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Nonprofit Membership Class: What Are Your Intentions?


QUESTION:

Is there a law against a nonprofit organization founded by family members establishing a special membership class for founders only in order to maintain control of the board?

ANSWER:

There is no law that prohibits giving voting memberships to founders when they start out. But if what you are trying to do is take voting power away from current members, they will probably object -- and may prevail if they challenge the founders-only membership in court. It may behoove you in this situation to consult with a lawyer about your specific intentions.

Copyright 2006 Nolo


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