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H388 • 2025

Amend Business Corporations Act.

Amend Business Corporations Act.

Children
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Stevens
Last action
2025-07-01
Official status
Ch. SL 2025-33
Effective date
2025-10-01

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Amend Business Corporations Act.

H388-SMBB-81(sl)-v-7 (2025-10-02): Part X: Updates to Elective Share Statutes H388-SMBB-82(sl)-v-6 (2025-09-25): Part II: Clarify Provisions for Emergency Bylaws and Emergency Powers H388-SMBB-83(sl)-v-2 (2025-09-10): Part VI: Make Clarifying and Technical Changes Regarding the Authority of Board Committees H388-SMCM-53(sl)-v-10 (2025-09-26): Part III: Clarify Provisions for Selection of Exclusive Forum.

What This Bill Does

  • H388-SMBB-81(sl)-v-7 (2025-10-02): Part X: Updates to Elective Share Statutes H388-SMBB-82(sl)-v-6 (2025-09-25): Part II: Clarify Provisions for Emergency Bylaws and Emergency Powers H388-SMBB-83(sl)-v-2 (2025-09-10): Part VI: Make Clarifying and Technical Changes Regarding the Authority of Board Committees H388-SMCM-53(sl)-v-10 (2025-09-26): Part III: Clarify Provisions for Selection of Exclusive Forum.
  • H388-SMCM-54(sl)-v-9 (2025-09-25): Part VII: Clarify Provisions for Mergers Between Parent Entities and Subsidiary Corporations.
  • H388-SMCM-55(sl)-v-11 (2025-09-25): Part XI: Trust Administration / Contest Updates.
  • H388-SMCV-24(CSCV-10)-v-2 (2025-03-25): Amend Business Corporations Act.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

Plain English: 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act, Part X: Updates to Elective Share Statutes Analysis of: S.L.

  • 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act, Part X: Updates to Elective Share Statutes Analysis of: S.L.
  • 2025-33, Part X Date: August 5, 2025 Prepared by: Legislative Analysis Division Staff Kara McCraw Director *H388-SMBB-81(sl)-v-7* Legislative Analysis Division 919-733-2578 This bill analysis was prepared by the nonpartisan legislative staff for the use of legislators in their deliberations and does not constitute an official statement of legislative intent.
  • Part X of S.L.
  • 2025-33 amends the law governing a surviving spouse's claim for an elective share to: • Provide additional guidance drafting trusts that will count 100% towards the spouse's elective share.

Plain English: 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act, Part II: Clarify Provisions for Emergency Bylaws and Emergency Powers Analysis of: S.L.

  • 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act, Part II: Clarify Provisions for Emergency Bylaws and Emergency Powers Analysis of: S.L.
  • 2025-33, Part II Date: August 5, 2025 Prepared by: Legislative Analysis Division Staff Kara McCraw Director *H388-SMBB-82(sl)-v-6* Legislative Analysis Division 919-733-2578 This bill analysis was prepared by the nonpartisan legislative staff for the use of legislators in their deliberations and does not constitute an official statement of legislative intent.
  • Part II of S.L.
  • 2025-33 (House Bill 388) clarifies that emergency bylaws can only become effective during an emergency if adopted in advance of an emergency.

Plain English: 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act, Part VI: Make Clarifying and Technical Changes Regarding the Authority of Board Committees Analysis of: S.L.

  • 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act, Part VI: Make Clarifying and Technical Changes Regarding the Authority of Board Committees Analysis of: S.L.
  • 2025-33, Part VI Date: August 5, 2025 Prepared by: Legislative Analysis Division Staff Kara McCraw Director *H388-SMBB-83(sl)-v-2* Legislative Analysis Division 919-733-2578 This bill analysis was prepared by the nonpartisan legislative staff for the use of legislators in their deliberations and does not constitute an official statement of legislative intent.
  • Part VI of S.L.
  • 2025-33 (House Bill 388) allows a board of directors to delegate to a board committee the authority to amend articles of incorporation if the amendment does not require shareholder approval.

Plain English: 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act, Part III: Clarify Provisions for Selection of Exclusive Forum.

  • 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act, Part III: Clarify Provisions for Selection of Exclusive Forum.
  • Analysis of: S.L.
  • 2025-33, Part III Date: August 4, 2025 Prepared by: Legislative Analysis Division Staff Kara McCraw Director *H388-SMCM-53(sl)-v-10* Legislative Analysis Division 919-733-2578 This bill analysis was prepared by the nonpartisan legislative staff for the use of legislators in their deliberations and does not constitute an official statement of legislative intent.
  • Part III of S.L.

Plain English: 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act, Part VII: Clarify Provisions for Mergers Between Parent Entities and Subsidiary Corporations.

  • 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act, Part VII: Clarify Provisions for Mergers Between Parent Entities and Subsidiary Corporations.
  • Analysis of: S.L.
  • 2025-33, Part VII Date: August 4, 2025 Prepared by: Legislative Analysis Division Staff Kara McCraw Director *H388-SMCM-54(sl)-v-9* Legislative Analysis Division 919-733-2578 This bill analysis was prepared by the nonpartisan legislative staff for the use of legislators in their deliberations and does not constitute an official statement of legislative intent.
  • Part VII of S.L.

Plain English: 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act, Part XI: Trust Administration / Contest Updates.

  • 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act, Part XI: Trust Administration / Contest Updates.
  • Analysis of: S.L.
  • 2025-33, Part XI Date: August 4, 2025 Prepared by: Legislative Analysis Division Staff Kara McCraw Director *H388-SMCM-55(sl)-v-11* Legislative Analysis Division 919-733-2578 This bill analysis was prepared by the nonpartisan legislative staff for the use of legislators in their deliberations and does not constitute an official statement of legislative intent.
  • Part XI of S.L.

Plain English: 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act.

  • 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act.
  • Committee: House Judiciary 2.
  • If favorable, re -refer to Rules, Calendar, and Operations of the House Date: March 25, 2025 Introduced by: Rep.
  • Stevens Prepared by: Hannah Kendrick Staff Attorney Analysis of: PCS to First Edition H388-CSCV-10 Kara McCraw Director *H388-SMCV-24(CSCV-10)-v-2* Legislative Analysis Division 919-733-2578 This bill analysis was prepared by the nonpartisan legislative staff for the use of legislators in their deliberations and does not constitute an official statement of legislative intent.

Plain English: 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act.

  • 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act.
  • Committee: House Rules, Calendar, and Operations of the House Date: March 31, 2025 Introduced by: Rep.
  • Stevens Prepared by: Hannah Kendrick Staff Attorney Analysis of: Second Edition Kara McCraw Director *H388-SMCV-29(e2)-v-2* Legislative Analysis Division 919-733-2578 This bill analysis was prepared by the nonpartisan legislative staff for the use of legislators in their deliberations and does not constitute an official statement of legislative intent.
  • OVERVIEW: House Bill 388 would amend the North Carolina Business Corporations Act, as recommended by the North Carolina Bar Association.

Plain English: 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act.

  • 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act.
  • Committee: Senate Judiciary.
  • If favorable, re-refer to Rules and Operations of the Senate Date: June 16, 2025 Introduced by: Rep.
  • Stevens Prepared by: Bill Patterson* Committee Co-Counsel Analysis of: Second Edition Kara McCraw Director *H388-SMTG-69(e2)-v-2* Legislative Analysis Division 919-733-2578 This bill analysis was prepared by the nonpartisan legislative staff for the use of legislators in their deliberations and does not constitute an official statement of legislative intent.

Plain English: 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act.

  • 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act.
  • Committee: Senate Rules and Operations of the Senate Date: June 17, 2025 Introduced by: Rep.
  • Stevens Prepared by: Bill Patterson Staff Attorney Analysis of: Third Edition Kara McCraw Director *H388-SMTG-71(e3)-v-6* Legislative Analysis Division 919-733-2578 This bill analysis was prepared by the nonpartisan legislative staff for the use of legislators in their deliberations and does not constitute an official statement of legislative intent.
  • OVERVIEW: House Bill 388 would: ➢ Parts I – VII would amend the North Carolina Business Corporations Act, as recommended by the North Carolina Bar Association.

Plain English: 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act.

  • 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act.
  • Committee: Date: June 24, 2025 Introduced by: Rep.
  • Stevens Prepared by: Bill Patterson Staff Attorney Analysis of: Fourth Edition Kara McCraw Director *H388-SMTG-79(e4)-v-3* Legislative Analysis Division 919-733-2578 This bill analysis was prepared by the nonpartisan legislative staff for the use of legislators in their deliberations and does not constitute an official statement of legislative intent.
  • OVERVIEW: House Bill 388 would do the following things: ➢ Amend the North Carolina Business Corporations Act, as recommended by the North Carolina Bar Association (Sections 1-7).

Plain English: 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act, Part I: Provide for Officer Exculpation.

  • 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act, Part I: Provide for Officer Exculpation.
  • Analysis of: S.L.
  • 2025-33, Part I Date: August 6, 2025 Prepared by: Legislative Analysis Division Staff Kara McCraw Director *H388-SMTG-87(sl)-v-7* Legislative Analysis Division 919-733-2578 This bill analysis was prepared by the nonpartisan legislative staff for the use of legislators in their deliberations and does not constitute an official statement of legislative intent.
  • Part I of S.L.

Plain English: 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act, Part V: Clarify and Revise Derivative Proceedings Procedures.

  • 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act, Part V: Clarify and Revise Derivative Proceedings Procedures.
  • Analysis of: S.L.
  • 2025-33, Part V Date: August 6, 2025 Prepared by: Legislative Analysis Division Staff Kara McCraw Director *H388-SMTG-88(sl)-v-5* Legislative Analysis Division 919-733-2578 This bill analysis was prepared by the nonpartisan legislative staff for the use of legislators in their deliberations and does not constitute an official statement of legislative intent.
  • Part V of S.L.

Plain English: 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act, Part IX: Modification of Emergency Video Sunsets.

  • 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act, Part IX: Modification of Emergency Video Sunsets.
  • Analysis of: S.L.
  • 2025-33, Part IX Date: August 6, 2025 Prepared by: Legislative Analysis Division Staff Kara McCraw Director *H388-SMTG-89(sl)-v-5* Legislative Analysis Division 919-733-2578 This bill analysis was prepared by the nonpartisan legislative staff for the use of legislators in their deliberations and does not constitute an official statement of legislative intent.
  • Part IX of S.L.

Plain English: 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act, Part IV: Prohibition Against the Issuance of Scrip in Bearer Form Analysis of: S.L.

  • 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act, Part IV: Prohibition Against the Issuance of Scrip in Bearer Form Analysis of: S.L.
  • 2025-33, Part IV Date: September 3, 2025 Prepared by: Legislative Analysis Division Staff Kara McCraw Director *H388-SMTM-57(sl)-v-6* Legislative Analysis Division 919-733-2578 This bill analysis was prepared by the nonpartisan legislative staff for the use of legislators in their deliberations and does not constitute an official statement of legislative intent.
  • Part IV of S.L.
  • 2025 -33 (House Bill 388) prohibits corporations from issuing scrip certificates or share certificates in bearer form and only allows for the issuance of scrip in certificated or uncertificated form .

Plain English: 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act, Part VIII: Electronic Storage of Attested Written Wills by An Attorney Analysis of: S.L.

  • 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act, Part VIII: Electronic Storage of Attested Written Wills by An Attorney Analysis of: S.L.
  • 2025-33, Part VIII Date: September 5, 2025 Prepared by: Legislative Analysis Division Staff Kara McCraw Director *H388-SMTM-58(sl)-v-5* Legislative Analysis Division 919-733-2578 This bill analysis was prepared by the nonpartisan legislative staff for the use of legislators in their deliberations and does not constitute an official statement of legislative intent.
  • Part VIII of S.L.
  • 2025-33 (House Bill 388) does the following: • Defines the terms "electronic" and "record." • Authorizes an attorney licensed in this State to create an electronic record of an attested written will at the direction of the testator and during the testator's life.

Plain English: 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act, Part XII: Revisions To Year's Allowance Statutes Analysis of: S.L.

  • 2025-2026 General Assembly HOUSE BILL 388: Amend Business Corporations Act, Part XII: Revisions To Year's Allowance Statutes Analysis of: S.L.
  • 2025-33, Part XII Date: September 5, 2025 Prepared by: Legislative Analysis Division Staff Kara McCraw Director *H388-SMTM-59(sl)-v-7* Legislative Analysis Division 919-733-2578 This bill analysis was prepared by the nonpartisan legislative staff for the use of legislators in their deliberations and does not constitute an official statement of legislative intent.
  • Part XII of S.L.
  • 2025-33 (House Bill 388) does the following: • Clarifies that a proceeding for a spouse's allowance or for a child's allowance is an estate proceeding.

Bill History

  1. 2025-07-01 North Carolina General Assembly

    Ch. SL 2025-33

  2. 2025-06-30 North Carolina General Assembly

    Signed by Gov. 6/30/2025

  3. 2025-06-27 North Carolina General Assembly

    Pres. To Gov. 6/27/2025

  4. 2025-06-26 North Carolina General Assembly

    Ratified

  5. 2025-06-25 House

    Ordered Enrolled

  6. 2025-06-25 House

    Concurred In S Com Sub

  7. 2025-06-24 House

    Placed On Cal For 06/25/2025

  8. 2025-06-24 House

    Cal Pursuant 36(b)

  9. 2025-06-24 House

    Special Message Received For Concurrence in S Com Sub

  10. 2025-06-24 Senate

    Special Message Sent To House

  11. 2025-06-23 Senate

    Engrossed

  12. 2025-06-23 Senate

    Passed 3rd Reading

  13. 2025-06-23 Senate

    Amend Adopted A3

  14. 2025-06-19 Senate

    Placed On Cal For 06/23/2025

  15. 2025-06-19 Senate

    Passed 2nd Reading

  16. 2025-06-19 Senate

    Amend Tabled A2

  17. 2025-06-19 Senate

    Amend Adopted A1

  18. 2025-06-18 Senate

    Reptd Fav

  19. 2025-06-17 Senate

    Re-ref Com On Rules and Operations of the Senate

  20. 2025-06-17 Senate

    Com Substitute Adopted

  21. 2025-06-17 Senate

    Reptd Fav Com Substitute

  22. 2025-06-05 Senate

    Re-ref to Judiciary. If fav, re-ref to Rules and Operations of the Senate

  23. 2025-06-05 Senate

    Withdrawn From Com

  24. 2025-04-03 Senate

    Ref To Com On Rules and Operations of the Senate

  25. 2025-04-03 Senate

    Passed 1st Reading

  26. 2025-04-03 Senate

    Regular Message Received From House

  27. 2025-04-03 House

    Regular Message Sent To Senate

  28. 2025-04-02 House

    Passed 3rd Reading

  29. 2025-04-02 House

    Passed 2nd Reading

  30. 2025-03-31 House

    Placed On Cal For 04/02/2025

  31. 2025-03-31 House

    Cal Pursuant Rule 36(b)

  32. 2025-03-31 House

    Reptd Fav

  33. 2025-03-25 House

    Re-ref Com On Rules, Calendar, and Operations of the House

  34. 2025-03-25 House

    Reptd Fav Com Substitute

  35. 2025-03-13 House

    Ref to the Com on Judiciary 2, if favorable, Rules, Calendar, and Operations of the House

  36. 2025-03-13 House

    Passed 1st Reading

  37. 2025-03-12 House

    Filed

Official Summary Text

H388-SMBB-81(sl)-v-7
(2025-10-02): Part X: Updates to Elective Share Statutes
H388-SMBB-82(sl)-v-6
(2025-09-25): Part II: Clarify Provisions for Emergency Bylaws and Emergency Powers
H388-SMBB-83(sl)-v-2
(2025-09-10): Part VI: Make Clarifying and Technical Changes Regarding the Authority of Board Committees
H388-SMCM-53(sl)-v-10
(2025-09-26): Part III: Clarify Provisions for Selection of Exclusive Forum.
H388-SMCM-54(sl)-v-9
(2025-09-25): Part VII: Clarify Provisions for Mergers Between Parent Entities and Subsidiary Corporations.
H388-SMCM-55(sl)-v-11
(2025-09-25): Part XI: Trust Administration / Contest Updates.
H388-SMCV-24(CSCV-10)-v-2
(2025-03-25): Amend Business Corporations Act.
H388-SMCV-29(e2)-v-2
(2025-03-31): Amend Business Corporations Act.
H388-SMTG-69(e2)-v-2
(2025-06-17): Amend Business Corporations Act.
H388-SMTG-71(e3)-v-6
(2025-06-18): Amend Business Corporations Act.
H388-SMTG-79(e4)-v-3
(2025-06-25): Amend Business Corporations Act.
H388-SMTG-87(sl)-v-7
(2025-10-01): Part I: Provide for Officer Exculpation.
H388-SMTG-88(sl)-v-5
(2025-09-25): Part V: Clarify and Revise Derivative Proceedings Procedures.
H388-SMTG-89(sl)-v-5
(2025-09-25): Part IX: Modification of Emergency Video Sunsets.
H388-SMTM-57(sl)-v-6
(2025-09-26): Part IV: Prohibition Against the Issuance of Scrip in Bearer Form
H388-SMTM-58(sl)-v-5
(2025-09-25): Part VIII: Electronic Storage of Attested Written Wills by An Attorney
H388-SMTM-59(sl)-v-7
(2025-09-25): Part XII: Revisions To Year's Allowance Statutes

Current Bill Text

Read the full stored bill text
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025

SESSION LAW 2025-33
HOUSE BILL 388

*H388-v-6*
AN ACT TO AMEND THE NORTH CAROLINA BUSIN ESS CORPORATIONS ACT , AS
RECOMMENDED BY THE N ORTH CAROLINA BAR AS SOCIATION, TO
AUTHORIZE THE PROBATE OF A CERTIFIED COPY OF AN ATTESTED WRITTEN
WILL THAT HAS BEEN S TORED BY AN ATTORNEY AS AN ELECTRONIC
RECORD, TO MODIFY THE EMERGENCY VIDEO SUNSETS, TO MAKE UPDATES
TO THE ELECTIVE SHAR E STATUTES, TO UPDAT E STATUTES RELATING TO
TRUST ADMINISTRATION , AND TO MAKE REVISI ONS TO THE YEAR'S
ALLOWANCE STATUTES.

The General Assembly of North Carolina enacts:

PART I. PROVIDE FOR OFFICER EXCULPATION
SECTION 1. G.S. 55-2-02 reads as rewritten:
"§ 55-2-02. Articles of incorporation.
…
(b) The articles of incorporation may set forth any provision that under this Chapter is
required or permitted to be set forth in the bylaws, a nd may also set forth any or all of the
following:
(1) The names and addresses of the individuals who are to serve as the initial
directors.
(2) Provisions not inconsistent with law regarding (i) the purpose or purposes for
which the corporation is organized; (ii) managing the business and regulating
the affairs of the corporation; (iii) defining, limiting, and regulating the powers
of the corporation, its board of directors, and shareholders; (iv) a par value for
authorized shares or classes of shares; (v) the imposition of personal liability
on shareholders for the debts of the corporation to a specified extent and upon
specified conditions; and (vi) any limitation on the duration of the corporation.
(3) A provision limiting or eliminating the personal lia bility of any director
arising out of an action whether by or in the right of the corporation or
otherwise for monetary damages for breach of any duty as a director. director
or limiting or eliminating the personal liability of any officer arising out of an
action for monetary damages for breach of any duty as an officer. No such
provision shall be effective with respect to (i) acts or omissions that the
director or officer at the time of such the breach knew or believed were clearly
in conflict with the be st interests of the corporation, (ii) in the case of a
director, any liability under G.S. 55-8-33, (iii) any transaction from which the
director or officer derived an improper personal benefit, or (iv) acts or
omissions occurring prior to the date the provisions provision became
effective. effective, or (v) in the case of an officer, any claim by or in the right
of the corporation. As used herein, in this sub division, the term "improper
personal benefit" does not include a director's reasonable compensation or
other reasonable incidental benefit for or on account of his the director 's

Page 2 Session Law 2025-33 House Bill 388
service as a director, officer, employee, independent contractor, attorney, or
consultant of the corporation. A provision permitted by this Chapter in the
articles of incorporation, bylaws, or a contract or resolution indemnifying or
agreeing to indemnify a director against personal liability shall be is fully
effective whether or not there is a provision in the articles of incorporation
limiting or eliminating personal liability.
(4) A provision limiting or eliminating any duty of a director, an officer, or any
other person, to offer the corporation the right to have or participate in one or
more specific classes or categories of business opportunities, prior to the
pursuit or taking of the opportunity by the director, officer, or other person.
(c) The articles of incorporation need not set forth any of the corporate powers
enumerated in this Chapter.
(d) Articles of incorporation filed to effect the conversion of another business entity
pursuant to Article 11A of this Chapter shall also include the statements required by
G.S. 55-11A-03(a).
(e) For purposes of subdivision (b)(3) of this section, unless the articles of incorporation
otherwise provide, "officer" means an individual appointed in accordance with G.S. 55-8-40 as
(i) president, chief executive officer, chief operating officer, chief financial officer, chief legal
officer, secretary, controller, treasurer, or chief accounting officer of the corporation and (ii) any
officer of the corporation designated by resolution of the board of directors as an officer for
purposes of subdivision (b)(3) of this section. The board of directors may from time to time by
resolution determine that one or more of the officers designated by resolution of the board in
accordance with this subsection is no longer an officer for purposes of subdivision (b)(3) of this
section, but no such resolution is effective as to an officer, or any act or omission of the officer,
prior to the adoption of that resolution."

PART II. CLARIFY PROVISIONS FOR EMERGENCY BYLAWS AND EMERGENCY
POWERS
SECTION 2.(a) G.S. 55-2-07 reads as rewritten:
"§ 55-2-07. Emergency bylaws.
(a) Unless the articles of incorporation provide otherwise, the board of directors of a
corporation may adopt bylaws to be bylaws may contain provisions that become effective only
in an emergency defined in subsection (d). during an emergency if the provisions are adopted in
advance of an emergency. The emergency bylaws, which are subject to amendment or repeal by
the shareholders, may make bylaws may contain all provisions necessary for managing the
corporation during the an emergency, including:including all of the following:
(1) Procedures for calling a meeting of the board of directors; directors.
(2) Quorum requirements for the meeting; andmeeting.
(3) Designation of additional or substitute directors.
(b) All provisions of the regular bylaws consistent with the emergency bylaws remain
effective during the emergency. The emergency bylaws are not effective after the emergency
ends.
(c) Corporate action taken in good faith in accordance with the emergency bylaws binds
the corporation and the fact that the action was taken by special procedures may shall not be used
to impose liability on a corporate director, officer, employee, or agent.
(d) An emergency exists for purposes of this section if a quorum of the corporation's
directors cannot readily be assembled because of some catastrophic event."
SECTION 2.(b) G.S. 55-3-03 reads as rewritten:
"§ 55-3-03. Emergency powers.
(a) In anticipation of or during an emergency defined in subsection (d), the board of
directors of a corporation may:

House Bill 388 Session Law 2025-33 Page 3
(1) Modify lines of succession to accommodate the incapacity of any director,
officer, employee, or agent; and
(2) Relocate the principal office, designate alternative principal offices or
regional offices, or authorize the officers to do so.
(b) During an emergency defined in subsection (d), emergency, unless emergency bylaws
provide otherwise:otherwise, both of the following apply:
(1) Notice of a meeting of the board of directors need be given only to those
directors whom it is practicable to reach and may be given in any practicable
manner, including by publication and radio; and radio.
(2) One or more officers of the corporation prese nt at a meeting of the board of
directors may be deemed to be directors for the meeting, in order of rank and
within the same rank in order of seniority, as to the extent necessary to achieve
a quorum.
(b1) During an emergency, unless emergency bylaws prov ide otherwise, the board of
directors may postpone a meeting of shareholders for which notice has been given or authorize
shareholders to participate in a meeting by any means of remote communication that conforms
with G.S. 55-7-09(b). The corporation shall give notice to shareholders, by such means and with
such shorter advance notice as are reasonable in the circumstances, of any postponement,
including any new date, time, or place, and shall describe any means of remote communication
to be used.
(c) Corporate action taken in good faith under this section during an emergency under
this section to further the ordinary business affairs of the corporation binds the corporation and
the fact that said the action is taken by special procedures may shall not be used to impose liability
on a corporate director, officer, employee, or agent.agent of the corporation.
(d) An emergency exists for purposes of subsection (b) of this section if a quorum of the
corporation's directors cannot readily be assembled because of some catastrophic event. An
emergency exists for purposes of subsection (b1) of this section if, because of some catastrophic
event, it is impracticable to convene a meeting of shareholders in accordance with this Chapter
or the bylaws or as specified in a notice previously given for the meeting."

PART III. CLARIFY PROVISIONS FOR SELECTION OF EXCLUSIVE FORUM
SECTION 3.(a) Article 2 of Chapter 55 of the General Statutes is amended by adding
a new section to read:
"§ 55-2-08. Forum selection provisions.
(a) The articles of incorporation or the bylaws may require that any or all internal
corporate claims shall be brought exclusively in any specified court or courts of this State and, if
so specified, in any additional courts in this State or in any other jurisdictions with which the
corporation has a reasonable relationship.
(b) A provision of the articles of incorporation or bylaws adopted under subsection (a) of
this section does not have the effect of conferring jurisdiction on any court or over any person or
claim and does not apply if none of the courts specified by the provision has the requisite personal
and subject matter jurisdiction. If the court or courts of this State specified in a provision adopted
under subsection (a) of this section do not have the requisite personal and subject matter
jurisdiction and another court of this State does have the requisite jurisdiction, then the internal
corporate claim may be brought in the other court of this State, notwithstanding that the other
court of this State is not specified in the provision. Additionally, the internal corporate claim may
be brought in any other court specified in the provision that has the requisite jurisdiction.
(c) No provision of the articles of incorporation or the bylaws may prohibit bringing an
internal corporate claim in the courts of this State or require the claims to be determined by
arbitration.

Page 4 Session Law 2025-33 House Bill 388
(d) For the purposes of this section, "internal corporate claim " means any of the
following:
(1) A claim that is based on a violation of a duty under the laws of this State by a
current or former director, officer, or shareholder in such capacity.
(2) A derivative proceeding brought on behalf of the corporation.
(3) An action asserting a claim arising p ursuant to any provision of this Chapter
or the articles of incorporation or bylaws.
(4) An action asserting a claim governed by the internal affairs doctrine that is not
otherwise included in subdivisions (1) through (3) of this subsection."
SECTION 3.(b) G.S. 55-7-50 is repealed.

PART IV. PROHIBITION AGAINST THE ISSUANCE OF SCRIP IN BEARER FORM
SECTION 4.(a) G.S. 55-6-04 reads as rewritten:
"§ 55-6-04. Fractional shares.
(a) A corporation may:may issue fractions of a share or, in lieu of doing so, may do any
of the following:
(1) Issue fractions of a share or pay in money Pay in cash the value of fractions
of a share;share.
(2) Arrange for disposition of fractional shares by the shareholders;Dispose of the
fractional shares and pay the proceeds to the holders of those shares.
(3) Issue scrip in registered or bearer certificated or uncertificated form entitling
the holder to receive a full share upon surrendering enough scrip to equal a
full share.
(b) Each certificate representing scrip must shall be conspicuously labeled "scrip" and
must shall contain the information required by G.S. 55-6-25(b). A corporation s hall not issue
scrip certificates in bearer form. Within a reasonable time after the issuance or transfer of scrip
without certificates, the corporation shall deliver to the scripholder a written statement of the
information required on certificates by G.S. 55-6-25(b) and the terms of the scrip.
(c) The holder of a fractional share is entitled to exercise the rights of a shareholder,
including the right rights to vote, to receive dividends, and to participate in the assets of the
corporation receive distributions upon liquidation. The holder of scrip is not entitled to any of
these rights unless the scrip provides for them.
(d) The board of directors may authorize the issuance of scrip subject to any condition
considered desirable, including:including the following:
(1) That the The scrip will become void if not exchanged for full shares before a
specified date; anddate.
(2) That the The shares for which the scrip is exchangeable may be sold and the
proceeds paid to the scripholders."
SECTION 4.(b) G.S. 55-6-25 reads as rewritten:
"§ 55-6-25. Form and content of certificates.
(a) Shares may may, but need not not, be represented by certificates. Share certificates
shall not be issued in bearer form. Unless this act Chapter or another statute expressly provides
otherwise, the rights and obligations of shareholders are identical regardless of whether or not
their shares are represented by certificates.
(b) At a minimum each share certificate must shall state all of the following on its face:
(1) The name of the issuing corporation and that it is organized under the law of
North Carolina;Carolina.
(2) The name of the person to whom issued; andissued.
(3) The number and class of shares and the designation of the series, if any, the
certificate represents.

House Bill 388 Session Law 2025-33 Page 5
(c) If the issuing corporation is authorized to issue different classes of shares or different
series within a class, the designations, relative rights, preferences, and limitations applicable to
each class and the variations in rights, preferences, and limitations determined for each series
(and the authority of the board of directors to determin e variations for future series) must shall
be summarized on the front or back of each certificate. Alternatively, each certificate may state
conspicuously on its front or back that the corporation will furnish the shareholder this
information on request in writing and without charge.
(d) Each share certificate (1) must (i) shall be signed (either manually or in facsimile) by
two officers designated in the bylaws or by the board of directors and (2) (ii) may bear the
corporate seal or its facsimile.
(e) If the person who signed in any capacity (either manually or in facsimile) a share
certificate no longer holds office when the certificate is issued, the certificate is nevertheless
valid."

PART V. CLARIFY AND REVISE DERIVATIVE PROCEEDING PROCEDURES
SECTION 5.(a) G.S. 55-7-40.1 reads as rewritten:
"§ 55-7-40.1. Definitions.
In this Part:
(1) "Derivative proceeding" means a civil suit in the right of a domestic
corporation or, to the extent provided in G.S. 55-7-47, in the right of a foreign
corporation.corporation, to recover for an injury to the corporation.
(2) "Shareholder" has the same meaning as in G.S. 55-1-40 and includes a
beneficial owner whose shares are held in a voting trust or held by a nominee
on the beneficial owner's behalf."
SECTION 5.(b) G.S. 55-7-42 reads as rewritten:
"§ 55-7-42. Demand.
No shareholder may commence a derivative proceeding until:until both of the following have
occurred:
(1) A written demand has been made upon delivered to the corporation to take
suitable action; andaction. The written demand shall describe in reasonable
detail the reasons for the demand and the action being requested and state that
the shareholder may commence a derivative proceeding if the action is not
taken. If the shareholder is a beneficial shar eholder or an unrestricted voting
trust beneficial owner, the written demand shall be accompanied by evidence
of the beneficial ownership.
(2) 90 days have expired from the date the demand was made unless, prior to the
expiration of the 90 days, the shareh older was notified that the corporation
rejected the demand, or unless irreparable injury to the corporation would
result by waiting for the expiration of the 90-day period."
SECTION 5.(c) G.S. 55-7-44 reads as rewritten:
"§ 55-7-44. Dismissal.
(a) The court shall dismiss a derivative proceeding on motion of the corporation if a
determination is made, whether before or after the commencement of the derivative proceeding,
by one of the groups specified in subsection (b) or (f) of this section determines of this section in
good faith faith, after conducting a reasonable inquiry upon which its conclusions are based
based, that the maintenance of the derivative proceeding is not in the best interest of the
corporation.
(b) Unless a panel is appointed pursuant to subsection (f) of this section, the The inquiry
and determination in subsection (a) of this section shall be made by:by any of the following:
(1) A majority vote of independent directors present at a meeting of the b oard of
directors if the independent directors constitute a quorum; orquorum.

Page 6 Session Law 2025-33 House Bill 388
(2) A majority vote of a committee consisting of two or more independent
directors appointed by majority vote of independent directors present at a
meeting of the board of direct ors, whether or not the independent directors
constituted a quorum.
(3) Upon motion by the corporation, by a panel of one or more individuals
appointed by the court.
(c) For purposes of this section, none of the following factors by itself shall cause a
director to be considered not independent:
(1) The nomination or election of the director by persons who are defendants any
person who is a defendant in the derivative proceeding or against whom action
is demanded;demanded.
(2) The naming of the director as a defendant in the derivative proceeding or as a
person against whom action is demanded; ordemanded.
(3) The approval by the director of the act being challenged in the derivative
proceeding or demand if the act resulted in no personal benefit to the director.
(d) If a derivative proceeding is commenced after a determination has been made
rejecting a demand by a shareholder, the complaint made by one of the groups specified in
subsection (b) of this section that maintaining the derivative proceeding is not in the best interest
of the co rporation, in order to contest the determination, the plaintiff shall allege with
particularity facts establishing that the requirements of subsection (a) of this section have not
been met. Defend ants may make a motion to dismiss a complaint under subsection (a) of this
section for failure to comply with this subsection. Prior to the court's ruling on such a the motion
to dismiss, the plaintiff shall be is entitled to discovery only with respect to the issues presented
by the motion and only if and to the extent that the plaintiff has alleged such the facts with
particularity. The preliminary discovery shall be limited solely to matters germane and necessary
to support the facts alleged with particularity relating solely to the requirements of subsection (a)
of this section.
(e) If a majority of the board of directors does not consist of independent directors at the
time the determination is made, The burden of proving whether the requirements of subsection
(a) of this section have been met is determined as follows:
(1) If the determination was made by one of the groups specified in subdivision
(b)(1) or (b)(2) of this section, then the plaintiff has the burden of proving that
the requirements of subsection (a) of this section have not been met unless the
plaintiff has alleged with particularity facts establishing that a majority of the
board of directors at the time the determination was made did not consist of
independent directors, in which case the corporation shall have has the burden
of proving that the requirements of subsection (a) of this section have been
met.
(2) If a majority of the board of directors consists of independent directors at the
time the determination is made, If the determination was made by a panel
appointed pursuant to subdivision (b)(3) of this section, then the plaintiff shall
have has the burden of proving that the requirements of subsection (a) of this
section have not been met.
(f) The court may appoint a panel of one or more independent persons up on motion of
the corporation to make a determination whether the maintenance of the derivative proceeding is
in the best interest of the corporation. The plaintiff shall have the burden of proving that the
requirements of subsection (a) of this section have not been met.The court on its own motion or
on the motion of any party may order that any motion to dismiss under subsection (a) of this
section be made within a specified reasonable time."
SECTION 5.(d) G.S. 55-7-46 reads as rewritten:
"§ 55-7-46. Payment of expenses.

House Bill 388 Session Law 2025-33 Page 7
On termination of the derivative proceeding, the court may:may do any of the following:
(1) Order the corporation to pay the plaintiff's reasonable expenses, including
attorneys' fees, incurred in the derivative proceeding if it finds that the
derivative proceeding has resulted in a substantial benefit to the
corporation;corporation.
(2) Order the plaintiff to pay the corporation 's or any defendant's reasonable
expenses, including attorneys' fees, incurred in responding to the demand or
defending the derivative proceeding if it finds that the demand was made or
the derivative proceeding was commenced or maintained without reasonable
cause or for an improper purpose; orpurpose.
…."

PART VI. MAKE CLARIF YING AND TECHNICAL C HANGES REGARDING THE
AUTHORITY OF BOARD COMMITTEES
SECTION 6. G.S. 55-8-25 reads as rewritten:
"§ 55-8-25. Committees.
…
(e) A committee shall not, however, do any of the following:
(1) Authorize or approve distributions, except according to a formula or method,
or within limits, prescribed by the board of directors.
(2) Approve or propose to shareholders action that this act Chapter requires be
approved by shareholders.
(3) Fill vacancies on the board of directors or on any of its committees.
(4) Amend articles of incorporation pursuant to G.S. 55-10-02.
(5) Adopt, amend, or repeal bylaws.
(6) Approve a plan of merger not requiring shareholder approval.
…."

PART VII. CLARIFY PROVISIONS FOR MERGERS BETWEEN PARENT ENTITIES
AND SUBSIDIARY CORPORATIONS
SECTION 7.(a) G.S. 55-11-04(f) is repealed.
SECTION 7.(b) G.S. 55-11-12 reads as rewritten:
"§ 55-11-12. Merger between parent unincorporated entity and subsidiary corporation or
corporations.
(a) Subject to the other provisions of this section and Article 9 of this Ch apter, a parent
unincorporated entity owning shares of a domestic subsidiary corporation that carry at least
ninety percent (90%) of the voting power of each class and series of the outstanding shares of the
subsidiary corporation and that have the power t o vote in the election of directors at the time of
a merger under this section may merge the subsidiary corporation or corporations into itself, or
merge itself and one or more subsidiary corporations into another subsidiary corporation, without
approval of the board of directors or shareholders of the subsidiary corporation or corporations,
unless the articles of incorporation for of the subsidiary corporation or corporations require
approval of the shareholders of the subsidiary corporation or corporation s, if both all of the
following requirements are met:
(1) The merger is permitted by the laws of the state or country governing the
organization and internal affairs of each merging business entity.
(2) Each merging business entity complies with the requir ements of this section
and, to the extent applicable, the laws referred to in subdivision (1) of this
subsection.
(3) The parent unincorporated entity approves, in the manner required by laws of
the state or country governing the organization and internal affairs of the

Page 8 Session Law 2025-33 House Bill 388
parent unincorporated entity, a written plan of merger containing all of the
provisions required by G.S. 55-11-10(c).
…
(d) The surviving business entity shall deliver articles of merger to the Secretary of State
for filing. The articles of merger shall set forth all of the following:
(1) For each merging business entity, its name, type of business entity, and the
state or country whose laws govern its organization and internal affairs.
(2) The terms and conditions of the merger.
(3) The manner and basis of converting the interests in each merging business
entity into interests, obligations, or securities of the surviving business entity,
or into cash or other property in whole or in part, or of cancelling the interests.
(4) The name of the merging business entity that shall survive the merger and, if
the surviving business entity is not authorized to transact business or conduct
affairs in this State, a designation of its mailing address and a commitment to
file with the Secretary of State a statement of any subsequent change in its
mailing address.
(5) If the surviving business entity is a domestic corporati on, any amendment to
its articles of incorporation as provided in a plan of merger or board
resolution.merger.
(6) A statement that the plan of merger has been approved by each merging
business entity in the manner required by law.
(e) The provisions of the articles of merger may be made dependent on facts objectively
ascertainable outside the articles of merger if the articles of merger set forth the manner in which
the facts will operate upon the affected provisions. The facts may include any of the following:
(1) Statistical or market indices, market prices of any security or group of
securities, interest rates, currency exchange rates, or similar economic or
financial data.
(2) A determination or action by the corporation or by any other person, group,
or body.
(3) The terms of, or actions taken under, an agreement to which the corporation
is a party, or any other agreement or document. G.S. 55-11-10(c1) and (c2)
apply to any merger described in this section.
(f) A merger takes effect when the articles of merger become effective."

PART VIII. ELECTRONI C STORAGE OF ATTESTE D WRITTEN WILLS BY A N
ATTORNEY
SECTION 8.1. Chapter 31 of the General Statutes is amended by adding a new
Article to read:
"Article 11.
"Electronic Storage of Attested Written Wills by an Attorney.
"§ 31-71. Definitions.
In this Article, the following definitions apply:
(1) Electronic. – Relating to technology having electrical, digital, magnetic,
wireless, optical, electromagnetic, or similar capabilities.
(2) Record. – Information that is inscribed on a tangible medium or that is stored
in an electronic or other medium and is retrievable in perceivable form.
"§ 31-72. Storage of attested written will by a licensed attorney as an electronic record.
(a) At any time during the life of the testator, an attorney licensed to practice law in North
Carolina may , at the testator 's direction , create an electronic record of the testator 's attested
written will. The electronic record shall include a certification , signed by that attorney, in the
form of an affidavit sworn to or affirmed before an officer authorized to administer oaths, that

House Bill 388 Session Law 2025-33 Page 9
the electronic record of the attested written will is a complete, true, and accurate copy of the
attested written will , that the testator expressly authorized the attorney to create an electronic
record of the attested written will , and that the testator has been advised that the creation of an
electronic record of the testator 's attested written will eliminates the ability of the testator to
revoke the attested written will by physical act.
(b) If the attested written will is lost or destroyed after being stored as an electronic record
pursuant to this section, the loss or destruction shall not be deemed a revocation of the attested
written will, nor shall it be deemed a presumption of revocation of the attested written will.
"§ 31-73. Certification of paper copy of attested written will stored as an electronic record.
(a) An attorney licensed in this State may create a certified paper copy of an attested
written will that has been stored as an electronic record in accordance with the requirements of
G.S. 31-72 by certifying that the paper copy is a complete, true, and accurate copy of th at
electronic record. The certification shall be in the form of an affidavit sworn to or affirmed before
an officer authorized to administer oaths. The certified paper copy may be created at any time
after the attested written will has been stored as an electronic record in a ccordance with the
requirements of G.S. 31-72.
(b) A certified paper copy of an attested written will stored as an electronic record in
accordance with the requirements of this section may be probated under G.S. 28A-2A-8(a1)."
SECTION 8.2. G.S. 28A-2A-8 reads as rewritten:
"§ 28A-2A-8. Manner of probate of attested written will.will or certified paper copy of
attested written will stored as an electronic record.
(a) An attested written will, executed as provided by G.S. 31-3.3, may be probated in the
following manner:any of the following ways:
(1) Upon the testimony of at least two of the attesting witnesses; orwitnesses.
(2) If the testimony of only one attesting witness is available, then with all of the
following:
a. Upon the The testimony of such witness, andthe witness.
b. Upon proof Proof of the handwriting of at least one of the attesting
witnesses who is dead or whose testimony is otherwise unavailable,
andunavailable.
c. Upon proof Proof of the handwriting of the testator, unless he the
testator signed by his mark, andthe testator's mark.
d. Upon proof Proof of such other circumstances as will that satisfy the
clerk of the superior court as to the genuineness and due execution of
the will; orwill.
(3) If the testimony of none of the attesting witnesses is available, then with both
of the following:
a. Upon proof Proof of the handwriting of at least two of the attesting
witnesses whose testimony is unavailable, andunavailable.
b. Upon compliance Compliance with paragraphs sub-subdivisions c.
and d. of subsection (a)(2) of this section; orsubdivision (a)(2) of this
section.
(4) Upon a showing that the will has been made self -proved in accordance with
the provisions of G.S. 31-11.6.
(a1) A certified paper copy, created in accordance with the requirements of G.S. 31-73, of
an attested written will executed as provided by G.S. 31-3.3 may be probated in any of the
following ways:
(1) Upon the testimony of at least two of the attesting witnesses.
(2) If the testimony of only one attesting witness is available, then with both of
the following:
a. The testimony of the witness.

Page 10 Session Law 2025-33 House Bill 388
b. Proof of other circumstances that satisfy the clerk of the superior court
as to the genuineness and due execution of the will.
(3) If the testimon y of none of the attesting witnesses is available, then upon
compliance with sub-subdivision b. of subdivision (2) of this subsection.
(4) Upon a showing that the attested will has been made self-proved in accordance
with G.S. 31-11.6.
(b) Due execution of a will may be established, where if the evidence required by
subsection (a) subsections (a) and (a1) of this section is unavoidably lacking or inadequate, by
testimony of other competent witnesses as to the requisite facts.
(c) The testimony of a witness is unavailable within the meaning of this section when the
witness is dead, out of the State, not to be found within the State, incompetent, physically unable
to testify testify, or refuses to testify."
SECTION 8.3. G.S. 28A-2B-1 reads as rewritten:
"§ 28A-2B-1. Establishment before death that a will or codicil is valid.
(a) Any petitioner who is a resident of North Carolina and who has executed a will or
codicil may file a petition seeking a judicial declaration that the will or codicil is valid.
(b) The petition shall be filed with the clerk of superior court and the matter shall proceed
as a contested estate proceeding governed by Article 2 of Chapter 28A of the General Statutes.
At the hearing before the clerk of superior court, the petitioner shall produce the original will or
codicil or a certified paper copy of an attested written will created in accordance with the
requirements of G.S. 31-73 and any other evidence necessary to establish that the will or codicil
would be admitted to probate if the petitioner were deceased.
If an interested party contests the validity of the will or codicil, that person shall file a written
challenge to the will or codicil before the hearing or make an objection to the validity of the will
or codicil at the hearing. Upon the filing of a challenge or the raising of an issue contesting the
validity of the will or codicil, the clerk shall transfer the cause to the superior court. The matter
shall be heard as if it were a caveat proceeding, and the court sha ll make a determination as to
the validity of the will or codicil and enter judgment accordingly.
If no interested party contests the validity of the will or codicil and if the clerk of superior
court determines that the will or codicil would be admitted t o probate if the petitioner were
deceased, the clerk of superior court shall enter an order adjudging the will or codicil to be valid.
(c) Failure to use the procedure authorized by this Article shall does not have any
evidentiary or procedural effect on any future probate proceedings.
(d) For purposes of this Article only, a "petitioner" is a person who requests a judicial
declaration that confirms the validity of that person's will or codicil."
SECTION 8.4. G.S. 28A-2B-3 reads as rewritten:
"§ 28A-2B-3. Contents of petition for will validity.
(a) Petition. – A petition requesting an order declaring that a petitioner's will or codicil is
valid shall be verified and shall contain the following information:
…
(5) A statement identifying the petitioner, petitioner and all persons believed by
the petitioner to have an interest in the proceeding, including, for any
interested parties who are minors, information regarding the minor's
appropriate representative.
(b) The petitioner shall file a copy of the will or codicil with the petition and petition. At
the hearing provided in G.S. 28A-2B-1(b), the petitioner shall tender the original will or codicil
at the hearing as provided in G.S. 28A-2B-1(b). or a certified paper copy of an attested written
will created in accordance with the requirements of G.S. 31-73. If an order is entered declaring
the will or codicil to be valid, the court shall affix a certificate of validity to the will or codicil."
SECTION 8.5. G.S. 31-3.1 reads as rewritten:
"§ 31-3.1. Will invalid unless statutory requirements complied with.

House Bill 388 Session Law 2025-33 Page 11
No will is valid unless it complies with the requirements prescribed therefor by this Article.of
this Chapter."
SECTION 8.6. G.S. 31-3.2 reads as rewritten:
"§ 31-3.2. Kinds of wills.
(a) Personal property and real property may be devised by any of the following:
(1) An attested written will which that complies with the requirements of G.S.
31-3.3, orG.S. 31-3.3.
(2) A holographic will which that complies with the requirements of G.S. 31-3.4.
(3) A certified paper copy of an attested written will created in accordance with
the requirements of G.S. 31-73.
(b) Personal property may also be devised by a nuncupative will which that complies
with the requirements of G.S. 31-3.5."
SECTION 8.7. G.S. 31-5.1 reads as rewritten:
"§ 31-5.1. Revocation of written will.
A written will, or any part thereof, may be revoked only
(1) By a subsequent written will or codicil or other revocatory writing executed
in the manner provided herein for the execution of written wills, or
(2) By being burnt, torn, canceled, obliterated, or destroyed, with the intent and
for the purpose of revoking it, by the testator himself or by another person in
the testator's presence and by the testator's direction.direction, except as
otherwise provided in Article 11 of this Chapter."

PART IX. MODIFICATION OF EMERGENCY VIDEO SUNSETS
SECTION 9.(a) G.S. 10B-25(n) reads as rewritten:
"(n) This section shall expire at 12:01 A.M. on July 1, 2025; provided, upon the earlier of
(i) 12:01 A.M. Jul y 1, 2026, or (ii) the date the Secretary issues the first license in accordance
with G.S . 10B-134.19. If the Secretary issues the first license in accordance with
G.S. 10B-134.19 prior to 12:01 A.M. July 1, 2026, the Secretary shall file that date with the
Codifier of R ules to be published in the North Carolina Register as the expiration date of this
section. Provided, however, all notarial acts made in accordance with this section and while this
section is in effect shall remain effective and shall not need to be reaffirmed."
SECTION 9.(b) G.S. 10B-200(b) reads as rewritten:
"(b) This Article expires June 30, 2025.upon the earlier of (i) 12:01 A.M. July 1, 2026, or
(ii) the date the Secretary issues the first license in accordanc e with G.S. 10B-134.19. If the
Secretary issues the first license in accordance with G.S. 10B-134.19 prior to 12:01 A.M. July 1,
2026, the Secretary shall file that date with the Codifier of Rules to be published in the North
Carolina Register as the expiration date of this section."

PART X. UPDATES TO ELECTIVE SHARE STATUTES
SECTION 10.1. G.S. 30-3.3A reads as rewritten:
"§ 30-3.3A. Valuation of property.
…
(e) Partial or Contingent Interest Property. – The valuation of partial and contingent
property interests, outright or in trust, which are limited to commence or terminate upon the death
of one or more persons, upon the expiration of a period of time, or upon the occurrence of one or
more contingencies, shall be determined by computations based upon t he mortality and annuity
tables set forth in G.S. 8-46 and G.S. 8-47, and by using a presumed rate of return of six percent
(6%) of the value of the underlying property in which those interests are limited, unless upon
good cause shown by one of the partie s, the clerk determines that the use of such tables or rate
of return is not appropriate, then the value of such interests shall be determined under subsection

Page 12 Session Law 2025-33 House Bill 388
(f) of this section. However, in valuing partial and contingent interests passing to the survivi ng
spouse, the following special rules apply:
(1) The value of the beneficial interest of a spouse shall be the entire fair market
value of any property held in trust if the decedent was the settlor of the trust,
if the trust is held for the exclusive benefit of the surviving spouse during the
surviving spouse's lifetime, and if the terms of the trust substantially meet the
following requirements:requirements in form and content:
a. During At all times during the lifetime of the surviving spouse, the
trust is controlled by (i) one or more nonadverse trustees.trustees,
including successor trustees, (ii) the surviving spouse as trustee, or (iii)
one or more nonadverse trustees and the surviving spou se as
co-trustees, including successor trustees.
b. The trustee shall distribute to or for the benefit of the surviving spouse
either (i) the entire net income of the trust at least annually or (ii) the
income of the trust in such amounts and at such times as the trustee, in
its discretion, determines necessary for the health, maintenance, and
support of the surviving spouse.
c. The trustee shall distribute to or for the benefit of the surviving spouse
out of the principal of the trust such amounts and at such times as t he
trustee, in its discretion, determines necessary for the health,
maintenance, and support of the surviving spouse.
d. In exercising discretion, the trustee
(1a) Notwithstanding any requirements in subdivision (1) of this subsection to the
contrary, the terms of the trust may be authorized authorize or required require
the trustee, in exercising discretion, to take into consideration all other income
assets income, assets, and other means of support available to the surviving
spouse.
(1b) A trust fails to meet the requirements of sub -subdivisions b. and c. of
subdivision (1) of this subsection if the terms of the trust do not state the
requirement that the trustee shall distribute the income and principal as
provided in those sub-subdivisions using the terms "shall," "is required to," or
other equivalent term or terms directing the trustee to distribute the income
and principal. Nothing in this subdivision shall affect the ability of the trustee
to exercise the discretion provided in sub-subdivisions b. and c. of subdivision
(1) of this subsection with respect to the timing and amount of distributions
necessary for the health, maintenance, and support of the surviving spouse.
(2) To the extent that the partial or contingent interest is dependen t upon the
occurrence of any contingency that is not subject to the control of the
surviving spouse and that is not subject to valuation by reference to the
mortality and annuity tables set forth in G.S. 8-46 and G.S. 8-47, the
contingency will be conclusi vely presumed to result in the lowest possible
value passing to the surviving spouse. However, a life estate or income interest
that will terminate upon the surviving spouse's death or remarriage will be
valued without regard to the possibility of termination upon remarriage.
…."
SECTION 10.2. G.S. 30-3.4 reads as rewritten:
"§ 30-3.4. Procedure for determining the elective share.
(a) Exercisable Only During Lifetime. – The right of the surviving spouse to file a claim
for an elective share must be exercised during the lifetime of the surviving spouse, by the
surviving spouse, by the surviving spouse's agent if the surviving spouse's po wer of attorney
expressly authorizes the agent to do so or to generally engage in estate, trusts, and other beneficial

House Bill 388 Session Law 2025-33 Page 13
interests, or, with approval of court, by the guardian of the surviving spouse's estate or general
guardian. If a surviving spouse dies b efore the claim for an elective share has been settled, the
surviving spouse's personal representative shall succeed to the surviving spouse's rights to an
elective share.
(b) Time Limitations. – A claim for an elective share must be made within six months
after the issuance of letters testamentary or letters of administration in connection with the will
or intestate proceeding with respect to which the surviving spouse claims the elective share by
(i) filing a verified petition with the clerk of superior c ourt of the county in which the primary
administration of the decedent's estate lies,and (ii) mailing or delivering a copy of that petition
to the personal representative of the decedent's estate. lies. A surviving spouse's incapacity shall
not toll the six-month period of limitations.
…
(e1) Procedure. – An elective share proceeding shall be an estate proceeding and shall be
conducted in accordance with the procedures of Article 2 of Chapter 28A of the General Statutes.
The verified petition shall be filed by the clerk upon payment of the costs assessed in
G.S. 7A-307. An elective share proceeding shall be an estate proceeding and shall be conducted
in accordance with the procedures of Article 2 of Chapter 28A of the General Statutes, except as
modified or supplemented by the following:
(1) Upon the filing of the verified petition , the petition shall be served upon the
personal representative in accordance with G.S. 1A-1, Rule 4 of the Rules of
Civil Procedure, without issuance of a summons. The petition sha ll also be
served on all responsible pers ons as those persons become known to the
petitioner in accordance with G.S. 1A-1, Rule 4 of the Rules of Civil
Procedure, without issuance of a summons. The failure to serve the petition
for elective share on the personal representative or any other person within the
six-month period described in subsection (b) of this section shall not render
the claim for elective share as being untimely filed.
(2) After service under subdivision (1 ) of this subsection, the petitio ner, the
personal representative, or any other party may cause notice of a hearing
before the clerk to be served upon all parties in accordance with G.S. 1A-1,
Rule 5 of the Rules of Civil Procedure. At the hearing, the clerk may set
deadlines as to the gathering and sharing of information concerning total net
assets and may determine any other relevant procedural matters.
(3) Within 30 days following the entry of an order resulting from the hearing
described in subdivision (2) of this subsection, any par ty who was present at
the hearing may file a responsive pleading to the petition; provided, however,
that failure to respond to any averment o r claim in the petition shall not be
deemed an admission of that averment or claim. An extension of time to file
a responsive pleading to the petition may be granted as provided by G.S. 1A-1,
Rule 6 of the Rules of Civil Procedure.
…."
SECTION 10.3. This Part becomes effective January 1, 2026, and applies to claims
for elective share filed on or after that date.

PART XI. TRUST ADMINISTRATION/CONTEST UPDATES
SECTION 11.1. G.S. 36C-6-604 reads as rewritten:
"§ 36C-6-604. Limitation on action contesting validity of revocable trust; distribution of
trust property.
(a) A person may commence a judicial proceeding to cont est the validity of a trust that
was revocable at the settlor's death within the earlier of:of the following:
(1) Three years after the settlor's death; ordeath.

Page 14 Session Law 2025-33 House Bill 388
(2) 120 days after the trustee sent the person a copy of the trust instrument and
written notice pursuant to G.S. 1A-1, Rule 4 of the Rules of Civil Procedure,
informing the person of the trust's existence, of the trustee's name and address,
and of the time allowed for commencing a proceeding.
(b) Upon the death of the settlor of a trust that w as revocable at the settlor's death, the
trustee may proceed to administer the trust and distribute the trust property in accordance with
the terms of the trust. The trustee is trust and shall not be subject to liability for doing so unless:so,
except that the trustee shall not distribute trust property to any beneficiary in contravention of the
rights of any person who may be affected by the outcome of a pending or possible judicial
proceeding if, at the time the distribution is made, any of the following apply:
(1) The trustee knows of a pending judicial proceeding contesting the validity of
all or part of the terms of the trust; trust or contesting the identity of the
beneficiaries eligible to receive distributions therefrom.
(2) A potential contestant has notified the trustee in writing of a possible judicial
proceeding to contest the trust, validity of all or part of the terms of the trust
or to contest the identity of the beneficiaries eligible to receive distribution
therefrom, and a judicial proceeding is commenced within 60 days after the
contestant sent the notification.
(b1) Any distribution in contravention of the provisions of subsection (b) of this section
shall constitute a breach of trust by the trustee. Upon motion of a party and after notice to
interested parties, a court, on good cause show n, may make an exception to the provisions of
subsection (b) of this section and authorize the trustee to distribute trust assets to a beneficiary ,
subject to any conditions the cou rt, in the court's discretion, may impose, including the posting
of a bond by the beneficiary.
(c) A beneficiary of a trust that is determined to have been invalid invalid, or whose
interest in a trust has been determined to be invalid, is liable to return any distribution received.
If the beneficiary refuses to return the distribution after being ordered by the court, the beneficiary
shall be liable for all costs incurred for recovery of the distribution, including attorneys' fees."
SECTION 11.2. This Part becomes effective January 1, 2026, and applies to settlors
dying on or after that date.

PART XII. REVISIONS TO YEAR'S ALLOWANCE STATUTES
SECTION 12.1. G.S. 30-15 reads as rewritten:
"§ 30-15. When spouse entitled to allowance.
(a) Every surviving spou se of a decedent, whether or not the surviving spouse has
petitioned for an elective share, shall be entitled to receive an allowance having the value of sixty
thousand dollars ($60,000) for the surviving spouse's support for one year after the death of th e
deceased spouse unless the spouse is barred from seeking an allowance under G.S. 31A-1 or
another applicable law. The spouse's allowance shall be in addition to the spouse's share of the
decedent's estate if the decedent died intestate but shall be charg ed against the spouse's share of
the decedent's estate if the decedent died testate.
(b) The right of a surviving spouse to file a claim for an allowance must be exercised
during the lifetime of the surviving spouse by (i) the surviving spouse, (ii) the surviving spouse's
agent under a durable power of attorney, or (iii), with approval of the court, by the guardian of
the surviving spouse's estate or general guardian. A claim for an allowance must be made by
filing a verified petition with the clerk of cour t of the county in which venue would be proper
under G.S. 28A-3-1. There is no time limitation on bringing a claim for an allowance except that,
if a personal representative has been appointed for the decedent's estate, the claim must be made
within six mo nths after the issuance of letters testamentary or letters of administration. In
addition, if a personal representative has been appointed for the decedent's estate, a copy of the

House Bill 388 Session Law 2025-33 Page 15
verified petition must be personally delivered or sent by first -class mail by the petitioner to the
personal representative.
(c) If the surviving spouse dies after the petition is filed but before the claim for an
allowance has been fully satisfied, any deficiency judgment existing at the time of the surviving
spouse's death shall not expire.
(d) The spouse's allowance shall be exempt from any lien by judgment or execution
against the property of the decedent or any other claim made against or owed by the decedent's
estate. The spouse's allowance takes priority over any child's all owance under
G.S. 30-17.G.S. 30-17, except as set forth in subsection (e) of this section.
(e) If a surviving spouse entitled to an allowance fails to file a petition for an allowance
within six months after the date of dea th of the decedent and an eligible person files a petition
for a child 's allowance in accordance with G.S. 30-17 before the spouse files a petition for an
allowance, then the spouse 's priority to receive the allowance prior to the child named in the
petition is waived and the clerk may proceed to assign the full child 's allowance to the eligible
child named in the petition. If a petition for the spousal allowance is filed jointly with a petition
for a child's allowance, then the spouse retains the right to receive the allowance prior to the child
named in the petition. The waiver described in this subsection shall not affect the spouse 's right
to an allowance, only the s pouse's priority to receive an allowance over any child 's allowance
under G.S. 30-17.
(f) A proceeding for a spouse's allowance shall be an estate proceeding governed by the
provisions of Article 2 of Chapter 28 of the General Statutes."
SECTION 12.2. G.S. 30-17 reads as rewritten:
"§ 30-17. When children entitled to an allowance.
(a) Every child of a decedent who is under the age of 21 years at the time of the decedent's
death, including an adopted child or a child in utero, and every child who is under the age of 21
years at the time of the decedent's death with whom the decedent stood in loco parentis at the
time of death, shall be entitled to receive an allowance having a value of ten thousand dollars
($10,000) for the child's support for one year after the death of the decedent. The allowance shall
be in addition to the child's share of the decedent's estate regardless of whether the decedent died
testate or intestate.
(b) The right of a child to file a claim for an allowance must be exercised during the
lifetime of the child by the person with priority to file on behalf of the child as provided in
subsection (c) of this section. A claim for an allowance must be made by filing a verified petition
with the clerk of court of the county in which venue would be proper under G.S. 28A-3-1. There
is no time limitation on bringing a claim for an allowance except that, if a personal representative
has been appointed for the decedent's estate, the claim must be made within six months after the
issuance of letters testamentary or letters of administration. In addition, if a personal
representative has been appointed for the dec edent's estate, a copy of the verified petition must
be personally delivered or sent by first-class mail by the petitioner to the personal representative.
(c) The person entitled to file a petition on behalf of the child for a child's allowance shall
be in the following order of priority:
(1) The child, if the child is at least 18 years old or an emancipated minor at the
time of the filing of the petition.
(1)(2) The general guardian or guardian of the estate of the child, if any.
(2)(3) The surviving parent of the child if the child resides with the surviving parent.
(3)(4) The person with whom the child resides.
If the clerk of court determines that no person entitled to file a petition pursuant to this
subsection is a fit or suitable individual, the clerk , upon the clerk's own motion, may appoint
another individual if the clerk determines that individual better represents the best interests of the
child as the representative.

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(d) The child's allowance shall be exempt from any lien by judgment or execution against
the property of the decedent or any other claim made against or owed by the decedent's estate
except that the spouse's allowance under G.S. 30-15 shall take priority over any child's allowance.
A child's allowance shall only be awarded after the full spouse's allowance under G.S. 30-15 has
been awarded.
(e) A proceeding for a child 's allowance shall be an estate proceeding governed by the
provisions of Article 2 of Chapter 28 of the General Statutes."
SECTION 12.3. G.S. 30-20 reads as rewritten:
"§ 30-20. Procedure for assignment; order of clerk.
(a) The clerk of court shall first ascertain if the surviving spouse is entitled to an
allowance according to the provisions of this Article, and, if so, enter an order setting forth the
personal property of the estate to be awarded to the surviving spouse. Once the spouse's
allowance has been awarded, the clerk of court shall next ascertain if any children of the decedent
are entitled to an allowance according to the provisions of this Article, and, if so, enter an order
setting forth the personal property of the estate to be awarded for the child's allowance. If a
personal representative has been appointed for the decedent's estate, the clerk of court shall
provide a copy of any order awarding an allowance to the personal representative of the
decedent's estate.
(b) If the personal property of the estate is insufficient to satisfy the allowances awarded,
the clerk of the superior court shall enter judgment against the decedent's estate for the amount
of the deficiency. If a personal representative has been appointed for the decedent's estate, the
deficiency shall be satisfied by the personal representative when a sufficiency of such assets shall
come into the possession of the personal representative.
(c) The clerk of court may, on the clerk's own motion, determine that a hearing is
necessary to determine whether a year's allowance should be awarded pursuant to the provisions
of this Article and, if so, what personal property should be awarded. If the clerk o f court makes
such a determination, the clerk shall direct the petitioner to commence a contested estate
proceeding pursuant to G.S. 30-23 in order to determine the year's allowance."
SECTION 12.4. G.S. 30-23.1 reads as rewritten:
"§ 30-23.1. Contested proceeding regarding allowance.
(a) If no contested estate proceeding under G.S. 30-20(c) was commenced by the
petitioner or by order of the clerk joining respondents to the proceeding to determine an award
of an allowance under this Article, any person wit h standing, including the personal
representative of the decedent's estate, may bring a proceeding to challenge the award of a spousal
allowance or a child's allowance, including, but not limited to, a proceeding to challenge the
validity of an award of a year's allowance, a proceeding to challenge the amount of a year's
allowance awarded, and a proceeding to challenge the assets awarded as part of a year's
allowance. If a contested estate proceeding was commenced under G.S. 30-20(c), by the
petitioner or by order of the clerk joining the respondents to the proceeding to determine an award
of an allow ance under this Article, then any person with standing, including the personal
representative of the decedent's estate, who was not a part y to the contested estate proceeding
may bring a proceeding in accordance with this section.
(b) Any proceeding to challenge the award of the allowance brought pursuant to this
section shall be conducted as an estate proceeding in accordance with the provisions of Article 2
of Chapter 28A of the General Statutes and must be brought within one year of the date the order
awarding the year's allowance was entered."
SECTION 12.5. G.S. 28A-25-6 reads as rewritten:
"§ 28A-25-6. Payment to clerk of money owed decedent.
(a) As an alternative to the small estate settlement procedures of this Article, any person
indebted to a decedent may satisfy such indebtedness by paying the amount of the debt to the

House Bill 388 Session Law 2025-33 Page 17
clerk of the superior court of the county of the domicile of th e decedent if all of the following
conditions are met:
(1) No administrator has been appointed.
(2) Except as otherwise provided in G.S. 90-210.64(d), the amount owed by such
person does not exceed five thousand dollars ($5,000).
(3) Except as otherwise pr ovided in G.S. 90-210.64(d), the sum tendered to the
clerk would not make the aggregate sum which has come into the clerk's hands
belonging to the decedent exceed five thousand dollars ($5,000).
(b) Such payments may not be made to the clerk if the total amount paid or tendered with
respect to any one decedent would exceed five thousand dollars ($5,000), even though
disbursements have been made so that the aggregate amount in the clerk's hands at any one time
would not exceed five thousand dollars ($5,000).
(c) If the sum tendered pursuant to this section would make the aggregate sum coming
into the clerk's hands with respect to any one decedent exceed five thousand dollars ($5,000) the
clerk shall appoint an administrator, or the sum may be administered under the preceding sections
of this Article.
(d) If it appears to the clerk after making a preliminary survey that disbursements
pursuant to this section would not exhaust funds received pursuant to this section, the clerk may,
in the clerk's discretion, app oint an administrator, or the funds may be administered under the
preceding sections of this Article.
(e) The receipt from the clerk of the superior court of a payment purporting to be made
pursuant to this section is a full release to the debtor for the payment so made.
(f) If no administrator has been appointed, the clerk of superior court shall, upon motion
of the clerk or upon the application of an interested party, disburse the money received under this
section for the following purposes and in the following order:
(1) To pay the surviving spouse's year's allowance and children's year's allowance
assigned in accordance with law.law, except that if (i) it has been greater than
six months since the date of death of the decedent and (ii) there has been no
petition filed and assignment of a spouse's or child's year's allowance, the clerk
may disburse the money received under this section in accordance with the
other provisions of this subsection.
(2), (3) Repealed by Session Laws 1981, c. 383, s. 3.
(4) All other claims shall be disbursed according to the order set out in
G.S. 28A-19-6.
Notwithstanding the foregoing provisions of this subsection, the clerk shall pay, out of funds
provided the deceased pursuant to G.S. 111-18 and Part 3 of Article 2 of Chapter 108A of the
General Statutes of North Carolina, Statutes, any lawful claims for care provided by an adult care
home to the deceased, incurred not more than 90 days prior to the deceased's death. After the
death of a spouse who died intestate the decedent and after the disbursements have been made in
accordance with this subsection, the balance in the clerk's hands belonging to the estate of the
decedent shall be paid to the surviving spouse, and if there is no surviving spouse, the clerk shall
pay it to the heirs or beneficiaries in proportion to their respective interests.
(g) The clerk shall not be required to publish notice to creditors.
(h) Whenever an administrator is appointed after a clerk of superior court has received
any money pursuant to this section, the clerk shall pay to the administrator all funds which have
not been disbursed. The clerk shall receive no commissions for payments made to the
administrator, and the administrator shall receive no commissions for receiving such payments."
SECTION 12.6. Section 12.5 of this act is effective when it becomes law. The
remainder of this Part becomes effective January 1, 2026, and applies to petitions filed on or after
that date.

Page 18 Session Law 2025-33 House Bill 388
PART XIII. EFFECTIVE DATE AND AUTHORIZATION TO PRINT COMMENTS
SECTION 13.(a) The Revisor of Statutes shall cause to be printed, as annotations to
Chapter 55 of the published General Statutes, all relevant portions of the Official Comments to
the Model Business Corporation Act and all explanatory comments of the drafters of this act as
the Revisor may deem appropriate.
SECTION 13.(b) Parts I, II, III, IV, V, and VII of this act become effective October
1, 2025. Part VIII of this act becomes effective January 1, 2026, and applies to attested written
wills stored as electronic records on or after that date, regardless of the date of execution of the
attested written will. Except as otherwise provided, the remainder of this act is effective when it
becomes law.
In the General Assembly read three times and ratified this the 26th day of June, 2025.

s/ Rachel Hunt
President of the Senate

s/ Destin Hall
Speaker of the House of Representatives

s/ Josh Stein
Governor

Approved 9:14 p.m. this 30th day of June, 2025