Bill > SB0789

This bill amends the Business Corporation Act to authorize the formation of "benefit corporations," which are companies that commit to pursuing a public benefit alongside profit. It introduces new provisions for benefit corporations, including requirements for their articles of incorporation to state their benefit status and identify specific public benefits they aim to achieve, such as positive societal or environmental impact. The bill also clarifies the duties of officers and directors in benefit corporations, requiring them to consider the interests of shareholders, stakeholders, and public benefits when making decisions, and establishes a framework for reporting on their progress towards these public benefits through an annual benefit report. Additionally, the bill introduces provisions for ratifying and validating "defective corporate actions," which are actions taken by a corporation that were improperly authorized, aiming to provide legal certainty for past corporate decisions and share issuances. It also makes various other amendments to existing sections of the Business Corporation Act related to corporate filings, notices, mergers, conversions, and director and officer conduct.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2026-SB-0789