Current Status Introducing Body:
HouseBill Number: 3632Ratification Number: 435Act Number: 376Primary Sponsor: HodgesType of Legislation: GBSubject: Corporation shareholdersDate Bill Passed both Bodies: May 07, 1992Computer Document Number: 436/11332.DWGovernor's Action: SDate of Governor's Action: May 15, 1992Introduced Date: Feb 28, 1991Date of Last Amendment: Apr 28, 1992Last History Body: ------Last History Date: May 15, 1992Last History Type: Act No. 376Scope of Legislation: StatewideAll Sponsors: HodgesType of Legislation: General Bill
Bill Body Date Action Description CMN ---- ------ ------------ ------------------------------ --- 3632 ------ May 15, 1992 Act No. 376 3632 ------ May 15, 1992 Signed by Governor 3632 ------ May 13, 1992 Ratified R 435 3632 Senate May 07, 1992 Concurred in House amendment, enrolled for ratification 3632 House Apr 28, 1992 Senate amendments amended, returned to Senate 3632 House Apr 21, 1992 Debate adjourned on Senate Amendments until Tuesday, April 28, 1992 3632 Senate Apr 15, 1992 Amended, read third time, returned with amendment 3632 Senate Mar 31, 1992 Amended, read second time 3632 Senate Mar 30, 1992 Committee Report: Favorable 12 with amendment 3632 Senate Feb 12, 1992 Introduced, read first time, 12 referred to Committee 3632 House Feb 11, 1992 Read third time, sent to Senate 3632 House Feb 06, 1992 Amended, read second time 3632 House Feb 05, 1992 Committee Report: Favorable 26 with amendment 3632 House Feb 28, 1991 Introduced, read first time, 26 referred to CommitteeView additional legislative information at the LPITS web site.
(A376, R435, H3632)
AN ACT TO AMEND SECTION 33-6-210, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE AUTHORIZATION THAT SHARES MAY BE ISSUED BY THE BOARD OF DIRECTORS OF A CORPORATION, SO AS TO PROVIDE THAT A CORPORATION SUBJECT TO THE REGISTRATION REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934 MAY ISSUE SHARES FOR A CONTRACT FOR FUTURE SERVICES WITHOUT HAVING TO PLACE THE SHARES AND SHARE DIVIDENDS AND DISTRIBUTIONS IN RESPECT OF THE SHARES IN ESCROW AND WITHOUT HAVING TO CREDIT DISTRIBUTIONS AGAINST THEIR PURCHASE PRICE IF THE SHARES ARE ISSUED OR AUTHORIZED PURSUANT TO A PLAN THAT HAS BEEN APPROVED BY THE SHAREHOLDERS OF THE CORPORATION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 33-6-210(e) of the 1976 Code is amended to read:
"(e) Except as otherwise provided in subsection (f), the corporation must place in escrow shares issued for a contract for future services or benefits or for a promissory note. Any share dividends in respect of the shares escrowed also must be placed in escrow. Distributions in respect of escrowed shares must be escrowed or credited against their purchase price. The shares and distributions escrowed must remain in escrow until the services are performed, the note is paid, or the benefits are received. If the services are not performed, the note is not paid, or the benefits are not received, the shares escrowed and the distributions credited may be canceled in whole or in part and the distributions escrowed may be reclaimed by the corporation."
Corporation may issue shares
SECTION 2. Section 33-6-210 of the 1976 Code is amended by adding:
"(f) A corporation subject to the registration requirements of Section 12 of the Securities Exchange Act of 1934 may issue shares for a contract for future services without having to place the shares and share dividends and distributions in respect of the shares in escrow and without having to credit distributions against their purchase price if the shares are issued or authorized pursuant to a plan that has been approved by the shareholders of the corporation."
SECTION 3. This act takes effect upon approval by the Governor.
Approved the 15th day of May, 1992.