§ 7-126-302 — Termination, expulsion, or suspension

(1) Unless otherwise
provided by the bylaws, no member of a nonprofit corporation may be expelled or
suspended, and no membership or memberships in such nonprofit corporation may
be terminated or suspended except pursuant to a procedure that is fair and
reasonable and is carried out in good faith.

(2) For purposes of this section, a procedure is fair and reasonable when
either:

(a) The bylaws or a written policy of the board of directors state a procedure
that provides:

(I) Not less than fifteen days prior written notice of the expulsion,
suspension, or termination and the reasons therefor; and

(II) An opportunity for the member to be heard, orally or in writing, not less
than five days before the effective date of the expulsion, suspension, or termination
by a person or persons authorized to decide that the proposed expulsion,
termination, or suspension not take place; or

(b) It is fair and reasonable taking into consideration all of the relevant facts
and circumstances.

(3) For purposes of this section, any 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 nonprofit corporation's records.

(4) Unless otherwise provided by the bylaws, any proceeding challenging an
expulsion, suspension, or termination, including a proceeding in which defective
notice is alleged, must be commenced within one year after the effective date of
the expulsion, suspension, or termination.

(5) Unless otherwise provided by the bylaws, a member who has been
expelled or suspended may be liable to the nonprofit corporation for dues,
assessments, or fees as a result of obligations incurred or commitments made prior
to expulsion or suspension.

Legislative History

Source: L. 97: Entire article added, p. 672, � 3, effective July 1, 1998. L. 2003: IP(2)(a) amended, p. 2337, � 290, effective July 1, 2004.