—UPCOMING LEGISLATIVE CHANGES TO— The Non-Profit Corporations Act
— By Mary B. Reiten, Esq. — T
he new Nonprofit Corporations Act (the “Act”) that goes into effect on January 1,
2022, is over 100 pages long and completely revamps the current nonprofit corporations act. It applies to all nonprofit corporations currently incorporated under RCW 24.03 or any nonprofit corporation that wishes to reorganize under its terms. Most community associations are incorporated as nonprofit corporations.
Given the breadth of the changes, this article is not so much a comparison of the old versus the new act. Rather what this article seeks to do is point out areas of the new act that may affect the current statutory schemes governing communities. Although the Condominium Act, RCW 64.34, et seq. and WUCIOA, RCW 64.90, et seq., specifically provide that the law of corporations (among others) applies “except to the extent inconsistent” with those chapters. RCW 64.34.070, RCW 64.90.035. The Horizontal Properties Regimes Act, RCW 64.32, et seq., does not have similar language. Neither does the Homeowners Association Act, RCW 64.38, et seq.
18 Community Associations Journal | November–December 2021
Definitions The new Act has a greatly enlarged definitional section.
For example, there are many sections that address electronic records. And there are definitions for various entities, individuals, members, and organic law (which means the law of the jurisdiction in which the corporation is organized).
Given the breadth of the changes, this article is not so much a comparison of the old versus the new act.
Notice The Act provides that unless the articles of
incorporation (“articles”) or bylaws allow oral notice, notice must be in the form of a record. A record is defined as information inscribed on a tangible medium or that is stored in electronic form that can be retrieved in perceivable form. Notice is now effective when delivered in person, five days after being placed in the mail, or when electronically
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36
