ND Corporate Law May Bring New Revenue To State

DALE WETZEL

BISMARCK, N.D. (AP) — Aside from the prospect of increasing North Dakota's profile in the business world, a state law on corporate organization offers a potential source of new revenue.

The law makes it easier for shareholders of publicly traded corporations to contest actions by a company's board of directors and air their views about management compensation.

American Railcar Industries Inc., a Missouri company that manufactures and repairs railroad cars, is expected to switch its corporate home to North Dakota later this month, Secretary of State Al Jaeger says.

Shareholders in the company, which is controlled by New York investor Carl Icahn, voted to approve the change last week. American Railcar now is incorporated in Delaware, which is the corporate home of more than half the nation's publicly traded companies.

Companies that use North Dakota's new "shareholder friendly" law will be obliged to pay annual franchise fees to incorporate in the state.

The law sets the fee at $60 for each 10,000 authorized shares of stock in a company, with an annual cap of $80,000. The fee is prorated for any company that files its first registration in the middle of the year.