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Bankruptcy Court Dismisses Case When Issue Is Control of Nonprofit

Bankruptcy Court Dismisses Case When Issue Is Control of Nonprofit

Bankruptcy Court Dismisses Case When Issue Is Control of Nonprofit

May “members” of corporation approve acquisition when board of directors rejects transaction?
A bankruptcy court in western Pennsylvania has dismissed a bankruptcy proceeding it found was not filed in good faith by directors of a nonprofit corporation when the corporation was not insolvent and the board was fighting for control of the organization in a pending state court proceeding. ( In Re: Laurel Highlands Foundation, Inc., Debtor, Bkrptcy Ct. W.D. PA, No. 12-22558, 6/12/12 .)

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