Joseph K. Grekin and John Stockdale, Jr. apply the LLC Act's new conversion rules
In 2011, the Michigan legislature amended Michigan's limited liability company act, MCL § 450.4101 et seq. to permit the conversion of a domestic corporation to a domestic limited liability company. There are several reasons why a business owner might convert a corporation to a limited liability company, which include, without limitation, increased flexibility in governance of the business and superior creditor protections in the limited liability form. Applying the new law, Mr. Grekin and Mr. Stockdale effectuated the conversion of a Michigan subchapter S corporation to a Michigan limited liability company in connection with the limited liability company's issuance of member units pursuant to a subscription agreement.