Does nonprofit officer have fiduciary duty of obedience?
Does an officer of a nonprofit corporation have a duty of obedience? Can she be sued for usurping a corporate opportunity when she has created an affiliated corporation with a similar name and then “divorced” it from the parent to use for her own purposes? Can she be sued for conversion for refusing to return corporate records belonging to the parent entity? These were all questions that arose in a dispute between two nonprofits in Chicago. The Chinese Consolidated Benevolent Association, operating under the name “CCBA,” had been providing education, social services, and cultural celebrations to the Chinese immigrant community for more than a century. In 2018, while developing a senior...
The full text of this article is available to paid subscribers only. Login or subscribe to read more