2010 Senate Bill 1174 / Public Act 61

Rewrite corporate takeover rules for particular insurance company

Introduced in the Senate

Feb. 25, 2010

Introduced by Sen. Gerald Van Woerkom (R-34)

To rewrite the rules for corporate acquisitions so as to raise obstacles to the acquisition of a controlling interest in the Fremont Insurance Company (which is located in the district of the bill sponsor) by the Indianapolis-based Steak and Shake Corporation. Specifically, the bill would require a two-thirds supermajority of shareholders to vote in favor of the sale if the current board of directors opposes being taken over, but only for a "domestic (Michigan-based) insurer with 200 employees or fewer".

Referred to the Committee on Economic Development and Regulatory Reform

March 23, 2010

Reported without amendment

With the recommendation that the substitute (S-3) be adopted and that the bill then pass.

Substitute offered

To replace the previous version of the bill with one that revises details but does not change the substance as previously described.

The substitute passed by voice vote

Passed in the Senate 27 to 10 (details)

Received in the House

March 23, 2010

Referred to the Committee on Insurance

April 15, 2010

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

April 22, 2010

Substitute offered

To replace the previous version of the bill with one that revises details but does not change the substance as previously described.

The substitute passed by voice vote

Amendment offered by Rep. Tim Melton (D-29)

To sunset the bill in 2012.

The amendment passed by voice vote

Amendment offered by Rep. Barb Byrum (D-67)

To leave the bill's provisions in effect until 2030.

The amendment failed by voice vote

Passed in the House 83 to 24 (details)

To rewrite the rules for corporate acquisitions so as to raise obstacles to the acquisition of a controlling interest in the Fremont Insurance Company (which is located in the district of the bill sponsor) by the Indianapolis-based Steak and Shake Corporation. Specifically, the bill would require a two-thirds supermajority of shareholders to vote in favor of the sale if the current board of directors opposes being taken over, but only for a "domestic (Michigan-based) insurer with 200 employees or fewer".

Received in the Senate

April 27, 2010

To concur with a House-passed version of the bill.

Passed in the Senate 28 to 8 (details)

Signed by Gov. Jennifer Granholm

April 30, 2010