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MI SB0623
Bill
AI Summary
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Comprehensive modernization and clarification of Michigan's nonprofit corporation law by amending 140+ sections and adding 42 new sections to the Nonprofit Corporation Act of 1982.
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Expands corporate powers and organizational flexibility, including authority for nonprofits to guarantee obligations of affiliates, issue convertible securities, establish multiple classes of shares/memberships, and conduct mergers with business organizations.
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Modernizes governance procedures by allowing remote participation in meetings, electronic transmission of notices and consents, and alternative voting methods including ballots and polling places.
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Enhances director and officer protections through provisions limiting liability, establishing indemnification standards, and allowing corporations to assume volunteer director liabilities under specified conditions.
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Clarifies shareholder/member rights including inspection of records, derivative proceedings, and oppression remedies, while establishing record date procedures and proxy voting rules.
Legislative Description
Businesses; nonprofit corporations; nonprofit corporation act; make general revisions. Amends secs. 103, 104, 105, 106, 107, 108, 109, 110, 121, 122, 123, 131, 132, 133, 141, 143, 151, 202, 209, 212, 215, 217, 221, 241, 242, 243, 246, 251, 261, 275, 301, 303, 304, 305, 307, 308, 309, 313, 317, 331, 332, 338, 402, 403, 404, 405, 407, 413, 415, 421, 422, 423, 441, 442, 444, 446, 451, 455, 461, 485, 487, 501, 505, 506, 511, 521, 523, 527, 528, 531, 541, 548, 551, 552, 553, 561, 562, 563, 565, 567, 569, 601, 602, 611, 615, 631, 641, 642, 643, 701, 707, 741, 753, 801, 804, 805, 811, 815, 817, 821, 823, 851, 855, 901, 911, 913, 922, 923, 925, 932, 1001, 1002, 1012, 1015, 1016, 1021, 1032, 1035, 1041, 1042, 1051, 1060, 1104, 1107, 1145 & 1162 of 1982 PA 162 (MCL 450.2103 et seq.); adds secs. 303a, 303b, 303c, 303d, 314, 336, 341a, 343, 344, 345, 392, 406, 408, 409, 412, 432, 447a, 466, 467, 468, 472, 473, 488, 489, 491a, 492a, 493a, 494, 495, 496, 497, 514, 515a, 529, 545a, 564a, 564b, 564c, 571, 703a, 706, 711, 712, 713, 724, 735, 736a, 745, 746, 751, 754, 841a, 842a, 1013 & 1056 & repeals secs. 312, 315, 361, 363, 365, 371, 411, 447, 481, 491, 492, 493, 515, 545, 546, 564, 703, 721, 722, 723, 731, 732, 736, 737, 825, 841, 842, 843 & 935 of 1982 PA 162 (MCL 450.2312 et seq.). TIE BAR WITH: SB 0624'13
Businesses, nonprofit corporations
Last Action
Assigned Pa 0557'14 With Immediate Effect
12/31/2014