5752 - Organization on a stock share basis.
§ 5752. Organization on a stock share basis. (a) General rule.--A nonprofit corporation may be organized upon either a nonstock basis or upon a stock share basis, as set forth in its articles. (b) Form of certificates.--The shares of nonprofit corporations organized upon a stock share basis shall be of such denominations as the bylaws shall provide and shall be represented by share certificates. The fact that the corporation is a nonprofit corporation shall be noted conspicuously on the face of each certificate. (c) Rights of shareholders.--Unless otherwise provided in a bylaw adopted by the members, each share shall entitle the holder thereof to one vote. No dividends shall be directly or indirectly paid on any such shares, nor shall the shareholders be entitled to any portion of the earnings of such corporation derived through increment of value upon its property, or otherwise incidentally made, until the dissolution of any such corporation. (d) Transferability of shares.--Unless otherwise provided in the bylaws, such shares shall not be transferable by operation of law or otherwise. (e) Power to cancel shares.--A nonprofit corporation shall have power to exclude from further membership any shareholder who fails to comply with the reasonable and lawful bylaws of the corporation, and may cancel the shares of any such offending member without liability for an accounting, except as may be provided in the bylaws. (f) Applicability of the Uniform Commercial Code.--The provisions of Division 8 of Title 13 (relating to investment securities) shall not apply in any manner to the shares of a nonprofit corporation. (Nov. 1, 1979, P.L.255, No.86, eff. Jan. 1, 1980) 1979 Amendment. Act 86 amended subsec. (f). Cross References. Section 5752 is referred to in sections 5504, 5541 of this title.