<a id="pl.1.3"></a><var>1.3</var>Business Corporations Act, the Limited Liability Company Act, and the Uniform <br/>
<a id="pl.1.4"></a><var>1.4</var>Limited Partnership Act of 2001; authorizing the formation of nonprofit limited <br/>
<a id="pl.1.5"></a><var>1.5</var>liability companies;amending Minnesota Statutes 2006, sections 290.01, <br/>
<a id="pl.1.6"></a><var>1.6</var>subdivision 3b; 302A.011, subdivisions 17, 50; 302A.111, subdivisions 2, 3, 4; <br/>
<a id="pl.1.7"></a><var>1.7</var>302A.231, subdivisions 2, 3; 302A.237; 302A.241, subdivision 1; 302A.255, <br/>
<a id="pl.1.8"></a><var>1.8</var>subdivision 1; 302A.449, subdivision 3; 302A.471, subdivision 3; 302A.521, <br/>
<a id="pl.1.9"></a><var>1.9</var>subdivision 1; 302A.553, subdivision 1; 302A.701; 302A.721; 321.1206; <br/>
<a id="pl.1.10"></a><var>1.10</var>322B.03, subdivisions 20, 32, by adding a subdivision; 322B.10; 322B.11; <br/>
<a id="pl.1.11"></a><var>1.11</var>322B.35, subdivision 3; 322B.363, subdivision 3; 322B.643, subdivisions 2, 3; <br/>
<a id="pl.1.12"></a><var>1.12</var>322B.66, subdivision 1; 322B.666, subdivision 1; 322B.699, subdivision 1; <br/>
<a id="pl.1.13"></a><var>1.13</var>322B.78; 322B.80, subdivision 1; 322B.806; 322B.90, subdivision 2; proposing <br/>
<a id="pl.1.14"></a><var>1.14</var>coding for new law in Minnesota Statutes, chapter 322B.<br/>
<a id="pl.1.15"></a><var>1.15</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.1.18"></a><var>1.18</var>    Section 1. Minnesota Statutes 2006, section 302A.011, subdivision 17, is amended to <br/>
<a id="pl.1.19"></a><var>1.19</var>read:<br/>
<a id="pl.1.20"></a><var>1.20</var>    Subd. 17. <b>Notice.</b> (a) "Notice" is given by a shareholder of a corporation to the <br/>
<a id="pl.1.21"></a><var>1.21</var>corporation or an officer of the corporation when in writing and mailed or delivered to <br/>
<a id="pl.1.22"></a><var>1.22</var>the corporation or the officer at the registered office or principal executive office of the <br/>
<a id="pl.1.23"></a><var>1.23</var>corporation.<br/>
<a id="pl.1.24"></a><var>1.24</var>(b) In all other cases, "notice" is given to a person when:<br/>
<a id="pl.1.25"></a><var>1.25</var>(1) mailed to the person at an address designated by the person or at the last known <br/>
<a id="pl.1.26"></a><var>1.26</var>address of the person, or when<br/>
<a id="pl.1.27"></a><var>1.27</var>(2) deposited with a nationally recognized overnight delivery service for overnight <br/>
<a id="pl.1.28"></a><var>1.28</var>delivery or, if overnight delivery to the person is not available, for delivery as promptly <br/>
<a id="pl.2.1"></a><var>2.1</var>as practicable, to the person at an address designated by the person or at the last known <br/>
<a id="pl.2.2"></a><var>2.2</var>address of the person, or<br/>
<a id="pl.2.3"></a><var>2.3</var>(3) communicated to the person orally, or when<br/>
<a id="pl.2.4"></a><var>2.4</var>(4) handed to the person, or when<br/>
<a id="pl.2.5"></a><var>2.5</var>(5) left at the office of the person with a clerk or other person in charge of the office, <br/>
<a id="pl.2.6"></a><var>2.6</var>or if there is no one in charge, when left in a conspicuous place in the office, or if the <br/>
<a id="pl.2.7"></a><var>2.7</var>office is closed or the person to be notified has no office, when left at the dwelling house <br/>
<a id="pl.2.8"></a><var>2.8</var>or usual place of abode of the person with some person of suitable age and discretion <br/>
<a id="pl.2.9"></a><var>2.9</var>then residing therein.<br/>
<a id="pl.2.10"></a><var>2.10</var>(c) Notice is also given by a publicly held corporation to a shareholder if the notice <br/>
<a id="pl.2.11"></a><var>2.11</var>is addressed to the shareholder or group of shareholders in a manner permitted by the rules <br/>
<a id="pl.2.12"></a><var>2.12</var>and regulations under the Securities Exchange Act of 1934, provided that the corporation <br/>
<a id="pl.2.13"></a><var>2.13</var>has first received any affirmative written consent or implied consent required under those <br/>
<a id="pl.2.14"></a><var>2.14</var>rules and regulations.<br/>
<a id="pl.2.15"></a><var>2.15</var>(d) Notice by mail is given when deposited in the United States mail with sufficient <br/>
<a id="pl.2.16"></a><var>2.16</var>postage affixed. Notice by deposit for delivery is given when deposited for delivery <br/>
<a id="pl.2.17"></a><var>2.17</var>as provided in paragraph (b), clause (2), after having made sufficient arrangements for <br/>
<a id="pl.2.18"></a><var>2.18</var>payment by the sender.<br/>
<a id="pl.2.19"></a><var>2.19</var>(e) Notice is deemed received when it is given.<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.2.20"></a><var>2.20</var>    Sec. 2. Minnesota Statutes 2006, section 302A.011, subdivision 50, is amended to read:<br/>
<a id="pl.2.21"></a><var>2.21</var>    Subd. 50. <b>Market value.</b> "Market value," when used in reference to shares or other <br/>
<a id="pl.2.22"></a><var>2.22</var>property of any corporation, means the following:<br/>
<a id="pl.2.23"></a><var>2.23</var>(a) In the case of shares, the average closing sale price of a share during the <br/>
<a id="pl.2.24"></a><var>2.24</var>30 trading days immediately preceding the date in question or, with respect to the <br/>
<a id="pl.2.25"></a><var>2.25</var>references in section 
         <statute_ref>302A.553, subdivision 3</statute_ref>, if a person or persons selling the shares <br/>
<a id="pl.2.26"></a><var>2.26</var>have commenced a tender offer or have announced an intention to seek control of the <br/>
<a id="pl.2.27"></a><var>2.27</var>corporation, during the 30 trading days preceding the earlier of the commencement of the <br/>
<a id="pl.2.28"></a><var>2.28</var>tender offer or the making of the announcement, in either case: <br/>
<a id="pl.2.29"></a><var>2.29</var>(1) on the composite tape for New York Stock Exchange listed shares; or<br/>
<a id="pl.2.30"></a><var>2.30</var>(2) if the shares are not quoted on the composite tape or not listed on the New York <br/>
<a id="pl.2.31"></a><var>2.31</var>Stock Exchange, on the principal United States securities exchange registered under <br/>
<a id="pl.2.32"></a><var>2.32</var>the Securities Exchange Act of 1934, which may include the NASDAQ Stock Market, <br/>
<a id="pl.2.33"></a><var>2.33</var>on which the shares are listed; or<br/>
<a id="pl.2.34"></a><var>2.34</var>(3) if the shares are not listed on any such exchange, on the Nasdaq Stock Market; or<br/>
<a id="pl.3.1"></a><var>3.1</var>(4) if the shares are not quoted on the Nasdaq Stock Market, on any system then <br/>
<a id="pl.3.2"></a><var>3.2</var>in use.<br/>
<a id="pl.3.3"></a><var>3.3</var>If no quotation under clauses (1) through (4) (3) is available, then the market value <br/>
<a id="pl.3.4"></a><var>3.4</var>is the fair market value on the date in question of the shares as determined in good faith <br/>
<a id="pl.3.5"></a><var>3.5</var>by the board of the corporation.<br/>
<a id="pl.3.6"></a><var>3.6</var>(b) In the case of property other than cash or shares, the fair market value of the <br/>
<a id="pl.3.7"></a><var>3.7</var>property on the date in question as determined in good faith by the board of the corporation.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.3.8"></a><var>3.8</var>    Sec. 3. Minnesota Statutes 2006, section 302A.111, subdivision 2, is amended to read:<br/>
<a id="pl.3.9"></a><var>3.9</var>    Subd. 2. <b>Statutory provisions that may be modified only in articles</b><b> or in a </b><br/>
<a id="pl.3.10"></a><var>3.10</var><b>shareholder control agreement</b><b>.</b> The following provisions govern a corporation unless <br/>
<a id="pl.3.11"></a><var>3.11</var>modified in the articles or in a shareholder control agreement under section 302A.457:<br/>
<a id="pl.3.12"></a><var>3.12</var>(a) a corporation has general business purposes (section 302A.101);<br/>
<a id="pl.3.13"></a><var>3.13</var>(b) a corporation has perpetual existence and certain powers (section 302A.161);<br/>
<a id="pl.3.14"></a><var>3.14</var>(c) the power to adopt, amend, or repeal the bylaws is vested in the board (section <br/>
<a id="pl.3.15"></a><var>3.15</var>302A.181);<br/>
<a id="pl.3.16"></a><var>3.16</var>(d) a corporation must allow cumulative voting for directors (section 
         <statute_ref>302A.215, <br/>
<a id="pl.3.17"></a><var>3.17</var>subdivision 2)
         </statute_ref>; <br/>
<a id="pl.3.18"></a><var>3.18</var>(e) the affirmative vote of a majority of directors present is required for an action <br/>
<a id="pl.3.19"></a><var>3.19</var>of the board (section 302A.237);<br/>
<a id="pl.3.20"></a><var>3.20</var>(f) a written action by the board taken without a meeting must be signed by all <br/>
<a id="pl.3.21"></a><var>3.21</var>directors (section 302A.239);<br/>
<a id="pl.3.22"></a><var>3.22</var>(g) the board may authorize the issuance of securities and rights to purchase <br/>
<a id="pl.3.23"></a><var>3.23</var>securities (section 
         <statute_ref>302A.401, subdivision 1)</statute_ref>; <br/>
<a id="pl.3.24"></a><var>3.24</var>(h) all shares are common shares entitled to vote and are of one class and one series <br/>
<a id="pl.3.25"></a><var>3.25</var>(section 
         <statute_ref>302A.401, subdivision 2</statute_ref>, clauses (a) and (b)); <br/>
<a id="pl.3.26"></a><var>3.26</var>(i) all shares have equal rights and preferences in all matters not otherwise provided <br/>
<a id="pl.3.27"></a><var>3.27</var>for by the board (section 
         <statute_ref>302A.401, subdivision 2</statute_ref>, clause (b)); <br/>
<a id="pl.3.28"></a><var>3.28</var>(j) the par value of shares is fixed at one cent per share for certain purposes and <br/>
<a id="pl.3.29"></a><var>3.29</var>may be fixed by the board for certain other purposes (section 
         <statute_ref>302A.401, subdivision <br/>
<a id="pl.3.30"></a><var>3.30</var>2
         </statute_ref>, clause (c)); <br/>
<a id="pl.3.31"></a><var>3.31</var>(k) the board or the shareholders may issue shares for any consideration or for no <br/>
<a id="pl.3.32"></a><var>3.32</var>consideration to effectuate share dividends, divisions, or combinations, and determine the <br/>
<a id="pl.3.33"></a><var>3.33</var>value of nonmonetary consideration (section 
         <statute_ref>302A.405, subdivision 1)</statute_ref>; <br/>
<a id="pl.3.34"></a><var>3.34</var>(l) shares of a class or series must not be issued to holders of shares of another class <br/>
<a id="pl.3.35"></a><var>3.35</var>or series to effectuate share dividends, divisions, or combinations, unless authorized by a <br/>
<a id="pl.4.1"></a><var>4.1</var>majority of the voting power of the shares of the same class or series as the shares to be <br/>
<a id="pl.4.2"></a><var>4.2</var>issued (section 
         <statute_ref>302A.405, subdivision 1)</statute_ref>; <br/>
<a id="pl.4.3"></a><var>4.3</var>(m) a corporation may issue rights to purchase securities whose terms, provisions, <br/>
<a id="pl.4.4"></a><var>4.4</var>and conditions are fixed by the board (section 302A.409);<br/>
<a id="pl.4.5"></a><var>4.5</var>(n) a shareholder has certain preemptive rights, unless otherwise provided by the <br/>
<a id="pl.4.6"></a><var>4.6</var>board (section 302A.413);<br/>
<a id="pl.4.7"></a><var>4.7</var>(o) the affirmative vote of the holders of a majority of the voting power of the <br/>
<a id="pl.4.8"></a><var>4.8</var>shares present and entitled to vote at a duly held meeting is required for an action of the <br/>
<a id="pl.4.9"></a><var>4.9</var>shareholders, except where this chapter requires the affirmative vote of a plurality of the <br/>
<a id="pl.4.10"></a><var>4.10</var>votes cast (section 
         <statute_ref>302A.215, subdivision 1</statute_ref>) or a majority of the voting power of all <br/>
<a id="pl.4.11"></a><var>4.11</var>shares entitled to vote (section 
         <statute_ref>302A.437, subdivision 1)</statute_ref>; <br/>
<a id="pl.4.12"></a><var>4.12</var>(p) shares of a corporation acquired by the corporation may be reissued (section <br/>
<statute_ref><a id="pl.4.13"></a><var>4.13</var>302A.553, subdivision 1)
         </statute_ref>; <br/>
<a id="pl.4.14"></a><var>4.14</var>(q) each share has one vote unless otherwise provided in the terms of the share <br/>
<a id="pl.4.15"></a><var>4.15</var>(section 
         <statute_ref>302A.445, subdivision 3)</statute_ref>; <br/>
<a id="pl.4.16"></a><var>4.16</var>(r) a corporation may issue shares for a consideration less than the par value, if any, <br/>
<a id="pl.4.17"></a><var>4.17</var>of the shares (section 
         <statute_ref>302A.405, subdivision 2)</statute_ref>; <br/>
<a id="pl.4.18"></a><var>4.18</var>(s) the board may effect share dividends, divisions, and combinations under certain <br/>
<a id="pl.4.19"></a><var>4.19</var>circumstances without shareholder approval (section 302A.402); and<br/>
<a id="pl.4.20"></a><var>4.20</var>(t) a written action of shareholders must be signed by all shareholders (section <br/>
<a id="pl.4.21"></a><var>4.21</var>302A.441).<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.4.22"></a><var>4.22</var>    Sec. 4. Minnesota Statutes 2006, section 302A.111, subdivision 3, is amended to read:<br/>
<a id="pl.4.23"></a><var>4.23</var>    Subd. 3. <b>Statutory provisions that may be modified </b><b>either</b><b> in articles</b><b>, in a </b><br/>
<a id="pl.4.24"></a><var>4.24</var><b>shareholder control agreement,</b><b> or in bylaws.</b> The following provisions govern a <br/>
<a id="pl.4.25"></a><var>4.25</var>corporation unless modified either in the articles, in a shareholder control agreement <br/>
<a id="pl.4.26"></a><var>4.26</var>under section 302A.457, or in the bylaws:<br/>
<a id="pl.4.27"></a><var>4.27</var>(a) directors serve for an indefinite term that expires at the next regular meeting of <br/>
<a id="pl.4.28"></a><var>4.28</var>shareholders (section 
         <statute_ref>302A.207</statute_ref>);<br/>
<a id="pl.4.29"></a><var>4.29</var>(b) the compensation of directors is fixed by the board (section 
         <statute_ref>302A.211</statute_ref>);<br/>
<a id="pl.4.30"></a><var>4.30</var>(c) a certain method must be used for removal of directors (section 
         <statute_ref>302A.223</statute_ref>);<br/>
<a id="pl.4.31"></a><var>4.31</var>(d) a certain method must be used for filling board vacancies (section 
         <statute_ref>302A.225</statute_ref>);<br/>
<a id="pl.4.32"></a><var>4.32</var>(e) if the board fails to select a place for a board meeting, it must be held at the <br/>
<a id="pl.4.33"></a><var>4.33</var>principal executive office (section 
         <statute_ref>302A.231, subdivision 1)</statute_ref>; <br/>
<a id="pl.4.34"></a><var>4.34</var>(f) the notice of a board meeting need not state the purpose of the meeting (section <br/>
<statute_ref><a id="pl.4.35"></a><var>4.35</var>302A.231, subdivision 3)
         </statute_ref>; <br/>
<a id="pl.5.1"></a><var>5.1</var>(g) a majority of the board is a quorum for a board meeting (section 
         <statute_ref>302A.235</statute_ref>);<br/>
<a id="pl.5.2"></a><var>5.2</var>(h) a committee shall consist of one or more persons, who need not be directors, <br/>
<a id="pl.5.3"></a><var>5.3</var>appointed by affirmative vote of a majority of the directors present (section 
         <statute_ref>302A.241, <br/>
<a id="pl.5.4"></a><var>5.4</var>subdivision 2), and a committee may create one or more subcommittees, each consisting <br/>
<a id="pl.5.5"></a><var>5.5</var>of one or more members of the committee, and may delegate to a subcommittee any or all <br/>
<a id="pl.5.6"></a><var>5.6</var>of the authority of the committee (section 302A.241, subdivision 2a)
         </statute_ref>; <br/>
<a id="pl.5.7"></a><var>5.7</var>(i) the board may establish a special litigation committee (section 
         <statute_ref>302A.241</statute_ref>);<br/>
<a id="pl.5.8"></a><var>5.8</var>(j) the chief executive officer and chief financial officer have specified duties, until <br/>
<a id="pl.5.9"></a><var>5.9</var>the board determines otherwise (section 
         <statute_ref>302A.305</statute_ref>);<br/>
<a id="pl.5.10"></a><var>5.10</var>(k) officers may delegate some or all of their duties and powers, if not prohibited by <br/>
<a id="pl.5.11"></a><var>5.11</var>the board from doing so (section 
         <statute_ref>302A.351</statute_ref>);<br/>
<a id="pl.5.12"></a><var>5.12</var>(l) the corporation may establish uncertificated shares (section 
         <statute_ref>302A.417, <br/>
<a id="pl.5.13"></a><var>5.13</var>subdivision 7)
         </statute_ref>; <br/>
<a id="pl.5.14"></a><var>5.14</var>(m) regular meetings of shareholders need not be held, unless demanded by a <br/>
<a id="pl.5.15"></a><var>5.15</var>shareholder under certain conditions (section 
         <statute_ref>302A.431</statute_ref>);<br/>
<a id="pl.5.16"></a><var>5.16</var>(n) in all instances where a specific minimum notice period has not otherwise been <br/>
<a id="pl.5.17"></a><var>5.17</var>fixed by law, not less than ten-days notice is required for a meeting of shareholders <br/>
<a id="pl.5.18"></a><var>5.18</var>(section 
         <statute_ref>302A.435, subdivision 2)</statute_ref>; <br/>
<a id="pl.5.19"></a><var>5.19</var>(o) the number of shares required for a quorum at a shareholders' meeting is <br/>
<a id="pl.5.20"></a><var>5.20</var>a majority of the voting power of the shares entitled to vote at the meeting (section <br/>
<statute_ref><a id="pl.5.21"></a><var>5.21</var>302A.443
         </statute_ref>);<br/>
<a id="pl.5.22"></a><var>5.22</var>(p) the board may fix a date up to 60 days before the date of a shareholders' meeting <br/>
<a id="pl.5.23"></a><var>5.23</var>as the date for the determination of the holders of shares entitled to notice of and entitled <br/>
<a id="pl.5.24"></a><var>5.24</var>to vote at the meeting (section 
         <statute_ref>302A.445, subdivision 1)</statute_ref>; <br/>
<a id="pl.5.25"></a><var>5.25</var>(q) indemnification of certain persons is required (section 
         <statute_ref>302A.521</statute_ref>); and<br/>
<a id="pl.5.26"></a><var>5.26</var>(r) the board may authorize, and the corporation may make, distributions not <br/>
<a id="pl.5.27"></a><var>5.27</var>prohibited, limited, or restricted by an agreement (section 
         <statute_ref>302A.551, subdivision 1)</statute_ref>. <br/>
<br/>
<a id="bill.1.5.0"></a><a id="pl.5.28"></a><var>5.28</var>    Sec. 5. Minnesota Statutes 2006, section 302A.111, subdivision 4, is amended to read:<br/>
<a id="pl.5.29"></a><var>5.29</var>    Subd. 4. <b>Optional provisions; specific subjects.</b> The provisions in paragraphs (a), <br/>
<a id="pl.5.30"></a><var>5.30</var>(g), (q), (r), and (u) may be included in the articles.<br/>
<a id="pl.5.31"></a><var>5.31</var>The provisions in paragraphs (b) to (f), (h) to (p), (s), and (t) may be included either <br/>
<a id="pl.5.32"></a><var>5.32</var>in the articles or the bylaws:<br/>
<a id="pl.5.33"></a><var>5.33</var>(a) the members of the first board may be named in the articles (section 
         <statute_ref>302A.201, <br/>
<a id="pl.5.34"></a><var>5.34</var>subdivision 1)
         </statute_ref>; <br/>
<a id="pl.6.1"></a><var>6.1</var>(b) a manner for increasing or decreasing the number of directors may be provided <br/>
<a id="pl.6.2"></a><var>6.2</var>(section 302A.203);<br/>
<a id="pl.6.3"></a><var>6.3</var>(c) additional qualifications for directors may be imposed (section 302A.205);<br/>
<a id="pl.6.4"></a><var>6.4</var>(d) directors may be classified (section 302A.213);<br/>
<a id="pl.6.5"></a><var>6.5</var>(e) the day or date, time, and place of board meetings may be fixed (section <br/>
<statute_ref><a id="pl.6.6"></a><var>6.6</var>302A.231, subdivision 1)
         </statute_ref>; <br/>
<a id="pl.6.7"></a><var>6.7</var>(f) absent directors may be permitted to give written consent or opposition to <br/>
<a id="pl.6.8"></a><var>6.8</var>a proposal (section 302A.233);<br/>
<a id="pl.6.9"></a><var>6.9</var>(g) a larger than majority vote may be required for board action (section 302A.237);<br/>
<a id="pl.6.10"></a><var>6.10</var>(h) authority to sign and deliver certain documents may be delegated to an officer <br/>
<a id="pl.6.11"></a><var>6.11</var>or agent of the corporation other than the chief executive officer (section 
         <statute_ref>302A.305, <br/>
<a id="pl.6.12"></a><var>6.12</var>subdivision 2)
         </statute_ref>; <br/>
<a id="pl.6.13"></a><var>6.13</var>(i) additional officers may be designated (section 302A.311);<br/>
<a id="pl.6.14"></a><var>6.14</var>(j) additional powers, rights, duties, and responsibilities may be given to officers <br/>
<a id="pl.6.15"></a><var>6.15</var>(section 302A.311);<br/>
<a id="pl.6.16"></a><var>6.16</var>(k) a method for filling vacant offices may be specified (section 
         <statute_ref>302A.341, <br/>
<a id="pl.6.17"></a><var>6.17</var>subdivision 3)
         </statute_ref>; <br/>
<a id="pl.6.18"></a><var>6.18</var>(l) a certain officer or agent may be authorized to sign share certificates (section <br/>
<statute_ref><a id="pl.6.19"></a><var>6.19</var>302A.417, subdivision 2)
         </statute_ref>; <br/>
<a id="pl.6.20"></a><var>6.20</var>(m) the transfer or registration of transfer of securities may be restricted (section <br/>
<a id="pl.6.21"></a><var>6.21</var>302A.429);<br/>
<a id="pl.6.22"></a><var>6.22</var>(n) the day or date, time, and place of regular shareholder meetings may be fixed <br/>
<a id="pl.6.23"></a><var>6.23</var>(section 
         <statute_ref>302A.431, subdivision 3)</statute_ref>; <br/>
<a id="pl.6.24"></a><var>6.24</var>(o) certain persons may be authorized to call special meetings of shareholders <br/>
<a id="pl.6.25"></a><var>6.25</var>(section 
         <statute_ref>302A.433, subdivision 1)</statute_ref>; <br/>
<a id="pl.6.26"></a><var>6.26</var>(p) notices of shareholder meetings may be required to contain certain information <br/>
<a id="pl.6.27"></a><var>6.27</var>(section 
         <statute_ref>302A.435, subdivision 3)</statute_ref>; <br/>
<a id="pl.6.28"></a><var>6.28</var>(q) a larger than majority vote may be required for shareholder action (section <br/>
<a id="pl.6.29"></a><var>6.29</var>302A.437);<br/>
<a id="pl.6.30"></a><var>6.30</var>(r) voting rights may be granted in or pursuant to the articles to persons who are not <br/>
<a id="pl.6.31"></a><var>6.31</var>shareholders (section 
         <statute_ref>302A.445, subdivision 4)</statute_ref>; <br/>
<a id="pl.6.32"></a><var>6.32</var>(s) corporate actions giving rise to dissenter rights may be designated (section <br/>
<statute_ref><a id="pl.6.33"></a><var>6.33</var>302A.471, subdivision 1
         </statute_ref>, clause (e)); <br/>
<a id="pl.6.34"></a><var>6.34</var>(t) the rights and priorities of persons to receive distributions may be established <br/>
<a id="pl.6.35"></a><var>6.35</var>(section 302A.551); and<br/>
<a id="pl.7.1"></a><var>7.1</var>(u) a director's personal liability to the corporation or its shareholders for monetary <br/>
<a id="pl.7.2"></a><var>7.2</var>damages for breach of fiduciary duty as a director may be eliminated or limited in the <br/>
<a id="pl.7.3"></a><var>7.3</var>articles (section 
         <statute_ref>302A.251, subdivision 4)</statute_ref>. <br/>
<a id="pl.7.4"></a><var>7.4</var>Nothing in this subdivision limits the right of the board, by resolution, to take an <br/>
<a id="pl.7.5"></a><var>7.5</var>action that may be included in the bylaws under this subdivision without including it in <br/>
<a id="pl.7.6"></a><var>7.6</var>the bylaws, unless it is required to be included in the bylaws by another provision of this <br/>
<a id="pl.7.7"></a><var>7.7</var>chapter. Nothing in this subdivision limits the permissible scope of a shareholder control <br/>
<a id="pl.7.8"></a><var>7.8</var>agreement under section 302A.457.<br/>
<br/>
<a id="bill.1.6.0"></a><a id="pl.7.9"></a><var>7.9</var>    Sec. 6. Minnesota Statutes 2006, section 302A.231, subdivision 2, is amended to read:<br/>
<a id="pl.7.10"></a><var>7.10</var>    Subd. 2. <b>Meetings solely by means of remote communication.</b> Any meeting <br/>
<a id="pl.7.11"></a><var>7.11</var>among directors may be conducted solely by one or more means of remote communication <br/>
<a id="pl.7.12"></a><var>7.12</var>through which all of the directors may participate with each other during the meeting, if <br/>
<a id="pl.7.13"></a><var>7.13</var>the same notice is given of the meeting required by subdivision 4, and if the number of <br/>
<a id="pl.7.14"></a><var>7.14</var>directors participating in the meeting is sufficient to constitute a quorum at a meeting. <br/>
<a id="pl.7.15"></a><var>7.15</var>Participation in a meeting by that means constitutes presence in person at the meeting.<br/>
<br/>
<a id="bill.1.7.0"></a><a id="pl.7.16"></a><var>7.16</var>    Sec. 7. Minnesota Statutes 2006, section 302A.231, subdivision 3, is amended to read:<br/>
<a id="pl.7.17"></a><var>7.17</var>    Subd. 3. <b>Participation in meetings by means of remote communication.</b> A <br/>
<a id="pl.7.18"></a><var>7.18</var>director may participate in a board meeting by means of conference telephone or, if <br/>
<a id="pl.7.19"></a><var>7.19</var>authorized by the board, by such other means of remote communication, in each case <br/>
<a id="pl.7.20"></a><var>7.20</var>through which the director, other directors so participating, and all directors physically <br/>
<a id="pl.7.21"></a><var>7.21</var>present at the meeting may participate with each other during the meeting. Participation in <br/>
<a id="pl.7.22"></a><var>7.22</var>a meeting by that means constitutes presence in person at the meeting.<br/>
<br/>
<a id="bill.1.8.0"></a><a id="pl.7.23"></a><var>7.23</var>    Sec. 8. Minnesota Statutes 2006, section 302A.237, is amended to read:<br/>
<a id="pl.7.24"></a><var>7.24</var><b>302A.237 ACT OF THE BOARD.</b><br/>
<a id="pl.7.25"></a><var>7.25</var>    Subdivision 1. <b>Majority required.</b> The board shall take action by the affirmative <br/>
<a id="pl.7.26"></a><var>7.26</var>vote of the greater of (1) a majority of directors present at a duly held meeting at the time <br/>
<a id="pl.7.27"></a><var>7.27</var>the action is taken, or (2) a majority of the minimum proportion or number of directors <br/>
<a id="pl.7.28"></a><var>7.28</var>that would constitute a quorum for the transaction of business at the meeting, except where <br/>
<a id="pl.7.29"></a><var>7.29</var>this chapter or the articles require the affirmative vote of a larger proportion or number. If <br/>
<a id="pl.7.30"></a><var>7.30</var>the articles require a larger proportion or number than is required by this chapter for a <br/>
<a id="pl.7.31"></a><var>7.31</var>particular action, the articles shall control.<br/>
<a id="pl.7.32"></a><var>7.32</var>    Subd. 2. <b>Voting power.</b> The articles of a domestic corporation that is not a publicly <br/>
<a id="pl.7.33"></a><var>7.33</var>held corporation may confer upon one or more directors voting powers greater than or less <br/>
<a id="pl.8.1"></a><var>8.1</var>than those of other directors. After the adoption of the initial articles, an amendment to the <br/>
<a id="pl.8.2"></a><var>8.2</var>articles to confer upon one or more directors voting powers greater than or less than those <br/>
<a id="pl.8.3"></a><var>8.3</var>of other directors requires the approval of all of the shareholders entitled to vote on the <br/>
<a id="pl.8.4"></a><var>8.4</var>amendment. If the articles provide that any director has more or less than one vote on any <br/>
<a id="pl.8.5"></a><var>8.5</var>matter, every reference in this chapter to a majority or other proportion of the directors <br/>
<a id="pl.8.6"></a><var>8.6</var>shall refer to a majority or other proportion of the voting power of the directors. Unless <br/>
<a id="pl.8.7"></a><var>8.7</var>otherwise provided in the articles, the bylaws, or the resolution establishing the committee <br/>
<a id="pl.8.8"></a><var>8.8</var>or the subcommittee, any such provision conferring greater or lesser voting power applies <br/>
<a id="pl.8.9"></a><var>8.9</var>to voting in a committee or subcommittee.<br/>
<br/>
<a id="bill.1.9.0"></a><a id="pl.8.10"></a><var>8.10</var>    Sec. 9. Minnesota Statutes 2006, section 302A.241, subdivision 1, is amended to read:<br/>
<a id="pl.8.11"></a><var>8.11</var>    Subdivision 1. <b>Generally.</b> A resolution approved by the affirmative vote of a <br/>
<a id="pl.8.12"></a><var>8.12</var>majority of the board directors currently holding office may establish committees having <br/>
<a id="pl.8.13"></a><var>8.13</var>the authority of the board in the management of the business of the corporation only to the <br/>
<a id="pl.8.14"></a><var>8.14</var>extent provided in the resolution. Committees may include a special litigation committee <br/>
<a id="pl.8.15"></a><var>8.15</var>consisting of one or more independent directors or other independent persons to consider <br/>
<a id="pl.8.16"></a><var>8.16</var>legal rights or remedies of the corporation and whether those rights and remedies should <br/>
<a id="pl.8.17"></a><var>8.17</var>be pursued. Committees other than special litigation committees and committees formed <br/>
<a id="pl.8.18"></a><var>8.18</var>pursuant to section 
         <statute_ref>302A.673, subdivision 1</statute_ref>, paragraph (d), are subject at all times to the <br/>
<a id="pl.8.19"></a><var>8.19</var>direction and control of the board. <br/>
<br/>
<a id="bill.1.10.0"></a><a id="pl.8.20"></a><var>8.20</var>    Sec. 10. Minnesota Statutes 2006, section 302A.255, subdivision 1, is amended to read:<br/>
<a id="pl.8.21"></a><var>8.21</var>    Subdivision 1. <b>Conflict; procedure when conflict arises.</b> A contract or other <br/>
<a id="pl.8.22"></a><var>8.22</var>transaction between a corporation and one or more of its directors, or between a <br/>
<a id="pl.8.23"></a><var>8.23</var>corporation and an organization in or of which one or more of its directors are directors, <br/>
<a id="pl.8.24"></a><var>8.24</var>officers, or legal representatives or have a material financial interest, is not void or <br/>
<a id="pl.8.25"></a><var>8.25</var>voidable because the director or directors or the other organizations are parties or because <br/>
<a id="pl.8.26"></a><var>8.26</var>the director or directors are present at the meeting of the shareholders or the board or a <br/>
<a id="pl.8.27"></a><var>8.27</var>committee at which the contract or transaction is authorized, approved, or ratified, if:<br/>
<a id="pl.8.28"></a><var>8.28</var>(a) The contract or transaction was, and the person asserting the validity of the <br/>
<a id="pl.8.29"></a><var>8.29</var>contract or transaction sustains the burden of establishing that the contract or transaction <br/>
<a id="pl.8.30"></a><var>8.30</var>was, fair and reasonable as to the corporation at the time it was authorized, approved, <br/>
<a id="pl.8.31"></a><var>8.31</var>or ratified;<br/>
<a id="pl.8.32"></a><var>8.32</var>(b) The material facts as to the contract or transaction and as to the director's or <br/>
<a id="pl.8.33"></a><var>8.33</var>directors' interest are fully disclosed or known to the holders of all outstanding shares, <br/>
<a id="pl.8.34"></a><var>8.34</var>whether or not entitled to vote, and the contract or transaction is approved in good faith <br/>
<a id="pl.9.1"></a><var>9.1</var>by (1) the holders of two-thirds of the voting power of the shares entitled to vote which <br/>
<a id="pl.9.2"></a><var>9.2</var>are owned by persons other than the interested director or directors, or (2) the unanimous <br/>
<a id="pl.9.3"></a><var>9.3</var>affirmative vote of the holders of all outstanding shares, whether or not entitled to vote;<br/>
<a id="pl.9.4"></a><var>9.4</var>(c) The material facts as to the contract or transaction and as to the director's or <br/>
<a id="pl.9.5"></a><var>9.5</var>directors' interest are fully disclosed or known to the board or a committee, and the board <br/>
<a id="pl.9.6"></a><var>9.6</var>or committee authorizes, approves, or ratifies the contract or transaction in good faith by a <br/>
<a id="pl.9.7"></a><var>9.7</var>majority of the board or committee directors or committee members currently holding <br/>
<a id="pl.9.8"></a><var>9.8</var>office, but the interested director or directors shall not be counted in determining the <br/>
<a id="pl.9.9"></a><var>9.9</var>presence of a quorum and shall not vote; or<br/>
<a id="pl.9.10"></a><var>9.10</var>(d) The contract or transaction is a distribution described in section 
         <statute_ref>302A.551, <br/>
<a id="pl.9.11"></a><var>9.11</var>subdivision 1
         </statute_ref>, or a merger or exchange described in section 
         <statute_ref>302A.601, subdivision 1</statute_ref> or 2. <br/>
<br/>
<a id="bill.1.11.0"></a><a id="pl.9.12"></a><var>9.12</var>    Sec. 11. Minnesota Statutes 2006, section 302A.449, subdivision 3, is amended to read:<br/>
<a id="pl.9.13"></a><var>9.13</var>    Subd. 3. <b>Termination.</b> An appointment may be terminated at will, unless the <br/>
<a id="pl.9.14"></a><var>9.14</var>appointment is coupled with an interest, in which case it shall not be terminated except in <br/>
<a id="pl.9.15"></a><var>9.15</var>accordance with the terms of an agreement, if any, between the parties to the appointment. <br/>
<a id="pl.9.16"></a><var>9.16</var>Termination may be made by filing written notice of the termination of the appointment <br/>
<a id="pl.9.17"></a><var>9.17</var>with an officer of the corporation, or by filing a new written appointment of a proxy, <br/>
<a id="pl.9.18"></a><var>9.18</var>signed by the shareholder, with an officer of the corporation, or by telephonic transmission <br/>
<a id="pl.9.19"></a><var>9.19</var>or authenticated electronic communication, whether or not accompanied by written <br/>
<a id="pl.9.20"></a><var>9.20</var>instructions of the shareholder, of a new appointment of a proxy with the corporation or <br/>
<a id="pl.9.21"></a><var>9.21</var>the corporation's duly authorized agent. Termination in either any such manner revokes all <br/>
<a id="pl.9.22"></a><var>9.22</var>prior proxy appointments and is effective when filed with an officer of the corporation or <br/>
<a id="pl.9.23"></a><var>9.23</var>when the telephonic transmission or authenticated electronic communication is received <br/>
<a id="pl.9.24"></a><var>9.24</var>by the corporation or the corporation's duly authorized agent. The telephonic transmission <br/>
<a id="pl.9.25"></a><var>9.25</var>or authenticated electronic communication must set forth or be submitted with information <br/>
<a id="pl.9.26"></a><var>9.26</var>from which it can be determined that the new appointment was authorized by the <br/>
<a id="pl.9.27"></a><var>9.27</var>shareholder.<br/>
<br/>
<a id="bill.1.12.0"></a><a id="pl.9.28"></a><var>9.28</var>    Sec. 12. Minnesota Statutes 2006, section 302A.471, subdivision 3, is amended to read:<br/>
<a id="pl.9.29"></a><var>9.29</var>    Subd. 3. <b>Rights not to apply.</b> (a) Unless the articles, the bylaws, or a resolution <br/>
<a id="pl.9.30"></a><var>9.30</var>approved by the board otherwise provide, the right to obtain payment under this section <br/>
<a id="pl.9.31"></a><var>9.31</var>does not apply to a shareholder of (1) the surviving corporation in a merger with respect <br/>
<a id="pl.9.32"></a><var>9.32</var>to shares of the shareholder that are not entitled to be voted on the merger and are <br/>
<a id="pl.9.33"></a><var>9.33</var>not canceled or exchanged in the merger or (2) the corporation whose shares will be <br/>
<a id="pl.9.34"></a><var>9.34</var>acquired by the acquiring organization in a plan of exchange with respect to shares <br/>
<a id="pl.10.1"></a><var>10.1</var>of the shareholder that are not entitled to be voted on the plan of exchange and are not <br/>
<a id="pl.10.2"></a><var>10.2</var>exchanged in the plan of exchange.<br/>
<a id="pl.10.3"></a><var>10.3</var>(b) If a date is fixed according to section 
         <statute_ref>302A.445, subdivision 1</statute_ref>, for the <br/>
<a id="pl.10.4"></a><var>10.4</var>determination of shareholders entitled to receive notice of and to vote on an action <br/>
<a id="pl.10.5"></a><var>10.5</var>described in subdivision 1, only shareholders as of the date fixed, and beneficial owners <br/>
<a id="pl.10.6"></a><var>10.6</var>as of the date fixed who hold through shareholders, as provided in subdivision 2, may <br/>
<a id="pl.10.7"></a><var>10.7</var>exercise dissenters' rights. <br/>
<a id="pl.10.8"></a><var>10.8</var>(c) Notwithstanding subdivision 1, the right to obtain payment under this section, <br/>
<a id="pl.10.9"></a><var>10.9</var>other than in connection with a plan of merger adopted under section 
         <statute_ref>302A.621</statute_ref>, is limited <br/>
<a id="pl.10.10"></a><var>10.10</var>in accordance with the following provisions: <br/>
<a id="pl.10.11"></a><var>10.11</var>(1) The right to obtain payment under this section is not available for the holders of <br/>
<a id="pl.10.12"></a><var>10.12</var>shares of any class or series of shares that is listed on the New York Stock Exchange or, <br/>
<a id="pl.10.13"></a><var>10.13</var>the American Stock Exchange or designated as a national market security on, the Nasdaq <br/>
<a id="pl.10.14"></a><var>10.14</var>Stock NASDAQ Global Market, or the NASDAQ Global Select Market.<br/>
<a id="pl.10.15"></a><var>10.15</var>(2) The applicability of clause (1) is determined as of:<br/>
<a id="pl.10.16"></a><var>10.16</var>(i) the record date fixed to determine the shareholders entitled to receive notice of, <br/>
<a id="pl.10.17"></a><var>10.17</var>and to vote at, the meeting of shareholders to act upon the corporate action described <br/>
<a id="pl.10.18"></a><var>10.18</var>in subdivision 1; or<br/>
<a id="pl.10.19"></a><var>10.19</var>(ii) the day before the effective date of corporate action described in subdivision <br/>
<a id="pl.10.20"></a><var>10.20</var>1 if there is no meeting of shareholders.<br/>
<a id="pl.10.21"></a><var>10.21</var>(3) Clause (1) is not applicable, and the right to obtain payment under this section is <br/>
<a id="pl.10.22"></a><var>10.22</var>available pursuant to subdivision 1, for the holders of any class or series of shares who are <br/>
<a id="pl.10.23"></a><var>10.23</var>required by the terms of the corporate action described in subdivision 1 to accept for such <br/>
<a id="pl.10.24"></a><var>10.24</var>shares anything other than shares, or cash in lieu of fractional shares, of any class or any <br/>
<a id="pl.10.25"></a><var>10.25</var>series of shares of a domestic or foreign corporation, or any other ownership interest of <br/>
<a id="pl.10.26"></a><var>10.26</var>any other organization, that satisfies the standards set forth in clause (1) at the time the <br/>
<a id="pl.10.27"></a><var>10.27</var>corporate action becomes effective.<br/>
<br/>
<a id="bill.1.13.0"></a><a id="pl.10.28"></a><var>10.28</var>    Sec. 13. Minnesota Statutes 2006, section 302A.521, subdivision 1, is amended to read:<br/>
<a id="pl.10.29"></a><var>10.29</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the terms defined in this <br/>
<a id="pl.10.30"></a><var>10.30</var>subdivision have the meanings given them.<br/>
<a id="pl.10.31"></a><var>10.31</var>(b) "Corporation" includes a domestic or foreign corporation that was the <br/>
<a id="pl.10.32"></a><var>10.32</var>predecessor of the corporation referred to in this section in a merger or other transaction in <br/>
<a id="pl.10.33"></a><var>10.33</var>which the predecessor's existence ceased upon consummation of the transaction.<br/>
<a id="pl.10.34"></a><var>10.34</var>(c) "Official capacity" means (1) with respect to a director, the position of director <br/>
<a id="pl.10.35"></a><var>10.35</var>in a corporation, (2) with respect to a person other than a director, the elective or <br/>
<a id="pl.11.1"></a><var>11.1</var>appointive office or position held by an officer, member of a committee of the board, or <br/>
<a id="pl.11.2"></a><var>11.2</var>the employment relationship undertaken by an employee of the corporation, and (3) with <br/>
<a id="pl.11.3"></a><var>11.3</var>respect to a director, officer, or employee of the corporation who, while a director, officer, <br/>
<a id="pl.11.4"></a><var>11.4</var>or employee of the corporation, is or was serving at the request of the corporation or whose <br/>
<a id="pl.11.5"></a><var>11.5</var>duties in that position involve or involved service as a director, officer, partner, trustee, <br/>
<a id="pl.11.6"></a><var>11.6</var>governor, manager, employee, or agent of another organization or employee benefit plan, <br/>
<a id="pl.11.7"></a><var>11.7</var>the position of that person as a director, officer, partner, trustee, governor, manager, <br/>
<a id="pl.11.8"></a><var>11.8</var>employee, or agent, as the case may be, of the other organization or employee benefit plan.<br/>
<a id="pl.11.9"></a><var>11.9</var>(d) "Proceeding" means a threatened, pending, or completed civil, criminal, <br/>
<a id="pl.11.10"></a><var>11.10</var>administrative, arbitration, or investigative proceeding, including a proceeding by or in the <br/>
<a id="pl.11.11"></a><var>11.11</var>right of the corporation.<br/>
<a id="pl.11.12"></a><var>11.12</var>(e) "Special legal counsel" means counsel who has not in the preceding five years <br/>
<a id="pl.11.13"></a><var>11.13</var>(1) represented the corporation or a related organization in a capacity other than special <br/>
<a id="pl.11.14"></a><var>11.14</var>legal counsel, or (2) represented a director, officer, member of a committee of the board, <br/>
<a id="pl.11.15"></a><var>11.15</var>or employee, whose indemnification is in issue.<br/>
<br/>
<a id="bill.1.14.0"></a><a id="pl.11.16"></a><var>11.16</var>    Sec. 14. Minnesota Statutes 2006, section 302A.553, subdivision 1, is amended to read:<br/>
<a id="pl.11.17"></a><var>11.17</var>    Subdivision 1. <b>When permitted; status of shares.</b> (a) A corporation may acquire <br/>
<a id="pl.11.18"></a><var>11.18</var>its own shares, subject to section 
         <statute_ref>302A.551</statute_ref> and subdivision 3. <br/>
<a id="pl.11.19"></a><var>11.19</var>(b) If a corporation acquires its own shares, then any of the acquired shares that are <br/>
<a id="pl.11.20"></a><var>11.20</var>not pledged by the corporation as security for the future payment of some or all of the <br/>
<a id="pl.11.21"></a><var>11.21</var>purchase price for the shares constitute authorized but unissued shares of the corporation, <br/>
<a id="pl.11.22"></a><var>11.22</var>unless the articles provide that they shall not be reissued. If the articles prohibit reissue, <br/>
<a id="pl.11.23"></a><var>11.23</var>the number of authorized shares is reduced by the number of shares acquired.<br/>
<a id="pl.11.24"></a><var>11.24</var>(c) If a corporation pledges acquired shares as security for future payment of all or <br/>
<a id="pl.11.25"></a><var>11.25</var>part of the purchase price for the shares and reissues the pledged shares in its own name; <br/>
<a id="pl.11.26"></a><var>11.26</var>then<br/>
<a id="pl.11.27"></a><var>11.27</var>(1) the shares must continue to be issued and outstanding except for voting and <br/>
<a id="pl.11.28"></a><var>11.28</var>determination of a quorum, and the shares are not considered to be present and entitled to <br/>
<a id="pl.11.29"></a><var>11.29</var>vote at any meeting of shareholders;<br/>
<a id="pl.11.30"></a><var>11.30</var>(2) the corporation may not vote or exercise any other rights of a shareholder with <br/>
<a id="pl.11.31"></a><var>11.31</var>respect to the pledged shares, but the pledgee shall have any rights, other than the right to <br/>
<a id="pl.11.32"></a><var>11.32</var>vote, with respect to the shares to which the pledgee is entitled to by contract;<br/>
<a id="pl.11.33"></a><var>11.33</var>(3) if the pledge is foreclosed, the corporation shall reissue and deliver the pledged <br/>
<a id="pl.11.34"></a><var>11.34</var>shares to or at the direction of the pledgee; and<br/>
<a id="pl.11.35"></a><var>11.35</var>(4) shares which are released from a pledge have the status specified in paragraph (b).<br/>
<br/>
<a id="bill.1.15.0"></a><a id="pl.12.1"></a><var>12.1</var>    Sec. 15. Minnesota Statutes 2006, section 302A.701, is amended to read:<br/>
<a id="pl.12.2"></a><var>12.2</var><b>302A.701 METHODS OF DISSOLUTION.</b><br/>
<a id="pl.12.3"></a><var>12.3</var>A corporation may be dissolved:<br/>
<a id="pl.12.4"></a><var>12.4</var>(a) by the incorporators before the issuance of shares, pursuant to section 
         <statute_ref>302A.711</statute_ref>; <br/>
<a id="pl.12.5"></a><var>12.5</var>(b) by the shareholders after the issuance of shares, pursuant to sections 
         <statute_ref>302A.721</statute_ref> <br/>
<a id="pl.12.6"></a><var>12.6</var>to 
         <statute_ref>302A.7291</statute_ref>; <br/>
<a id="pl.12.7"></a><var>12.7</var>(c) by order of a court pursuant to sections 
         <statute_ref>302A.741</statute_ref> to 
         <statute_ref>302A.765</statute_ref>; or <br/>
<a id="pl.12.8"></a><var>12.8</var>(d) by the secretary of state according to section 
         <statute_ref>302A.821</statute_ref>. <br/>
<br/>
<a id="bill.1.16.0"></a><a id="pl.12.9"></a><var>12.9</var>    Sec. 16. Minnesota Statutes 2006, section 302A.721, is amended to read:<br/>
<a id="pl.12.10"></a><var>12.10</var><b>302A.721 VOLUNTARY DISSOLUTION </b><b>BY SHAREHOLDERS</b><b> AFTER </b><br/>
<a id="pl.12.11"></a><var>12.11</var><b>THE ISSUANCE OF SHARES</b><b>.</b><br/>
<a id="pl.12.12"></a><var>12.12</var>    Subdivision 1. <b>Manner.</b> After the issuance of shares, a corporation may be dissolved <br/>
<a id="pl.12.13"></a><var>12.13</var>by the shareholders when authorized in the manner set forth in this section.<br/>
<a id="pl.12.14"></a><var>12.14</var>    Subd. 2. <b>Notice; approval.</b> (a) If the corporation has outstanding shares:<br/>
<a id="pl.12.15"></a><var>12.15</var>(1) Written notice shall be given to each shareholder, whether or not entitled to <br/>
<a id="pl.12.16"></a><var>12.16</var>vote at a meeting of shareholders, within the time and in the manner provided in section <br/>
<statute_ref><a id="pl.12.17"></a><var>12.17</var>302A.435
         </statute_ref> for notice of meetings of shareholders and, whether the meeting is a regular <br/>
<a id="pl.12.18"></a><var>12.18</var>or a special meeting, shall state that a purpose of the meeting is to consider dissolving <br/>
<a id="pl.12.19"></a><var>12.19</var>the corporation. <br/>
<a id="pl.12.20"></a><var>12.20</var>(b) (2) The proposed dissolution shall be submitted for approval at a meeting of <br/>
<a id="pl.12.21"></a><var>12.21</var>shareholders. If the proposed dissolution is approved at a meeting by the affirmative <br/>
<a id="pl.12.22"></a><var>12.22</var>vote of the holders of a majority of the voting power of all shares entitled to vote, the <br/>
<a id="pl.12.23"></a><var>12.23</var>dissolution shall be commenced.<br/>
<a id="pl.12.24"></a><var>12.24</var>(b) If the corporation no longer has any outstanding shares, then the directors may <br/>
<a id="pl.12.25"></a><var>12.25</var>authorize and commence the dissolution. If the directors take that action, then the notice <br/>
<a id="pl.12.26"></a><var>12.26</var>of dissolution filed under section 302A.723 shall so reflect and the directors shall have <br/>
<a id="pl.12.27"></a><var>12.27</var>the right to revoke the dissolution proceedings in accordance with section 302A.731, <br/>
<a id="pl.12.28"></a><var>12.28</var>subdivision 1.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="pl.12.31"></a><var>12.31</var><b>ACT AND THE UNIFORM LIMITED PARTNERSHIP ACT OF 2001</b><br/>

<a id="bill.2.1.0"></a><a id="pl.12.32"></a><var>12.32</var>    Section 1. Minnesota Statutes 2006, section 321.1206, is amended to read:<br/>
<a id="pl.12.33"></a><var>12.33</var><b>321.1206 APPLICATION TO EXISTING RELATIONSHIPS.</b><br/>
<a id="pl.13.1"></a><var>13.1</var>(a) Beginning January 1, 2005, no person may use chapter 322A to form an entity.<br/>
<a id="pl.13.2"></a><var>13.2</var>(b) Before January 1, 2007, this chapter governs only:<br/>
<a id="pl.13.3"></a><var>13.3</var>(1) a limited partnership formed on or after January 1, 2005; and<br/>
<a id="pl.13.4"></a><var>13.4</var>(2) except as otherwise provided in subsection (d):<br/>
<a id="pl.13.5"></a><var>13.5</var>(i) a limited partnership formed under chapter 322A which elects, in the manner <br/>
<a id="pl.13.6"></a><var>13.6</var>provided in its partnership agreement or by law for amending the partnership agreement, <br/>
<a id="pl.13.7"></a><var>13.7</var>to be subject to this chapter; and<br/>
<a id="pl.13.8"></a><var>13.8</var>(ii) a limited partnership formed under chapter 322, if the limited partnership elects <br/>
<a id="pl.13.9"></a><var>13.9</var>pursuant to subsection (f) to be subject to this chapter.<br/>
<a id="pl.13.10"></a><var>13.10</var>(c) Except as otherwise provided in subsection (d), on and after January 1, 2007, <br/>
<a id="pl.13.11"></a><var>13.11</var>this chapter governs:<br/>
<a id="pl.13.12"></a><var>13.12</var>(1) any limited partnership formed under chapter 322A which has not previously <br/>
<a id="pl.13.13"></a><var>13.13</var>elected to be governed by this chapter and is still in existence on January 1, 2007; and<br/>
<a id="pl.13.14"></a><var>13.14</var>(2) all limited partnerships, except for limited partnerships formed under chapter <br/>
<a id="pl.13.15"></a><var>13.15</var>322 that have not previously elected to become governed by this chapter or chapter 322A, <br/>
<a id="pl.13.16"></a><var>13.16</var>including each limited partnership formed under chapter 322A which has previously <br/>
<a id="pl.13.17"></a><var>13.17</var>elected to become governed by this chapter and each limited partnership formed under <br/>
<a id="pl.13.18"></a><var>13.18</var>chapter 322 which has elected, previously or otherwise, to be governed by this chapter.<br/>
<a id="pl.13.19"></a><var>13.19</var>(d) With respect to a limited partnership formed before January 1, 2005, the <br/>
<a id="pl.13.20"></a><var>13.20</var>following rules apply except as the partners otherwise elect in the manner provided in the <br/>
<a id="pl.13.21"></a><var>13.21</var>partnership agreement or by law for amending the partnership agreement:<br/>
<a id="pl.13.22"></a><var>13.22</var>(1) section 321.0104(c) does not apply and the limited partnership has whatever <br/>
<a id="pl.13.23"></a><var>13.23</var>duration it had under the law applicable immediately before the limited partnership <br/>
<a id="pl.13.24"></a><var>13.24</var>became subject to this chapter;<br/>
<a id="pl.13.25"></a><var>13.25</var>(2) the limited partnership is not required to amend its certificate of limited <br/>
<a id="pl.13.26"></a><var>13.26</var>partnership to comply with section 321.0201(a)(4);<br/>
<a id="pl.13.27"></a><var>13.27</var>(3) sections 
         <statute_ref>321.0601</statute_ref> and 
         <statute_ref>321.0602</statute_ref> do not apply and a limited partner has the same <br/>
<a id="pl.13.28"></a><var>13.28</var>right and power to dissociate from the limited partnership, with the same consequences, as <br/>
<a id="pl.13.29"></a><var>13.29</var>existed immediately before the limited partnership became subject to this chapter; <br/>
<a id="pl.13.30"></a><var>13.30</var>(4) section 321.0603(4) does not apply;<br/>
<a id="pl.13.31"></a><var>13.31</var>(5) section 321.0603(5) does not apply and a court has the same power to expel <br/>
<a id="pl.13.32"></a><var>13.32</var>a general partner as the court had immediately before the limited partnership became <br/>
<a id="pl.13.33"></a><var>13.33</var>subject to this chapter; and<br/>
<a id="pl.13.34"></a><var>13.34</var>(6) section 321.0801(3) does not apply and the connection between a person's <br/>
<a id="pl.13.35"></a><var>13.35</var>dissociation as a general partner and the dissolution of the limited partnership is the same <br/>
<a id="pl.13.36"></a><var>13.36</var>as existed immediately before the limited partnership became subject to this chapter.<br/>
<a id="pl.14.1"></a><var>14.1</var>(e) If subsection (c) causes a limited partnership that is a limited liability limited <br/>
<a id="pl.14.2"></a><var>14.2</var>partnership under section 
         <statute_ref>322A.88</statute_ref> to become subject to this chapter: <br/>
<a id="pl.14.3"></a><var>14.3</var>(1) if immediately before the limited partnership that is a limited liability limited <br/>
<a id="pl.14.4"></a><var>14.4</var>partnership under section 
         <statute_ref>322A.88</statute_ref> became subject to this chapter its name complied with <br/>
<a id="pl.14.5"></a><var>14.5</var>section 
         <statute_ref>322A.02</statute_ref>, the limited partnership may maintain its name even if the name does <br/>
<a id="pl.14.6"></a><var>14.6</var>not comply with section 321.0108(c); and <br/>
<a id="pl.14.7"></a><var>14.7</var>(2) the statement of qualification of the limited partnership that is a limited liability <br/>
<a id="pl.14.8"></a><var>14.8</var>limited partnership under section 
         <statute_ref>322A.88</statute_ref>, on file with the secretary of state pursuant to <br/>
<a id="pl.14.9"></a><var>14.9</var>section 322A.88(a)(2), is deemed to amend the limited partnership's certificate of limited <br/>
<a id="pl.14.10"></a><var>14.10</var>partnership to state that the limited partnership is a limited liability limited partnership. <br/>
<a id="pl.14.11"></a><var>14.11</var>(f) On or after January 1, 2005, a limited partnership formed under chapter 322 may <br/>
<a id="pl.14.12"></a><var>14.12</var>become subject to this chapter if:<br/>
<a id="pl.14.13"></a><var>14.13</var>(1) it elects, in the manner provided in its partnership agreement or by law for <br/>
<a id="pl.14.14"></a><var>14.14</var>amending the partnership agreement, to be subject to this chapter;<br/>
<a id="pl.14.15"></a><var>14.15</var>(2) neither its certificate of limited partnership nor its partnership agreement prohibit <br/>
<a id="pl.14.16"></a><var>14.16</var>the election;<br/>
<a id="pl.14.17"></a><var>14.17</var>(3) its certificate of limited partnership, on file with the county recorder, is amended <br/>
<a id="pl.14.18"></a><var>14.18</var>to state the election and, as may be necessary, to comply with this chapter; and<br/>
<a id="pl.14.19"></a><var>14.19</var>(4) a certified copy of the amended certificate of limited partnership, and of all <br/>
<a id="pl.14.20"></a><var>14.20</var>other limited partnership documents previously filed with the county recorder, is filed <br/>
<a id="pl.14.21"></a><var>14.21</var>with the secretary of state.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.14.22"></a><var>14.22</var>    Sec. 2. Minnesota Statutes 2006, section 322B.03, subdivision 32, is amended to read:<br/>
<a id="pl.14.23"></a><var>14.23</var>    Subd. 32. <b>Notice.</b> (a) "Notice" is given by a member of a limited liability company <br/>
<a id="pl.14.24"></a><var>14.24</var>to the limited liability company or a manager of a limited liability company when in <br/>
<a id="pl.14.25"></a><var>14.25</var>writing and mailed or delivered to the limited liability company or the manager at the <br/>
<a id="pl.14.26"></a><var>14.26</var>registered office or principal executive office of the limited liability company.<br/>
<a id="pl.14.27"></a><var>14.27</var>(b) In all other cases, "notice" is given to a person when:<br/>
<a id="pl.14.28"></a><var>14.28</var>(1) mailed to the person at an address designated by the person or at the last known <br/>
<a id="pl.14.29"></a><var>14.29</var>address of the person, or when;<br/>
<a id="pl.14.30"></a><var>14.30</var>(2) deposited with a nationally recognized overnight delivery service for overnight <br/>
<a id="pl.14.31"></a><var>14.31</var>delivery or, if overnight delivery to the person is not available, for delivery as promptly <br/>
<a id="pl.14.32"></a><var>14.32</var>as practicable to the person at an address designated by the person or at the last known <br/>
<a id="pl.14.33"></a><var>14.33</var>address of the person;<br/>
<a id="pl.14.34"></a><var>14.34</var>(3) communicated to the person orally, or when;<br/>
<a id="pl.14.35"></a><var>14.35</var>(4) handed to the person,; or when<br/>
<a id="pl.15.1"></a><var>15.1</var>(5) left at the office of the person with a clerk or other person in charge of the office, <br/>
<a id="pl.15.2"></a><var>15.2</var>or if there is no one in charge, when left in a conspicuous place in the office, or if the <br/>
<a id="pl.15.3"></a><var>15.3</var>office is closed or the person to be notified has no office, when left at the dwelling house <br/>
<a id="pl.15.4"></a><var>15.4</var>or usual place of abode of the person with some person of suitable age and discretion <br/>
<a id="pl.15.5"></a><var>15.5</var>who is then residing there therein.<br/>
<a id="pl.15.6"></a><var>15.6</var>(c) Notice by mail is given when deposited in the United States mail with sufficient <br/>
<a id="pl.15.7"></a><var>15.7</var>postage affixed. Notice is considered by deposit for delivery is given when deposited <br/>
<a id="pl.15.8"></a><var>15.8</var>for delivery as provided in paragraph (b), clause (2), after having made sufficient <br/>
<a id="pl.15.9"></a><var>15.9</var>arrangements for payment by the sender.<br/>
<a id="pl.15.10"></a><var>15.10</var>(d) Notice is deemed received when it is given.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.15.11"></a><var>15.11</var>    Sec. 3. Minnesota Statutes 2006, section 322B.11, is amended to read:<br/>
<a id="pl.15.12"></a><var>15.12</var><b>322B.11 MEMBER REQUIREMENT.</b><br/>
<a id="pl.15.13"></a><var>15.13</var>Subject to the provisions of sections 322B.60 and 322B.80, subdivision 1, a limited <br/>
<a id="pl.15.14"></a><var>15.14</var>liability company shall have one or more members.<br/>
<br/>
<a id="bill.2.4.0"></a><a id="pl.15.15"></a><var>15.15</var>    Sec. 4. Minnesota Statutes 2006, section 322B.35, subdivision 3, is amended to read:<br/>
<a id="pl.15.16"></a><var>15.16</var>    Subd. 3. <b>Notice and liability.</b> When written action is permitted to be taken by less <br/>
<a id="pl.15.17"></a><var>15.17</var>than all members, all members must be notified immediately of its text and effective <br/>
<a id="pl.15.18"></a><var>15.18</var>date no later than five days after the effective time of the action. Failure to provide the <br/>
<a id="pl.15.19"></a><var>15.19</var>notice does not invalidate the written action. A member who does not sign or consent to <br/>
<a id="pl.15.20"></a><var>15.20</var>the written action has no liability for the action or actions taken by the written action.<br/>
<br/>
<a id="bill.2.5.0"></a><a id="pl.15.21"></a><var>15.21</var>    Sec. 5. Minnesota Statutes 2006, section 322B.363, subdivision 3, is amended to read:<br/>
<a id="pl.15.22"></a><var>15.22</var>    Subd. 3. <b>Termination.</b> An appointment may be terminated at will, unless the <br/>
<a id="pl.15.23"></a><var>15.23</var>appointment is coupled with an interest, in which case it shall not be terminated <br/>
<a id="pl.15.24"></a><var>15.24</var>except in accordance with the terms of an agreement, if any, between the parties to the <br/>
<a id="pl.15.25"></a><var>15.25</var>appointment. Termination may be made by filing written notice of the termination of the <br/>
<a id="pl.15.26"></a><var>15.26</var>appointment with a manager of the limited liability company, or by filing a new written <br/>
<a id="pl.15.27"></a><var>15.27</var>appointment of a proxy, signed by the member, with a manager of the limited liability <br/>
<a id="pl.15.28"></a><var>15.28</var>company. Termination in either, or by telephonic transmission or authenticated electronic <br/>
<a id="pl.15.29"></a><var>15.29</var>communication, whether or not accompanied by written instructions of the member, of <br/>
<a id="pl.15.30"></a><var>15.30</var>a new appointment of a proxy with the limited liability company or the limited liability <br/>
<a id="pl.15.31"></a><var>15.31</var>company's duly authorized agent. Termination in any such manner revokes all prior proxy <br/>
<a id="pl.15.32"></a><var>15.32</var>appointments and is effective when filed with a manager of the limited liability company <br/>
<a id="pl.15.33"></a><var>15.33</var>or when the telephonic transmission or authenticated electronic communication is received <br/>
<a id="pl.16.1"></a><var>16.1</var>by the limited liability company or the limited liability company's duly authorized agent. <br/>
<a id="pl.16.2"></a><var>16.2</var>The telephonic transmission or authenticated electronic communication must set forth or <br/>
<a id="pl.16.3"></a><var>16.3</var>be submitted with information from which it can be determined that the new appointment <br/>
<a id="pl.16.4"></a><var>16.4</var>was authorized by the member.<br/>
<br/>
<a id="bill.2.6.0"></a><a id="pl.16.5"></a><var>16.5</var>    Sec. 6. Minnesota Statutes 2006, section 322B.643, subdivision 2, is amended to read:<br/>
<a id="pl.16.6"></a><var>16.6</var>    Subd. 2. <b>Meetings solely by means of remote communication.</b> Any <br/>
<a id="pl.16.7"></a><var>16.7</var>meeting among governors may be conducted solely by one or more means of remote <br/>
<a id="pl.16.8"></a><var>16.8</var>communication through which all of the governors may participate with each other <br/>
<a id="pl.16.9"></a><var>16.9</var>during the meeting, if the same notice is given of the meeting as would be required by <br/>
<a id="pl.16.10"></a><var>16.10</var>subdivision 4, and if the number of governors participating in the meeting would be <br/>
<a id="pl.16.11"></a><var>16.11</var>sufficient to constitute a quorum. Participation in a meeting by that means constitutes <br/>
<a id="pl.16.12"></a><var>16.12</var>presence in person at the meeting.<br/>
<br/>
<a id="bill.2.7.0"></a><a id="pl.16.13"></a><var>16.13</var>    Sec. 7. Minnesota Statutes 2006, section 322B.643, subdivision 3, is amended to read:<br/>
<a id="pl.16.14"></a><var>16.14</var>    Subd. 3. <b>Participation in meetings by means of remote communication.</b> A <br/>
<a id="pl.16.15"></a><var>16.15</var>governor may participate in a board of governors meeting by means of conference <br/>
<a id="pl.16.16"></a><var>16.16</var>telephone or, if authorized by the board, by such other means of remote communication, in <br/>
<a id="pl.16.17"></a><var>16.17</var>each case through which the governor, other governors so participating, and all governors <br/>
<a id="pl.16.18"></a><var>16.18</var>physically present at the meeting may participate with each other during the meeting. <br/>
<a id="pl.16.19"></a><var>16.19</var>Participation in a meeting by that means constitutes presence in person at the meeting.<br/>
<br/>
<a id="bill.2.8.0"></a><a id="pl.16.20"></a><var>16.20</var>    Sec. 8. Minnesota Statutes 2006, section 322B.66, subdivision 1, is amended to read:<br/>
<a id="pl.16.21"></a><var>16.21</var>    Subdivision 1. <b>Generally.</b> A resolution approved by the affirmative vote of a <br/>
<a id="pl.16.22"></a><var>16.22</var>majority of the board of governors then holding office may establish committees having <br/>
<a id="pl.16.23"></a><var>16.23</var>the authority of the board in the management of the business of the limited liability <br/>
<a id="pl.16.24"></a><var>16.24</var>company only to the extent provided in the resolution. Committees may include a special <br/>
<a id="pl.16.25"></a><var>16.25</var>litigation committee consisting of one or more independent governors or other independent <br/>
<a id="pl.16.26"></a><var>16.26</var>persons to consider legal rights or remedies of the limited liability company and whether <br/>
<a id="pl.16.27"></a><var>16.27</var>those rights and remedies should be pursued. Committees other than special litigation <br/>
<a id="pl.16.28"></a><var>16.28</var>committees are subject at all times to the direction and control of the board of governors.<br/>
<br/>
<a id="bill.2.9.0"></a><a id="pl.16.29"></a><var>16.29</var>    Sec. 9. Minnesota Statutes 2006, section 322B.666, subdivision 1, is amended to read:<br/>
<a id="pl.16.30"></a><var>16.30</var>    Subdivision 1. <b>Conflict and procedure when conflict arises.</b> A contract or other <br/>
<a id="pl.16.31"></a><var>16.31</var>transaction between a limited liability company and one or more of its governors, or <br/>
<a id="pl.16.32"></a><var>16.32</var>between a limited liability company and an organization in or of which one or more of its <br/>
<a id="pl.17.1"></a><var>17.1</var>governors are governors, directors, managers, officers, or legal representatives or have a <br/>
<a id="pl.17.2"></a><var>17.2</var>material financial interest, is not void or voidable because the governor or governors or <br/>
<a id="pl.17.3"></a><var>17.3</var>the other organizations are parties or because the governor or governors are present at the <br/>
<a id="pl.17.4"></a><var>17.4</var>meeting of the members or the board of governors or a committee at which the contract or <br/>
<a id="pl.17.5"></a><var>17.5</var>transaction is authorized, approved, or ratified, if:<br/>
<a id="pl.17.6"></a><var>17.6</var>(1) the contract or transaction was, and the person asserting the validity of the <br/>
<a id="pl.17.7"></a><var>17.7</var>contract or transaction sustains the burden of establishing that the contract or transaction <br/>
<a id="pl.17.8"></a><var>17.8</var>was, fair and reasonable as to the limited liability company at the time it was authorized, <br/>
<a id="pl.17.9"></a><var>17.9</var>approved, or ratified;<br/>
<a id="pl.17.10"></a><var>17.10</var>(2) the material facts as to the contract or transaction and as to the governor's or <br/>
<a id="pl.17.11"></a><var>17.11</var>governors' interest are fully disclosed or known to the members, whether or not entitled <br/>
<a id="pl.17.12"></a><var>17.12</var>to vote, and the contract or transaction is approved in good faith by (i) the owners of <br/>
<a id="pl.17.13"></a><var>17.13</var>two-thirds of the voting power of the membership interests entitled to vote that are <br/>
<a id="pl.17.14"></a><var>17.14</var>owned by persons other than the interested governor or governors, or (ii) the unanimous <br/>
<a id="pl.17.15"></a><var>17.15</var>affirmative vote of all members, whether or not entitled to vote;<br/>
<a id="pl.17.16"></a><var>17.16</var>(3) the material facts as to the contract or transaction and as to the governor's or <br/>
<a id="pl.17.17"></a><var>17.17</var>governors' interest are fully disclosed or known to the board of governors or a committee, <br/>
<a id="pl.17.18"></a><var>17.18</var>and the board of governors or committee authorizes, approves, or ratifies the contract or <br/>
<a id="pl.17.19"></a><var>17.19</var>transaction in good faith by a majority of the board of governors or committee members <br/>
<a id="pl.17.20"></a><var>17.20</var>currently holding office, but the interested governor or governors are shall not be counted <br/>
<a id="pl.17.21"></a><var>17.21</var>in determining the presence of a quorum and must shall not vote; or<br/>
<a id="pl.17.22"></a><var>17.22</var>(4) the contract or transaction is a distribution described in section 
         <statute_ref>322B.54, <br/>
<a id="pl.17.23"></a><var>17.23</var>subdivision 1
         </statute_ref>, or a merger or exchange described in section 
         <statute_ref>322B.70, subdivision 1</statute_ref> or 2. <br/>
<br/>
<a id="bill.2.10.0"></a><a id="pl.17.24"></a><var>17.24</var>    Sec. 10. Minnesota Statutes 2006, section 322B.699, subdivision 1, is amended to read:<br/>
<a id="pl.17.25"></a><var>17.25</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the terms defined in this <br/>
<a id="pl.17.26"></a><var>17.26</var>subdivision have the meanings given them.<br/>
<a id="pl.17.27"></a><var>17.27</var>(b) "Limited liability company" includes a domestic or foreign limited liability <br/>
<a id="pl.17.28"></a><var>17.28</var>company that was the predecessor of the limited liability company referred to in this <br/>
<a id="pl.17.29"></a><var>17.29</var>section in a merger or other transaction in which the predecessor's existence ceased upon <br/>
<a id="pl.17.30"></a><var>17.30</var>consummation of the transaction.<br/>
<a id="pl.17.31"></a><var>17.31</var>(c) "Official capacity" means (1) with respect to a governor, the position of governor <br/>
<a id="pl.17.32"></a><var>17.32</var>in a limited liability company, (2) with respect to a person other than a governor, the <br/>
<a id="pl.17.33"></a><var>17.33</var>elective or appointive office or position held by a manager, member of a committee of <br/>
<a id="pl.17.34"></a><var>17.34</var>the board of governors, the employment relationship undertaken by an employee of the <br/>
<a id="pl.17.35"></a><var>17.35</var>limited liability company, or the scope of the services provided by members of the limited <br/>
<a id="pl.18.1"></a><var>18.1</var>liability company who provide services to the limited liability company, and (3) with <br/>
<a id="pl.18.2"></a><var>18.2</var>respect to a governor, manager, member, or employee of the limited liability company <br/>
<a id="pl.18.3"></a><var>18.3</var>who, while a member, governor, manager, or employee of the limited liability company, <br/>
<a id="pl.18.4"></a><var>18.4</var>is or was serving at the request of the limited liability company or whose duties in that <br/>
<a id="pl.18.5"></a><var>18.5</var>position involve or involved service as a governor, director, manager, officer, member, <br/>
<a id="pl.18.6"></a><var>18.6</var>partner, trustee, employee, or agent of another organization or employee benefit plan, the <br/>
<a id="pl.18.7"></a><var>18.7</var>position of that person as a governor, director, manager, officer, member, partner, trustee, <br/>
<a id="pl.18.8"></a><var>18.8</var>employee, or agent, as the case may be, of the other organization or employee benefit plan.<br/>
<a id="pl.18.9"></a><var>18.9</var>(d) "Proceeding" means a threatened, pending, or completed civil, criminal, <br/>
<a id="pl.18.10"></a><var>18.10</var>administrative, arbitration, or investigative proceeding, including a proceeding by or in <br/>
<a id="pl.18.11"></a><var>18.11</var>the right of the limited liability company.<br/>
<a id="pl.18.12"></a><var>18.12</var>(e) "Special legal counsel" means counsel who has not in the preceding five years (1) <br/>
<a id="pl.18.13"></a><var>18.13</var>represented the limited liability company or a related organization, or in a capacity other <br/>
<a id="pl.18.14"></a><var>18.14</var>than special legal counsel, or (2) represented a governor, manager, member of a committee <br/>
<a id="pl.18.15"></a><var>18.15</var>of the board of governors, or employee, whose indemnification is in issue.<br/>
<br/>
<a id="bill.2.11.0"></a><a id="pl.18.16"></a><var>18.16</var>    Sec. 11. Minnesota Statutes 2006, section 322B.80, subdivision 1, is amended to read:<br/>
<a id="pl.18.17"></a><var>18.17</var>    Subdivision 1. <b>Dissolution events.</b> A limited liability company dissolves upon the <br/>
<a id="pl.18.18"></a><var>18.18</var>occurrence of any of the following events:<br/>
<a id="pl.18.19"></a><var>18.19</var>(1) when the period, if any, fixed in the articles of organization for the duration of <br/>
<a id="pl.18.20"></a><var>18.20</var>the limited liability company expires, or if the limited liability company's term expires <br/>
<a id="pl.18.21"></a><var>18.21</var>pursuant to section 
         <statute_ref>322B.20, subdivision 2</statute_ref>, paragraph (a); <br/>
<a id="pl.18.22"></a><var>18.22</var>(2) by order of a court pursuant to sections 
         <statute_ref>322B.833</statute_ref> and 
         <statute_ref>322B.843</statute_ref>; <br/>
<a id="pl.18.23"></a><var>18.23</var>(3) by action of the organizers prior to accepting contributions pursuant to section <br/>
<statute_ref><a id="pl.18.24"></a><var>18.24</var>322B.803
         </statute_ref>; <br/>
<a id="pl.18.25"></a><var>18.25</var>(4) by action of the members after accepting contributions pursuant to section <br/>
<statute_ref><a id="pl.18.26"></a><var>18.26</var>322B.806
         </statute_ref>; <br/>
<a id="pl.18.27"></a><var>18.27</var>(5)(i) for limited liability companies whose existence begins before August 1, 1999, <br/>
<a id="pl.18.28"></a><var>18.28</var>except as otherwise provided in the articles or a member control agreement, upon the <br/>
<a id="pl.18.29"></a><var>18.29</var>occurrence of an event that terminates the continued membership of a member in the <br/>
<a id="pl.18.30"></a><var>18.30</var>limited liability company, but the limited liability company is not dissolved and is not <br/>
<a id="pl.18.31"></a><var>18.31</var>required to be wound up by reason of any event that terminates the continued membership <br/>
<a id="pl.18.32"></a><var>18.32</var>of a member if (A) there is at least one remaining member and the existence and business <br/>
<a id="pl.18.33"></a><var>18.33</var>of the limited liability company is continued by the consent of all the remaining members <br/>
<a id="pl.18.34"></a><var>18.34</var>obtained no later than 90 days after the termination of the continued membership, or (B) if <br/>
<a id="pl.19.1"></a><var>19.1</var>the membership of the last or sole member terminates and the legal representative of that <br/>
<a id="pl.19.2"></a><var>19.2</var>last or sole member causes the limited liability company to admit at least one member;<br/>
<a id="pl.19.3"></a><var>19.3</var>(ii) for limited liability companies whose existence begins on or after August 1, <br/>
<a id="pl.19.4"></a><var>19.4</var>1999, upon the occurrence of an event that terminates the continued membership of a <br/>
<a id="pl.19.5"></a><var>19.5</var>member in the limited liability company, but only if: (A) the articles of organization or a <br/>
<a id="pl.19.6"></a><var>19.6</var>member control agreement specifically provide that the termination causes dissolution <br/>
<a id="pl.19.7"></a><var>19.7</var>and in that event only as provided in the articles or member control agreement; or (B) if <br/>
<a id="pl.19.8"></a><var>19.8</var>the membership of the last or sole member terminates and the legal representative of that <br/>
<a id="pl.19.9"></a><var>19.9</var>last or sole member does not cause the limited liability company to admit at least one <br/>
<a id="pl.19.10"></a><var>19.10</var>member within 180 days after the termination;<br/>
<a id="pl.19.11"></a><var>19.11</var>(6) a merger in which the limited liability company is not the surviving organization; <br/>
<a id="pl.19.12"></a><var>19.12</var>or<br/>
<a id="pl.19.13"></a><var>19.13</var>(7) when terminated by the secretary of state according to section 
         <statute_ref>322B.960</statute_ref>. <br/>
<br/>
<a id="bill.2.12.0"></a><a id="pl.19.14"></a><var>19.14</var>    Sec. 12. Minnesota Statutes 2006, section 322B.806, is amended to read:<br/>
<a id="pl.19.15"></a><var>19.15</var><b>322B.806 NONJUDICIAL DISSOLUTION </b><b>BY MEMBERS</b><b> AFTER </b><br/>
<a id="pl.19.16"></a><var>19.16</var><b>ACCEPTING CONTRIBUTIONS</b><b>.</b><br/>
<a id="pl.19.17"></a><var>19.17</var>    Subdivision 1. <b>Manner.</b> A limited liability company may be dissolved by the <br/>
<a id="pl.19.18"></a><var>19.18</var>members after accepting contributions when authorized in the manner set forth in this <br/>
<a id="pl.19.19"></a><var>19.19</var>section.<br/>
<a id="pl.19.20"></a><var>19.20</var>    Subd. 2. <b>Notice and approval.</b> (a) If the limited liability company has members:<br/>
<a id="pl.19.21"></a><var>19.21</var>(1) written notice shall be given to each member, whether or not entitled to vote at a <br/>
<a id="pl.19.22"></a><var>19.22</var>meeting of members, within the time and in the manner provided in section 
         <statute_ref>322B.34</statute_ref> for <br/>
<a id="pl.19.23"></a><var>19.23</var>notice of meetings of members and, whether the meeting is a regular or a special meeting, <br/>
<a id="pl.19.24"></a><var>19.24</var>must state that a purpose of the meeting is to consider dissolving the limited liability <br/>
<a id="pl.19.25"></a><var>19.25</var>company and that dissolution must be followed by the winding up and termination of the <br/>
<a id="pl.19.26"></a><var>19.26</var>limited liability company.; and<br/>
<a id="pl.19.27"></a><var>19.27</var>(b) (2) the proposed dissolution must be submitted for approval at a meeting of <br/>
<a id="pl.19.28"></a><var>19.28</var>members. If the proposed dissolution is approved at a meeting by the affirmative vote of <br/>
<a id="pl.19.29"></a><var>19.29</var>the owners of a majority of the voting power of all membership interests entitled to vote, <br/>
<a id="pl.19.30"></a><var>19.30</var>the limited liability company is dissolved.<br/>
<a id="pl.19.31"></a><var>19.31</var>(b) If the limited liability company no longer has any members, the governors may <br/>
<a id="pl.19.32"></a><var>19.32</var>authorize and commence the dissolution. If the governors take that action, the notice of <br/>
<a id="pl.19.33"></a><var>19.33</var>dissolution filed under section 322B.81 shall so reflect this fact and the governors shall <br/>
<a id="pl.19.34"></a><var>19.34</var>have the right to revoke the dissolution proceedings in accordance with section 322B.823, <br/>
<a id="pl.19.35"></a><var>19.35</var>subdivision 1.<br/>
<br/>
<a id="bill.3.0.0"></a>

<a id="bill.3.1.0"></a><a id="pl.20.3"></a><var>20.3</var>    Section 1. Minnesota Statutes 2006, section 290.01, subdivision 3b, is amended to read:<br/>
<a id="pl.20.4"></a><var>20.4</var>    Subd. 3b. <b>Limited liability company.</b> For purposes of this chapter and chapter <br/>
<a id="pl.20.5"></a><var>20.5</var>289A, a limited liability company, including a nonprofit limited liability company under <br/>
<a id="pl.20.6"></a><var>20.6</var>section 322B.975, that is formed under either the laws of this state or under similar laws <br/>
<a id="pl.20.7"></a><var>20.7</var>of another state, will be treated as an entity similar to its treatment for federal income <br/>
<a id="pl.20.8"></a><var>20.8</var>tax purposes.<br/>
<br/>
<a id="bill.3.2.0"></a><a id="pl.20.9"></a><var>20.9</var>    Sec. 2. Minnesota Statutes 2006, section 322B.03, subdivision 20, is amended to read:<br/>
<a id="pl.20.10"></a><var>20.10</var>    Subd. 20. <b>Foreign limited liability company.</b> "Foreign limited liability company" <br/>
<a id="pl.20.11"></a><var>20.11</var>means a limited liability company organized for profit that is organized under or governed <br/>
<a id="pl.20.12"></a><var>20.12</var>by laws other than the laws of this state for a purpose or purposes for which a limited <br/>
<a id="pl.20.13"></a><var>20.13</var>liability company may be organized under this chapter.<br/>
<br/>
<a id="bill.3.3.0"></a><a id="pl.20.14"></a><var>20.14</var>    Sec. 3. Minnesota Statutes 2006, section 322B.03, is amended by adding a subdivision <br/>
<a id="pl.20.15"></a><var>20.15</var>to read:<br/>
<a id="pl.20.16"></a><var>20.16</var>    Subd. 31a. <b>Nonprofit limited liability company.</b> "Nonprofit limited liability <br/>
<a id="pl.20.17"></a><var>20.17</var>company" means a limited liability company that is a nonprofit limited liability company <br/>
<a id="pl.20.18"></a><var>20.18</var>under section 322B.975.<br/>
<br/>
<a id="bill.3.4.0"></a><a id="pl.20.19"></a><var>20.19</var>    Sec. 4. Minnesota Statutes 2006, section 322B.10, is amended to read:<br/>
<a id="pl.20.20"></a><var>20.20</var><b>322B.10 PURPOSES.</b><br/>
<a id="pl.20.21"></a><var>20.21</var>A limited liability company may be organized under this chapter for any business <br/>
<a id="pl.20.22"></a><var>20.22</var>lawful purpose or purposes, unless some other statute of this state requires organization <br/>
<a id="pl.20.23"></a><var>20.23</var>for any of those purposes under a different law. Unless otherwise provided in its articles of <br/>
<a id="pl.20.24"></a><var>20.24</var>organization, a limited liability company has general business purposes.<br/>
<br/>
<a id="bill.3.5.0"></a><a id="pl.20.25"></a><var>20.25</var>    Sec. 5. Minnesota Statutes 2006, section 322B.78, is amended to read:<br/>
<a id="pl.20.26"></a><var>20.26</var><b>322B.78 CONVERSION.</b><br/>
<a id="pl.20.27"></a><var>20.27</var>A domestic limited liability company that is not a nonprofit limited liability company <br/>
<a id="pl.20.28"></a><var>20.28</var>may convert to a domestic corporation pursuant to sections 
         <statute_ref>302A.681</statute_ref> to 
         <statute_ref>302A.691</statute_ref>. <br/>
<br/>
<a id="bill.3.6.0"></a><a id="pl.20.29"></a><var>20.29</var>    Sec. 6. Minnesota Statutes 2006, section 322B.90, subdivision 2, is amended to read:<br/>
<a id="pl.21.1"></a><var>21.1</var>    Subd. 2. <b>Limitations.</b> A foreign limited liability company holding a valid certificate <br/>
<a id="pl.21.2"></a><var>21.2</var>of authority in this state has no greater rights and privileges than a domestic limited <br/>
<a id="pl.21.3"></a><var>21.3</var>liability company A certificate of authority does not authorize a foreign limited liability <br/>
<a id="pl.21.4"></a><var>21.4</var>company to engage in any business or exercise any power that a limited lability company <br/>
<a id="pl.21.5"></a><var>21.5</var>may not engage in or exercise in this state. The certificate of authority does not authorize <br/>
<a id="pl.21.6"></a><var>21.6</var>the foreign limited liability company to exercise any of its powers or purposes that a <br/>
<a id="pl.21.7"></a><var>21.7</var>domestic limited liability company is forbidden by law to exercise in this state.<br/>
<br/>
<a id="bill.3.7.0"></a><a id="pl.21.8"></a><var>21.8</var>    Sec. 7. <b>[322B.975] NONPROFIT LIMITED LIABILITY COMPANIES.</b><br/>
<a id="pl.21.9"></a><var>21.9</var>    Subdivision 1. <b>Status as nonprofit limited liability company.</b> A limited liability <br/>
<a id="pl.21.10"></a><var>21.10</var>company is a nonprofit limited liability company if it is organized under or governed by <br/>
<a id="pl.21.11"></a><var>21.11</var>this chapter and its articles of organization state that it is a nonprofit limited liability <br/>
<a id="pl.21.12"></a><var>21.12</var>company governed by this section. The status of a nonprofit limited liability company <br/>
<a id="pl.21.13"></a><var>21.13</var>under this chapter is not determinative of its tax treatment.<br/>
<a id="pl.21.14"></a><var>21.14</var>    Subd. 2. <b>Limitations on pecuniary gain and distributions to members.</b> A <br/>
<a id="pl.21.15"></a><var>21.15</var>nonprofit limited liability company may not:<br/>
<a id="pl.21.16"></a><var>21.16</var>(1) be formed for a purpose involving pecuniary gain to its members, other than to <br/>
<a id="pl.21.17"></a><var>21.17</var>members that are nonprofit organizations or subdivisions, units, or agencies of the United <br/>
<a id="pl.21.18"></a><var>21.18</var>States or a state or local government; or<br/>
<a id="pl.21.19"></a><var>21.19</var>(2) pay dividends, make distributions, or pay other pecuniary remuneration, directly <br/>
<a id="pl.21.20"></a><var>21.20</var>or indirectly, to its members, other than to members that are nonprofit organizations or <br/>
<a id="pl.21.21"></a><var>21.21</var>subdivisions, units, or agencies of the United States or a state or local government.<br/>
<a id="pl.21.22"></a><var>21.22</var>    Subd. 3. <b>Limitations on persons who may be members.</b> A natural person may not <br/>
<a id="pl.21.23"></a><var>21.23</var>be a member of, or own any financial rights or governance rights in, a nonprofit limited <br/>
<a id="pl.21.24"></a><var>21.24</var>liability company.<br/>
<a id="pl.21.25"></a><var>21.25</var>    Subd. 4. <b>Purposes; conduct.</b> (a) Subject to subdivision 2:<br/>
<a id="pl.21.26"></a><var>21.26</var>(1) a nonprofit limited liability company may be organized under this chapter for <br/>
<a id="pl.21.27"></a><var>21.27</var>any lawful purpose, unless another statute requires incorporation or organization for a <br/>
<a id="pl.21.28"></a><var>21.28</var>purpose under a different law; and<br/>
<a id="pl.21.29"></a><var>21.29</var>(2) a nonprofit limited liability company has a general purpose of engaging in any <br/>
<a id="pl.21.30"></a><var>21.30</var>lawful activity unless otherwise limited in its articles of organization.<br/>
<a id="pl.21.31"></a><var>21.31</var>(b) A nonprofit limited liability company engaging in conduct that is regulated by <br/>
<a id="pl.21.32"></a><var>21.32</var>another statute is subject to the limitations of the other statute.<br/>
<a id="pl.21.33"></a><var>21.33</var>    Subd. 5. <b>Provisions of chapter 317A applicable to nonprofit limited liability </b><br/>
<a id="pl.21.34"></a><var>21.34</var><b>companies.</b> (a) Section 317A.161, subdivision 11, applies to a nonprofit limited liability <br/>
<a id="pl.21.35"></a><var>21.35</var>company as if it were a nonprofit corporation governed by chapter 317A. Section <br/>
<a id="pl.22.1"></a><var>22.1</var>317A.251 applies to a governor as if the governor were a director of a nonprofit <br/>
<a id="pl.22.2"></a><var>22.2</var>corporation, and section 322B.663 does not apply.<br/>
<a id="pl.22.3"></a><var>22.3</var>(b) Section 317A.255 applies to, and with regard to, a governor as if the governor <br/>
<a id="pl.22.4"></a><var>22.4</var>were a director of a nonprofit corporation, and section 322B.666 does not apply.<br/>
<a id="pl.22.5"></a><var>22.5</var>(c) Section 317A.257 applies to a person who serves without compensation as a <br/>
<a id="pl.22.6"></a><var>22.6</var>governor, manager, member, or agent of a nonprofit limited liability company as if such <br/>
<a id="pl.22.7"></a><var>22.7</var>person were serving without compensation as a director, officer, member, or agent of <br/>
<a id="pl.22.8"></a><var>22.8</var>a nonprofit corporation.<br/>
<a id="pl.22.9"></a><var>22.9</var>(d) Section 317A.671 regarding the diversion of certain assets applies to a nonprofit <br/>
<a id="pl.22.10"></a><var>22.10</var>limited liability company as if it were a nonprofit corporation governed by chapter 317A.<br/>
<a id="pl.22.11"></a><var>22.11</var>(e) Section 317A.735 regarding the distribution of assets on dissolution applies to <br/>
<a id="pl.22.12"></a><var>22.12</var>a nonprofit limited liability company as if it were a nonprofit corporation governed by <br/>
<a id="pl.22.13"></a><var>22.13</var>chapter 317A.<br/>
<a id="pl.22.14"></a><var>22.14</var>(f) Section 317A.751 regarding judicial intervention applies to a nonprofit limited <br/>
<a id="pl.22.15"></a><var>22.15</var>liability company as if it were a nonprofit corporation governed by chapter 317A.<br/>
<a id="pl.22.16"></a><var>22.16</var>    Subd. 6. <b>Notice to and authority of attorney general.</b> The attorney general has <br/>
<a id="pl.22.17"></a><var>22.17</var>the same authority and powers with regard to a nonprofit limited liability company as the <br/>
<a id="pl.22.18"></a><var>22.18</var>attorney general has with regard to a corporation governed by chapter 317A, including but <br/>
<a id="pl.22.19"></a><var>22.19</var>not limited to sections 317A.811 and 317A.813.<br/>
<br/>
<a id="bill.3.8.0"></a><a id="pl.22.20"></a><var>22.20</var>    Sec. 8. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.22.21"></a><var>22.21</var>    This article is effective for limited liability companies formed on or after January <br/>
<a id="pl.22.22"></a><var>22.22</var>1, 2009.<br/>