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1972 guidelines show how mergers must proceed in Michigan

Guidelines that were laid down back in 1972 show how businesses and corporations must proceed if they want to be involved in a merger in Michigan. It is crucial for business owners to understand some of the key points before they even consider a merger so that they do not make any mistakes that could slow the process down or even make it impossible to proceed.

For example, a local business may be considering a merger with a foreign business. This is permitted, but the foreign corporation is then bound by the business laws in the state of Michigan. It has to be shown that the company follows those laws or the merger cannot go through for businesses operating in the state.

Domestic companies that are going to be involved in mergers need proper documentation from the board. This documentation will lay out a lot of the crucial information about the company going forward. This could be as simple as what the name of the business is going to be after the two are joined. Furthermore, the address for the business has to be listed, along with the type of company that it plans to be.

If the company is publicly traded, the shares have to be addressed. Those shares may need to be converted, and the manner in which this will be done has to be outlined in the plan. The owners also have to state how many shares they have currently and if that will change in the time between the filing of the plan and the actual merger.

Business owners must consider all of these little details, among other things, and ensure that they know exactly what the law asks them to do to make the merger go smoothly.

Source: Michigan Legislative Website, "BUSINESS CORPORATION ACT" Aug. 04, 2014

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