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MI SB0789
Bill
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