O.C.G.A.
O.C.G.A.

O.C.G.A. § 14-3-602 (2019)

Consideration for membership in corporation

✓ O.C.G.A. — 2019 edition (Public.Resource.Org Release 73)
Code text and O.C.G.A. statutory annotations on this page reflect the 2019 Official Code of Georgia Annotated (Public.Resource.Org Release 73, 2019-08-21; public domain per Georgia v. Public.Resource.Org, 2020). The Syfert case-law annotations in Notes of Decisions, below, are current.
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Except as provided in its articles or bylaws, a corporation may admit members for no consideration or for such consideration as is determined by the board.

History

(Code 1981, § 14-3-602, enacted by Ga. L. 1991, p. 465, § 1.)

Annotations

COMMENT This section is taken from the Model Act. It affords flexibility to issue memberships for no consideration or for such consideration as is established in the corporation’s articles or bylaws or by the board of directors. Unlike stock in a business corporation, a membership in a nonprofit corporation does not necessarily have any measurable economic value. There is thus less need to regulate the consideration for memberships. Any type of consideration may be accepted, including promissory notes, intangible property and past or future services. In establishing the type and amount of consideration, and the timing of its payment, the board of directors must fulfill their obligations of care and loyalty. JUDICIAL DECISIONS Cited in Nguyen v. Tran, 287 Ga. App. 888, 652 S.E.2d 881 (2007).

Notes of Decisions
Cited in 1 case, 2007–2007 · leading case: Nguyen v. Tran, 652 S.E.2d 881 (Ga. Ct. App. 2007).
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Nguyen v. Tran, 652 S.E.2d 881 (Ga. Ct. App. 2007). · cites it 2× “7 See OCGA § 14-3-601 (a) (articles or bylaws “may” establish criteria or procedures for admission of members); OCGA § 14-3-602 (“[e]xcept as provided in its articles or bylaws,” a corporation may admit members for no consideration); OCGA§ 14-3-610 (giving members right to vote…”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.