Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698834750631.pdf (Micronesia, Federated States of)
TWENTY-SECOND CONGRESS OF THE FEDERATED STATES OF MICRONESIA SECOND REGULAR SESSION, 2021 C.B.

NO.

22-84 A BILL FOR AN ACT To further amend title 36 of the Code of the Federated States of Micronesia (Annotated) as amended, by creating a new chapter 4 thereof governing non-profit corporation, and for other purposes.

BE IT ENACTED BY THE CONGRESS OF THE FEDERATED STATES OF MICRONESIA: 1 Section 1.
Title 36 of the Code of the Federated States of 2 Micronesia (Annotated) as amended, is hereby further amended by 3 creating a new chapter 4 thereof, entitled: “Non-Profit 4 Corporation”.

5 Section 2.

Title 36 of the Code of the Federated States of 6 Micronesia (Annotated) as amended, is hereby further amended by 7 inserting a new section 401 under chapter 4, to read as follows: “Section 401.
For the purpose of this chapter, a non- profit corporation is a corporation established for any lawful purpose other than for profit.

Non-profit purpose includes charitable, social, recreational, public benefit and religious purposes.” Section 3.

Title 36 of the Code of the Federated States of 14 Micronesia (Annotated) as amended, is hereby further amended by 15 inserting a new section 402 under chapter 4, to read as follows: “Section 402.
The Registrar of Corporation may grant a charter to a non-profit corporation if an application is filed in conformity with section 403 of this chapter for any lawful purpose not inconsistent with the purposes stated in section 401.

A non-profit CBL 22-85/PC #22-115 C.B.

NO.

22-84 1 2 3 corporation shall comply with any regulation issued by the President in accordance with section 404.” Section 4.
Title 36 of the Code of the Federated States of 4 Micronesia (Annotated) as amended, is hereby further amended by 5 inserting a new section 403 under chapter 4, to read as follows: “Section 403.
An application for a charter as a non- profit corporation shall include the following documents; (1) Article of incorporation, which shall contain the following minimum information: (a) Names and addresses of incorporators who must be three or more in number, and majority of whom must be residents in the Federated States of Micronesia; (b) Names and addresses of the officers and directors, or similar officers of the corporation; (c) The purpose or purposes for which the corporation is organized; (d) The period of duration, which may be perpetual; (e) Any provision, not inconsistent with law, which the incorporators may elect to set forth in the articles of incorporation including any provisions for the distribution of assets on dissolution or final liquidation; and (f) That the corporation is not organized for 2 of 3 C.B.
NO.

22-84 profit and that it will not issue any stock, and no part of its assets, income, or earnings shall be distributed to its members, directors, or officers, except for services actually rendered to the corporation, and except upon liquidation of its property in case of corporate dissolution.

(2) By-laws that regulate the internal affairs of the corporation.” Section 5.
Title 36 of the Code of the Federated States of 10 Micronesia (Annotated) as amended, is hereby further amended by 11 inserting a new section 404 under chapter 4, to read as follows: “Section 404.
Upon the recommendation of the Registrar of Corporation, the President may according to the Administrative Procedures Act issue such regulations as are necessary providing for the implementing details of this chapter, such as prescribed forms and formality, period reporting, dissolution, suspension, fees, inspection and overall regulation.” Section 6.

This act shall become law upon approval by the 20 President of the Federated States of Micronesia or upon its 21 becoming law without such approval.
22 23 Date: 9/20/21 Introduced by: /s/ Florencio S. Harper 24 25 Florencio S. Harper (by request) 3 of 3