Section 450.2823 - Dissolution of corporation by judgment in action brought by director, shareholder, or member; proof. - Michigan Statutes

NONPROFIT CORPORATION ACT (EXCERPT)
Act 162 of 1982

450.2823 Dissolution of corporation by judgment in action brought by director, shareholder, or member; proof.

Sec. 823.

A corporation may be dissolved by a judgment entered in an action brought in the circuit court for the county in which the registered office of the corporation is located by 1 or more directors or by 1 or more shareholders or members entitled to vote in an election of directors of the corporation, upon proof of both of the following:

(a) The directors of the corporation are unable to agree by the requisite vote on material matters respecting management of the corporation's affairs, or the shareholders or members of the corporation are so divided in voting power that they have failed to elect successors to any director whose term has expired or would have expired upon the election and qualification of the director's successor.

(b) As a result of a condition stated in subdivision (a), the corporation is unable to carry out its corporate purposes or function effectively in the best interests of its creditors and shareholders or members, if any.

History: 1982, Act 162, Eff. Jan. 1, 1983