EllieR (Maryland)
Posts: 8
Posts: 8
Posted:
Is a member of a non profit membership corporation subject to state corporate law provisions that speaks about shareholders rights?
A service of:
Community123.com
Professional websites for HOAs & condos, since 2004
Professional websites for HOAs & condos, since 2004
🎁 1st year FREE for HOATalk members! →
members versus stock holders
Started by EllieR • 5 replies • 1020 views
💬 Join us to post & get advice from 50,000 HOA & Condo leaders.
Create Free Account →
⚡ Takes 30 seconds
Already a member? Log in
GeorgerwilliamsW (Indiana)
Posts: 975
Posts: 975
Posted:
Generally, no.
SusanW1 (Michigan)
Posts: 5,202
Posts: 5,202
Posted:
Ellie - whe your group first filed Articles of Incorporation, you had to indicate (by checking a box) what kind of corporate structure you were - stockholders or members.
EllieR (Maryland)
Posts: 8
Posts: 8
Posted:
thanks everyone...I finally was able to find that in Maryland stockholders and members are interchangable in the statute.
RobertR1 (South Carolina)
Posts: 5,164
Posts: 5,164
Posted:
Ellie,
You don't happen to have a state by state explanation of this do you?
I suppose that is a stupid question but the subject can be very important concerning responsibility of the association when trying to determine third party liability in Insurance cases that can occur in condos when one unit damages an other unit and common property is involved.
Our documents cite us as shareholders equivalent to the apportioned ratio in one section and in another we are a non-share holder association.
It has been argued if you are a shareholder organization and you have a conflict with another shareholder it is a two party suit, but if you are a non-share holder association, then the contest is between the two owners involved and the association. I think that is what I remembered about the discussion.
You don't happen to have a state by state explanation of this do you?
I suppose that is a stupid question but the subject can be very important concerning responsibility of the association when trying to determine third party liability in Insurance cases that can occur in condos when one unit damages an other unit and common property is involved.
Our documents cite us as shareholders equivalent to the apportioned ratio in one section and in another we are a non-share holder association.
It has been argued if you are a shareholder organization and you have a conflict with another shareholder it is a two party suit, but if you are a non-share holder association, then the contest is between the two owners involved and the association. I think that is what I remembered about the discussion.
MaryA1 (Arizona)
Posts: 7,043
Posts: 7,043
Posted:
Ellie.
I would think your question could be answered by reading your Articles of Inc. Mine state, under "membership and voting": "The assn shall have no stockholders and no capital stock shall be authorized or issued." Also I believe the annual report (required to be filed with the Corp Comm. in AZ) also asks whether or not there are stockholders (shareholders).
I would think your question could be answered by reading your Articles of Inc. Mine state, under "membership and voting": "The assn shall have no stockholders and no capital stock shall be authorized or issued." Also I believe the annual report (required to be filed with the Corp Comm. in AZ) also asks whether or not there are stockholders (shareholders).
🎯 You've read this entire discussion
Join the conversation with 50,000 HOA & Condo Leaders:
- ✓ Ask follow-up questions
- ✓ Share your experience
- ✓ Get expert advice
- ✓ Access 350,000 discussions
Create Free Account →
⚡ Takes 30 seconds
Already a member? Log in here