Article Archives >> Lead Stories >> December 1-31, 2011
Preview of Article:
Club May Terminate Members
For Failing to Meet Bylaw Requirements
Directors have fiduciary duty to corporation
and membership generally, not to individuals
A private fishing club organized as a nonprofit corporation in Kentucky has the authority to remove members who fail to meet the bylaw requirements for membership, the Court of Appeals of Kentucky has held. The members have no claim for breach of fiduciary duty against the directors who made the decision because the directors owe their fiduciary duty to the corporation and membership has a whole, not to individual members. (Fenley v. Kamp Kaintuck, No. 2010-CA-001926, 11/10/11.)
Article Archives >> Lead Stories >> December 1-31, 2011
Sign up and receive FREE:
Weekly question and answer
Notice of each full edition
and its free stories
Report on 501(c)(3) electioneering
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 its a unique and concise place to get answers to this often wispy area called nonprofit. --R.T.
