This fiscal note contains 3 pages. Section 350.055 seeks to permit a corporation to limit the personal liability of a director of a corporation to the shareholders in certain situations. Section 351.245 would limit the ability to vote shares owned by the corporation. Section 350.3000 would permit a corporation to pay cash in lieu of issuing fractional shares of stock. Officials assume no fiscal impact to their office, or to total State Revenues.
Oversight assumes no fiscal impact to local governments.
No direct fiscal impact to small businesses would be expected as a result of this proposal. This bill modifies statutes relating to corporations by allowing the articles of incorporation to set forth a provision limiting the personal liability of a director to the corporation or its shareholders. The articles of incorporation may include provisions concerning the indemnification of a director, officer, or employee of the corporation when that person has been successful on the merits in defending an action related to the fact that the person was a director, officer, employee of the corporation. The bill also prohibits a person from being admitted to vote on any shares belonging to the corporation which issued the shares. In addition, a corporation is authorized to pay cash equal to the value of a fractional share.