State Rep. Chuck Efstration has introduced a new bill in the Georgia House designed to route internal governance conflicts involving Georgia companies to the state-wide business court, as stated by the Georgia State House.
Filed as HB1185 on Wednesday, Feb. 4 during the 2026 regular session of the 158th General Assembly, the bill is officially titled: ’Courts; certain shareholder claims to be brought before the Georgia State-wide Business Court; provide’.
The following overview draws upon the actual bill text and provides clarification on key provisions.
This legislation defines “internal entity claims” and allows Georgia corporations, limited partnerships, and limited liability companies to require that such disputes be handled solely by the Georgia State-wide Business Court. It permits corporate governing documents to specify this forum, authorizes the transfer of eligible cases from other courts, sets a 1% ownership minimum for bringing derivative suits in publicly traded companies, restricts attorney fee awards for disclosure-only outcomes, and places limits on record-inspection demands related to ongoing legal proceedings. The bill would apply to claims filed on or after July 1, 2026.
The bill lists Rep. Matthew Gambill (Republican-15th), Sen. Bo Hatchett (Republican-50th), and Rep. Stan Gunter (Republican-8th) as co-sponsors, along with three additional legislators.
Since the start of the current session, Efstration has sponsored another four measures, with three of those adopted.
Efstration earned a BA from the University of Georgia in 2004 and a JD from the Walter F. George School of Law in 2008.
The Republican lawmaker was first elected to the Georgia State House in 2013 to represent District 104, succeeding Donna Sheldon in the role.
According to Georgia’s legislative process, a bill begins when a legislator works with the Office of Legislative Counsel to draft it, often on behalf of a constituent. The bill is filed with the appropriate chamber’s Clerk or Secretary, read for the first time, and referred to committee, where most discussion and research occurs. If approved, it moves to the floor for a third reading, further debate, and a vote. To be enacted, the measure must pass both chambers—sometimes requiring compromise in a conference committee—and then proceeds to the governor. The governor may sign, veto, or permit the bill to become law without signature, either within six days during session or 40 days after adjournment (Sine Die). The Georgia General Assembly convenes for a 40-day session each year, starting the second Monday of January.
| Bill Number | Date Introduced | Short Description |
|---|---|---|
| HB1023 | 01/27/2026 | Education; utilize weapon detection systems in certain school buildings; require local boards of education and other public school governing bodies |
| HB416 | 02/12/2025 | Local government; enterprise zones; revise class of retailer from which fees may be collected |
| HB360 | 02/10/2025 | Revenue and taxation; rehabilitation of historic structures; revise tax credit |
| HB90 | 01/16/2025 | Revenue and taxation; increase maximum acreage to qualify for assessment and taxation as a bona fide conservation use property |
Information in this article was obtained from the Georgia State House. The source data can be found here.
