May 18, 2006, Introduced by Reps. Espinoza, Gleason, Bieda, Condino, McDowell, Alma Smith, Mayes, Leland, Vagnozzi, Hunter, Polidori, Tobocman, Zelenko, Clack, Gonzales, Anderson, Donigan, Miller, Sak, Lemmons, Jr., Lipsey, Farrah, Kolb, Meisner, Bennett, Clemente, Sheltrown, Plakas, Angerer, Byrum, Spade, Byrnes, Wojno and Cheeks and referred to the Committee on Judiciary.
A bill to amend 1931 PA 328, entitled
"The Michigan penal code,"
(MCL 750.1 to 750.568) by adding section 281.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 281. (1) An officer of a corporation shall not do any of
the following with the intent to defraud the shareholders of that
corporation:
(a) Award, attempt to award, or conspire with another person
to award compensation to another officer of that corporation that
the person knows or has reason to know is excessive.
(b) Obtain, attempt to obtain, or conspire with another person
to obtain compensation that the person knows or has reason to know
is excessive.
(c) Prepare, attempt to prepare, or conspire with another
person to prepare any financial record or other document the person
knows or has reason to know is false or misleading.
(d) Sell, attempt to sell, or conspire with another person to
sell stock or any other asset of the corporation knowing or having
reason to know that the price of that stock or other asset is or
may be affected by a financial record or other document prepared in
violation of subdivision (c).
(2) A person shall not knowingly aid, induce, or conspire with
an officer of a corporation to commit a violation of this section.
(3) A person who violates this section is guilty of a felony
punishable by imprisonment for not more than 10 years or a fine of
not more than $250,000.00, or both.
(4) This section does not prohibit the person from being
charged with, convicted of, or sentenced for any other violation of
law arising out of the violation of this section.
(5) As used in this section, "compensation" includes salary or
wages, stock options, and any other thing of value.