Court Requires Notice To Suspend Voting Rights
Automatic suspension provision of bylaws contravenes New York state law requiring notice
A trial court in New York has ruled that voting privileges of members of a nonprofit corporation cannot be suspended automatically for failure to pay required dues, despite a bylaw provision it interpreted as providing suspension without notice. It said the state’s Not-for-Profit Corporation Law required “reasonable notice” to enforce collection efforts. ( Abraham v. Diamond Dealers Club, Supreme Court of NY, NY County, No. 10263/2009, 3/1/10 .)
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