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Church Can’t Complain About Loss of Control of “Subsidiaries”

Church Can’t Complain About Loss of Control of “Subsidiaries”

Church Can’t Complain About Loss of Control of “Subsidiaries”

Governing documents of two housing groups do not give governing powers to church
A church in San Francisco has lost a court battle to reclaim control over two housing subsidiaries, one of which is more than a half century old, that it thought it controlled but didn’t. An appellate court in California has affirmed a trial court decision holding that the church’s claim is barred by the statute of limitations but even if it weren’t, the governing documents of the “subsidiaries” don’t give the church any role in governance. Jones Memorial United Methodist Church formed Jones Memorial Homes to build some low cost housing in 1962. The original incorporators and directors were church members appointed by the pastor and approved by the membership of the church. But the bylaws...

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