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Entity Rationalization in the US – The Model Entity Transactions Act (META)
With the introduction and proliferation of new corporate entities such as the Limited Liability Company and the Limited Liability Partnership over the past few decades, for the most part state statutes have not kept pace with the requirements posed by differing entities with different characteristics. For example, only a few states such as Delaware, Wyoming and Nevada offer conversion provisions allowing a corporation to convert to a Limited Liability Company and the reverse.
In the annual meeting of the National Public Records Research Association recently held in San Diego, an association of companies (of which IBCF is one) devoted to providing public record services, William H. Clark, Jr., a Partner with Drinker Biddle & Reath LLP in Philadelphia, presented the current work by the National Conference of Commissioners on Uniform State Laws (NCCUSL) in this area.
NCCUSL in conjunction with the American Bar Association has drafted the Model Entity Transactions Act which authorizes cross-species transactions such as mergers and consolidations, interest exchanges, conversions and domestications and authorizes these transactions in a same-species environment if not provided for under current entity law. Although META is now final, the drafting committees are continuing to meet to prepare additional provisions on divisions.
The text of META can be viewed at http://www.law.upenn.edu/bll/ulc/ulc_frame.htm. The next step is the adoption of the Act by the various states.
More
information can be found by visiting
our website at www.ibcf.com,
or by emailing us at clientsupport@ibcf.com.
Previous
issues of the IBCF Newsletter can be
found at: http://www.ibcf.com/news/newshome.php
About
IBCF:
International
Business Company Formation, Inc. assists
legal professionals with company formation,
both internationally and offshore, and
with registered agent and corporate
document retrieval services throughout
the world.
International Business Company Formation
is an affiliate of National Registered
Agents, Inc., a fully licensed professional
Registered Agent for thousands of business
entities, large and small, throughout
the entire United States.
International
Business Company Formation, Inc. is
located in the historic district of
Tappan, New York, approximately thirty
minutes from midtown Manhattan.
International Business Company Formation,
Inc.
101 Main Street, Suite One
Tappan, New York 10983
Toll Free: 888-664-6263
Phone: 845-398-0900
Fax: 845-398-0808
www.ibcf.com
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