Preview of Article:
Lack of Members’ Approval
Scuttles Sale of Facilities
Organization’s “survival plan” is ineffective
without compliance with state law and bylaws
The failure to follow the state nonprofit corporation law and an organization’s bylaws in obtaining members’ approval for the sale of substantially all of the group’s facilities has rendered the sale ineffective and scuttled a “survival plan” to save the organization. A Court of Appeals in Ohio has held that the sale is invalid without compliance with the procedural requirements. (Niehaus v. The Columbus Maennerchor, Ct. of App. OH, Tenth App. Dist., No. 07AP-1024, 8/12/08.)
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