State Legislation That Could Affect Small Businesses
House Bill 134 will make Ohio more competitive as a home for public companies and will encourage businesses of all sizes to continue to icorporate in Ohio. Portions of the act became effective on October 18, 2007. The remaining portions will become effective on January 1, 2008.
The act includes:
- Modifications to corporation law relating to the election of directors, allowing elections by a majority of votes. Currently, Ohio law states that the election of directors of a company must receive only a plurality of votes, which means that a director can be elected in an uncontested election with a single vote, with all other votes being case against the election or withheld from the election. House Bill 134 gives companies the option to change their incorporating documents.
- To provide for the majority of election directors;
- Clarifications that the members of an LLC may agree in advance to the procedures to be used if an individual member dies or t adjudged incompetent. This section clarifies the rights of the administrator of an estate vis a vis the business entity and its remaining members;
- Clarifications that limited liability partnerships in Ohio create a "full shield" against personal liability of partners for contract as well as for liability. It also makes retroactive to Aug. 19, 2005, provisions in the non-profit corporation law enacted in 2006 to permit voting by telephone through the internet and by mail without first amending the corporation’s articles or regulations.
More on Business Law
