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O.C.G.A. § 14-3-602 — Consideration for membership in corporation | Georgia Code
O.C.G.A. § 14-3-602 (2018) Copy Cite Official Site Syfertize CourtListener Scholar Amendments

TITLE 14 CORPORATIONS, PARTNERSHIPS, AND ASSOCIATIONS

Section 3. Nonprofit Corporations, 14-3-101 through 14-3-1703.

ARTICLE 6 MEMBERSHIP

14-3-602. Consideration for membership in corporation.

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.

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

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).

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This Georgia Code resource is curated by Georgia Bar member Graham W. Syfert, a personal injury and workers' compensation attorney admitted in Georgia (State Bar of Georgia No. 881027, since 2006) and Florida. For legal consultation, call 904-383-7448.