Business Law

Ask a Business Lawyer. Get Business Law Questions Answered ASAP.

Ask a Lawyer,
Get an Answer ASAP!

Business Law
This answer was rated:

Does the board of a CA formed 501(c)6 not-for-profit have to

adhere to the 51/49 rule...
Does the board of a CA formed 501(c)6 not-for-profit have to adhere to the 51/49 rule - comprised of 51% individuals who do not benefit from the organization? If so, if the articles of incorporation and the bylaws to do stipulate this, are there any CA statutes, regs, or common law rules that would allow the Board Chair to make interim or temporary appointments to the board to correct an imbalance related to this rule so the organization is in compliance?
Show More
Show Less
Ask Your Own Business Law Question
Customer reply replied 2 months ago
CORRECTION: "...if the articles of incorporation and the bylaws do NOT stipulate this..."
Answered in 19 hours by:
9/18/2017
Asad Rahman
Asad Rahman, Attorney
Category: Business Law
Satisfied Customers: 2,230
Experience: Practicing Attorney with 10 years experience
Verified

Yes, the rule does apply pursuant to Corp. Code 5227. Even if it is not stipulated in the bylaws, the organization must still comply with applicable state and federal laws.

Ask Your Own Business Law Question
Customer reply replied 2 months ago
Thank you. One related follow up question... does that code section mean to state that the "disinterested" board members (the 51%) cannot have ANY compensation from the organization, like a stipend for their time, or does it mean that they cannot have any business relationship with the organization that benefits them financially? In other words, does the 51% rule mean that 51% of the board has to be all volunteer?

They can still receive some salary for their work as a board member.

Ask Your Own Business Law Question

This is a fantastic resource promulgated by the Attorney General. https://www.oag.ca.gov/sites/all/files/agweb/pdfs/charities/publications/guide_for_charities.pdf

Asad Rahman
Asad Rahman, Attorney
Category: Business Law
Satisfied Customers: 2,230
Experience: Practicing Attorney with 10 years experience
Verified
Asad Rahman and 87 other Business Law Specialists are ready to help you
Ask your own question now
Customer reply replied 2 months ago
Excellent. Thank you for the resource, much appreciated.
Ask Asad Rahman Your Own Question
Asad Rahman
Asad Rahman
Asad Rahman, Attorney
Category: Business Law
Satisfied Customers: 2,230
2,230 Satisfied Customers
Experience: Practicing Attorney with 10 years experience

Asad Rahman is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

< Previous | Next >

Meet the Experts:

Infolawyer

Infolawyer

Attorney

1,823 satisfied customers

Experienced lawyer

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

1,611 satisfied customers

Run my own successful business/contract law practice.

MShore Law

MShore Law

Attorney

1,233 satisfied customers

Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements

RGMacEsq

RGMacEsq

Attorney

750 satisfied customers

Licensed Texas General Practice Attorney

Barrister

Barrister

Attorney

643 satisfied customers

17 years practicing attorney, JD, BA, MBA

Ely

Ely

Attorney

573 satisfied customers

Counselor at Law.

J.Hazelbaker

J.Hazelbaker

Attorney

393 satisfied customers

Experienced and trained in the area of business law.

< Previous | Next >

Related Business Law Questions
Is it legal for a business to offer their services to
Is it legal for a business to offer their services to individuals of families that live on or below our government's difinition of the poverty level… read more
Infolawyer
Infolawyer
Attorney
Doctoral Degree
1,823 satisfied customers
Business consultant. I started a new business that will
business consultant. I started a new business that will offer 50 percent discounts on products and services. How can I get an email list of potential users of my new product? Either how grown or purch… read more
RGMacEsq
RGMacEsq
Attorney
Doctoral Degree
750 satisfied customers
I have a LLC business in the state of Texas. It is currently
I have a LLC business in the state of Texas. It is currently a sole proprioter. If I want to add 2 partners do I need to change it to a corporation? Or can I leave as is and just generate an agreement… read more
Ray
Ray
Lawyer
Doctoral Degree
30,519 satisfied customers
My business partner has his minority business enterprise
my business partner has his minority business enterprise license as well as several other minority accreditations. we have contacts on both the manufacturing and federal government levels. we want to … read more
Infolawyer
Infolawyer
Attorney
Doctoral Degree
1,823 satisfied customers
My fiancee and I own 3 businesses ( a photography business,
My fiancee and I own 3 businesses ( a photography business, a towing company, and a roadside assistance company) one is a styled as a partnership, the other 2 are sole-proprietorship, we would like to… read more
lwpat
lwpat
Doctoral Degree
256 satisfied customers
I decided to sue my business partners. The business is going
I decided to sue my business partners. The business is going to operate in Panama city beach Florida but we live in Pembroke Pines Florida. What court should i use for this? … read more
Damien Bosco
Damien Bosco
3,150 satisfied customers
My Business Bought Inventory on 60 days terms, Slow business
My Business Bought Inventory on 60 days terms, Slow business not be able to make payments, Can collection agencies forcfully come to business and pick up the inventory?… read more
Law Pro
Law Pro
Doctoral Degree
19,000 satisfied customers
I HAVE A BUSINESS THATS INC AND OPENED ANOTHER BUSINESS DBA
I HAVE A BUSINESS THATS INC AND OPENED ANOTHER BUSINESS DBA DOES THE FIRST INC BUSINESS COVERS THE SECOND CAN I BE SUED PERSONALLY FOR THE SECOND BUSINESS AM I COVERED BY THE FIRST.… read more
KUMI95
KUMI95
Attorney
Doctoral Degree
17 satisfied customers
We won a tentative decision on a business to business
We won a tentative decision on a business to business lawsuit for over $1MM. There is also a punitive damage award for hundreds of thousands of dollars on top of the million dollar tentative decision … read more
socrateaser
socrateaser
1,031 satisfied customers
Im a (non-involved) part owner of a small business in
im a (non-involved) part owner of a small business in Georia. I was offered and paid money to sell my shares to my nephew. My partners lawyers wrote and states due to the corporate bylaws the sale is … read more
Roger
Roger
Litigation Attorney
Doctoral Degree
26,821 satisfied customers
A business executive candidate asked a business owner about
A business executive candidate asked a business owner about the details of the business' technology at a meeting. The business owner's IP attorney advised the business owner not to disclose the techno… read more
Damien Bosco
Damien Bosco
3,150 satisfied customers
Here is proposed "Purpose" bylaw language for an Illinois
Here is proposed "Purpose" bylaw language for an Illinois Not for Profit/501(c)(7):Section 1. The purpose of this corporation is to operate as a private club for the social and recreational benefit of… read more
LawGuy
LawGuy
Juris Doctor
123 satisfied customers
In Colorado if an s corporation has no bylaws and there is a
In Colorado if an s corporation has no bylaws and there is a situation of possible left using a debit card by an employee and 20% shareholder does the State of Colorado use default bylaw and where can… read more
socrateaser
socrateaser
1,031 satisfied customers
Can I make a provision in my bylaws that states the company
Can I make a provision in my bylaws that states the company has the right to repurchase shares at a value of the original price and 1.5% interest annually?… read more
Bill Attorney
Bill Attorney
law
1,490 satisfied customers
What is a standard procedure to review and change the bylaws
What is a standard procedure to review and change the bylaws for a nonprofit organization? Iterations, time period, a review committee, etc,.… read more
KJL LAW
KJL LAW
Juris Doctorate
1,687 satisfied customers
Amendments. Bylaws of this corporation may be adopted,
Amendments. Bylaws of this corporation may be adopted, amended or repealed by the vote or written consent of either (i) the board of directors or (ii) the shareholders entitled to exercise a majority … read more
J. Warren
J. Warren
Attorney
Doctoral Degree
2,240 satisfied customers
How can I word a section in my nonprofit bylaws that
how can I word a section in my nonprofit bylaws that protects the founder texas … read more
Richard - Bizlaw
Richard - Bizlaw
Juris Doctor
3,690 satisfied customers
Our church bylaws have a process for putting together a
Our church bylaws have a process for putting together a nominating committee for new board members that begins with choosing a couple of voting members, a selecting a trustee and adding the minister t… read more
Infolawyer
Infolawyer
Attorney
Doctoral Degree
1,823 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x