Legislation sponsored by Assemblyman Jay Webber modernizing corporate law cleared the Assembly Commerce and Economic Development Committee by a unanimous vote today. The measure (A2971) affirms that corporate directors may approve actions by email.
Corporate directors are required to approve in writing any action to be taken without a meeting.
“Technology has changed the way business is conducted, and directors have been signing off on projects by email for a long time,” said Webber (R-Morris). “This bill updates the law and catches up with reality, clarifying a standard that is already in practice. In many walks of life, an electronic transmission often carries the same weight as a written approval, and this measure codifies the practice in yet another respect.”
The legislation is a recommendation of the New Jersey Corporate and Business Law Study Commission.