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7 LONG TITLE
8 Committee Note:
9 The Business and Labor Interim Committee recommended this bill.
10 General Description:
11 This bill modifies the Utah Revised Business Corporation Act to address mergers.
12 Highlighted Provisions:
13 This bill:
14 . clarifies that a corporation may merge with other business entities; and
15 . makes technical and conforming amendments.
16 Money Appropriated in this Bill:
18 Other Special Clauses:
20 Utah Code Sections Affected:
22 16-10a-1101, as last amended by Laws of Utah 2010, Chapter 378
23 16-10a-1107, as last amended by Laws of Utah 2008, Chapter 364
25 Be it enacted by the Legislature of the state of Utah:
26 Section 1. Section 16-10a-1101 is amended to read:
27 16-10a-1101. Merger.
28 (1) [
29 another [
30 (a) the board of directors of [
31 shareholders, if required by Section 16-10a-1103 , approve the plan of merger[
32 (b) any other entity that plans to merge approves the plan of merger as provided by the
33 statutes governing the entity.
34 (2) The plan of merger referred to in Subsection (1) shall set forth:
35 (a) the name of each [
36 surviving [
37 (b) the terms and conditions of the merger;
38 (c) the manner and basis of converting the [
39 ownership interests in each entity, in whole or part, into:
40 (i) ownership interests, obligations, or other securities of the surviving [
42 (ii) cash or other property [
43 (d) any amendments to the articles of incorporation or organization of the surviving
45 (3) The plan of merger may set forth other provisions relating to the merger.
46 Section 2. Section 16-10a-1107 is amended to read:
47 16-10a-1107. Merger or share exchange with foreign corporations.
48 (1) [
49 merge with a foreign entity or enter into a share exchange with [
51 (a) in a merger, the merger is permitted by the law of the state or country under whose
52 law [
54 (b) in a share exchange, the corporation whose shares will be acquired is a domestic
55 corporation, whether or not a share exchange is permitted by the law of the state or country
56 under whose law the acquiring corporation is incorporated;
57 (c) the foreign corporation complies with Section 16-10a-1105 if it is the surviving
58 corporation of the merger or the acquiring corporation of the share exchange, and provides, in
59 addition to the information required by Section 16-10a-1105 , the address of its principal office;
61 (d) [
62 (i) the applicable provisions of Sections 16-10a-1101 through 16-10a-1104 ; and[
63 (ii) if it is the surviving corporation of the merger [
64 (2) Upon the merger or share exchange taking effect, the surviving foreign
67 (a) agree that service of process in a proceeding to enforce the rights of shareholders of
68 each domestic corporation that is a party to the merger who exercise appraisal rights may be
69 made in the manner provided in Section 16-17-301 ;
70 (b) promptly pay to the dissenting shareholders of each domestic corporation party to
71 the merger or share exchange the amount, if any, to which they are entitled under Part 13,
72 Dissenters' Rights; and
73 (c) comply with Part 15, Authority of Foreign Corporation to Transact Business, if it is
74 to transact business in this state.
75 (3) Service effected pursuant to Subsection (2) is perfected at the earliest of:
76 (a) the date the foreign [
77 (b) the date shown on the return receipt, if signed on behalf of the foreign [
78 entity; or
79 (c) five days after mailing.
80 (4) Subsection (2) does not prescribe the only means, or necessarily the required
81 means, of serving a surviving foreign [
82 corporation in a share exchange.
83 (5) This section does not limit the power of a foreign corporation to acquire all or part
84 of the shares of one or more classes or series of a domestic corporation through a voluntary
85 exchange of shares or otherwise.
Legislative Review Note
as of 10-21-10 10:58 AM