HomeMy WebLinkAboutResolutions - 1987.02.19 - 17790Miscellaneous Resolution 87042
BY: General Government Committee--Richard G. Skarritt, Chairperson
RE: (support) Legislation to Provide Tort Immunity for Directors and
Officers of Corporations and Non-Profit Agencies
To the Oakland County Board of Commissioners
Mr. Chairperson/ Ladies and Gentlemen;
WHEREAS, while it once was gratifying to sit on the board of
directors/ either of a corporation or non-profit agency, the honor is now
tempered by concern over financial risk due to a tendency by the courts to
hold directors personally liable in some litigation; and
WHEREAS, the serious risk of sitting on a board of directors
became a reality early last year when the shareholders of a Delaware
corporation sued their board of directors for $27 million and won, forcing
the directors to pay the settlement from their own pockets; and
WHEREAS, soon after the Delaware Supreme Court ruled against the
directors of Trans Union Corporation, the cost of insurance for directors
rose sharply nationwide and the upward trend continues, making coverage
virtually unaffordable; and
WHEREAS, legislation aimed at protecting board members by
providing immunity has already been introduced in the new session of the
Michigan Legislature and Senate Bills 18 and 19 and House Bills 4009 and
4011 have the support of the governor and the commerce department; and
WHEREAS, many highly qualified persons from both the private and
public sectors have become reluctant to serve on boards of directors because
of the existing financial risk involved, and this situation will likely
continue until corrective legislation is adopted.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of
Commissioners takes a position supporting the concept of limited liability
contained within the pending legislation providing tort immunity
BE IT FURTHER RESOLVED that copies of this resolution be sent to
all State Legislators from Oakland County and to the county's legislative
agent.
Mr. Chairperson, on behalf of the General Government Committee, I
move the adoption of the foregoing resolution.
GENERAL GOVERNMENT COMMITTEE
February 19, 1987
RESOLUTION # 87042
Moved by Skarritt supported by Crake the resolution be adopted.
Discussion followed.
Vote on resolution:
AYES: Rewold, Skarritt, Wilcox, Aaron, Caddell, Calandra, Crake,
Doyon, Hobart, Jensen, R. Kuhn, S. Kuhn, Lanni, Law, McDonald, A. McPherson,
R. McPherson, Nelson, Perinoff, Pernick, Price. (21)
NAYS: Rowland, McConnell, Moffitt. (3)
A sufficient majority having voted therefor, the resolution was
adopted.
STATE. OF MICHIGAN)
COUNTY OF OAKLAND).
1, Lynn D. Allen, Clerk of the County of Oakland and having a
seal, do hereby certify. that I have compared the annexed copy of
Miscellaneous Resolution adopted by the Oakland County Board of Commissioners
at their meeting held on February 19, 1987
with the original record thereof now remaining in my office,
and that tt is a true and correct transcript therefrom, and
of the whole thereof.
In Testimony Whereof, I have hereunto set my hand and affixed
the seal of saki County at Ponttac, Michigan
this 19th day of FphruAry
,
blat.
Lynn/1, Allen, Coun y Clerk/
RegYster of Deeds
1387