Sunday, May 1, 2016

WHEN A NONPROFIT CORPORATION IS INSOLVENT…

BUSINESS LAW NEWS 2016, ISSUE 2

Reno F.R. Fernandez and Lisa A. Runquist

Just as the formation and administration of a nonprofit corporation requires special considerations and planning, the disposition of an insolvent nonprofit is governed by special statutes and rules. Boards of directors need specific guidance when a nonprofit enters insolvency. This article discusses the choices a California nonprofit public benefit corporation faces when it can no longer meet its financial obligations.