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Who cares
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Sponsors
No co-sponsors yet.
History
- Substituted by A10281
- Advanced to third reading
- 2nd report cal.
- 1st report cal.946
- Print number 7378a
- Amend and recommit to corporations, authorities and commissions
- Referred to corporations, authorities and commissions
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Allows a professional service corporation, in good standing, to convert to a design professional service corporation if it meets all stated requirements
Signed by Governor · Sponsor Ronald Canestrari
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S7378A
Title of bill
An act to amend the business corporation law, in relation to design professional service corporations
Purpose
To clarify the law regarding design professional services corporations by allowing professional corporations (P.C.'s) to convert to design professional service corporations (D.P.C's) without having to create a separate corporation while converting from the original corporation.
Summary of provisions
Section 1503 of the business corporation law is amended by adding a new paragraph (b-5) to allow an existing professional service corporation to convert to a design professional service corporation.
Justification
Chapter 550 of the Laws of 2011 created a new type of professional corporation-a design professional service corporation or D.P.C. Under this new law, design firms are given the option of offering an ownership interest in the corporation to non-licensed employees through an Employee Stock Ownership Olan (ESOP). However, it has become unclear whether or not professional corporations wishing to offer this ESOP can easily transition to D.P.C's without the need to reincorporate as a new entity. This amendment will clarify the conversion process for professional corporations by allowing corporations in good standing to simply convert to D.P.C's.
Legislative history
New legislation.
Fiscal implications
None to the State.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.