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Grex > Coop > #338: proposal to eliminate restriction for Board members | |
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| 25 new of 91 responses total. |
jep
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response 23 of 91:
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Feb 18 02:34 UTC 2013 |
TS, the next election will determine a lot, as gelinas said. If there
aren't enough people to run and fill the Board seats, then haven't we
reached the end?
I don't want that to happen. I think it will be easier to do that if we
remove the Board member restrictions preventing people from being off
the Board for a year if they've been on it for 2 terms. It is the point
of this proposal.
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richard
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response 24 of 91:
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Feb 18 03:21 UTC 2013 |
re #22 the fact that there haven't been any treasurer's reports, few in
person board meetings, and so little interest among members in running for
the board that #0 proposes eliminating term limits just to keep live
bodies on the board, are good indications of an inability of the
membership to support the corporate structure. The proposal in #0 would
have been unthinkable a few years ago. Now nobody cares.
Put simply, why keep a corporation going when its not needed to keep grex
going and nobody cares about the corporation much any more?
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kentn
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response 25 of 91:
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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.
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denise
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response 26 of 91:
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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.
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mary
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response 27 of 91:
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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.
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richard
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response 28 of 91:
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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.
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richard
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response 29 of 91:
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Feb 18 19:14 UTC 2013 |
This response has been erased.
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richard
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response 30 of 91:
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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.
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mary
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response 31 of 91:
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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.
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richard
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response 32 of 91:
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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.
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richard
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response 33 of 91:
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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.
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richard
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response 34 of 91:
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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?
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mary
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response 35 of 91:
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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.
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rcurl
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response 36 of 91:
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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.
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richard
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response 37 of 91:
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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?
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richard
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response 38 of 91:
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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
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mary
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response 39 of 91:
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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!)
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richard
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response 40 of 91:
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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?
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jep
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response 41 of 91:
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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.
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richard
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response 42 of 91:
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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.
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tonster
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response 43 of 91:
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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.
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richard
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response 44 of 91:
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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.
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gelinas
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response 45 of 91:
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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. ;)
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rcurl
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response 46 of 91:
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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.
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richard
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response 47 of 91:
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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.
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