Changes to the Nonprofit Corporation Act continued

In a prior post, I noted that the Nonprofit Corporation Act had been amended effective January 15, 2015, and discussed the changes regarding participation in membership meetings.  There are other changes as well:

Balloting

Ballots are now required to be written or in electronic form.  A show of hands is no longer acceptable.

Member Proposals

Members may now submit a proposal and the association must include it in a meeting notice and provide for it at the meeting, if the proposal is for a proper purpose allowed under the governing documents.

Removal of Directors by Court Action

A new provision allows either the association or 10% or more of co-owners to file an action to remove a member of the board of directors.  To remove the director, the plaintiff must prove fraud, dishonest, or illegal conduct, gross abuse of authority or discretion, or that removal is in the best interest of the association.  The court may bar the person so removed from serving again for a period prescribed by the court.

Review of Records

A new provision requires an association to respond to a request to view association records within 5 business days of receipt of the request.  It also provides that the right to inspect includes the right to make copies, subject to the requesting party paying the reasonable cost of the copies.  The inspection may be made by the member, or by the member’s agent, who is anyone the agent has designated in writing.


© Steve Sowell 2017