Public Act 222 of 2008, provides that Nonprofit Corporations need Three Directors. It is important that Nonprofit Corporations make the necessary changes in order to be in compliance with this new regulation.
Recently mailed 2009 Corporare Information forms for Nonprofits were mailed with a News Release from the state of Michigan stating:
Public Act 222 of 2008, effective July 16, 2008, amended the Nonprofit Corporation Act to require that the board of directors of all Michigan nonprofit corporations in existence on July 16, 2008, consist of three or more directors by January 16, 2009. The board of any new nonprofit corporation formed after July 16, 2008, is required to consist of three or more directors
Nonprofit corporations are also required to file an annual report by October 1 each year and report the names and addresses of officers and directors. Corporations existing on December 31, 2007, must file their 2008 annual report by October 1, 2008. Corporations formed in 2008 must file their first annual report October 1, 2009, and are required to report three or more directors on their board. A nonprofit corporation is automatically dissolved if it fails to file the annual report or pay the annual fee within the two years of the due date of the report.
The law has also been amended to define and require a “charitable purpose corporation” to provide notice of its dissolution to the Michigan Office of Attorney General within 60 days of an automatic dissolution for failure to file the annual report or pay the annual fee. The corporation is also prohibited from disposing of any assets without written approval from the Attorney General.
Read the full release here.
