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Grex > Coop > #338: proposal to eliminate restriction for Board members | |
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| 25 new of 91 responses total. |
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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remmers
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response 48 of 91:
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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?)
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rcurl
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response 49 of 91:
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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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richard
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response 50 of 91:
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Feb 20 01:26 UTC 2013 |
re #49 again, if Grex liquidated, how oculd the government collect
*any* sanctions, penalties or fines? They could not. It is an empty
threat. It wouldn't be even worth the IRS's time and money to come
after Grex, there's nothing here, or wouldn't be by the time they
realized what had happened.
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rcurl
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response 51 of 91:
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Feb 20 21:08 UTC 2013 |
The feds can fine the board members. It's in the law. You might be right
though - - or lucky - that the IRS woudn't bother with such small
potatos.
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slynne
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response 52 of 91:
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Feb 21 22:39 UTC 2013 |
I always have wondered what would happen if all of the board members
resigned and no one stepped up to take their places? I thought about
this from time to time while I was on the receiving end of much abuse as
a board member.
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rcurl
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response 53 of 91:
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Feb 22 04:38 UTC 2013 |
I don't (yet) know what the organization would be forced to do, but
since it is a 501(c) Michigan corporation, it will be at the mercy of
both the State of Michigan and the IRS. While the details may be messy,
ulotimately the Articles of Incoration will rule, and all assets would
have to go to another 501(c)3 corporation.
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nharmon
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response 54 of 91:
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Feb 22 13:31 UTC 2013 |
Maybe the State of Michigan would appoint an Emergency Finance Manager. >:)
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richard
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response 55 of 91:
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Feb 22 22:39 UTC 2013 |
re #51 the Articles indemnify the board members:
The Corporation assumes all liability to any person other
than the Corporation or its members for all acts or omissions
of a volunteer director incurred in good faith performance of
their duty as an officer occurring on or after the date of
incorporation.
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jep
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response 56 of 91:
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Feb 23 19:16 UTC 2013 |
re resp:48: The proposal for this item was about a small, unexciting
change. The other discussion is filling some sort of perceived void.
Tomorrow is two weeks since I made the proposal. What is needed to
cause this to come to a vote?
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