§ 1513. Forum selection provisions.

497 words·~2 min read·/pa/title-15/chapter-15/1513

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)General rule.-- The bylaws may provide that:

(1)an internal corporate claim must be brought exclusively in a specified court or courts of this Commonwealth and, if so specified, also in:

(i)other identified courts sitting in this Commonwealth; or

(ii)identified courts sitting in other jurisdictions with which the business corporation has a reasonable relationship; or

(2)a claim arising under the Securities Act of 1933 (48 Stat. 74, 15 U.S.C. § 77a et seq.) must be brought exclusively in Federal court.

(b)Jurisdiction.-- A provision of the bylaws adopted under subsection

(a)shall not have the effect of conferring jurisdiction on any court or over any person or claim and shall not apply if none of the courts specified in the provision have the requisite personal and subject matter jurisdiction. If none of the courts of this Commonwealth specified in a provision adopted under subsection (a)(1) have the requisite personal and subject matter jurisdiction and another court of this Commonwealth does have such jurisdiction, then the internal corporate claim may be brought in the court with jurisdiction, notwithstanding that it is not specified in the provision.

(c)Definition.-- For the purposes of this section, "internal corporate claim" means:

(1)an action that is based upon an alleged violation of a duty owed to the business corporation under the laws of this Commonwealth by a current or former director, officer or shareholder in that capacity;

(2)a derivative action or proceeding brought on behalf of the corporation;

(3)an action asserting a claim arising pursuant to any provision of:

(i)this title;

(ii)the articles of incorporation or bylaws; or

(iii)an agreement regarding the governance of the corporation or the transfer of shares in the corporation if:

(A)the corporation and at least one shareholder are parties to the agreement or stated or intended beneficiaries thereof; and

(B)the agreement is entered into after the adoption of a forum selection provision under this section and the agreement does not contain an inconsistent forum selection provision; or

(4)any action asserting a claim regarding the internal affairs of the corporation that is not included in paragraphs (1),

(2)and (3).

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(Nov. 3, 2022, P.L.1791, No.122, eff. 60 days)

2022 Amendment. Act 122 added section 1513.

Cross References. Section 1513 is referred to in section 102 of this title.

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SUBCHAPTER B

SHARES AND OTHER SECURITIES

Sec.

1521. Authorized shares.

1522. Issuance of shares in classes or series; board action.

1523. Pricing and issuance of shares.

1524. Payment for shares.

1525. Stock rights and options.

1526. Liability of shareholders.

1527. Issuance of fractional shares or scrip.

1528. Shares represented by certificates and uncertificated shares.

1529. Transfer of securities; restrictions.

1530. Preemptive rights of shareholders.

1531. Voting powers and other rights of certain securityholders and other entities.

1532. Effect of failure to surrender securities converted by reorganization.

Cross References. Subchapter B is referred to in section 2125 of this title.

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