A-2-8.07 Resignation of directors.
Section 10A-2-8.08
Section 10A-2-8.09 Removal of directors by judicial proceeding.
Section 10A-2-8.10 Vacancy on board.
Section 10A-2-8.11 Compensation of directors,

Division B Meetings and Actions of the Board.

Section 10A-2-8.20 Meetings.
Section 10A-2-8.21 Action without meeting.
Section 10A-2-8.22 Notice of meeting.
Section 10A-2-8.23 Waiver of notice.
Section 10A-2-8.24 Quorum and voting.
Section 10A-2-8.25 Committees.

Division C Standards of Conduct.

Section 10A-2-8.30 General standards for directors.
Section 10A-2-8.31 Fiduciary obligations not impaired.
Section 10A-2-8.32 Depreciating stocks or bonds of corporation with intent to buy.
Section 10A-2-8.33 Liability for unlawful distributions.

Division D Officers.

Section 10A-2-8.40 Required officers.
Section 10A-2-8.41 Duties of officers.
Section 10A-2-8.42 Standards of conduct for officers.
Section 10A-2-8.43 Resignation and removal of officers.
Section 10A-2-8.44 Contract rights of officers.

Division E Indemnification.

Section 10A-2-8.50 Definitions.
Section 10A-2-8.51 Authority to indemnify.
Section 10A-2-8.52 Mandatory indemnification.
Section 10A-2-8.53 Advance for expenses.
Section 10A-2-8.54 Court-ordered indemnification.
Section 10A-2-8.55 Determination and authorization of indemnification.
Section 10A-2-8.56 Indemnification of officers, employees, and agents.
Section 10A-2-8.57 Insurance.
Section 10A-2-8.58 Application of indemnification provisions.

Division F Directors' Conflicting Interest Transactions.

Section 10A-2-8.60 Definitions.
Section 10A-2-8.61 Judicial action.
Section 10A-2-8.62 Directors' action.
Section 10A-2-8.63 Shareholders' action.

Article 9 Reserved.
Article 10 Amendment of Articles of Incorporation and Bylaws.

Division A Amendment of Articles of Incorporation.

Section 10A-2-10.01 Authority to amend articles of incorporation.
Section 10A-2-10.02 Amendment by board of directors.
Section 10A-2-10.03 Amendment by board of directors and shareholders.
Section 10A-2-10.04 Voting on amendments by voting groups.
Section 10A-2-10.05 Amendment before issuance of shares.
Section 10A-2-10.06 Articles of amendment.
Section 10A-2-10.07 Restated articles of incorporation.
Section 10A-2-10.08 Amendment pursuant to reorganization.
Section 10A-2-10.09 Effect of amendment.

Division B Amendment of Bylaws.

Section 10A-2-10.20 Amendment by board of directors or shareholders.
Section 10A-2-10.21 Bylaw increasing quorum or voting requirement for shareholders.
Section 10A-2-10.22 Bylaw increasing quorum or voting requirement for directors.

Article 11 Merger and Share Exchange.

Section 10A-2-11.01 Merger.
Section 10A-2-11.02 Share exchange.
Section 10A-2-11.03 Action on plan.
Section 10A-2-11.04 Merger of subsidiary.
Section 10A-2-11.05 Articles of merger or share exchange.
Section 10A-2-11.06 Effect of merger or share exchange.
Section 10A-2-11.07 Merger or share exchange with foreign corporation.
Section 10A-2-11.08 Nonexclusive.

Article 12 Sale or Mortgage of Assets.

Section 10A-2-12.01 Sale of assets in regular course of business and mortgage of assets.
Section 10A-2-12.02 Sale of assets other than in regular course of business.

Article 13 Dissenters' Rights.

Division A Right to Dissent and Obtain Payment for Shares.

Section 10A-2-13.01 Definitions.
Section 10A-2-13.02 Right to dissent.
Section 10A-2-13.03 Dissent by nominees and beneficial owners.

Division B Procedure for Exercise of Dissenters' Rights.

Section 10A-2-13.20 Notice of dissenters' rights.
Section 10A-2-13.21 Notice of intent to demand payment.
Section 10A-2-13.22 Dissenters' notice.
Section 10A-2-13.23 Duty to demand payment.
Section 10A-2-13.24 Share restriction.
Section 10A-2-13.25 Offer of payment.
Section 10A-2-13.26 Failure to take corporate action.
Section 10A-2-13.27 Reserved.
Section 10A-2-13.28 Procedure if shareholder dissatisfied with offer to payment.

Division C Judicial Appraisal of Shares.

Section 10A-2-13.30 Court action.
Section 10A-2-13.31 Court costs and counsel fees.
Section 10A-2-13.32 Status of shares after payment.

Article 14 Dissolution.

Division A Voluntary Dissolution.

Section 10A-2-14.01 Dissolution by incorporators or initial directors
Section 10A-2-14.02 Dissolution by board of directors and shareholders.
Section 10A-2-14.03 Articles of dissolution.
Section 10A-2-14.04 Revocation of dissolution.
Section 10A-2-14.05 Effect of dissolution.

Division B Administrative Dissolution.

Section 10A-2-14.20 Grounds for administrative dissolution.
Section 10A-2-14.21 Procedure for and effect of administrative dissolution.
Section 10A-2-14.22 Reinstatement following administrative dissolution.
Section 10A-2-14.23 Appeal from denial of reinstatement.

Division C Judicial Dissolution.

Section 10A-2-14.30 Grounds for judicial dissolution.
Section 10A-2-14.31 Procedure for judicial dissolution.
Section 10A-2-14.32 Receivership or custodianship.
Section 10A-2-14.33 Decree of dissolution.
Section 10A-2-14.34 Election to purchase in lieu of dissolution.

Division D Miscellaneous.

Section 10A-2-14.40 Deposit with State Treasurer.

Article 15 Foreign Corporations.

Division A Registration.

Section 10A-2-15.01 Registration required to transact business.
Section 10A-2-15.02 Consequences of transacting business without registering.

Division B Reserved.
Division C Reserved.
Division D Acting in a Fiduciary Capacity.

Section 10A-2-15.40 Definitions.
Section 10A-2-15.41 Authority of foreign corporation to act as fiduciary.
Section 10A-2-15.42 Filing of verified statement with Commissioner of Revenue by foreign corporation prior to acting as fiduciary.
Section 10A-2-15.43 Foreign corporation acting as fiduciary not deemed doing business in this state.
Section 10A-2-15.44 Foreign corporation previously acting in fiduciary capacity in state.
Section 10A-2-15.45 Service of process on foreign corporation acting in fiduciary capacity.

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Chapter 2 — BUSINESS CORPORATIONS.