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Article Archives >> Lead Stories >> March 1-15, 2008

Provision of Articles of Incorporation
Trumps Contrary Provision in Bylaws
Court rules that bylaw amendment is ineffective
when approved by vote that conflicts with Articles

The Supreme Court of Nevada, in a case of first impression in the state, has adopted the general rule that a provision in the bylaws of a nonprofit corporation that is contrary to a provision in the articles of incorporation is invalid. It has ruled that a bylaw amendment approved by a vote in violation of the articles is ineffective and cannot be used to prevent a local chapter from disaffiliating with the organization.  (Nevada Classified School Employees Association, v. Quaglia, No. 43318, 2/28/08.)

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Article Archives >> Lead Stories >> March 1-15, 2008