HB 6454 Summary

• Adds definitions for "public benefit corporation" and "triple benefit corporation" to Michigan's Business Corporation Act, allowing new types of for-profit business structures beyond traditional corporations.

• Public benefit corporations must further charitable or educational purposes under Internal Revenue Code Section 170(c)(2)(B) and cannot have income production as a significant purpose.

• Triple benefit corporations must balance interests of people, planet, and profit equally; serve all stakeholders (shareholders, employees, customers, suppliers, society, environment); and treat profit generation as equally important to social/environmental benefit.

• Requires public benefit and triple benefit corporations to include specific designation in their corporate names ("public benefit corporation," "P.B.C.," "triple benefit corporation," "T.B.C.," or similar abbreviations).

• Provides liability protections for directors and officers of these benefit corporations acting in good faith to advance the corporation's stated purposes; allows Attorney General to dissolve corporations that fail to maintain required standards for 60+ days without amending their corporate designation.