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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