Ratification of Past Corporate Actions

According to Michigan Law an incorporated Michigan Company must hold a annual Shareholder meeting. This is a great opportunity to discuss businesses accomplishments, cast a vote on needed items and to discuss how to grow the company. There are a few official steps that need to be taken at the meetings, such as taking minutes of the meetings and recording them in the company record books. If your corporation is not aware of this procedure, or has not updated the books in quite some time, Michigan Law provides a way to do so.

Michigan Law allows for ratification of past corporate actions. This means actions that you may have done during a business year without obtaining the proper authority (ie obtaining a vote from the Board of Directors or Shareholder) are called “voidable actions”. A company can make the “voidable actions” permanent and legal through the adoption of a ratification resolution.