1702.01 Nonprofit corporation law definitions.
1702.01 Nonprofit corporation law definitions.
As used in this chapter, unless the context otherwise requires:
(A) “Corporation” or “domestic corporation” means a nonprofit corporation formed under the laws of this state, or a business corporation formed under the laws of this state that, by amendment to its articles as provided by law, becomes a nonprofit corporation.
(B) “Foreign corporation” means a nonprofit corporation formed under the laws of another state.
(C) “Nonprofit corporation” means a domestic or foreign corporation that is formed otherwise than for the pecuniary gain or profit of, and whose net earnings or any part of them is not distributable to, its members, directors, officers, or other private persons, except that the payment of reasonable compensation for services rendered and the distribution of assets on dissolution as permitted by section 1702.49 of the Revised Code is not pecuniary gain or profit or distribution of net earnings. In a corporation all of whose members are nonprofit corporations, distribution to members does not deprive it of the status of a nonprofit corporation.
(D) “State” means the United States; any state, territory, insular possession, or other political subdivision of the United States, including the District of Columbia; any foreign country or nation; and any province, territory, or other political subdivision of a foreign country or nation.
(E) “Articles” includes original articles of incorporation, agreements of merger or consolidation if and only to the extent that articles of incorporation are adopted or amended in the agreements, amended articles, and amendments to any of these, and, in the case of a corporation created before September 1, 1851, the special charter and any amendments to it made by special act of the general assembly or pursuant to general law.
(F) “Incorporator” means a person who signed the original articles of incorporation.
(G) “Member” means one having membership rights and privileges in a corporation in accordance with its articles or regulations.
(H) “Voting member” means a member possessing voting rights, either generally or in respect of the particular question involved, as the case may be.
(I) “Person” includes, but is not limited to, a nonprofit corporation, a business corporation, a partnership, an unincorporated society or association, and two or more persons having a joint or common interest.
(J) The location of the “principal office” of a corporation is the place named as such in its articles.
(K) “Directors” means the persons vested with the authority to conduct the affairs of the corporation irrespective of the name, such as trustees, by which they are designated.
(L) “Insolvent” means that the corporation is unable to pay its obligations as they become due in the usual course of its affairs.
(M)(1) Subject to division (M)(2) of this section, “volunteer” means a director, officer, or agent of a corporation, or another person associated with a corporation, who satisfies both of the following:
(a) Performs services for or on behalf of, and under the authority or auspices of, that corporation;
(b) Does not receive compensation, either directly or indirectly, for performing those services.
(2) For purposes of division (M)(1) of this section, “compensation” does not include any of the following:
(a) Actual and necessary expenses that are incurred by a volunteer in connection with the services performed for a corporation, and that are reimbursed to the volunteer or otherwise paid;
(b) Insurance premiums paid on behalf of a volunteer, and amounts paid or reimbursed, pursuant to division (E) of section 1702.12 of the Revised Code;
(c) Modest perquisites.
(N) “Business corporation” means any entity, as defined in section 1701.01 of the Revised Code, other than a public benefit corporation or a mutual benefit corporation, that is organized pursuant to Chapter 1701. of the Revised Code.
(O) “Mutual benefit corporation” means any corporation organized under this chapter other than a public benefit corporation.
(P) “Public benefit corporation” means a corporation that is recognized as exempt from federal income taxation under section 501(c)(3) of the “Internal Revenue Code of 1986,” 100 Stat. 2085, 26 U.S.C. 1, as amended, or is organized for a public or charitable purpose and that upon dissolution must distribute its assets to a public benefit corporation, the United States, a state or any political subdivision of a state, or a person that is recognized as exempt from federal income taxation under section 501(c)(3) of the “Internal Revenue Code of 1986,” as amended. “Public benefit corporation” does not include a nonprofit corporation that is organized by one or more municipal corporations to further a public purpose that is not a charitable purpose.
(Q) “Authorized communications equipment” means any communications equipment that provides a transmission, including, but not limited to, by telephone, telecopy, or any electronic means, from which it can be determined that the transmission was authorized by, and accurately reflects the intention of, the member or director involved and, with respect to meetings, allows all persons participating in the meeting to contemporaneously communicate with each other.
Effective Date: 04-10-2001; 08-19-2005; 2006 HB699 03-29-2007