Thursday, December 10, 2009
If you've got students in a transactional clinic, most likely they are working with non-profit organizations. They may sign up for the clinic hoping to work for big corporate clients, but that's just the way it is. In any event, non-profits do transactions, too. In particular, they have been known to merge. When non-profits merge, the process looks familiar, but it's different in a couple of important respects. First, no pesky shareholder votes. You might be required to get the pre-approval of the Attorney General of the state in which the non-profit is incorporated, but not always. For example, here's California's Not For Profit Public Benefit Corporation act's merger provision. You'll note that basically it just requires the approval of the respective boards of the constituent non-profits.