New model business act advanced

Nebraska’s current Business Corporation Act would be replaced under a bill advanced from general file Feb. 20.

LB749, introduced by Omaha Sen. Burke Harr, would repeal the act and enact a revised and updated Nebraska Model Business Corporation Act (NMBCA).

Harr said the bill resulted from a legislative resolution to evaluate the state’s model business code. The proposed NMBCA was promulgated by the American Bar Association (ABA), Harr said, as was the existing Business Corporation Act, which was adopted in 1994. The model act has been updated frequently in the intervening years, he said.

“Nebraska has adopted very few of the ABA committee’s subsequent updates in the past two decades, “ Harr said, adding that it would be beneficial for businesses to operate in states with corporate laws that are consistent with those of other jurisdictions.

LB749 advanced to select file 30-0.