In prior posts, I have discussed some the changes that AB 239 would make to Nevada's corporate law. See Nevada Bill Would Expressly Allow Directors To Approve Documents In "Preliminary Form", In More Bad News For Delaware, Nevada Legislature Proposes To Allow Jettisoning Jury Trials For "Internal Actions", and Nevada Bill Would Impose A Duty That Directors Be Informed. Last week, I testified in my individual capacity in support of the bill before the Senate Judiciary Committee. On Wednesday of this week, the Senate approved the bill on a 21-0 vote. Assuming the Governor signs the bill into law, it will be another setback for Delaware. For more information about AB 239, See Professor Benjamin Edward's post here.
AB 239 will also set the table for a future constitutional amendment allowing for the creation of an appointed business court in Nevada. The Assembly approved AJR 8 which proposes a constitutional amendment to require the legislature, to the extent money is available, to establish a business court which, if established, will have exclusive original jurisdiction to hear disputes involving shareholder rights, mergers and acquisitions, fiduciary duties, receiverships involving business entities and other commercial or contractual disputes between business entities and any other business disputes of a similar nature in which equitable or declaratory relief is sought. However, the process for amendment Nevada's constitution is cumbersome and that means that the amendment is several years in the future, even if approved by the legislature this year.
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