AN ACT RELATING TO CORPORATIONS, ASSOCIATIONS AND PARTNERSHIPS -- RHODE ISLAND BUSINESS CORPORATION ACT -- THE RHODE ISLAND BUSINESS CLIMATE REFORM ACT

Summary

The act changes the Rhode Island Business Corporation Act to make it harder for shareholders to bring derivative lawsuits, adds new standing and demand requirements, and gives courts more control over dismissals, settlements and fee awards. It also modifies rules for foreign corporations, allowing the secretary of state to serve as their registered agent and setting procedures for mortgage discharge. The changes aim to protect corporations from costly litigation while still giving shareholders a path to enforce corporate rights.

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