35-2-520. Termination, expulsion, and suspension.
35-2-520. Termination, expulsion, and suspension. (1) A member of a public benefit corporation or mutual benefit corporation may not be expelled or suspended and membership in these corporations may not be terminated or suspended except pursuant to a procedure that is fair and reasonable and is carried out in good faith.
(2) A procedure is fair and reasonable when either:
(a) the articles or bylaws set forth a procedure that provides:
(i) not less than 15 days' prior written notice of the expulsion, suspension, or termination and the reasons for it; and
(ii) an opportunity for the member to be heard, orally or in writing, not less than 5 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 takes into consideration all relevant facts and circumstances.
(3) A 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.
(4) A proceeding that challenges an expulsion, suspension, or termination, including a proceeding in which defective notice is alleged, must be commenced within 1 year after the effective date of the expulsion, suspension, or termination.
(5) A member who has been expelled or suspended may be liable to the corporation for dues, assessments, or fees as a result of obligations incurred or commitments made prior to the expulsion or suspension.
History: En. Sec. 48, Ch. 411, L. 1991.