On November 15, 2016, the Tax Benefit Preservation Plan of Independent Bank Corporation expired. The Company’s Board of Directors adopted the Tax Benefit Preservation Plan on November 15, 2011 to protect the value to the Company’s shareholders of the ability to use deferred tax assets such as net operating loss carry forwards to reduce potential future federal income tax obligations. Under federal tax rules, this value could be lost in the event that Independent Bank Corporation experienced an “ownership change,” as defined in Section 382 of the Internal Revenue Code. The Tax Benefit Preservation Plan attempted to protect this value by reducing the likelihood that the Company would experience such an ownership change by discouraging any person who was not already a 5% shareholder from becoming a 5% shareholder (with certain limited exceptions).
- On October 25, 2016, the Board of Directors voted to not renew the Preservation Plan.