NONPROFIT CORP: ELECTRONIC COMM. S.B. 123 (S-1): FLOOR ANALYSIS






Senate Bill 123 (Substitute S-1 as reported by the Committee of the Whole)
Sponsor: Senator Alan Sanborn
Committee: Economic Development and Regulatory Reform

CONTENT
The bill would amend the Nonprofit Corporation Act to permit the use of electronic communication. The bill would do the following:

-- Specify that, when a notice was required or permitted by the Act to be given in writing, electronic transmission would be written notice.
-- Allow notice of meetings to be electronically transmitted.
-- Allow a board of directors to conduct a meeting of shareholders or members solely by means of remote communication.
-- Specify conditions under which a shareholder or member could participate in a meeting and vote by means of remote communication.
-- Specify methods, including electronic transmission, by which a shareholder or member could grant authority to another person to act as his or her proxy.
-- Allow a corporation's bylaws to permit voting by electronic transmission.
-- Describe conditions under which shareholders and members could consent by electronic transmission to actions taken without a meeting.
-- Allow a board or committee to consent by electronic transmission to action taken without a meeting.
-- Allow a corporation to distribute its annual financial report by electronic transmission.


The bill would define "electronic transmission" or "electronically transmitted" as any form of communication that meets all of the following:

-- It does not directly involve the physical transmission of paper.
-- It creates a record that may be retained and retrieved by the recipient.
-- It may be directly reproduced in paper form by the recipient through an automated process.


MCL 450.2106 et al. Legislative Analyst: Patrick Affholter

FISCAL IMPACT
The bill would have no fiscal impact on State or local government.


Date Completed: 4-18-07 Fiscal Analyst: Elizabeth Pratt Maria Tyszkiewicz




floor\sb123 Analysis available @ http://www.michiganlegislature.org
 This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.

Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. sb123/0708