acter, or in operations in which the risks and hazards incurred by their employes are more or less similar in nature and extent. association. SEC. 2. Such employers so associating shall prepare in Articles of triplicate articles of association as hereinafter specified, which shall first be submitted to the industrial accident board and the Commissioner of Insurance for their approval, and when approved, one copy thereof shall be filed in the office Where filed. of the Commissioner of Insurance, one copy in the office of the Secretary of State and the other copy with the county clerk in the county where the principal office of such company will be maintained. Such articles of association shall be signed by How signed all the incorporators, and shall be acknowledged by them, or by their duly authorized officers or agents, before some officer of the State duly authorized to take acknowledgment of deeds. SEC. 3. Such articles of association shall set forth: First. The names of the persons, firms, partnership associations and corporations associating in the first instance, their respective residences, the nature of the business in which they are engaged, and the number of persons employed therein by each of them; Second. That each and all of such incorporators have elected, with the approval of the industrial accident board, to become subject to the provisions of this act, and are forming this corporation for the purpose of mutually insuring their members against liability for any and all payments which may become due and payable to their employes under the provisions of this act; Third. The name by which such corporation shall be known; Fourth. The period for which the company is incorporated, which shall not exceed thirty years; Fifth. The number of directors, which shall be not less than five, nor more than fifteen, and the names of the directors for the first year; Sixth. The place where the office of the company shall be located, which shall be within the State of Michigan. etc. What to set forth. SEC. 4. Any company formed under this act shall be Body politic. deemed a body corporate and politic in fact and in name, and shall be subject to all the provisions of the statutes in relation to corporations, so far as they are applicable. SEC. 5. The incorporators of any company organized under By-laws. this act shall have power to make such by-laws not inconsistent with the constitution or laws of this State, as may be deemed necessary for the government of its officers and members, and the conduct of its affairs, the admission of new members and regulations governing the assessment and collection of premiums and assessments; but such by-laws shall not become operative until a true copy thereof shall have been filed with and approved by the industrial accident board. License, when granted. Board of directors, power and duty of. Contingent mutual liability. When not possessed of cash funds. Dividends, etc. SEC. 6. Upon the approval of the articles of association of such company by the industrial accident board and the Commissioner of Insurance, and upon filing the same with the Commissioner of Insurance, with the Secretary of State and with the county clerk of the county where the principal office of said company will be kept, the Commissioner of Insurance shall grant a license to such company to issue policies. SEC. 7. The board of directors shall determine the amount of the premiums of assessments which the members of such company shall pay for such insurance, in accordance with the nature of the business in which they are engaged, and the probable risk of injury to their employes under existing conditions. The board may also prescribe when and in what manner such premiums shall be paid, and may change the amount thereof both in respect to any or all of its members from time to time, as circumstances may require and the conditions of their respective plants, establishments or places of work in respect to the safety of their employes may justify, but all such premiums or assessments shall be levied on a basis that shall be fair, equitable and just as among such members; and it shall be the duty of such board of directors at the beginning of each fiscal year, to call for the required payment of premiums in such amount as shall, in the judgment of said industrial accident board, be sufficient to enable such company to pay all sums which may become due and payable during the following year, to the employes or any of its members under the provisions of this act, and also the expenses of conducting its business. SEC. 8. The company shall in its by-laws and policies fix the contingent mutual liability of its members for the payment of losses and expenses not provided for by its cash Such contingent liability of a member shall not be less than an amount equal to the liability imposed by this act and of the act to provide compensation for the accidental injury or death of employes. SEC. 9. If the company is not possessed of cash funds so that it has unearned premiums sufficient for the payment of incurred losses and expenses, it shall make an assessment for the amount needed to pay such losses and expenses upon the members liable to assessment therefor in proportion to their several liability. Every member shall pay his proportional part of any assessment which may be laid by the board of directors, in accordance with the law and his contract, on account of injuries sustained and expenses incurred while he is a member of such company. SEC. 10. The board of directors may, from time to time, by vote, fix and determine the amount to be paid as a dividend upon policies expiring during each year after retaining sufficient sums to pay all the compensation which may be payable on account of injuries sustained and expenses incurred. All premiums, assessments and dividends shall be fixed and de termined in accordance with the experience of said company, but all the funds of the company, and the contingent liability of all the members thereof, shall be available for the payment of any claim against the company. industrial SEC. 11. Any proposed premium or assessment required Approval by of, or any dividend or distribution made to the members, shall accident be filed with the industrial accident board, and shall not take board. effect until approved by said board after such investigation as it may deem necessary. SEC. 12. The board of directors may make and enforce May enforce reasonable rules and regulations, not in conflict with the laws rules for prevention of of this State, for the prevention of injuries on the premises injuries. of members, and for this purpose the inspectors of the company shall have free access to all such premises during regular working hours. Any member neglecting to provide suit- May expel able safety appliances as provided by law or as required by for neglect. the board of directors may be expelled by a majority vote of all the members. Any member, or employe of any member, Petition for aggrieved by any such rule or regulation, may petition the review. industrial accident board for review, and it may affirm, amend or annul the rule or regulation. existing SEC. 13. Any member of said company, who has complied withdrawal with all its rules, regulations and demands, may withdraw of members. therefrom at the expiration of the period of one year for which he has elected to become subject to the provisions of this act: Provided, however, That he shall give written notice of such Proviso, withdrawal to said company at least thirty days before the notice. expiration of such period: And Provided further, That if at Further the time of such withdrawal liability may exist against such proviso, member and against said company for compensation to em- liability. ployes who have been theretofore killed or injured as hereinbefore provided, such member shall either relieve himself and said company from such liability in the manner provided in part four, section four of this act, or shall otherwise protect and indemnify said company against such liability in such reasonable manner as may be required by the board of directors. SEC. 14. The business year of every company organized, Business year. existing or doing business in this State, under and by virtue of the provisions of this act, shall close on the thirty-first day of December in each year, and every such company shall within sixty days thereafter prepare, under oath of its president and secretary, and file in the office of the Commissioner of Insurance of this State, and also with said industrial accident board, a detailed statement showing its assets and how Detailed invested, liabilities, receipts from premiums and all other statement. sources, an itemized account of all expenditures, salaries of officers, number of policies or certificates in force, amount insured thereby, claims paid, and amount paid on each claim, claims reported but not paid, claims contested and why, and shall answer such other questions as the Commissioner of Perjury. Amendment of articles, etc. Power to hold property. Additional rights. Insurance, who shall furnish blanks for that purpose, may require, in order to ascertain its true financial condition. The commissioner shall publish such annual statements in detail in his annual report. SEC. 15. If any officer of the company shall falsely make oath to any certificate required to be filed with the insurance commissioner, he shall be guilty of perjury. SEC. 16. Any such company formed under this act shall have power to amend its articles of association and by-laws at its regular annual meeting or at special meetings called and held as provided in its by-laws, but said amendments shall, before they become operative, be approved and filed in the same manner as the original articles and by-laws. SEC. 17. Any such company formed under this act shall have power to own, hold and acquire such real and personal property as shall be necessary for the transaction of its busi ness. SEC. 18. Any company formed under this act may sue and be sued in any court of law or equity, with the same rights and obligations as a natural person, and in addition to the powers herein before enumerated, shall possess and exercise all such rights and powers as are necessarily incidental to the exercise of the powers expressly granted herein. Approved March 20, 1912. CERTIFICATE. MICHIGAN DEPARTMENT OF STATE LANSING. I, Frederick C. Martindale, Secretary of State of the State of Michi gan, do hereby certify that the date of the final adjournment of the extra session of the legislature of one thousand nine hundred twelve was on the twentieth day of March, in the year of our Lord, one thousand nine hundred twelve. [L. S.] IN WITNESS WHEREOF, I have hereunto affixed my signature FREDERICK C. MARTINDALE, |