In a membership nonprofit corporation, no approval of the members is required, unless the certificate of incorporation otherwise provides:

(a) to sell, lease, exchange, or otherwise dispose of any or all of the membership nonprofit corporation’s assets in the usual and regular course of the membership nonprofit corporation’s activities;
non profit

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Terms Used In Alabama Code 10A-3A-10.01

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • certificate of incorporation: as used in this chapter is synonymous to the term certificate of formation used in Chapter 1. See Alabama Code 10A-3A-1.02
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
(b) to mortgage, pledge, dedicate to the repayment of indebtedness (whether with or without recourse), or otherwise encumber any or all of the membership nonprofit corporation’s assets, regardless of whether in the usual and regular course of its activities; or
(c) to transfer any or all of the membership nonprofit corporation’s assets to one or more corporations or other entities all of the memberships or interests of which are owned by the membership nonprofit corporation.
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