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Good News for Connecticut “Member” Nonstock Corporations

By Ray Casella on June 16, 2021
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At long last, the Connecticut Revised Nonstock Corporation Act is being amended to permit remote meetings of a nonstock corporation’s members.  Previously, only meetings of a board of directors or board of trustees could be held remotely. Meetings of members were required to be held in person.

The new legislation permitting remote meetings for members was signed into law by the Governor on June 14, 2021. The new legislation provides the following:

  • Members of any class may participate in any meeting of members by means of remote communication to the extent the board authorizes such participation for such class. Participation by means of remote communication shall be subject to such guidelines and procedures as the board adopts.
  • Members participating in a member meeting by means of remote communication shall be deemed present and may vote at such a meeting if the corporation has implemented reasonable measures to:
  • Verify that each person participating remotely is a member; and
  • Provide such members a reasonable opportunity to participate in the meeting and to vote on matters submitted to the members, including an opportunity to communicate and to read or hear the proceedings of the meeting substantially concurrently with such proceedings.
  • Unless the bylaws require the meeting of members to be held at a place, the board may determine that any meeting of members shall not be held at any place and shall instead be held solely by means of remote communication, provided the corporation implements the measures specified above.
Photo of Ray Casella Ray Casella

Ray practices in all areas of federal, state and local tax law. He has extensive experience representing tax-exempt organizations including schools, private foundations and public charities. Ray regularly deals with federal and state income tax issues, Connecticut sales and use tax issues, federal…

Ray practices in all areas of federal, state and local tax law. He has extensive experience representing tax-exempt organizations including schools, private foundations and public charities. Ray regularly deals with federal and state income tax issues, Connecticut sales and use tax issues, federal and state payroll tax issues, and private foundation excise taxes.

Read more about Ray CasellaEmail
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  • Posted in:
    Corporate Governance and Compliance
  • Blog:
    Connecticut State & Local Tax Alert
  • Organization:
    Shipman & Goodwin LLP
  • Article: View Original Source

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