Article Archives >> To the Point
The bylaws of a nonprofit corporation state that it is a membership corporation that requires a membership vote to dissolve, but as a practical matter it stopped operating a number of years ago and has no current members. How do the 3 remaining trustees go about dissolving the corporation?
This is not an unusual situation and your state nonprofit corporation law probably gives a pathway on which to proceed. The Pennsylvania Nonprofit Corporation Law says, for example, that when there are no members in fact, the directors or trustees have all the power to act for the corporation. If that is the situation in your state, the trustees could act alone to dissolve the corporation.
Even without such a provision, how do individuals become members of the corporation? Can the three trustees become members, and as the only members of the corporation proceed to vote for dissolution?
If all else fails, they could probably get a court to approve the dissolution, but the course is probably set out in the statute, which provides procedures that supplement and override the bylaws.
![]()
8/23/2009
Article Archives >> To the Point
Nonprofit Leadership & the Law
By Don Kramer, Jeff Garson & |
What our readers say about Nonprofit Issues
Once again you've tackled a tricky question and explained it so we all can understand the issue.--M.V.
Thank you for your informative and keen advice on nonprofit matters. I believe it's a unique and concise place to get answers to this often wispy area called nonprofit. --R.T.
Have a question?
If you can't find your answer, submit a question and Don will pick one question a week to answer online and to include in our weekly e-mail notice.
Other ways to
find answers:
Talk to the Editor
Next Conference Call:
Tuesday, February 14, 2012
Participate
in this bi-monthly telephone seminar conference call and ask your questions directly to Editor
Don Kramer.
Access the entire site
($9.95/24 hours, $17.95/3 months).
Nonprofit Issues
Live
Full Day Program
A well-received full-day
program that covers the current hottest topics in nonprofit
law. Qualifies in Pennsylvania
for Continuing Education credits.
Speaking Engagements
Don is available for programs and speaking engagements ranging from
a one-hour presentation to a full-day primer on nonprofit law. Contact
us if you are interested in having him speak at your program.
