Section 450.2371 - Cancellation of shares reacquired by corporation; retention of reacquired shares as treasury shares; status of cancelled shares.
NONPROFIT CORPORATION ACT (EXCERPT)
Act 162 of 1982
450.2371 Cancellation of shares reacquired by corporation; retention of reacquired shares as treasury shares; status of cancelled shares.
Sec. 371.
(1) Shares that have been issued and have been purchased, redeemed, or otherwise reacquired by a corporation shall be canceled unless the articles of incorporation or bylaws otherwise provide.
(2) Shares reacquired by a corporation and not required to be canceled may be retained as treasury shares or canceled by the board at the time of reacquisition or at any time thereafter.
(3) Shares canceled under this section are restored to the status of authorized but unissued shares. However, if the articles of incorporation or bylaws prohibit reissue of any shares required or permitted to be canceled under this section, the board by resolution shall adopt and file an amendment of the articles reducing the number of authorized shares accordingly.
History: 1982, Act 162, Eff. Jan. 1, 1983