The North Carolina General Assembly and Governor McCrory recently approved revisions to the North Carolina Business Corporation Act (the “Act”) that will become effective January 1, 2014. The revisions are designed to modernize and simplify certain provisions of the Act, including those relating to delegation of authority to officers to grant equity awards, short-form mergers and remote communications at shareholder meetings. In anticipation of these changes, North Carolina corporations should consider the implications of the revised Act and the effects that the revisions may have on their business practices. Because the revised Act will change the rights and obligations of corporations and shareholders in certain circumstances, corporations should consult with legal counsel to fully understand the items addressed in the client alert and their application to a corporation’s business practices.
Click here to read our client alert summarizing the revisions to the Act.