Bill Text: NY A06940 | 2023-2024 | General Assembly | Introduced

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Bill Title: Authorizes non-membership not-for-profit corporations to classify boards through the by-laws and not solely through the certificate of incorporation.

Spectrum: Partisan Bill (Democrat 17-0)

Status: (Passed) 2023-10-25 - signed chap.573 [A06940 Detail]

Download: New_York-2023-A06940-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          6940

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                       May 9, 2023
                                       ___________

        Introduced  by  M.  of A. SIMONE, ZEBROWSKI -- read once and referred to
          the Committee on Corporations, Authorities and Commissions

        AN ACT to amend the  not-for-profit  corporation  law,  in  relation  to
          authorizing  non-membership  not-for-profit  corporations  to classify
          board of directors in the by-laws

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Paragraph (a) of section 704 of the not-for-profit corpo-
     2  ration law, as amended by chapter 847 of the laws of 1970, is amended to
     3  read as follows:
     4    (a) The certificate of incorporation  or  a  by-law  [adopted  by  the
     5  members]  may provide that directors elected or appointed at large shall
     6  be divided into either two, three, four or five classes for the  purpose
     7  of  staggering  their terms of office and that all or some of the direc-
     8  tors elected or appointed otherwise than at large shall be divided  into
     9  the  same  or a different number of classes, not exceeding five, for the
    10  same purpose. All classes of each type  shall  be  as  nearly  equal  in
    11  number as possible and, if provision has been made for cumulative voting
    12  under  section 617 (Cumulative voting), no class shall include less than
    13  three directors.
    14    § 2. This act shall take effect immediately.




         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10109-01-3