This page provides general legal information and calculation tools, not legal advice. DocketMath is not a law firm and does not provide legal representation, and using this site does not create an attorney-client relationship. Laws change and exceptions apply, so deadlines and amounts specific to your situation should be confirmed with a licensed attorney in your jurisdiction.

Convertible Note Cap Table in Michigan

Michigan law, under MCL 450.1301, does not prescribe a specific formula for how convertible notes interact with a cap table; instead, it governs the procedural requirements for issuing convertible securities. The statute sets out the authority and conditions under which a corporation may authorize and issue convertible instruments, but it does not dictate the mathematical conversion mechanics or cap table adjustments. Those conversion terms are defined by the note’s own contract terms, such as valuation caps or discount rates, which are then applied to the company’s capitalization structure. The official source at the legislature’s website provides the exact statutory language. A worked example below demonstrates how such terms affect the cap table. Use the DocketMath calculator to estimate your own convertible note’s impact.

Governing authority

In Michigan, the convertible note cap table rule is set by MCL 450.1301. The verified packet cites MCL 450.1301 (https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-450-1301).

Michigan convertible note cap table: governed by MCL 450.1301. The verified packet cites MCL 450.1301 (https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-450-1301).

Estimate your own result: every situation has exceptions that can change the outcome. Use the convertible note cap table calculator to estimate your specific figure.

This page provides general legal information and calculation tools, not legal advice. DocketMath is not a law firm and does not provide legal representation, and using this site does not create an attorney-client relationship. Laws change and exceptions apply, so deadlines and amounts specific to your situation should be confirmed with a licensed attorney in your jurisdiction.