This bill amends the Business Corporation Act of 1972 by modifying several sections and adding a new section, 261a, which restricts domestic and foreign corporations from financially supporting or opposing political candidates, parties, or ballot questions. Specifically, it states that domestic corporations cannot pay, contribute, or expend money or anything of value for political purposes, and any such actions are deemed invalid and subject to disgorgement. Foreign corporations are similarly restricted in Michigan, with exceptions for existing contracts and bona fide news stories. Violations can lead to dissolution for domestic corporations and revocation of authority for foreign corporations.

Additionally, the bill updates existing provisions regarding corporate powers and actions, clarifying that acts performed by corporations are not invalid due to lack of capacity unless specified in the new section 261a. The Attorney General is granted authority to take action against corporations that violate these provisions, including seeking dissolution or disgorgement. The bill also outlines the grounds for revocation of a foreign corporation's authority to transact business in Michigan, including performing prohibited acts as defined in section 261a. Overall, the bill aims to limit corporate influence in political matters while ensuring compliance with corporate governance standards.

Statutes affected:
House Introduced Bill: 450.1261