SB 0835 - Fiscal Note

Fiscal Note - SB 0835 - Regulates Stock, Shareholders & Close Corporations

L.R. NO.  3162-03
BILL NO.  Truly Agreed To And Finally Passed HCS for SB 835
SUBJECT:  Secretary of State: Corporations
TYPE:     Original
DATE:     May 13, 1996



                              FISCAL SUMMARY
                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999

None

Total Estimated
Net Effect on All
State Funds                     $0                  $0                $0


                   ESTIMATED NET EFFECT ON FEDERAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999

None

Total Estimated
Net Effect on All
Federal Funds                   $0                  $0                $0


                    ESTIMATED NET EFFECT ON LOCAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999

Local Government                $0                  $0                $0



                              FISCAL ANALYSIS

ASSUMPTION

Officials from the Office of the Secretary of State (SOS) stated there would
be no fiscal impact to their office.

Oversight assumes that there would be no state or local fiscal impact.


FISCAL IMPACT - State Government   FY 1997   FY 1998   FY 1999
                                  (10 Mo.)

                                        $0        $0        $0


FISCAL IMPACT  - Local Government  FY 1997   FY 1998   FY 1999
                                  (10 Mo.)

                                        $0        $0        $0



DESCRIPTION

This act proposes numerous modifications to Chapter 351, RSMo, General and
Business Corporations.

References to "preferred" stock have been deleted and replaced with "any
class or series of stock".  The words "or postponement" were added to all
references regarding the adjournment of director or shareholder meetings.

A new subsection has been added to Section 351.245, RSMo, which delineates
some of the ways in which a shareholder can authorize a person to act as a
proxy.

Section 351.320, RSMo, as well as proposed subsection 351.265.2, address the
postponement and adjournment of shareholder meetings.

This proposal allows service of process to the registered agents of the
corporations to be had at the business or residential address; and modifies
current law to clearly indicate that the close corporation statutes are
controlling in the absence of a valid agreement to the contrary.

Section 351. 483, RSMo, has been deleted.

Lastly, Section 351.488, RSMo, has been deleted.

This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.


SOURCES OF INFORMATION

Secretary of State