Louis E. Michelson, A Professional Corporation

Governor Schwarzenegger signed AB 1233, which is based on an Affirmative Legislative Proposal of the Nonprofit Committee. The law makes a number of changes to the California Corporations Code as applied to nonprofit corporations and unincorporated associations. These changes concern the designation of certain persons as directors, the termination of individual approval rights for changes of articles and bylaws on certain events, permissive articles and bylaw provisions on quorum formation, clarification of powers of Board committees including nondirector committees, the applicability of private foundation requirements to non-profit religious corporations, clarification of insurance requirements to qualify for prohibition of causes of action against unpaid directors and officers of a nonprofit corporation or nonprofit medical association and authorization for mergers of unincorporated associations with certain other types of legal entities. To view AB 1233, click here.