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Board Voting Requirement Clarified

When a board consists of five members and requires a vote of two-thirds of the membership to act, can three members take action when one board member is disqualified from participating?

According to a new ruling, the answer is yes. An Arizona Court of Appeals held that the disqualification of

one board member reduced the total number of members entitled to vote. Thus, an action approved by three of the other four satisfied the two-thirds requirement (Mobile Community Council for Progress v. the Hon. Fulton Brock, GA-GV 04-0507).

"This is a very helpful decision for resolving an often perplexing situation," says Don Kramer, attorney and editor of Nonprofit Issues (www.nonprofitissues.com). Although the judgment isn't based directly on nonprofit law, the logic applies to nonprofits and will likely be persuasive in the absence of direct precedent to the contrary.

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