TITLE 30

CORPORATIONS

CHAPTER 22

ENTITY TRANSACTIONS

PART 3

INTEREST EXCHANGE

30-22-304.  AMENDMENT OR ABANDONMENT OF PLAN OF INTEREST EXCHANGE. (a) A plan of interest exchange may be amended only with the consent of each party to the plan, except as otherwise provided in the plan.

(b)  A domestic acquired entity may approve an amendment of a plan of interest exchange:

(1)  In the same manner as the plan was approved, if the plan does not provide for the manner in which it may be amended; or

(2)  By its governors or interest holders in the manner provided in the plan, but an interest holder that was entitled to vote on or consent to approval of the interest exchange is entitled to vote on or consent to any amendment of the plan that will change:

(A)  The amount or kind of interests, securities, obligations, money, other property, rights to acquire interests or securities, or any combination of the foregoing, to be received by any of the interest holders of the acquired entity under the plan;

(B)  The public organic record, if any, or private organic rules of the acquired entity that will be in effect immediately after the interest exchange becomes effective, except for changes that do not require approval of the interest holders of the acquired entity under its organic law or organic rules; or

(C)  Any other terms or conditions of the plan, if the change would adversely affect the interest holder in any material respect.

(c)  After a plan of interest exchange has been approved and before a statement of interest exchange becomes effective, the plan may be abandoned as provided in the plan. Unless prohibited by the plan, a domestic acquired entity may abandon the plan in the same manner as the plan was approved.

(d)  If a plan of interest exchange is abandoned after a statement of interest exchange has been delivered to the secretary of state for filing and before the statement becomes effective, a statement of abandonment, signed by the acquired entity, must be delivered to the secretary of state for filing before the statement of interest exchange becomes effective. The statement of abandonment takes effect on filing, and the interest exchange is abandoned and does not become effective. The statement of abandonment must contain:

(1)  The name of the acquired entity;

(2)  The date on which the statement of interest exchange was filed by the secretary of state; and

(3)  A statement that the interest exchange has been abandoned in accordance with this section.

History:

[30-22-304, added 2015, ch. 243, sec. 19, p. 795.]