CHAPTER 75
H.P. 1798 - L.D. 2525
An Act to Amend the Charter of the Small Point Water Company
Emergency preamble. Whereas, Acts of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, in order for the customers of the Small Point Water Company to have safe drinking water, the company must incur certain capital costs immediately and converting to nonprofit status will allow the company to access the necessary financing; and
Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,
Be it enacted by the People of the State of Maine as follows:
Sec. 1. P&SL 1893, c. 479, §7 is repealed.
Sec. 2. P&SL 1893, c. 479, §9 is amended to read:
Sec. 9. Said The corporation is hereby authorized to issue bonds not exceeding in amount one-half of its capital stock, the same to be the first lien upon and secure the same by mortgage of its franchise and property. This act shall become null and void in two years from the time when the same shall take effect, unless the corporation shall have organized and commenced the construction of its works under this charter.
Sec. 3. P&SL 1893, c. 479, §§9-A to 9-D are enacted to read:
Sec. 9-A. Nonprofit status. Small Point Water Company, upon approval of its shareholders, has the authority to convert its status from a for-profit business corporation to a nonprofit corporation, the conversion to be effected by filing with the Secretary of State a restatement of the corporation's articles of incorporation. The restatement must provide that the corporation retains its original incorporation date of March 9, 1893 and retains all of its rights, powers, duties, authorities, privileges and obligations as now exist. Upon filing of the restatement all outstanding shares of the corporation's stock are canceled and the corporation's status automatically converts into that of a nonprofit corporation governed by the Maine Revised Statutes, Title 13-B to the extent consistent with this Act. The Secretary of State shall maintain records of the conversion showing the continuous existence of the corporation under state law.
Sec. 9-B. No shareholders. After converting to nonprofit status pursuant to section 9-A, Small Point Water Company may not have shareholders.
Sec. 9-C. Board of directors. Small Point Water Company must be run by a board of directors appointed from time to time in accordance with its bylaws.
Sec. 9-D. Form of restatement. The board of directors, acting through the corporation's officers, has authority to file the restatement authorized under section 9-A in a form it determines appropriate and to make further amendments to the articles of incorporation consistent with this Act.
Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.
Effective April 10, 2000.
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