BUSINESS CORPORATION ACT (EXCERPT)
Act 284 of 1972
450.1778 Definitions; E to S.
(1) “Equity security” means any 1 of the following:
(a) Any stock or similar security, certificate of interest, or participation in any profit sharing agreement, voting trust certificate, or voting share.
(b) Any security convertible, with or without consideration, into an equity security, or any warrant or other security carrying any right to subscribe to or purchase an equity security.
(c) Any put, call, straddle, or other option or privilege of buying an equity security from or selling an equity security to another without being bound to do so.
(2) “Interested shareholder” means any person, other than the corporation or any subsidiary, who is either:
(a) The beneficial owner, directly or indirectly, of 10% or more of the voting power of the outstanding voting shares of the corporation.
(b) An affiliate of the corporation and at any time within the 2-year period immediately prior to the date in question was the beneficial owner, directly or indirectly, of 10% or more of the voting power of the then outstanding voting shares of the corporation.
(c) For the purpose of determining whether a person is an interested shareholder pursuant to subdivision (a) or (b), the number of shares of voting shares considered to be outstanding shall include all voting shares owned by the person except for those shares which may be issuable pursuant to any agreement, arrangement, or understanding, or upon exercise of conversion rights, warrants or options, or otherwise.
(3) “Market value” means either of the following:
(a) With respect to shares, the highest closing sale price during the 30-day period immediately preceding the date in question of a share as listed on:
(i) The composite tape for New York stock exchange—listed securities.
(ii) If not listed pursuant to subparagraph (i), the New York stock exchange.
(iii) If not listed pursuant to subparagraph (i) or (ii), the principal United States security exchange registered under the securities exchange act of 1934, 48 Stat. 881.
(iv) If not listed pursuant to subparagraph (i), (ii), or (iii), the highest closing bid quotation during the 30-day period preceding the date in question as listed on the national association of securities dealers, inc. automated quotations system or any other system then in use.
(v) If a listing is not available pursuant to subparagraphs (i) to (iv), then, the fair market value of the shares, on the date in question, as determined in good faith by the corporation's board of directors.
(b) With respect to property other than cash or shares, the fair market value of the property on the date in question, as determined in good faith by the corporation's board of directors.
(4) “Subsidiary” means a legal entity of which a majority of the voting shares is owned, directly or indirectly, by another person.
History: Add. 1984, Act 115, Imd. Eff. May 29, 1984
Am. 1989, Act 31, Imd. Eff. May 24, 1989
Am. 1993, Act 91, Eff. Oct. 1, 1993
© 2009 Legislative Council, State of Michigan