Official Text and Analysis.

Eliminates shareholders' preemptive rights to acquire unissued corporate shares, unless authorized in the articles of incorporation of those corporations formed on or after January 1, 2020. Eliminates shareholders' cumulative voting rights during director elections, unless authorized in the articles of incorporation of those corporations formed on or after January 1, 2020. Adds criteria for determining if a significant continuing business activity remains after disposition of corporate property and assets outside the regular course of business.