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25 new of 91 responses total.
kentn
response 25 of 91: Mark Unseen   Feb 18 12:32 UTC 2013

A corporation provides several advantages, among them recognized
non-profit status (501C3), which in turn provides tax advantages.
These we would not have without the corporation.  The requirements of
the corporation are not onerous.  We would have essentially the same
requirements without the corporation and none of the advantages if we
dissolved our corporation, so why not keep what we already have and
which is valuable?  In fact, we might be worse off financially without
our corporation because we would just a "club" or a "hobby" and our
income would be taxable.

The Board did meet several times and made decisions last year in e-mail.
We met one time voice to voice on the phone. If one of the people
hollering for dissolution had done his job as a Board member and showed
up for meetings, we would have meet several more times.  The Board were
in contact all year long via e-mail. I met with other Board members 1:1
while we waited for others to join announced meetings.

I find it very disingenuous to promote dissolution while helping create
the problem used as evidence that dissolution is necessary (and I don't
believe dissolution is necessary, btw).

I was also in contact during the year with the day to day Treasurer
getting financial information and ensuring that tasks got completed.  If
we had met as Board, we could have put that information in the minutes.
At no time were we in any financial danger nor are we currently (we are
better off now that at mid-2012).  Our state update forms have been sent
in.  Our PO box has been paid for.

In short, The Board, its officers and agents have been, and are,
managing Cyberspace Communications, Inc.

If we would spend half the time we are spending on this discussion in
actually improving things, we wouldn't have any complaints. But that's
Grex: gripe about the lack of several hours of effort for weeks on end
instead putting effort toward better uses.  The effort to be on the
Board is roughly 12 hours per year.  I think we've spent more than 12
hours being distracted by something we shouldn't even be discussing.

Right now Cyberspace Communications, Inc. is under attack from within.
We have been betrayed and continue to be betrayed by people who should
be helping manage and defend the organization.  Instead they want
to destroy it.  They are distracting us from the operations of the
corporation and creating the situation they are complaining about. 

We would be much better off if these people would cease their efforts
to kill Grex and just go someplace else.


denise
response 26 of 91: Mark Unseen   Feb 18 14:21 UTC 2013

It seems like at least some of the complainers about the Board not doing
 what they think we should be doing aren't running for the board to help
 out. But even these people that are not on the board can be of
assistance  by offering suggestions on improving things here and then to
help  implement these changes. Complaining on and on, especially without
 providing suggestions to fix or improve these things causes more harm.
mary
response 27 of 91: Mark Unseen   Feb 18 15:16 UTC 2013

I suspect Richard still hasn't read The Articles of Incorporation. Pay 
special attention to Article 6, subsection 4. I sure wouldn't want to be a 
board member who voted to sell our assets to a non-501(c)3 entity so that we 
could continue to benefit from them after surrendering our non-profit 
status.
richard
response 28 of 91: Mark Unseen   Feb 18 19:09 UTC 2013

Article 6, subsection 4 of the Articles of Incorporation is in conflict 
with Article 8 of the bylaws.  The former says that the assets, physical 
and otherwise, must be distributed to charity, the latter says the 
assets must be sold and the cash distributed.

Which is correct?  Does Article 8 of the bylaws supercede Article 6 
subsection 4 of the Articles of Incorporation?  If so, the bylaws 
*clearly* allow the company's physical assets to be sold and doesn't 
specify sold to a charity.  The funds would then have to be distributed 
to charity.

Perhaps this needs to be addressed.  Amend the bylaws to clarify 
dissolvement procedures more clearly.
richard
response 29 of 91: Mark Unseen   Feb 18 19:14 UTC 2013

This response has been erased.

richard
response 30 of 91: Mark Unseen   Feb 18 19:31 UTC 2013

In fact Article 8 of the Articles of Incorporation says:

ARTICLE 8
        The bylaws of Cyberspace Communications are the final
authority in matters of conflict between documents

The bylaws override the Articles of Incorporation when there is a 
conflict

This clearly means that the Article 8 of the bylaws "Dissolvement" 
clause supercedes Article 6 subsection 4 of the Articles of 
Incorporation.  Article 8 allows the assets to be sold, and doesn't 
specify sold to a charity.

Grex CAN, in fact, be sold to Tonster or any other user willing to pay 
for it and sign an agreement to continue operating Grex is it is for a 
period of time,  A clause can be put in to the effect that if at such 
time the purchasing user no longer wants to operate Grex, that the 
former board members retain the right to buy back the equipment and 
software at the same price for which it was sold. 
mary
response 31 of 91: Mark Unseen   Feb 18 20:13 UTC 2013

I think you clipped your quote, Richard.

Here is that full sentence: The bylaws of Cyberspace Communications are 
the final authority in matters of conflict between documents
except when a provision of proposal to change a provision in
the bylaws would countermand the legal restrictions of a
nonprofit tax exempt corporation.

And it happens that the Internal Revenue Service rules require an 
organization qualified under a 501(c)(3) exemption - a nonprofit - must 
distribute assets to a tax-exempt corporation with a charitable purpose 
after dissolution. 

Your turn, Richard.
richard
response 32 of 91: Mark Unseen   Feb 18 20:24 UTC 2013

Distribute *assets*  Article 8 of the bylaws clearly requires the property 
to be sold.  The '*assets* would be the cash, existing and the proceeds 
from the sale, and those assets must be distributed to charity.  I do not 
believe that Article 6, subsection 4 requires the box and the software 
must be distributed to charity.  
richard
response 33 of 91: Mark Unseen   Feb 18 20:28 UTC 2013

In fact I believe a strict interpretation of Article 6 subsection 4 puts 
the board in an impossible situation if they ever wanted to dissolve, 
because what if there is no charitable organization that wishes to 
accept an old box, old equipment, old software.  

Further, there are many options for Grex's future (like you mentioned 
with the Well), but the corporate structure currently inhibits any such 
considerations.  Makes it much more difficult to consider such things.  
It is time, I submit, to get out from under this corporate structure 
which frankly few want to support anymore.

I mean if we accepted the interpretation I suggest and sold Grex to 
Tonster or somebody else, just to get rid of the corporation, is anyone 
here going to hire a lawyer and challenge it?  Is the government going 
to challenge it?  No, so it doesn't matter.
richard
response 34 of 91: Mark Unseen   Feb 18 20:37 UTC 2013

Further Mary, exacty why, if the Articles required all assets to be 
'distributed to charity', was Article 8 of the subsequent bylaws put in 
requiring that said assets be sold and the proceeds donated?

Wouldn't that have been because the founders realized it might be easier 
to sell the physical property than to seek out a charity to take it?

Why put a 'disswolvement' clause in the bylaws in the first place if the 
Articles already covered it?  Logically you'd think that what was written 
in the Articles was reconsidered when drafting the bylaws don't you?
mary
response 35 of 91: Mark Unseen   Feb 18 20:55 UTC 2013

I think they said "sold" because "destroyed" sounded harsh.  The only 
thing we have of any value is our domain name.  The rest is what encloses  
an old motherboard and disk that would need to be destroyed.

I know you're looking for a bad guy here and maybe a quick fix for all 
that ails Grex.  Our bylaws aren't it.  Really.  They have changed over 
time and are easily changed again.  All it takes is a little research, 
focus and work to propose a change and see it through.  

I think I just lost Richard with that last.
rcurl
response 36 of 91: Mark Unseen   Feb 18 21:33 UTC 2013

Richard, only Article 6(4) of the Articles of Incorporation apply. 
Article 8 of the Bylaws is invalid as law. It shouldn't have been put in 
the bylaws. No bylaw can change the Articles of Incorporation, in any 
case.

richard
response 37 of 91: Mark Unseen   Feb 18 21:49 UTC 2013

re #35 but with the complacency that is epidemic around here, even 
managing to accomplish the requirements necessary to amend the bylaws 
becomes more and more difficult.  What you end up with is a situation 
where the bylaws control the group instead of the other way around.

If grex's physical equipment and software become so outdated that there 
is no charity who would eventually be willing to accept it, even as a 
donation, then grex is stuck in a situaton where nothing can be done. 
You end up with a situation where Cyberspace Communications may be ready 
to dissolve but the articles of incorporation, which cannot be amended, 
provide no realistic way to do it.

Can the board of directors propose a member vote to revise the articles 
of incorporation and would amending such be done the same way as 
amending the bylaws?  
richard
response 38 of 91: Mark Unseen   Feb 18 21:56 UTC 2013

As I read the articles, there is nothing that says the members can't vote 
to stop being a 501(c)(3) and convert to a private foundation.  Doing so 
would remove the previously referenced legal requirements and allow for 
Grex to be sold as opposed to donated.

Grex need not be handcuffed by the articles of incorporation, which the 
founders apparently drafted as the bible which would control the bylaws.  
Otherwise why create a setup where the bylaws can be amended but not the 
articles.  The articles were designed to be a control mechanism and it is 
not fair to the current members and board that the founders established it 
in a way that they couldn't be changed
mary
response 39 of 91: Mark Unseen   Feb 18 22:14 UTC 2013

The State if Michigan pretty much dictates what gets specified in a non-
profit's Articles if Incorporation. So, talk to the mitten.

(I've been waiting to use that line for years!) 
richard
response 40 of 91: Mark Unseen   Feb 18 22:17 UTC 2013

Thats if the non-profit status is maintained.  How compliant has this 
place been in recent years with the state regs?  If the articles specify 
requirements for what happens if converted to a private foundation, then 
clearly this corporation can convert and drop its current filing status.  
Since grex has little funds and isn't requiring contributions for voting 
membership now, why is this non profit status necessary, if it prevents 
proper consideration of potentially healthy changes?
jep
response 41 of 91: Mark Unseen   Feb 18 22:42 UTC 2013

All of the talk about dissolution is interesting, I suppose, but it's
not the purpose of this proposed amendment to the by-laws.  All I want
to do here is to remove the restriction on serving consecutive Board
terms.  It is intended as a move AWAY FROM the need to dissolve
Cyberspace Communications (Kent).

The rest of the discussion should go to a different item.

It is not your right (again, Kent) to decide who should be here and who
shouldn't.  Grex is an open, public service.  If you've been here longer
than me, it was only by hours.  I've been here since the first day Grex
opened to the public.

Furthermore, I have never taken an action of any kind intended to harm
Grex or the corporation.  I am getting awfully tired of being attacked
by someone who thinks every change proposed by anyone but himself is
bad.  If you can't handle that other people think, and you want to limit
what they say, go get yourself a blog and post all the announcements you
want on it.  This is a community.  Get used to it.
richard
response 42 of 91: Mark Unseen   Feb 19 00:52 UTC 2013

re #41 the point is that your proposed amendmment to eliminate term limits 
underscores the current problems maintain the bylaws and the corporate 
requirements.  If this is enacted, whats next, an amendment to extend 
terms to two, four, six or indefinite years?  An amendment to do away with 
any membership requirements?  At what point do you say 'enough is enough' 
and 'lets not further water down what was once a fine corporate entity'  
Lets not keep eliminating bylaws one by one.  If thats the eventuality, 
lets not wait around, lets go all the way right now and find whatever the 
future is.
tonster
response 43 of 91: Mark Unseen   Feb 19 01:14 UTC 2013

I think that both Richard and Mary are correct here.  I think that the
directive on dissolution to donate all assets to another 501(c)3 is
there to prevent the final board from selling everything and then
running off with the proceeds.  I think that you could sell off the
equipment or any other part of the corporation to whoever you choose, so
long as the proceeds from all of that go to another 501(c)3 on
dissolution.  If we decided to sell the server now but continue with a
VPS provider for a year from now, and then disband, what would we do? 
Have to re-acquire the hardware we'd sold in order to dissolve?  The VPS
would be entirely virtual.  There's be nothing there that could easily
be boxed up and sold or donated to anyone else.  In fact, this would be
a really difficult position for M-Net right now.  Their hardware died a
few months ago.  M-Net currently resides in essentially this state
today.
richard
response 44 of 91: Mark Unseen   Feb 19 01:58 UTC 2013

Maybe the board should vote to allocate such funds as necessary to seek 
out a legal opinion, having a lawyer look through the articles and 
bylaws, and define what can and cannot be done re: dissolvement and/or 
re-allocation of assets.

I believe a lawyer might say that as long as any proceeds from any sale 
of corporate property are disbursed to charity upon disolvement, that 
grex could precede dissolvement by selling the server and the software 
to someone who would keep grex running.  Said person could agree in 
writing to sell back everything to the board members, at same price, at 
such time as future direction should be determined.

I think grex could far more easily accomplish a merger with say The 
Well, or seek co-habitation elsewhere, if the corporate structure wasn't 
there to slow and interfere with any chances to do anything.
gelinas
response 45 of 91: Mark Unseen   Feb 19 01:59 UTC 2013

(jep, I think Kent was talking about me: I was able to dial in to only one
board meeting.  Had I not succeeded that time, the Board wouldn't have met
at all.  All business was conducted by e-mail.)

I don't see removing the limit on consecutive terms helping.  But I'm just
one person, and I'm not even a member.  (I can become one, of course. ;)
rcurl
response 46 of 91: Mark Unseen   Feb 19 04:55 UTC 2013

Re #38: As posted in the parallel item" "If a non-profit drops its 
501(c)3 status, it will owe all the taxes it did not previously pay on 
its income."

(That would only apply *since* Cyberspace became a 501(c)3, and also I 
suspect that if we were legally not paying taxes on our income before 
becoming 501(C)3, we might not owe any on abandoning 501(C)3, but this 
would have to be determined.) My statement above is certainly a fact for 
501(C)3's with significant income.
richard
response 47 of 91: Mark Unseen   Feb 19 16:38 UTC 2013

If grex dropped its 501(c)(3) status and dissolved, and sold all assets, 
the government could collect the back taxes how?  That concern is moot.  

The greater issue is that cyberspace communications is barely able to 
continue as a going concern (if we don't amend term limits there might not 
be enough people to even have a board)  If you are responsible and you 
start a corporation and a non-profit, you have to be responsible for 
properly ending it when the time comes.

Otherwise its like you just abandon your car on the side of the road when 
it no longer runs and expect somebody else to dispose of it.  
remmers
response 48 of 91: Mark Unseen   Feb 19 19:34 UTC 2013

I support modifying the term limit requirement in the bylaws. Maybe
along the lines that Eric suggested in resp:1. (Why is everybody talking
about unrelated stuff?)
rcurl
response 49 of 91: Mark Unseen   Feb 19 21:27 UTC 2013

Re #47: I suggest you consult IRS regulations on a non-propfit 
relinguishing exempt status. There can be sanctions, penalities and 
fines if an oragnization violates the rules on dissolving and 
distribution of assets.
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