The NC Chamber recently consulted with Smith Anderson partner Dave Clement regarding the significant enhancements Senate Bill 622: Business Corporation Act Revisions made to North Carolina corporate law. Dave played a key role in the drafting of this bill and explained to the Chamber what these changes mean for businesses and North Carolina’s business climate.
Dave highlighted the main point of the bill, which is intended to make North Carolina “an even more business-friendly jurisdiction.” He added that the revisions are meant to “make it easier to attract and retain qualified businesspersons as officers or board members of North Carolina corporations, to help boards of directors carry out their duties more efficiently, and to make corporate reorganizations and acquisitions quicker and more efficient.”
When asked how the bill will affect companies in North Carolina, Dave noted, “All of the provisions included in the law are available to any business that chooses to organize itself as a North Carolina corporation and for a few of the provisions, takes necessary action prescribed by the Act to be covered by the provision. For example, an existing North Carolina corporation that wants to take advantage of the Act’s provision that allows it to limit or eliminate, in advance, the duty of a director or officer to bring specified business opportunities to the corporation would need to amend its articles of incorporation for that purpose.”
While the amendments have only been in effect since October 1st, Dave recommends that North Carolina businesses and their directors and officers have a complete understanding of how these changes will impact them. For an overview of the bill, readers can reference Dave’s recent blog post here.
Dave leads Smith Anderson’s technology group and practices technology and business law with an emphasis on technology contracting and licensing, intellectual property, data use, privacy and security, strategic and commercial contracting, including joint ventures, collaborations and alliances, mergers and acquisitions, and federal government contracting matters. Dave serves as the chair of the Business Corporations Committee of the North Carolina Bar Association’s Business Law Section in addition to numerous other volunteer positions, including with Lawyers 4 Literacy, which is a volunteer reading program of the NCBA Foundation.
Read the Chamber's full Q&A here.