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MI SB0789

Bill

Status

Introduced

2/18/2026

Primary Sponsor

Sean McCann

Click for details

Origin

Senate

103rd Legislature

AI Summary

  • Authorizes the formation of benefit corporations in Michigan as a new type of business corporation that must consider both shareholder returns and broader public benefit purposes
  • Requires benefit corporation directors to consider impacts on shareholders, employees, customers, community, local and global environment, and the corporation's ability to accomplish its general and specific public benefit purposes
  • Establishes that benefit corporation officers and directors are not personally liable for monetary damages when balancing stakeholder interests, unless they engage in bad faith, intentional misconduct, or breach of loyalty
  • Mandates annual benefit reports that must include assessment of the corporation's public benefit performance using a third-party standard, with reports filed with the state administrator
  • Allows existing corporations to become benefit corporations through charter amendments requiring two-thirds shareholder approval, and permits benefit corporations to terminate their status through the same process

Legislative Description

Businesses: business corporations; benefit corporations; authorize formation and establish duties of officers and directors. Amends (See bill).

Businesses: business corporations

Last Action

Referred To Committee On Finance, Insurance, And Consumer Protection

2/18/2026

Committee Referrals

Finance, Insurance, And Consumer Protection2/18/2026

Full Bill Text

No bill text available