Michigan Laws 450.737 – Feasibility study; informational meeting
Current as of: 2023 | Check for updates
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Terms Used In Michigan Laws 450.737
- Closing: means the permanent shutting down of operations at any establishment at which at least 25 persons are employed. See Michigan Laws 450.732
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Department: means the department of labor. See Michigan Laws 450.732
- Employee-owned corporation: means a business operation that is controlled by, and designed to maintain control by, its employees, and in which control is distributed among its employees according to a democratic formula, if the business operation is 1 of the following:
(i) A business operation the management rights of which are represented by voting stock that may be owned only by: employees of the operation, a nonprofit community development corporation, or an employee-owned stock ownership plan in which not less than 50% of the employees participate in each portion of the plan. See Michigan Laws 450.732Establishment: includes a factory, plant, office, or other facility, but does not include a construction site or other work place that was intended to be a temporary work place. See Michigan Laws 450.732
If the department becomes aware pursuant to a request that a business establishment is closing or relocating operations, the department may conduct an initial study of the feasibility of the employees of the corporation establishing an employee-owned corporation to continue the operations of the affected establishment or to operate another business and may call an informational meeting of representatives of the local community, the corporation involved, representatives of any employee bargaining unit, and affected employees to explain the services available from the department relative to the formation of an employee-owned corporation.