GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1999
SESSION LAW 1999-204
AN ACT TO MAKE CERTAIN CHANGES TO THE NOTICE TO BE GIVEN UPON THE MERGER OF OR UPON THE SALE, LEASE, OR EXCHANGE OF THE ASSETS OF A CHARITABLE OR RELIGIOUS NONPROFIT CORPORATION UNDER THE NONPROFIT CORPORATION ACT.
The General Assembly of North Carolina enacts:
Section 1. G.S. 55A-11-02(b) reads as rewritten:
"(b) At least 20 30
days before consummation of any merger of a charitable or religious
corporation pursuant to subdivision (a)(4) of this section, notice, including a
copy of the proposed plan of merger, shall be delivered to the Attorney
General. This notice shall include all the information the Attorney
General determines is required for a complete review of the proposed
transaction. The Attorney General may require an additional 30-day period
to review the proposed transaction by providing written notice to the
charitable or religious corporation prior to the expiration of the initial
notice period. During this 30-day period, the transaction may not be
finalized."
Section 2. G.S. 55A-12-02(g) reads as rewritten:
"(g) A charitable or
religious corporation shall give written notice to the Attorney General 20 30
days before it sells, leases, exchanges, or otherwise disposes of all, or substantially
all, of a majority of, its property if the transaction is not in the
usual and regular course of its activities unless the Attorney General has
given the corporation a written waiver of this subsection. This notice shall
include all the information the Attorney General determines is required for a
complete review of the proposed transaction. The Attorney General may
require an additional 30-day period to review the proposed transaction by
providing written notice to the charitable or religious corporation prior to
the expiration of the initial notice period. During this 30-day period,
the transaction may not be finalized."
Section 3. This act becomes effective October 1, 1999, and applies to notices given on or after that date.
In the General Assembly read three times and ratified this the 10th day of June, 1999.
s/ Dennis A. Wicker
President of the Senate
s/ James B. Black
Speaker of the House of Representatives
s/ James B. Hunt, Jr.
Governor
Approved 1:25 p.m. this 21st day of June, 1999