§ 23-17-8-2 — Expulsion, suspension, or termination; procedures; limitation of actions; liability for obligations

Indiana § 23-17-8-2

• Jurisdiction: Indiana
• Title 23: BUSINESS AND OTHER ASSOCIATIONS
• Art. 17: NONPROFIT CORPORATIONS
• Ch. 8: Resignation and Termination of Members

Text

(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.

Legislative History

As added by P.L.179-1991, SEC.1.