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).