Terms Used In Louisiana Revised Statutes 12:1-951

  • Converting entity: means the domestic business corporation or domestic unincorporated entity that adopts a plan of entity conversion or the foreign unincorporated entity converting to a domestic business corporation. See Louisiana Revised Statutes 12:1-950
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Dependent: A person dependent for support upon another.
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Surviving entity: means the corporation or unincorporated entity that is in existence immediately after consummation of an entity conversion pursuant to this Subpart. See Louisiana Revised Statutes 12:1-950

A.  A plan of entity conversion must include all of the following:

(1)  A  statement of the type of entity the surviving entity will be and, if it will be a foreign entity, its jurisdiction of organization.

(2)  The terms and conditions of the conversion.

(3)  If the converting entity is a domestic business corporation, the manner and basis of converting the shares of the corporation following its conversion into interests or other securities, obligations, rights to acquire interests or other securities, or into cash, other property, or any combination of the foregoing.

(4)  If the converting entity is an unincorporated entity, the manner and basis of converting the interests in the entity into shares, interests, or other securities, obligations, rights to acquire shares, interests, or other securities, or into cash, other property, or any combination of the foregoing.

(5)  The full text, as they will be in effect immediately after consummation of the conversion, of the organic documents of the surviving entity.

B.  The plan of entity conversion may also include a provision that the plan may be amended prior to filing articles of entity conversion, except that subsequent to approval of the plan by the shareholders the plan may not be amended to change any of the following:

(1)  The amount or kind of shares or other securities, interests, obligations, rights to acquire shares, other securities or interests, or the cash or other property to be received under the plan by the shareholders.

(2)  The organic documents that will be in effect immediately following the conversion, except for changes permitted by a provision of the organic law of the surviving entity comparable to La. Rev. Stat. 12:1-1005.

(3)  Any of the other terms or conditions of the plan if the change would adversely affect any of the shareholders in any material respect.

C.  Terms of a plan of entity conversion may be made dependent upon facts objectively ascertainable outside the plan in accordance with La. Rev. Stat. 12:1-120(L).

Acts 2014, No. 328, §1, eff. Jan. 1, 2015.