| 1 | A bill to be entitled |
| 2 | An act relating to corporations; amending s. 607.1109, |
| 3 | F.S.; exempting a domestic corporation from the |
| 4 | requirement to file articles of merger under certain |
| 5 | circumstances; amending s. 607.1113, F.S.; exempting a |
| 6 | domestic corporation from the requirement to file a |
| 7 | certificate of conversion under certain circumstances; |
| 8 | amending s. 607.1115, F.S.; requiring that each converting |
| 9 | entity file a certificate of conversion with the |
| 10 | Department of State; amending s. 608.4382, F.S.; exempting |
| 11 | a domestic limited liability company from the requirement |
| 12 | to file a certificate of merger under certain |
| 13 | circumstances; amending s. 608.439, F.S.; including a |
| 14 | corporation within the definition of "other business |
| 15 | entity" or "another business entity"; requiring that each |
| 16 | converting entity file a certificate of conversion with |
| 17 | the department; amending s. 608.4403, F.S.; exempting a |
| 18 | limited liability company from the requirement to file a |
| 19 | certificate of conversion under certain circumstances; |
| 20 | amending s. 617.1108, F.S.; exempting a domestic |
| 21 | corporation not for profit from the requirement to file |
| 22 | articles of merger under certain circumstances; providing |
| 23 | for a copy of articles of merger or the certificate of |
| 24 | merger to be filed in each county in which real property |
| 25 | of a party to the merger is situated; amending s. |
| 26 | 620.1406, F.S.; revising the requirements for general |
| 27 | partners with respect to exercising certain management |
| 28 | rights; providing that the expulsion of a limited partner |
| 29 | requires the consent of all of the other limited partners; |
| 30 | amending s. 620.2104, F.S.; requiring that a certificate |
| 31 | of conversion be signed by each general partner and by the |
| 32 | converting organization; exempting a limited partnership |
| 33 | from the requirement to file a certificate of conversion |
| 34 | if the partnership complies with certain other laws; |
| 35 | amending s. 620.8918, F.S.; providing certain exceptions |
| 36 | to the requirement that each constituent partnership file |
| 37 | articles of merger or a certificate of merger with the |
| 38 | Department of State; amending s. 620.2204, F.S.; changing |
| 39 | the date of application of provisions authorizing a |
| 40 | limited partner to dissociate from a limited partnership; |
| 41 | amending s. 620.8101, F.S.; redefining the term |
| 42 | "statement" to exclude a statement of merger; amending s. |
| 43 | 620.8105, F.S.; requiring that a registration statement be |
| 44 | filed with the department before filing a certificate of |
| 45 | conversion or a certificate of merger; amending s. |
| 46 | 620.81055, F.S.; providing that a filing fee applies to a |
| 47 | certificate of merger; amending s. 620.8911, F.S.; |
| 48 | clarifying that the term "organization" includes a |
| 49 | converted or surviving organization under certain |
| 50 | circumstances; amending s. 620.8914, F.S.; revising |
| 51 | certain requirements for conversions; exempting a |
| 52 | partnership from filing a certificate of conversion under |
| 53 | certain circumstances; providing that the certificate of |
| 54 | conversion acts as a cancellation of the registration |
| 55 | statement for a converting partnership; amending s. |
| 56 | 620.8918, F.S.; exempting a constituent partnership from |
| 57 | filing a certificate of merger under certain |
| 58 | circumstances; requiring that such partnership file a |
| 59 | registration statement with the department if one is not |
| 60 | currently on file; providing an effective date. |
| 61 |
|
| 62 | Be It Enacted by the Legislature of the State of Florida: |
| 63 |
|
| 64 | Section 1. Subsection (3) is added to section 607.1109, |
| 65 | Florida Statutes, to read: |
| 66 | 607.1109 Articles of merger.-- |
| 67 | (3) A domestic corporation is not required to file |
| 68 | articles of merger pursuant to subsection (1) if the domestic |
| 69 | corporation is named as a party or constituent organization in |
| 70 | articles of merger or a certificate of merger filed for the same |
| 71 | merger in accordance with s. 608.4382(1), s. 617.1108, s. |
| 72 | 620.2108(1) and (2), or s. 620.8918(1) and (2), and if the |
| 73 | articles of merger or certificate of merger substantially |
| 74 | complies with the requirements of this section. In such a case, |
| 75 | the other articles of merger or certificate of merger may also |
| 76 | be used for purposes of subsection (2). |
| 77 | Section 2. Subsection (3) is added to section 607.1113, |
| 78 | Florida Statutes, to read: |
| 79 | 607.1113 Certificate of conversion.-- |
| 80 | (3) A converting domestic corporation is not required to |
| 81 | file a certificate of conversion pursuant to subsection (1) if |
| 82 | the converting domestic corporation files a certificate of |
| 83 | conversion that substantially complies with the requirements of |
| 84 | this section pursuant to s. 608.439, s. 620.2104(1)(b), or s. |
| 85 | 620.8914(1)(b) and contains the signatures required by this |
| 86 | chapter. In such a case, the other certificate of conversion may |
| 87 | also be used for purposes of subsection (2). |
| 88 | Section 3. Paragraph (a) of subsection (2) of section |
| 89 | 607.1115, Florida Statutes, is amended to read: |
| 90 | 607.1115 Conversion of another business entity to a |
| 91 | domestic corporation.-- |
| 92 | (2) Any other business entity may convert to a domestic |
| 93 | corporation if the conversion is permitted by the laws of the |
| 94 | jurisdiction that enacted the applicable laws governing the |
| 95 | other business entity and the other business entity complies |
| 96 | with such laws and the requirements of this section in effecting |
| 97 | the conversion. The other business entity shall file with the |
| 98 | Department of State in accordance with s. 607.0120: |
| 99 | (a) A certificate of conversion that has been executed in |
| 100 | accordance with s. 607.0120 and by the other business entity as |
| 101 | required by applicable law. |
| 102 | Section 4. Subsection (3) is added to section 608.4382, |
| 103 | Florida Statutes, to read: |
| 104 | 608.4382 Certificate of merger.-- |
| 105 | (3) A domestic limited liability company is not required |
| 106 | to file a certificate of merger pursuant to subsection (1) if |
| 107 | the domestic limited liability company is named as a party or |
| 108 | constituent organization in articles of merger or a certificate |
| 109 | of merger filed for the same merger in accordance with s. |
| 110 | 607.1109(1), s. 617.1108, s. 620.2108(1) and (2), or s. |
| 111 | 620.8918(1) and (2), and if the articles of merger or |
| 112 | certificate of merger substantially complies with the |
| 113 | requirements of this section. In such a case, the other articles |
| 114 | of merger or certificate of merger may also be used for purposes |
| 115 | of subsection (2). |
| 116 | Section 5. Subsection (1) and paragraph (a) of subsection |
| 117 | (2) of section 608.439, Florida Statutes, are amended to read: |
| 118 | 608.439 Conversion of certain entities to a limited |
| 119 | liability company.-- |
| 120 | (1) As used in this section, the term "other business |
| 121 | entity" or "another business entity" means a corporation; a |
| 122 | common law or business trust or association; a real estate |
| 123 | investment trust; a general partnership, including a limited |
| 124 | liability partnership; a limited partnership, including a |
| 125 | limited liability limited partnership; or any other domestic or |
| 126 | foreign entity that is organized under a governing law or other |
| 127 | applicable law, provided such term shall not include a domestic |
| 128 | limited liability company. |
| 129 | (2) Any other business entity may convert to a domestic |
| 130 | limited liability company if the conversion is permitted by the |
| 131 | laws of the jurisdiction that enacted the statute or other |
| 132 | applicable law governing the other business entity and the other |
| 133 | business entity complies with such laws and the requirements of |
| 134 | this section in effecting the conversion. The other business |
| 135 | entity shall file with the Department of State in accordance |
| 136 | with s. 608.4081: |
| 137 | (a) A certificate of conversion that has been executed by |
| 138 | one or more authorized persons in accordance with s. 608.408, |
| 139 | and by the other business entity as required by applicable law. |
| 140 | Section 6. Subsection (3) is added to section 608.4403, |
| 141 | Florida Statutes, to read: |
| 142 | 608.4403 Certificate of conversion.-- |
| 143 | (3) A converting limited liability company is not required |
| 144 | to file a certificate of conversion pursuant to subsection (1) |
| 145 | if the converting limited liability company files a certificate |
| 146 | of conversion that substantially complies with the requirements |
| 147 | of this section pursuant to s. 607.1115, s. 620.2104(1)(b), or |
| 148 | s. 620.8914(1)(b) and contains the signatures required by this |
| 149 | chapter. In such a case, the other certificate of conversion may |
| 150 | also be used for purposes of subsection (2). |
| 151 | Section 7. Section 617.1108, Florida Statutes, is amended |
| 152 | to read: |
| 153 | 617.1108 Merger of domestic corporation and other business |
| 154 | entities.-- |
| 155 | (1) Subject to s. 617.0302(16) and other applicable |
| 156 | provisions of this chapter, ss. 607.1108, 607.1109, and |
| 157 | 607.11101 shall apply to a merger involving a corporation not |
| 158 | for profit organized under this act and one or more other |
| 159 | business entities identified in s. 607.1108(1). |
| 160 | (2) A domestic corporation not for profit organized under |
| 161 | this chapter is not required to file articles of merger pursuant |
| 162 | to this section if the corporation not for profit is named as a |
| 163 | party or constituent organization in articles of merger or a |
| 164 | certificate of merger filed for the same merger in accordance |
| 165 | with s. 607.1109, s. 608.4382(1), s. 620.2108(1) and (2), or s. |
| 166 | 620.8918(1) and (2). In such a case, the other articles of |
| 167 | merger or certificate of merger may also be used for purposes of |
| 168 | subsection (3). |
| 169 | (3) A copy of the articles of merger or certificate of |
| 170 | merger, certified by the Department of State, may be filed in |
| 171 | the office of the official who is the recording officer of each |
| 172 | county in this state in which real property of a party to the |
| 173 | merger, other than the surviving entity, is situated. |
| 174 | Section 8. Subsections (3), (4), and (5) of section |
| 175 | 620.1406, Florida Statutes, are amended to read: |
| 176 | 620.1406 Management rights of general partner; approval |
| 177 | rights of other partners.-- |
| 178 | (3) In addition to the approval of the general partners |
| 179 | required by subsections (1) and (2), the approval of all limited |
| 180 | partners shall also be required in order to take any of the |
| 181 | actions under subsection (1) or subsection (2) with the |
| 182 | exception of a transaction described in paragraph (1)(e), a |
| 183 | transaction described in paragraph (1)(h), or a transaction |
| 184 | described in paragraph (1)(i). |
| 185 | (4) The approval of a plan of conversion under s. 620.2103 |
| 186 | or a plan of merger under s. 620.2107 shall also require the |
| 187 | consent of the limited partners in the manner described therein. |
| 188 | (5) The expulsion of a limited partner described in |
| 189 | paragraph (1)(e) shall also require the consent of all of the |
| 190 | other limited partners. A transaction described in paragraph |
| 191 | (1)(i) shall also require approval of limited partners owning a |
| 192 | majority of the rights to receive distributions as limited |
| 193 | partners at the time the consent is to be effective. |
| 194 | Section 9. Subsection (1) of section 620.2104, Florida |
| 195 | Statutes, is amended to read: |
| 196 | 620.2104 Filings required for conversion; effective |
| 197 | date.-- |
| 198 | (1) After a plan of conversion is approved: |
| 199 | (a) A converting limited partnership shall deliver to the |
| 200 | Department of State for filing a certificate of conversion, |
| 201 | signed by each general partner listed in the certificate of |
| 202 | limited partnership, and must include: |
| 203 | 1. A statement that the limited partnership has been |
| 204 | converted into another organization. |
| 205 | 2. The name and form of the organization and the |
| 206 | jurisdiction of its governing law. |
| 207 | 3. The date the conversion is effective under the |
| 208 | governing law of the converted organization. |
| 209 | 4. A statement that the conversion was approved as |
| 210 | required by this act. |
| 211 | 5. A statement that the conversion was approved as |
| 212 | required by the governing law of the converted organization. |
| 213 | 6. If the converted organization is a foreign organization |
| 214 | not authorized to transact business in this state, the street |
| 215 | and mailing address of an office which the Department of State |
| 216 | may use for the purposes of s. 620.2105(3). |
| 217 | (b) If the converting organization is not a converting |
| 218 | limited partnership, the converting organization shall deliver |
| 219 | to the Department of State for filing: |
| 220 | 1. A certificate of limited partnership containing the |
| 221 | information required by s. 620.1201, signed by each general |
| 222 | partner as required by s. 620.1204(1)(a). |
| 223 | 2. A certificate of conversion, signed by each general |
| 224 | partner listed in the certificate of limited partnership |
| 225 | submitted in accordance with subparagraph 1. and by the |
| 226 | converting organization as required by applicable law, which |
| 227 | certificate of conversion must include: |
| 228 | a. A statement that the limited partnership was converted |
| 229 | from another organization. |
| 230 | b. The name and form of the converting organization and |
| 231 | the jurisdiction of its governing law. |
| 232 | c. A statement that the conversion was approved as |
| 233 | required by this act. |
| 234 | d. A statement that the conversion was approved in a |
| 235 | manner that complied with the converting organization's |
| 236 | governing law. |
| 237 | (c) A converting limited partnership is not required to |
| 238 | file a certificate of conversion pursuant to paragraph (a) if |
| 239 | the converting limited partnership files a certificate of |
| 240 | conversion that substantially complies with the requirements of |
| 241 | this section pursuant to s. 607.1115, s. 608.439, or s. |
| 242 | 620.8914(1)(b) and contains the signatures required by this |
| 243 | chapter. In such a case, the other certificate of conversion may |
| 244 | also be used for purposes of s. 620.2105(4). |
| 245 | Section 10. Subsection (3) of section 620.8918, Florida |
| 246 | Statutes, is amended to read: |
| 247 | 620.8918 Filings required for merger; effective date.-- |
| 248 | (3) Each constituent partnership shall deliver to the |
| 249 | Department of State for filing a statement of registration in |
| 250 | accordance with s. 620.8105, if such statement was not |
| 251 | previously filed, and a certificate of merger in accordance with |
| 252 | s. 620.8105, unless the constituent limited partnership is named |
| 253 | as a party or constituent organization in articles of merger or |
| 254 | a certificate of merger filed for the same merger in accordance |
| 255 | with s. 607.1109(1), s. 608.4382(1), s. 617.1108, or subsections |
| 256 | (1) and (2), and such articles of merger or certificate of |
| 257 | merger substantially complies with the requirements of this |
| 258 | section. In such a case, the other articles of merger or |
| 259 | certificate of merger may also be used for purposes of s. |
| 260 | 620.2109(3). |
| 261 | Section 11. Paragraph (c) of subsection (3) of section |
| 262 | 620.2204, Florida Statutes, is amended to read: |
| 263 | 620.2204 Application to existing relationships.-- |
| 264 | (3) With respect to a limited partnership formed before |
| 265 | January 1, 2006, the following rules apply except as the |
| 266 | partners otherwise elect in the manner provided in the |
| 267 | partnership agreement or by law for amending the partnership |
| 268 | agreement: |
| 269 | (c) The provisions of ss. 620.1601 and 620.1602 do not |
| 270 | apply and a limited partner has the same right and power to |
| 271 | dissociate from the limited partnership, with the same |
| 272 | consequences, as existed immediately before January 1, 2006 July |
| 273 | 1, 2005. |
| 274 | Section 12. Subsection (15) of section 620.8101, Florida |
| 275 | Statutes, is amended to read: |
| 276 | 620.8101 Definitions.--As used in this act, the term: |
| 277 | (15) "Statement" means a statement of partnership |
| 278 | authority under s. 620.8303, a statement of denial under s. |
| 279 | 620.8304, a statement of dissociation under s. 620.8704, a |
| 280 | statement of dissolution under s. 620.8805, a statement of |
| 281 | merger under s. 620.8918, a statement of qualification under s. |
| 282 | 620.9001, a statement of foreign qualification under s. |
| 283 | 620.9102, or an amendment or cancellation of any of the |
| 284 | foregoing. |
| 285 | Section 13. Subsection (4) of section 620.8105, Florida |
| 286 | Statutes, is amended to read: |
| 287 | 620.8105 Execution, filing, and recording of partnership |
| 288 | registration and other statements.-- |
| 289 | (4) Except as provided in s. 620.8304 or s. 620.8704, a |
| 290 | statement or a certificate of conversion or certificate of |
| 291 | merger may be filed with the Department of State only if the |
| 292 | partnership has filed a registration statement pursuant to |
| 293 | subsection (1). If otherwise sufficient, a certified copy of a |
| 294 | statement that is filed in a jurisdiction other than this state |
| 295 | may be filed with the Department of State in lieu of an original |
| 296 | statement. Any such filing has the effect provided in this act |
| 297 | with respect to partnership property located in, or transactions |
| 298 | that occur in, this state. |
| 299 | Section 14. Paragraph (i) of subsection (1) of section |
| 300 | 620.81055, Florida Statutes, is amended to read: |
| 301 | 620.81055 Fees for filing documents and issuing |
| 302 | certificates; powers of the Department of State.-- |
| 303 | (1) The Department of State shall collect the following |
| 304 | fees when documents authorized by this act are delivered to the |
| 305 | Department of State for filing: |
| 306 | (i) Certificate Statement of merger for each party |
| 307 | thereto: $25. |
| 308 | Section 15. Subsection (7) of section 620.8911, Florida |
| 309 | Statutes, is amended to read: |
| 310 | 620.8911 Definitions.--As used in this section and ss. |
| 311 | 620.8912-620.8923: |
| 312 | (7) "Organization" means a corporation; general |
| 313 | partnership, including a limited liability partnership; limited |
| 314 | partnership, including a limited liability limited partnership; |
| 315 | limited liability company; common law or business trust or |
| 316 | association; real estate investment trust; or any other person |
| 317 | organized under a governing law or other applicable law, |
| 318 | provided such term shall not include an organization that is not |
| 319 | organized for profit, unless the not-for-profit organization is |
| 320 | the converted organization in a conversion or the surviving |
| 321 | organization in a conversion or a merger governed by this act. |
| 322 | The term includes both domestic and foreign organizations. |
| 323 | Section 16. Section 620.8914, Florida Statutes, is amended |
| 324 | to read: |
| 325 | 620.8914 Filings required for conversion; effective |
| 326 | date.-- |
| 327 | (1) After a plan of conversion is approved: |
| 328 | (a) A converting partnership shall deliver to the |
| 329 | Department of State for filing a statement of registration |
| 330 | statement in accordance with s. 620.8105, if such statement was |
| 331 | not previously filed, and a certificate of conversion, in |
| 332 | accordance with s. 620.8105, which must include: |
| 333 | 1. A statement that the partnership has been converted |
| 334 | into another organization. |
| 335 | 2. The name and form of the organization and the |
| 336 | jurisdiction of its governing law. |
| 337 | 3. The date the conversion is effective under the |
| 338 | governing law of the converted organization. |
| 339 | 4. A statement that the conversion was approved as |
| 340 | required by this act. |
| 341 | 5. A statement that the conversion was approved as |
| 342 | required by the governing law of the converted organization. |
| 343 | 6. If the converted organization is a foreign organization |
| 344 | not authorized to transact business in this state, the street |
| 345 | and mailing address of an office which the Department of State |
| 346 | may use for the purposes of s. 620.8915(3). |
| 347 | (b) In the case of a converting organization converting |
| 348 | into a partnership to be governed by this act, the converting |
| 349 | organization shall deliver to the Department of State for |
| 350 | filing: |
| 351 | 1. A certificate of registration statement in accordance |
| 352 | with s. 620.8105. |
| 353 | 2. A certificate of conversion, in accordance with s. |
| 354 | 620.8105, signed by a general partner of the partnership in |
| 355 | accordance with s. 620.8105(6) and by the converting |
| 356 | organization as required by applicable law, which certificate of |
| 357 | conversion must include: |
| 358 | a. A statement that the partnership was converted from |
| 359 | another organization. |
| 360 | b. The name and form of the converting organization and |
| 361 | the jurisdiction of its governing law. |
| 362 | c. A statement that the conversion was approved as |
| 363 | required by this act. |
| 364 | d. A statement that the conversion was approved in a |
| 365 | manner that complied with the converting organization's |
| 366 | governing law. |
| 367 | e. The effective time of the conversion, if other than the |
| 368 | time of the filing of the certificate statement of conversion. |
| 369 |
|
| 370 | A converting partnership is not required to file a certificate |
| 371 | of conversion pursuant to paragraph (a) if the converting |
| 372 | partnership files a certificate of conversion that substantially |
| 373 | complies with the requirements of this section pursuant to s. |
| 374 | 607.1115, s. 608.439, or s. 620.2104(1)(b) and contains the |
| 375 | signatures required by this chapter. In such a case, the other |
| 376 | certificate of conversion may also be used for purposes of s. |
| 377 | 620.8915(4). |
| 378 | (2) A conversion becomes effective: |
| 379 | (a) If the converted organization is a partnership, at the |
| 380 | time specified in the plan of conversion or the certificate of |
| 381 | conversion, which may be as of or after the time of the filing |
| 382 | of the certificate of conversion, and, if the certificate of |
| 383 | conversion does not contain such an effective time, the |
| 384 | effective time shall be upon the filing of the certificate of |
| 385 | conversion with the Department of State. However, provided, if |
| 386 | the certificate has a delayed effective date, the certificate |
| 387 | may not be effective any later than the 90th day after the date |
| 388 | it was filed and provided further, the effective date may shall |
| 389 | not be any earlier than the effective date of the statement of |
| 390 | registration statement filed with the Department of State for |
| 391 | the partnership in accordance with s. 620.8105. |
| 392 | (b) If the converted organization is not a partnership, as |
| 393 | provided by the governing law of the converted organization. |
| 394 |
|
| 395 | A certificate of conversion acts as a cancellation of any |
| 396 | registration statement for a converting partnership for purposes |
| 397 | of s. 620.8105, and the cancellation shall be deemed filed upon |
| 398 | the effective date of the conversion. |
| 399 | Section 17. Subsections (3), (4), and (5) of section |
| 400 | 620.8918, Florida Statutes, are amended to read: |
| 401 | 620.8918 Filings required for merger; effective date.-- |
| 402 | (3) Each constituent partnership shall deliver the |
| 403 | certificate of merger for filing with to the Department of |
| 404 | State, unless the constituent partnership is named as a party or |
| 405 | constituent organization in articles of merger or a certificate |
| 406 | of merger filed for the same merger in accordance with s. |
| 407 | 607.1109(1), s. 608.4382(1), s. 617.1108, or s. 620.2108(1) and |
| 408 | (2). The articles of merger or certificate of merger must |
| 409 | substantially comply with the requirements of this section. In |
| 410 | such a case, the other articles of merger or certificate of |
| 411 | merger may also be used for purposes of s. 620.8919(3). Each |
| 412 | constituent partnership in the merger shall also file a |
| 413 | registration statement in accordance with s. 620.8105(1) if it |
| 414 | does not have a currently effective registration statement filed |
| 415 | with the Department of State. for filing a statement of |
| 416 | registration in accordance with s. 620.8105, if such statement |
| 417 | was not previously filed, and a certificate of merger in |
| 418 | accordance with s. 620.8105. |
| 419 | (4) A merger becomes effective under this act: |
| 420 | (a) If the surviving organization is a partnership, at the |
| 421 | time specified in the plan of merger or the certificate of |
| 422 | merger, which may be as of or after the time of the filing of |
| 423 | the certificate of merger, and, if the certificate of merger |
| 424 | does not contain such an effective time, the effective time |
| 425 | shall be upon the filing of the certificate statement of merger |
| 426 | with the Department of State. However, provided, if the |
| 427 | certificate has a delayed effective date, the certificate may |
| 428 | not be effective any later than the 90th day after the date it |
| 429 | was filed, and provided further, the effective date may shall |
| 430 | not be any earlier than the effective date of the statement of |
| 431 | registration statement filed with the Department of State for |
| 432 | the partnership in accordance with s. 620.8105. |
| 433 | (b) If the surviving organization is not a partnership, as |
| 434 | provided by the governing law of the surviving organization. |
| 435 | (5) A certificate of merger acts shall act as a |
| 436 | cancellation of any statement of registration statement for |
| 437 | purposes of s. 620.8105 for a partnership that is a party to the |
| 438 | merger that is not the surviving organization, which |
| 439 | cancellation shall be deemed filed upon the effective date of |
| 440 | the merger. |
| 441 | Section 18. This act shall take effect July 1, 2008. |