Corporation & Securities Commission v. McLouth Steel Corp.

The question that again confronts this Court deals with the proper computation of the Michigan franchise fee. Defendant McLouth Steel Corporation contends that the balance sheet item captioned “reserve for Federal income taxes” is not includable in surplus for franchise fee computation purposes. Defendant further contends, by way of affirmative defense, that the issue raised in this case is barred by the doctrine of res judicata, citing McLouth Steel Corporation v. Corporation & Securities Commission (1963), 372 Mich 76. The trial court granted defendant’s motion for accelerated judgment and…