NONPROFIT CORPORATION ACT (EXCERPT)
Act 162 of 1982
450.2365 Purchase or redemption by corporation of own shares under certain conditions prohibited.
A corporation shall not purchase or redeem its own shares under any of the following conditions:
(a) If the purchase or redemption is inconsistent with the purpose or purposes of the corporation.
(b) If the purchase or redemption is contrary to any restriction contained in the articles of incorporation.
(c) When the corporation is insolvent or when the purchase or redemption would render the corporation insolvent.
(d) Unless after purchase or redemption there remains outstanding 1 or more classes of shares possessing, among them collectively, voting rights.
(e) In the case of redeemable shares and within the period of their redeemability, at a price greater than the applicable redemption price.
(f) Contrary to section 301(5).
History: 1982, Act 162, Eff. Jan. 1, 1983
© 2009 Legislative Council, State of Michigan