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House Advances Major Overhaul of Utah Business Corporation Act; 66–5 Vote
Summary
The House approved substitute H.B. 50, a comprehensive update of the Utah Business Corporation Act based on the ABA revised model act; the measure passed 66–5 and will be transmitted to the Senate.
The Utah House voted 66–5 to pass substitute House Bill 50, which would replace and modernize much of the state's Business Corporation Act. Representative Nancy S. Lyon, one of the sponsors, said the bill aligns Utah law with a revised model prepared by the American Bar Association and will help reduce ambiguity for corporate practitioners.
"Developments in corporate thinking have rendered the model and our current Utah act outmoded in many significant respects," Lyon said on the floor, laying out the goals of simplification and greater alignment with the revised model. Lawmakers noted the bill's technical complexity and that much of the target audience for the statute is legal practitioners and businesses that incorporate in Utah.
Representative Ballantyne spoke in support, urging colleagues to approve the measure that would bring Utah's corporate code closer to the more flexible structures used in states like Delaware. Representative Lyon asked that the State Bar commentary on the model act be made available as an aid; the House adopted a motion to spread intent language on the journal so the commentary would be available publicly.
Substitute H.B. 50 passed by roll call and was referred to the Senate for further consideration.
