Bill Text: MI SB0625 | 2013-2014 | 97th Legislature | Introduced


Bill Title: Businesses; nonprofit corporations; definition of corporation in Michigan limited liability company act; include nonprofit corporations. Amends sec. 102 of 1993 PA 23 (MCL 450.4102). TIE BAR WITH: SB 0623'13

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Introduced - Dead) 2013-10-16 - Referred To Committee On Economic Development [SB0625 Detail]

Download: Michigan-2013-SB0625-Introduced.html

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 625

 

 

Introduced by Senators BIEDA, JONES and KOWALL.

 

 

     A bill to amend 1993 PA 23, entitled

 

"Michigan limited liability company act,"

 

by amending section 102 (MCL 450.4102), as amended by 2012 PA 568.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 102. (1) Unless the context requires otherwise, the

 

definitions in this section control the interpretation of this act.

 

     (2) As used in this act:

 

     (a) "Administrator" means the director of the department or

 

his or her designated representative.

 

     (b) "Articles of organization" means the original documents

 

filed to organize a limited liability company, as amended or

 

restated by certificates of correction, amendment, or merger, by

 

restated articles, or by other instruments filed or issued under

 


any statute.

 

     (c) "Constituent" means a party to a plan of merger, including

 

the survivor.

 

     (d) "Contribution" means anything of value that a person

 

contributes to the limited liability company as a prerequisite for,

 

or in connection with, membership, including cash, property,

 

services performed, or a promissory note or other binding

 

obligation to contribute cash or property, or to perform services.

 

     (e) "Corporation" or "domestic corporation" means any of the

 

following:

 

     (i) A corporation formed under the business corporation act,

 

1972 PA 284, MCL 450.1101 to 450.2098.

 

     (ii) A corporation existing on January 1, 1973 and formed under

 

another statute of this state for a purpose for which a corporation

 

may be formed under the business corporation act, 1972 PA 284, MCL

 

450.1101 to 450.2098.

 

     (iii) A corporation formed under former 1962 PA 192.

 

     (iv) A corporation formed under or subject to, wholly or in

 

part, the nonprofit corporation act, 1984 PA 162, MCL 450.2101 to

 

450.3192.

 

     (f) "Department" means the department of licensing and

 

regulatory affairs.

 

     (g) "Distribution" means a direct or indirect transfer of

 

money or other property or the incurrence of indebtedness by a

 

limited liability company to or for the benefit of its members or

 

assignees of its members in respect of the members' membership

 

interests.

 


     (h) "Electronic transmission" or "electronically transmitted"

 

means any form of communication that meets all of the following:

 

     (i) It does not directly involve the physical transmission of

 

paper.

 

     (ii) It creates a record that may be retained and retrieved by

 

the recipient.

 

     (iii) It may be directly reproduced in paper form by the

 

recipient through an automated process.

 

     (i) "Foreign limited liability company" means a limited

 

liability company formed under laws other than the laws of this

 

state.

 

     (j) "Foreign limited partnership" means a limited partnership

 

formed under laws other than the laws of this state.

 

     (k) "Limited liability company" or "domestic limited liability

 

company" means an entity that is an unincorporated membership

 

organization formed under this act.

 

     (l) "Limited partnership" or "domestic limited partnership"

 

means a limited partnership formed under the Michigan revised

 

uniform limited partnership act, 1982 PA 213, MCL 449.1101 to

 

449.2108.

 

     (m) "Low-profit limited liability company" means a limited

 

liability company that has included in its articles of organization

 

a purpose that meets, and that at all times conducts its activities

 

to meet, all of the following requirements:

 

     (i) The limited liability company significantly furthers the

 

accomplishment of 1 or more charitable or educational purposes

 

described in section 170(c)(2)(B) of the internal revenue code of

 


1986, 26 USC 170, and would not have been formed except to

 

accomplish those charitable or educational purposes.

 

     (ii) The production of income or appreciation of property is

 

not a significant purpose of the limited liability company.

 

However, in the absence of other factors, the fact that a limited

 

liability company produces significant income or capital

 

appreciation is not conclusive evidence of a significant purpose

 

involving the production of income or the appreciation of property.

 

     (iii) The purposes of the limited liability company do not

 

include accomplishing 1 or more political or legislative purposes

 

described in section 170(c)(2)(D) of the internal revenue code of

 

1986, 26 USC 170.

 

     (n) "Majority in interest" means a majority of votes as

 

allocated by an operating agreement, or by the statute in the

 

absence of an allocation by operating agreement, and held by

 

members entitled to vote on a matter submitted for a vote by

 

members.

 

     (o) "Manager" or "managers" means a person or persons

 

designated to manage the limited liability company pursuant to a

 

provision in the articles of organization stating that the business

 

is to be managed by or under the authority of managers.

 

     (p) "Member" means a person who has been admitted to a limited

 

liability company as provided in section 501, or, in the case of a

 

foreign limited liability company, a person that is a member of the

 

foreign limited liability company in accordance with the laws under

 

which the foreign limited liability company is organized.

 

     (q) "Membership interest" or "interest" means a member's

 


rights in the limited liability company, including, but not limited

 

to, any right to receive distributions of the limited liability

 

company's assets and any right to vote or participate in

 

management.

 

     (r) "Operating agreement" means a written agreement by the

 

member of a limited liability company that has 1 member, or between

 

all of the members of a limited liability company that has more

 

than 1 member, pertaining to the affairs of the limited liability

 

company and the conduct of its business. The term includes any

 

provision in the articles of organization pertaining to the affairs

 

of the limited liability company and the conduct of its business.

 

     (s) "Person" means an individual, partnership, limited

 

liability company, trust, custodian, estate, association,

 

corporation, governmental entity, or any other legal entity.

 

     (t) "Services in a learned profession" means services rendered

 

by a dentist, an osteopathic physician, a physician, a surgeon, a

 

doctor of divinity or other clergy, or an attorney-at-law.

 

     (u) "Surviving company", "surviving entity", or "survivor"

 

means the constituent that survives a merger, as identified in the

 

certificate of merger.

 

     (v) "Vote" means an affirmative vote, approval, or consent.

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No.623                                          

 

          of the 97th Legislature is enacted into law.

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