State Legislative Updates

New York Assembly Bill 10336

New York — Assembly Bill 10336, which was signed by New York’s governor in December, amends Sec. 601 of the Not-for-Profit Corporation Law to provide that effective July 1, 2019, New York nonprofit corporations that have members will have to have at least three members (formerly, one). However it does allow a nonprofit to have a single corporation, joint stock association, partnership, or other unincorporated association as a sole member as long as the sole member is owned or controlled by at least three persons.

This change does not effect charitable nonprofit corporations that have no members. (Under New York law a “non-charitable” nonprofit corporation must have members while a “charitable” nonprofit corporation may, but is not required to have members.)

New York nonprofit corporations with members may wish to determine if any actions are necessary to comply with this new requirement including a review of the certificate of incorporation or bylaws to see if any amendments regarding the number of members is required.

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