MI
Michigan Senate Bill SB0983

Michigan 2023-2024 Regular Session

Michigan Senate Bill SB0983

Introduced
8/15/24  
Refer
8/15/24  
Report Pass
10/24/24  
Refer
10/24/24  
Report Pass
10/30/24  
Engrossed
11/7/24  
Refer
11/7/24  
Refer
11/12/24  
Report Pass
11/13/24  
Enrolled
12/10/24  
Chaptered
12/30/24  

Caption

Businesses: limited liability companies; definition of business organization; modify. Amends sec. 705a of 1993 PA 23 (MCL 450.4705a).

Impact

The legislation is anticipated to have a significant impact on how business entities operate within the state. By clarifying the legal framework for mergers that involve LLCs, the bill is expected to facilitate easier business transactions, promoting economic growth and attracting potential investments. Additionally, it aims to enhance the overall efficiency of business operations by reducing legal ambiguities in the merger process.

Summary

Senate Bill 0983 aims to amend the existing regulations governing limited liability companies (LLCs) in Michigan, specifically focusing on section 705a of the 1993 Public Act 23. The bill introduces modifications to the definition of business organizations, allowing for clearer parameters regarding mergers involving domestic limited liability companies. As a result, the bill is designed to streamline legal processes associated with merging different types of business entities, laying out specific procedures and requirements for such mergers.

Sentiment

The general sentiment surrounding SB 0983 appears to be favorable, particularly among business advocates and legal professionals who see the changes as beneficial for fostering a better business environment. There seems to be a recognition of the need for more straightforward regulations that can help businesses navigate complex legal requirements more efficiently. However, the sentiment could vary among smaller business owners who might express concerns about the implications of mergers and liability assumptions.

Contention

Notable points of contention around SB 0983 may revolve around the balance of power between large corporations and smaller entities. Some stakeholders could argue that while the bill simplifies processes for mergers, it may inadvertently favor larger businesses that have more resources to pursue such mergers, potentially choking opportunities for smaller, local businesses. Additionally, discussions may also arise regarding the protections afforded to LLC members and how their interests will be represented in broader business organizations.

Companion Bills

MI SB0984

Same As Businesses: business corporations; applicability of the business corporation act; modify. Amends sec. 123 of 1972 PA 284 (MCL 450.1123).

MI SB0982

Same As Communications: telecommunications; conversion for telephone corporations to domestic limited liability company; provide for. Amends 1883 PA 129 (MCL 484.1 - 484.10) by adding sec. 7.

Previously Filed As

MI HB4995

Businesses: limited liability companies; annual statement fees under the Michigan limited liability company act; modify. Amends sec. 1101 of 1993 PA 23 (MCL 450.5101).

MI SB228

Business entities; modifying requirements for corporations, limited liability companies and limited partnerships. Effective date.

MI SSB1188

A bill for an act providing for business organizations, including limited liability companies, providing penalties, and including effective date provisions.(See SF 544.)

MI HSB207

A bill for an act providing for business organizations, including limited liability companies, providing penalties, and including effective date provisions.(See HF 655.)

MI SF544

A bill for an act providing for business organizations, including limited liability companies, providing penalties, and including effective date provisions.(Formerly SSB 1188.)

MI HB07311

An Act Concerning Limited Liability Companies And Business Corporations.

MI HF655

A bill for an act providing for business organizations, including limited liability companies, providing penalties, and including effective date provisions. (Formerly HSB 207.) Effective date: 01/01/2024.

MI SB0667

Businesses: business corporations; benefit corporations; authorize formation and establish duties of officers and directors. Amends secs. 105, 106, 131, 202, 211, 745, 746 & 762 of 1972 PA 284 (MCL 450.1105 et seq.) & adds ch. 9A. TIE BAR WITH: SB 0666'23

MI SB164

Relating to limited liability companies.

MI SB909

Relating to limited liability companies.

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