SENATE BILL No. 167

 

 

February 11, 2003, Introduced by Senators GARCIA, KUIPERS, BISHOP, CASSIS, McMANUS, CROPSEY, TOY, JELINEK, VAN WOERKOM, STAMAS and ALLEN and referred to the Committee on Economic Development, Small Business and Regulatory Reform.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1972 PA 284, entitled                                             

                                                                                

    "Business corporation act,"                                                 

                                                                                

    by amending sections 801, 817, 831, 915, 922, and 925 (MCL                  

                                                                                

    450.1801, 450.1817, 450.1831, 450.1915, 450.1922, and 450.1925),            

                                                                                

    sections 801 and 817 as amended by 1997 PA 118, sections 831 and            

                                                                                

    925 as amended by 1989 PA 121, section 915 as amended by 1996 PA            

                                                                                

    196, and section 922 as amended by 1993 PA 91.                              

                                                                                

                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 under section               

                                                                                

7   803.                                                                        

                                                                                


                                                                                

1       (c) By action of the board and the shareholders under section               

                                                                                

2   804.                                                                        

                                                                                

3       (d) Pursuant to an agreement under section 488, effected by                 

                                                                                

4   filing a certificate under section 805.                                     

                                                                                

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

                                                                                

6   under this act or otherwise.                                                

                                                                                

7       (f) Automatically, under section 922, for failure to file an                

                                                                                

8   annual report or pay  the  an annual filing fee if required under           

                                                                                

9   this act.                                                                   

                                                                                

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

                                                                                

11  under court order in receivership or bankruptcy proceedings may             

                                                                                

12  be summarily dissolved by order of the court having jurisdiction            

                                                                                

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

                                                                                

14  of the order  shall be filed by the clerk of the court  with the            

                                                                                

15  administrator.                                                              

                                                                                

16      Sec. 817.  (1) When the certificate of revocation of                        

                                                                                

17  dissolution or of renewal of existence is filed, the revocation             

                                                                                

18  of the dissolution proceedings or the renewal of the corporate              

                                                                                

19  existence becomes effective, and the corporation may again                  

                                                                                

20  transact its business.                                                      

                                                                                

21      (2) Revocation of dissolution or renewal of corporate                       

                                                                                

22  existence does not relieve the corporation of any penalty or                

                                                                                

23  liability accrued against it under any law of this state, and the           

                                                                                

24  corporation shall file any report and pay any fee or penalty                

                                                                                

25  required under this act for any year for which a report was not             

                                                                                

26  filed or a fee or penalty was not paid.                                     

                                                                                

27      (3) Upon filing a certificate of revocation of dissolution or               


                                                                                

1   renewal of existence, the administrator may require the                     

                                                                                

2   corporation to adopt a corporate name that conforms to the                  

                                                                                

3   requirements of section 212.                                                

                                                                                

4       (4) Upon compliance with the provisions of this section, the                

                                                                                

5   rights of the corporation are the same as though a dissolution or           

                                                                                

6   expiration of term had not occurred, and all contracts entered              

                                                                                

7   into and other rights acquired during the interval are valid and            

                                                                                

8   enforceable.                                                                

                                                                                

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

                                                                                

10  following occurs:                                                           

                                                                                

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

                                                                                

12  articles of incorporation expires.                                          

                                                                                

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

                                                                                

14  sections 803 to 805.                                                        

                                                                                

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

                                                                                

16  dissolution is entered by a court of competent jurisdiction.                

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

20  other person designated by the court.                                       

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

25  filed  with the administrator together with a $15.00 filing fee.            

                                                                                

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

                                                                                

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


                                                                                

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

                                                                                

2   annual report.                                                              

                                                                                

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

                                                                                

4   refuses for 2 consecutive years to file any annual report or pay            

                                                                                

5   any annual filing fee or  a  penalty added to the fee required by           

                                                                                

6   law  , and the neglect or refusal continues for a period of 2               

                                                                                

7   years from the date on which the annual report or filing fee was            

                                                                                

8   due, the corporation shall be  is automatically dissolved 60 days           

                                                                                

9   after the expiration of the 2-year period.  The administrator               

                                                                                

10  shall notify the corporation of the impending dissolution not               

                                                                                

11  later than 90 days before the 2-year period  has expired                    

                                                                                

12  expires.  Until a corporation  has been  is dissolved, it is                

                                                                                

13  entitled to issuance by the administrator, upon request, of a               

                                                                                

14  certificate of good standing setting forth that it has been                 

                                                                                

15  validly incorporated as a domestic corporation and that it is               

                                                                                

16  validly in existence under laws of this state.                              

                                                                                

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

                                                                                

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

                                                                                

19  a  penalty  added to the fee  required by law, its certificate             

                                                                                

20  of authority is subject to revocation in accordance with section            

                                                                                

21  1042.  Until revocation of its certificate of authority, or its             

                                                                                

22  withdrawal from this state or termination of its existence, the             

                                                                                

23  foreign corporation is entitled to issuance by the administrator,           

                                                                                

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

                                                                                

25  that it has been validly authorized to transact business in this            

                                                                                

26  state and that it holds a valid certificate of authority to                 

                                                                                

27  transact business in this state.                                            


                                                                                

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

                                                                                

2   is dissolved under  subsection (1) of  section  922  922(1), or a           

                                                                                

3   foreign corporation whose certificate of authority  has been  is            

                                                                                

4   revoked under  subsection (2) of  section  922  922(2) or section           

                                                                                

5   1042, may renew its corporate existence or its certificate of               

                                                                                

6   authority by filing the reports and paying  the  any fees                   

                                                                                

7   required under this act for the years for which they were not               

                                                                                

8   filed and paid, and for every subsequent intervening year,                  

                                                                                

9   together with the penalties provided by section 921.  Upon filing           

                                                                                

10  the reports and payment of the fees and penalties, the corporate            

                                                                                

11  existence or the certificate of authority is renewed.  The                  

                                                                                

12  administrator may require the corporation to adopt or use within            

                                                                                

13  this state a corporate name that conforms to the requirements of            

                                                                                

14  section 212.                                                                

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

18  contracts entered into and other rights acquired during the                 

                                                                                

19  interval  shall be  are valid and enforceable.