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Ousted Directors Must Join Nonprofit in Suit to Recover Seats

Ousted Directors Must Join Nonprofit in Suit to Recover Seats

Ousted Directors Must Join Nonprofit in Suit to Recover Seats

Corporation is deemed a “necessary and indispensible” party for declaratory judgment
A suit invalidating the ouster of two directors of a nonprofit corporation has been reversed because the ousted directors sued only the other directors individually and did not join the corporation itself as a party to the action. An appellate court in Missouri has held that the corporation was a “necessary and indispensible” party to the declaratory action and failure to join it as a party to the suit required reversal of the trial court’s decision.

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