Article Archives >> Lead Stories >> January 2002

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Change of Control Is Not Change of Purpose

Court also says that new provision requiring hospital to follow
Catholic Health Care Directives does not change or eliminate corporate power

Excerpt

A New York statute requiring a charitable corporation to obtain court approval to change its purpose does not require the organization to obtain court approval to change its control, according to a state appellate court. This is true even where a hospital adds a provision that new services would be in conformance with the Ethical and Religious Directives for Catholic Health Care Services, which could potentially limit certain types of family planning services otherwise permissible for the institution. (Nathan Littauer Hospital Association v. Spitzer, Supreme Ct., App. Div., Third Dept., No. 89484, 12/20/01.)

 

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Article Archives >> Lead Stories >> January 2002




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