Late last month, the Nevada Committee on Judiciary introduced a bill that would, among numerous other things, authorize forum selection provisions in corporate and other Nevada entity charters. If SB 441 is enacted, a management person or owner of any entity may consent to:
- be subject to the nonexclusive jurisdiction of, or arbitration in, a specified jurisdiction or the exclusive jurisdiction of the Nevada courts; or
- the exclusivity of arbitration in a specified jurisdiction or the State of Nevada.
Although the bill defines the terms “entity” and “management person” to include a corporation and directors and officers, the subsection described above would not apply to any entity that is a corporation.
The bill would also make numerous other changes to Nevada’s business entity laws, including establishing an implied consent to service of process similar to that enacted by Delaware in 1977. See Non-Resident Officers And Directors Found Subject to Personal Jurisdiction Of Nevada Courts.
Federal Elections May Be On Par With Horse Races
On the same day, the Committee on Judiciary also introduced a bill, SB 418, that would permit pari-mutuel betting on the outcome of federal elections. A “federal election” is defined as any presidential election, general election, primary election or special election held solely or in part for the purpose of selecting, nominating or electing any candidate for the office of President or Vice President of the United States, presidential elector, member of the United States Senate or member of the United States House of Representatives. Because supporters always predict the worst if the other candidate wins the White House, this bill could create a technique for hedging against the predicted catastrophe of the other side winning.