2704 - Election of an existing business corporation to become a management corporation.
§ 2704. Election of an existing business corporation to become a management corporation. (a) General rule.--A business corporation may become a management corporation under this chapter by filing articles of amendment which shall contain, in addition to the requirements of section 1915 (relating to articles of amendment): (1) A heading stating the name of the corporation and that it is a management corporation. (2) A statement that it elects to become a management corporation. (3) The provisions required by section 2703 (relating to additional contents of articles of management corporations). (b) Procedure.--An election to become subject to this chapter shall be proposed by a resolution adopted by the board of directors and shall be adopted in accordance with the requirements of Subchapter B of Chapter 19 (relating to amendment of articles). If an effective date is not stated in the articles of amendment, this chapter shall become applicable to the corporation on the date the articles of amendment are filed in the Department of State. (c) Dissenters rights upon election.--If any shareholder of a corporation, other than a management company registered under the Investment Company Act of 1940, that adopts an election under this chapter to become a management corporation objects to that action and complies with the provisions of Subchapter D of Chapter 15 (relating to dissenters rights), the dissenting shareholder shall be entitled to the rights and remedies of dissenting shareholders therein provided. (d) Cross reference.--See section 134 (relating to docketing statement). Cross References. Section 2704 is referred to in sections 1571, 2705, 2721 of this title.