Michigan law prohibits the carrying out of illegal contracts, making such acts a misdemeanor punishable by up to one year in jail or a $1,000 fine. Corporations that violate these laws risk forfeiting their charter if they do not withdraw and disavow illegal agreements within 30 days. The attorney general can also file a quo warranto action to challenge the legality of offending corporations.
An illegal contract involves agreements or understandings that are declared criminal or illegal by Michigan law, and carrying them into effect is punishable as a misdemeanor.
The penalties include imprisonment for up to one year or a fine of up to $1,000.
The corporation's charter can be forfeited if it does not withdraw and disavow the illegal contract within 30 days of the law's effective date.
Yes, the attorney general can file a quo warranto to challenge and seek the removal of corporations that violate these provisions.