Preview of Article:
State-Dissolved Church Not Liable
For Note Executed in its Name
Court says new corporation with same name
was not authorized to enter into transaction
An administratively dissolved church corporation is not liable for a note and mortgage on its property executed by a member of the church who incorporated a new entity with the same name but was not authorized to make the transaction, according to the Court of Appeals of Georgia. (Macedonia Baptist Church of Atlanta v. LIB Properties, No. A10A1736, 2/9/11.)
The Macedonia Baptist Church of Atlanta, Inc. was originally incorporated as a nonprofit corporation in 2001 and acquired title to its church property from the previously unincorporated church association. In 2005, the corporation was administratively dissolved by the Secretary of State for failure to pay required fees.
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.