Michigan House Bill HB4794

Michigan 2023-2024 Regular Session

• Introduced: 6/15/23
• Refer: 6/15/23

Caption

Businesses: associations; certain references in the incorporation of summer resort owners act; make gender neutral. Amends sec. 8 of 1929 PA 137 (MCL 455.208). TIE BAR WITH: HJR F'23

Impact

The impact of HB4794 on state laws primarily revolves around ensuring that the formation and governance of corporations by summer resort owners are aligned with current societal norms regarding gender. By making the language gender-neutral, the bill aims to foster inclusivity and ensure that every member, regardless of gender, feels recognized as a stalwart of their corporate entity. The legislation emphasizes transparency by mandating that trustees report annually on the management and financial condition of the corporation, promoting accountability within these organizations.

Summary

House Bill 4794 seeks to amend existing legislation governing the formation of corporations by summer resort owners in Michigan. The bill proposes changes to the 1929 Public Act 137, which allows summer resort owners to organize themselves into corporations. One of the main objectives of this amendment is to update the language used in the law to be gender-neutral, reflecting contemporary standards of equality and inclusion. The amendment specifically addresses how corporations may conduct their annual meetings and elect trustees, thus modernizing procedural aspects of such organizations.

Contention

While the bill primarily presents itself as a minor update to existing legislation, potential contention may arise regarding the extent of its implications for future amendments related to corporate governance. Critics may raise concerns about the necessity of changing the language when the existing provisions sufficiently address the operational needs of such corporations. Furthermore, there may be debates around the broader implications of state control over individual corporate structures, as any alteration could trigger discussions about the autonomy of local business entities and their governance.