Sec. 4o. (1) The legislative body of a city may by ordinance or resolution authorize the formation of a nonprofit corporation under the nonprofit corporation act, 1982 PA 162, MCL 450.2101 to 450.3192. A nonprofit corporation formed under this section may be organized only for purposes that are valid public purposes for cities in this state. (2) Except as otherwise provided in this subsection, a nonprofit corporation formed under subsection (1) is subject to all local, state, and federal laws or ordinances that apply to the city that authorized its formation. A nonprofit corporation formed under subsection (1) is not subject to the municipal finance act, 1943 PA 202, MCL 131.1 to 139.3, or its successor act. (3) A nonprofit corporation formed under subsection (1) is a public body for the purposes of the Michigan campaign finance act, 1976 PA 388, MCL 169.201 to 169.282.
Mich. Comp. Laws § 117.4o
Formation of nonprofit corporation by city
Applied in 1 court decision — leading case 265 Mich. App. 572 - Craig v. Detroit Public Schools Chief Executive Officer (2005)
Most recently applied in 265 Mich. App. 572 - Craig v. Detroit Public Schools Chief Executive Officer (May 2005)
Add. 2001, Act 37, Imd
Official source: Michigan Legislature. Reproduced from public-domain Michigan statutes; confirm against the official source for the current text. Not legal advice.