Handling Contractual Elements of Event Cancellations Due To Epidemics & Other Crises

As event cancellations have started to mount due to the growing number of Covid-19 cases around the country, there has been a lot of concerned conversation occurring about the invocation of force majeure clauses in performance contracts. If you are not aware of its application, the clause generally relieves all parties of their contractual obligation due to severe weather, natural disasters, civil unrest, government declarations, union actions and epidemics. I say generally relieves because there has been communication to my state consortium that some organizations are seeing contracts which include penalties for … Read more

Does Your State Prohibit Non-Voting Board Directors?

A few years back I made a post addressing the assumption that ex officio positions on a board of directors were automatically non-voting. Spoilers: That is not the case. Apropos to that, I recently became aware of a 2009 law in California that prohibits non-profit organizations from having non-voting directors. I wasn’t aware that such restrictions existed anywhere so check the laws in your state. Thus, a nonprofit corporation may not have non-voting members on its board of directors. One of the rationales for this change was to clarify the use of … Read more

Toward Crafting Better Conflict Of Interest Policy And Practice

As the world becomes more connected, rules and regulations governing conflicts of interest associated with geographic boundaries start to lose their relevance. Broader definitions and applications of a board member’s duty to a non-profit are required. This is the view of David O. Renz in an excellent guide on non-profit conflicts of interest on Non-Profit Quarterly. Renz compares the conflict of interest policy of the United States, which is focused narrowly in terms of private benefit and financial gain due to the definition originating from the IRS, with the broader application employed … Read more

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