Andrew Kasmen Discusses Impact of Act 122 on Pennsylvania Business Registrations in Law360 Interview

Obermayer real estate partner Andrew Kasmen was featured in an interview with Law360 on August 7, 2024, where he discussed the implications of Act 122 of 2022. This law updates Pennsylvania’s requirements, mandating registered entities to submit an annual report to the Department of State containing, the (i) business name and Pennsylvania entity number, (ii) jurisdiction of formation, (iii) registered address and office address, (iv) name of at least one governor (e.g., director, member, partner, etc.) and names and titles of the principal officers. The new requirement will take effect in 2025, with non-compliant businesses facing potential revocation or expiration of their registrations.

The prior system “has always been somewhat of a mess, a black hole,” Andrew told Law360. “There wasn’t much information and things were rarely, if ever, updated.”

Andrew emphasized that the change will enhance corporate transparency, particularly if the state makes registration data publicly accessible. This increased transparency could benefit plaintiffs and shareholders in litigation by providing current information on corporate decision-makers.

“Information is priceless, and the more information I have, the smoother litigation could go,” Andrew stated. He added that the annual registration requirement could help clear out outdated registrations, making dormant corporate names available again—comparing the process to “spring cleaning” for old, inactive registrations.

Read the full article here.