Mich. Comp. Laws § 450.2495
Derivative proceeding; dismissal.
Michigan · Michigan Compiled Laws — NONPROFIT CORPORATION ACT (Act 162 of 1982) · Status: effective
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- Mich. Comp. Laws § 450.2495, Derivative proceeding; dismissal, Michigan, version 1 as recorded 2026-08-18, yourstate.us, https://yourstate.us/provision/1363979
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(1) On a motion by the corporation in a derivative proceeding, the court shall dismiss the proceeding if the court finds that 1 of the groups specified in subsection (2) has made a determination in good faith after conducting a reasonable investigation on which its conclusions are based, that the maintenance of the derivative proceeding is not in the best interests of the corporation. If the determination is made under subsection (2)(a) or (b), the corporation has the burden of proving the good faith of the group making the determination and the reasonableness of the investigation. If the determination is made under subsection (2)(c) or (d), the plaintiff has the burden of proving that the determination was not made in good faith or that the investigation was not reasonable.
(2) A determination under subsection (1) may be made by any 1 of the following:
(a) By a majority vote of the disinterested directors, if the disinterested directors constitute a quorum at a meeting of the board.
(b) By a majority vote of a committee that consists of 2 or more disinterested directors appointed by a majority vote of disinterested directors present at a meeting of the board, whether or not the disinterested directors constitute a quorum at the meeting.
(c) By a panel of 1 or more disinterested individuals who are appointed by the court on a motion by the corporation.
(d) By all disinterested directors.