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Sole Member Bylaws Can Protect Founder of Nonprofit

Sole Member Bylaws Can Protect Founder of Nonprofit

Sole Member Bylaws Can Protect Founder of Nonprofit

The right to appoint and remove directors and veto any amendments to governing documents is critical to control of the organization

We have frequently referred to a “sole member” corporation to protect a founder of a nonprofit corporation when the founder wants assurance that he or she can develop the organization as a career to help make the world better in some way.

Not everyone believes that they are appropriate or in the public interest.  But we have seen too many founders, who work for years essentially as volunteers, to create an organization and then get fired when their “best friends” on the Board decide to go in a different direction.  The community usually loses an important effort in such situations,...

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