The General Assembly of North Carolina recently approved changes to the North Carolina Business Corporation Act, Chapter 55 of the General Statutes (the “NCBCA”), which the Governor signed into law on June 22, 2018 and which will take effect on October 1, 2018. The bill enacted into law (the “Act”) makes significant enhancements to North Carolina corporate law, the net effect of which is to:
- eliminate any perceived advantage certain jurisdictions may have over North Carolina as business-friendly jurisdictions;
- attract and retain qualified businesspersons as officers or board members of North Carolina corporations;
- facilitate the efficient discharge of board duties, particularly for public companies subject to the Sarbanes-Oxley Act;
- facilitate efficient corporation reorganizations and acquisitions; and
- protect the reasonable expectations of shareholders with respect to their investments.