TO ALLOW AN OFFICER OF A CLOSELY HELD CORPORATION TO REPRESENT THE CORPORATION IN COURT FOR THE PURPOSE OF EVICTION PROCEEDINGS AND UNLAWFUL DETAINER PROCEEDINGS.

2025 Regular Session Introduced by Ron Caldwell and 1 co-sponsor

SB 629 allows closely held corporations in Arkansas to be represented by their officers in eviction and unlawful detainer cases, simplifying legal processes and reducing costs.

Died in House Committee at Sine Die adjournment.

Purpose and Intent

Senate Bill 629 (SB 629) was introduced to allow officers of closely held corporations to represent their corporations in court specifically for eviction proceedings and unlawful detainer actions. The bill aimed to amend existing laws regarding the practice of law by corporations in Arkansas, thereby facilitating legal representation for these entities in specific circumstances.

Key Provisions

The bill proposed amendments to Arkansas Code § 16-22-211, which outlines the prohibitions against the practice of law by corporations and associations. The key provisions included:

Exemption for Closely Held Corporations: The bill introduced a new exemption allowing closely held corporations, defined as those with fewer than 20 shareholders, to be represented in court by an officer of the corporation during:

Eviction proceedings under Arkansas Code § 18-17-901 et seq.
Unlawful detainer proceedings under Arkansas Code § 18-60-301 et seq.

Clarification of Legal Representation: The bill specified that the representation must be conducted by an officer of the closely held corporation, thereby ensuring that the corporation could engage in legal proceedings without the necessity of hiring an attorney.

Affected Parties

The primary beneficiaries of SB 629 would have been closely held corporations in Arkansas, particularly those involved in real estate or rental activities. This change would have simplified the legal process for these corporations, allowing them to manage eviction and unlawful detainer cases more efficiently.

Legislative Timeline and Status

Introduced: April 4, 2025

Senate Actions:

Passed in the Senate on April 8, 2025.
Transmitted to the House on April 8, 2025.

House Actions:

Received and referred to the Judiciary Committee on April 9, 2025.
Recommended for passage by the committee on April 8, 2025.

Final Status: The bill died in the House Committee at Sine Die adjournment on May 5, 2025, meaning it did not progress to a vote in the House.

Conclusion

SB 629 aimed to provide a legal avenue for closely held corporations to represent themselves in specific eviction and unlawful detainer proceedings, potentially reducing legal costs and streamlining the process. However, the bill did not advance beyond the House Committee stage and ultimately did not become law.

Bill