FINAL BILL REPORT

SB 5583

                              C 165 L 89

BYSenators Pullen, Newhouse, Nelson, Rasmussen and Talmadge

Replacing the Washington business corporation act.

Senate Committee on Law & Justice

House Committe on Judiciary

SYNOPSIS AS ENACTED

BACKGROUND:

The present Washington Business Corporation Act (RCW 23A) adopted in 1965 was based largely on the Model Business Corporation Act proposed by the Committee on Corporate Laws of the American Bar Association.  In 1984, the Model Business Corporation Act was completely revised in response to extensive comments by parties throughout the country.  The 1984 Revised Model Business Corporation Act contains significant improvements over the prior version in organization, language, and concepts.

Concern exists that the provisions contained in the existing Washington Business Corporation Act are outdated.  It is suggested that the present act be amended to incorporate provisions of the 1984 Revised Model Business Corporation Act.

SUMMARY:

The Washington Business Corporation Act is substantially revised to incorporate provisions of the 1984 Revised Model Business Corporation Act.

Technical changes in language are added.

Appropriate methods of written and oral notice are clarified.

VOTES ON FINAL PASSAGE:

     Senate   48    0

     House 96  0

EFFECTIVE:July 23, 1989