SENATE BILL No. 113

 

 

January 29, 2003, Introduced by Senators GARCIA, PATTERSON, CROPSEY, Van WOERKOM,

            GOSCHKA, BISHOP, JELINEK and CASSIS and referred to the Committee on Economic

            Development, Small Business and Regulatory Reform.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1982 PA 162, entitled                                             

                                                                                

    "Nonprofit corporation act,"                                                

                                                                                

    by amending sections 801, 831, 915, 922, and 925 (MCL 450.2801,             

                                                                                

    450.2831, 450.2915, 450.2922, and 450.2925), section 915 as                 

                                                                                

    amended by 1996 PA 84.                                                      

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 801.  (1) A corporation may be dissolved in any of the                 

                                                                                

2   following ways:                                                             

                                                                                

3       (a) Automatically by expiration of a period of duration to                  

                                                                                

4   which the corporation is limited by its articles of                         

                                                                                

5   incorporation.                                                              

                                                                                

6       (b) By action of the incorporators or directors  pursuant to                

                                                                                

7   under section 803.                                                          

                                                                                

8       (c) By action of the shareholders, members, or the board                    

                                                                                

9   pursuant to  under section 804.                                            

                                                                                


                                                                                

1       (d) By action of a shareholder or member  pursuant to  under                

                                                                                

2   section 805.                                                                

                                                                                

3       (e) By a judgment of the circuit court in an action brought                 

                                                                                

4   pursuant to  under this act or otherwise.                                  

                                                                                

5       (f) Automatically,  pursuant to  under section 922, for                     

                                                                                

6   failure to file an annual report,  or  pay  the  an annual filing           

                                                                                

7   fee required under this act, or pay a penalty added to  the  an             

                                                                                

8   annual fee.                                                                 

                                                                                

9       (2) A corporation whose assets have been wholly disposed of                 

                                                                                

10  under court order in receivership or bankruptcy proceedings may             

                                                                                

11  be summarily dissolved by order of the court having jurisdiction            

                                                                                

12  of the proceedings.   A  The clerk of the court shall file a copy           

                                                                                

13  of the order  shall be filed  with the administrator.  by the               

                                                                                

14  clerk of the court.                                                         

                                                                                

15      Sec. 831.  A corporation is dissolved when any of the                       

                                                                                

16  following occurs:                                                           

                                                                                

17      (a) The period of duration stated in the corporation's                      

                                                                                

18  articles of incorporation expires.                                          

                                                                                

19      (b) A certificate of dissolution is filed pursuant to                       

                                                                                

20  sections 803 to 805.                                                        

                                                                                

21      (c) A judgment of forfeiture of corporate franchises or of                  

                                                                                

22  dissolution is entered by a court of competent jurisdiction.                

                                                                                

23  and  The receiver or other person designated by the court shall            

                                                                                

24  promptly forward a copy of a judicial order of dissolution  shall           

                                                                                

25  be forwarded promptly  to the administrator.  by the receiver or            

                                                                                

26  other person designated by the court.                                       

                                                                                

27      (d) Failure to file an annual report, or pay an annual filing               


                                                                                

1   fee required under this act, as provided in section 922.                    

                                                                                

2       Sec. 915.  (1)  A  Subject to subsection (2), a corporation                 

                                                                                

3   shall file an annual report required under section 911  shall be            

                                                                                

4   filed  with the administrator together with a $10.00 filing fee.            

                                                                                

5       (2) If the annual report meets section 911(3), a corporation                

                                                                                

6   shall file an annual report required under section 911 with the             

                                                                                

7   administrator, but is not required to pay a filing fee with the             

                                                                                

8   annual report.                                                              

                                                                                

9       Sec. 922.  (1)  If a  A domestic corporation that neglects                  

                                                                                

10  or refuses for 2 consecutive years to file  the  any annual                 

                                                                                

11  reports  report or pay  the  any annual filing fee required by             

                                                                                

12  law  , the corporation shall be  is automatically dissolved.  The           

                                                                                

13  administrator shall notify the corporation of the impending                 

                                                                                

14  dissolution not later than 90 days before the  2 years has                  

                                                                                

15  expired  2-year period expires.  Until a corporation  has been              

                                                                                

16  is dissolved, it is entitled to issuance by the administrator,              

                                                                                

17  upon request, of a certificate of good standing setting forth               

                                                                                

18  that it has been validly incorporated as a domestic corporation             

                                                                                

19  and that it is validly in existence under the laws of this                  

                                                                                

20  state.                                                                      

                                                                                

21      (2) If a foreign corporation neglects or refuses for 1 year                 

                                                                                

22  to file the annual report or pay  the  any annual filing fee                

                                                                                

23  required by law, its certificate of authority is subject to                 

                                                                                

24  revocation in accordance with section 1042.  Until revocation of            

                                                                                

25  its certificate of authority or its withdrawal from this state or           

                                                                                

26  termination of its existence, the foreign corporation is entitled           

                                                                                

27  to issuance by the administrator, upon request, of a certificate            


                                                                                

1   of good standing setting forth that it has been validly                     

                                                                                

2   authorized to transact business in this state and that it holds a           

                                                                                

3   valid certificate of authority to transact business in this                 

                                                                                

4   state.                                                                      

                                                                                

5       Sec. 925.  (1) A domestic corporation  which has been  that                 

                                                                                

6   is dissolved  pursuant to  under section 922(1), or a foreign               

                                                                                

7   corporation whose certificate of authority  has been  is revoked            

                                                                                

8   pursuant to  under section 922(2) or section 1042, may renew its           

                                                                                

9   corporate existence or its certificate of authority by filing the           

                                                                                

10  reports for the last 5 years or any lesser number of years in               

                                                                                

11  which the reports were not filed and paying  the  any annual                

                                                                                

12  filing fees required under this act for all the years for which             

                                                                                

13  they were not paid, together with a penalty of $5.00 for each               

                                                                                

14  delinquent report.  Upon filing the reports and payment of the              

                                                                                

15  fees and penalties, the corporate existence or the certificate of           

                                                                                

16  authority is renewed.  If during the intervening period the                 

                                                                                

17  corporate name or a confusingly similar name has been assigned to           

                                                                                

18  another corporation, the administrator may require that the                 

                                                                                

19  corporation adopt or use within this state a  different                     

                                                                                

20  corporate name that conforms to the requirements of section 212.            

                                                                                

21      (2) Upon compliance with the provisions of this section, the                

                                                                                

22  rights of the corporation  shall be  are the same as though a               

                                                                                

23  dissolution or revocation  had  has not taken place, and all                

                                                                                

24  contracts entered into and other rights acquired during the                 

                                                                                

25  interval  shall be  are valid and enforceable.