Search OpenLegislation Statutes

This entry was published on 2014-09-22
The selection dates indicate all change milestones for the entire volume, not just the location being viewed. Specifying a milestone date will retrieve the most recent version of the location before that date.
Liabilities of members
Not-for-Profit Corporation (NPC) CHAPTER 35, ARTICLE 5
§ 517. Liabilities of members.

(a) The members of a corporation shall not be personally liable for
the debts, liabilities or obligations of the corporation.

(b) A member shall be liable to the corporation only to the extent of
any unpaid portion of the initiation fees, membership dues or
assessments which the corporation may have lawfully imposed upon him, or
for any other indebtedness owed by him to the corporation. No action
shall be brought by any creditor of the corporation to reach and apply
any such liability to any debt of the corporation until after final
judgment shall have been rendered against the corporation in favor of
the creditor and execution thereon returned unsatisfied, or the
corporation shall have been adjudged bankrupt, or a receiver shall have
been appointed with power to collect debts, and which receiver, on
demand of a creditor to bring suit thereon, has refused to sue for such
unpaid amount, or the corporation shall have been dissolved or ceased
its activities leaving debts unpaid. No such action shall be brought
more than three years after the happening of any one of such events.