10A-3A-9.03. Amendment of Certificate of Incorporation of Membership Nonprofit Corporation After Members Have Been Admitted.
If a membership nonprofit corporation has admitted any members, an amendment to the certificate of incorporation shall be adopted in the following manner:
(a) The proposed amendment shall first be adopted by the board of directors.
(b) Except as provided in subsection (g) and Sections 10A-3A-9.07 and 10A-3A-9.08, the amendment shall then be approved by the members entitled to vote on the amendment. In submitting the proposed amendment to the members for approval, the board of directors shall recommend that the members approve the amendment, unless the board of directors makes a determination that because of conflicts of interest or other special circumstances it should not make such a recommendation, in which case the board of directors must inform the members of the basis for that determination.
(c) The board of directors may set conditions for the approval of the amendment by the members or the effectiveness of the amendment.
(d) If the amendment is required to be approved by the members, and the approval is to be given at a meeting, the membership nonprofit corporation shall notify each member entitled to vote on the amendment of the meeting of members at which the amendment is to be submitted for approval. The notice must state that the purpose, or one of the purposes, of the meeting is to consider the amendment. The notice must contain or be accompanied by a copy of the amendment.
(e) Unless the certificate of incorporation, or the board of directors acting pursuant to subsection (c), requires a greater vote or a greater quorum, approval of the amendment requires the approval of the members at a meeting at which a quorum consisting of a majority of the votes entitled to be cast on the amendment exists, and, if any class of members is entitled to vote as a separate group on the amendment, except as provided in Section 10A-3A-9.04(d), the approval of each separate voting group at a meeting at which a quorum of the voting group exists consisting of a majority of the votes entitled to be cast on the amendment by that voting group.
(f) In addition to the adoption and approval of an amendment by the board of directors and members as required by this section, an amendment must also be approved by a person or group of persons, if any, whose approval is required by the certificate of incorporation in accordance with Section 10A-3A-9.30.
(g) Unless the certificate of incorporation provides otherwise, the board of directors of a membership nonprofit corporation may adopt amendments to the membership nonprofit corporation’s certificate of incorporation without approval of the members to:
(1) extend the duration of the membership nonprofit corporation if it was incorporated at a time when limited duration was required by law;
(2) delete the names and addresses of the incorporators or initial directors;
(3) delete the name and address of the initial registered agent or registered office, if a statement of change is on file with the Secretary of State;
(4) delete a class of members from the certificate of incorporation when there are no members in that class; or
(5) change the membership nonprofit corporation name, provided that the name complies with Article 5 of Chapter 1.
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(Act 2023-503, §1.)
