HB 6311 Summary

• Amends the Michigan Business Corporation Act to add provisions enabling the formation and operation of benefit corporations, a new type of domestic corporation designed to pursue general public benefits in addition to profit.

• Defines "benefit corporation" and requires benefit corporations to include "benefit corporation," "benefit company," or "B.C." in their corporate name, distinguishing them from standard corporations.

• Prohibits benefit corporations from converting into other business organizations and prevents other business organizations from converting into benefit corporations, establishing them as a distinct corporate form.

• Adds dissenter rights for shareholders of benefit corporations in specific corporate actions, including amendments to articles of incorporation affecting benefit corporation status and certain merger or share exchange transactions.

• Takes effect 90 days after enactment, conditioned on simultaneous enactment of HB 6309, HB 6310, and HB 6312.