Bill is Final Piece of 7-bill Assembly Democratic Reform Package
(TRENTON) — Legislation sponsored by five Assembly Democratic lawmakers to streamline New Jersey’s corporate laws to make the state more attractive to businesses was released Thursday by an Assembly panel.
The bill is sponsored by Assembly members Patrick J. Diegnan Jr, Peter J. Barnes III, Craig J. Coughlin, Bonnie Watson Coleman and Pamela Lampitt and is the final piece of an Assembly Democratic reform package signed into law during the last legislative session.
“For New Jersey to be competitive as a home for industry in the global marketplace, we need laws that will allow them to operate in real time, using 21st century technology,” said Diegnan (D-Middlesex), who crafted the bill package.
The bill (A-2420) eliminates the 10-day waiting period for certain shareholder actions not concerning mergers and acquisition activity governed by state law. This 10-day waiting period can create inefficiencies in transactions and delay closings while the notice period runs. As an example, this type of delay can occur when the certificate of incorporation needs to be amended in connection with a private placement of stock to increase the number of authorized shares or to create a new class of stock.
The bill eliminates that type of delay, and makes New Jersey consistent with Delaware General Corporation Law for shareholder approvals that do not involve mergers and acquisitions.
“This is common sense proposal that modernizes our law and puts and makes us even more competitive with nearby states when it comes to luring and attracting businesses that employ our residents,” said Barnes (D-Middlesex).
“We need to always be sure we’re updating our laws and keeping pace with change as we work to enhance New Jersey’s business climate and ensure a strong economy for our workers,” said Coughlin (D-Middlesex).
“With continued turbulence in our national economy, we must do everything we can to ensure that New Jersey remains an excellent place to do business,” said Watson Coleman (D-Mercer).
“Ensuring New Jersey businesses and the workers they employ can emerge strong from this economic meltdown with the momentum they need has been a top priority, and this is yet another step in that direction,” said Lampitt (D-Camden).
The bill was released 5-0 by the Assembly Commerce and Economic Development Committee.
The following six bills that were part of this package were signed into law during the last legislative session (the bill numbers listed below are from the 2008-09 session):
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