2014 Indiana Code TITLE 23. BUSINESS AND OTHER ASSOCIATIONS ARTICLE 17. NONPROFIT CORPORATIONS CHAPTER 8. RESIGNATION AND TERMINATION OF MEMBERS
Download as PDF
IC 23-17-8
Chapter 8. Resignation and Termination of Members
IC 23-17-8-1
Resignation; liability for obligations
Sec. 1. (a) A member may resign at any time.
(b) The resignation of a member does not relieve the member from
any obligations the member may have to the corporation as a result
of obligations incurred or commitments made before a resignation.
As added by P.L.179-1991, SEC.1.
IC 23-17-8-2
Expulsion, suspension, or termination; procedures; limitation of
actions; liability for obligations
Sec. 2. (a) A member of a public benefit or mutual benefit
corporation may not be expelled or suspended and a membership or
memberships in such a corporation may not be terminated or
suspended except under a procedure that is:
(1) fair and reasonable; and
(2) carried out in good faith.
(b) A procedure is fair and reasonable under either of the
following conditions:
(1) The articles of incorporation or bylaws set forth a procedure
that provides the following:
(A) Not less than fifteen (15) days prior written notice of the
expulsion, suspension, or termination and the reasons for the
expulsion, suspension, or termination.
(B) An opportunity for the member to be heard, orally or in
writing, not less than five (5) days before the effective date
of the expulsion, suspension, or termination by a person
authorized to decide that the proposed expulsion,
termination, or suspension should not take place.
(2) The procedure is fair and reasonable taking into
consideration all of the relevant facts and circumstances.
(c) Written notice given by mail must be given by first class or
certified mail sent to the last address of the member shown on the
corporation's records.
(d) A proceeding challenging an expulsion, a suspension, or a
termination, including a proceeding in which defective notice is
alleged, must be commenced within one (1) year after the effective
date of the expulsion, suspension, or termination.
(e) A member who has been expelled or suspended or whose
membership is terminated may be liable to the corporation for dues,
assessments, or fees as a result of obligations incurred or
commitments made before expulsion, suspension, or termination.
As added by P.L.179-1991, SEC.1.
IC 23-17-8-3
Purchase of memberships or membership rights; public benefit or
religious corporation; mutual benefit corporation
Sec. 3. (a) A public benefit or religious corporation may not
purchase any of the corporation's memberships or any right arising
from a membership.
(b) A mutual benefit corporation may purchase the membership of
a member who resigns or whose membership is terminated for the
amount and under the conditions set forth in or authorized by the
corporation's articles of incorporation or bylaws. A payment may not
be made in violation of IC 23-17-21.
As added by P.L.179-1991, SEC.1.
Disclaimer: These codes may not be the most recent version. Indiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
