REPEAL ANNUAL REPORT REQUIREMENT S.B. 143: FLOOR ANALYSIS
Senate Bill 143 (as reported by the Committee of the Whole) Sponsor: Senator Glenn D. Steil
Committee: Financial Services
The bill would amend the Business Corporation Act to repeal requirements that corporations file an annual report and pay a $15 filing fee, and to repeal provisions that specify sanctions for failing to file a report or pay the filing fee or willfully making a false statement in a report.
Currently, each domestic corporation and each foreign corporation must file a report with the administrator (the Director of the Department of Commerce) by May 15 of each year. The report must contain the corporation’s name; the name of its resident agent and address of its registered office in Michigan; the date of incorporation, term of corporate existence, and, if a foreign corporation, the date when authorized to transact business in Michigan; the names and addresses of the corporation’s president, secretary, treasurer, and directors; the general nature and kind of business in which the corporation is engaged; the total number of authorized shares; for each foreign corporation, the most recent percentage used in computing the single business tax; the nature and book value of the property owned and used by the corporation; a complete and detailed statement of the corporation’s assets and liabilities; and other information required by the administrator.
MCL 450.1131 et al. Legislative Analyst: P. Affholter
This bill would reduce annual General Fund revenue by $3,400,000.
Filing fees are collected from each for-profit corporate entity with its annual report. These fees provide funding for the administration of the program and revenue to the General Fund. Total fee collections from this source amounted to $4,000,000 in FY 1993-94.
Eleven individuals are involved in the processing of these documents. If it is suggested that the annual cost of administering these filing requirements is between $600,000 and $650,000, the remaining $3,400,000 in nonearmarked revenue is credited to the General Fund each year.
Date Completed: 3-21-95 Fiscal Analyst: K. Lindquist
floor\sb143
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.