This is the second part of a two part blog. Read the first part here, where I discuss increased state involvement in the small commercial registered agent community.
Each quarter, the State of Delaware holds a meeting between the administrators at the Division of Corporations and online agents (the Users of state services). Through these meetings, agents learn about changes on the horizon with the State, and the State learns about issues agents face in delivering services to the legal community. When we discuss the “Delaware Advantage” in corporate law, these meetings are a part of what helps set Delaware apart from other states.
Legislative Changes: Sustainability and Transparency Standards Act
Many new legislative changes were reviewed. One that I found particularly interesting was HB 310, the Certification of Adoption of Sustainability and Transparency Standards Act. This Act provides a means to allow entities to file documents with the state related to their efforts of Sustainability and Transparency. In this way, a good corporate citizen may want to file documents with the state to certify their corporate citizenship. The state will launch a searchable database for these filings on October 1, available to agents and to the public in general later in the summer.
Legislative Changes: Updates to LLC Law
There were quite a few changes to Delaware LLC Law which take into effect on August 1. An excellent summary article can be found here (thanks to Richards Layton and Finger for writing, and also thanks to Harvard Law School for publishing). There are three important changes associated with this act:
- Allows for an LLC to be split. Careful as this can multiply costs of filing and maintenance.
- Allows for the creation of a Public Benefit LLC (similar to Public Benefit Corporations).
- Allows for the creation of registered series LLCs, which seeks to improve some of the series LLC laws.
Josh Twilley, President