Chapter 096

2007 -- H 6247

Enacted 06/27/06

A N A C T

RELATING TO CORPORATIONS, ASSOCIATIONS AND PARTNERSHIPS -- RHODE ISLAND BUSINESS CORPORATION ACT

Introduced By: Representatives Serpa, Fellela, Silva, Melo, and Vaudreuil

Date Introduced: April 04, 2007

It is enacted by the General Assembly as follows:

     SECTION 1. Section 7-1.2-1006 of the General Laws in Chapter 7-1.2 entitled "Rhode

Island Business Corporation Act" is hereby amended to read as follows:

7-1.2-1006. Merger of domestic and foreign corporations Merger of domestic and

foreign corporations or other business entities. -- (a) One or more foreign corporations or other

domestic or foreign business entities, and one or more domestic corporations may be merged in

the following manner, if the merger is permitted by the laws of the state under which each foreign

corporation or other business entity, is organized:

      (1) Each domestic corporation shall comply with the provisions of this chapter with

respect to the merger of domestic corporations, and each foreign corporation or other business

entity, shall comply with the applicable provisions of the laws of the state under which it is

organized.

      (2) If the surviving or new corporation, or other business entity, as the case may be, is to

be governed by the laws of any state other than this state, it shall comply with the provisions of

this chapter with respect to foreign corporations (or in the case of other business entities, such

chapter of the Rhode Island general laws relating to such other business entities) if it is to transact

business in this state, and in every case it shall file with the secretary of state of this state:

      (i) An agreement that it may be served with process in this state in any proceeding for

the enforcement of any obligation of any domestic corporation which is a party to the merger and

in any proceeding for the enforcement of the rights of a dissenting shareholder of any domestic

corporation against the surviving or new corporation;

      (ii) An irrevocable appointment of the secretary of state of this state as its agent to accept

service of process in any proceeding; and

      (iii) An agreement that it will promptly pay to the dissenting shareholders of any

domestic corporation the amount, if any, to which they are entitled under the provisions of this

chapter regarding the rights of dissenting shareholders.

      (b) The effect of the merger is the same as in the case of the merger of domestic

corporations, if the surviving or new corporation or other business entity is to be governed by the

laws of this state. If the surviving or new corporation is to be governed by the laws of any state

other than this state, the effect of the merger is the same as in the case of the merger of domestic

corporations except insofar as the laws of the other state provide otherwise.

      (c) At any time prior to the filing of the articles of merger, the merger may be abandoned

pursuant to provisions for abandonment, if any, stated in the plan of merger.

(d) As used in this section, "other business entity" means a business trust or association, a

real estate investment trust, a common-law trust, a limited liability company or an unincorporated

business, including a partnership, whether general or limited.

     SECTION 2. This act shall take effect upon passage.

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LC02832

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