(A) A corporation formed under this chapter may, by amendment of its articles pursuant to this section, convert to a nonprofit public benefit corporation as defined in Section 33-31-140 or to a nonprofit mutual benefit corporation as defined in Section 33-31-140. Upon conversion, the corporation is considered to have previously filed articles of incorporation under Section 33-31-202 upon the date of its incorporation under this chapter and to have filed articles of amendment pursuant to Section 33-10-106.
(B) The amendment of the articles to convert to a nonprofit corporation shall:
(1) revise the statement of purpose for which the corporation is organized;
(2) set forth one of the statements provided for in Section 33-31-202(a)(2);
(3) set forth the address, including zip code, of the proposed principal office for the corporation which may be either within or outside this State;
(4) delete the authorization for shares and any other provisions relating to authorized or issued shares;
(5) state whether or not the corporation will have members;
(6) set forth provisions not inconsistent with law regarding the distribution of assets on dissolution;
(7) make other changes as necessary or desired pursuant to Section 33-31-202; and
(8) if any shares have been issued, provide either for the cancellation of those shares or for the conversion of those shares to memberships of the nonprofit corporation.
(C) If shares have been issued, an amendment to convert to a nonprofit corporation must be approved by all of the outstanding shares of all classes regardless of limitations or restrictions on the voting rights of the shares.
(D) Upon conversion, the corporation's bylaws must be amended to comply with the provisions of Chapter 31 of this title, the South Carolina Nonprofit Corporation Act of 1994, and any successor act.
HISTORY: 2004 Act No. 221, Section 41.