NONPROFIT DIRECTORS; LOWER

AGE



House Bill 5906

Sponsor: Rep. Mark Schauer

Committee: Commerce


Complete to 6-5-98



A SUMMARY OF HOUSE BILL 5906 AS INTRODUCED 6-4-98


House Bill 5906 would amend the Nonprofit Corporation Act to allow a corporate board organized for educational purposes primarily for young people under 18 to include on the board one director who is 16 or 17 years old.


The bill also would allow a corporate board organized for recreational or youth development and delinquency prevention purposes primarily for people under 18 to include one or more 16 or 17 year old directors on its board, as long as the number did not exceed half the total number of directors required for a quorum. If more than one director under 18 was appointed, the corporation would be required to state in its certificate of incorporation the number of directors who may be 16 or 17 years of age.


[According to Attorney General Opinion 5893, issued May 8, 1981, people younger than 18 years of age may neither incorporate nor serve as directors or officers of profit or nonprofit corporations incorporated in Michigan. This common law prohibition is not found in statute.]


MCL 450.2501a















Analyst: J. Hunault



This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.