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S7838Senate2013-2014 Session

Relates to independent directors and related party transactions; repealer

Sponsor Michael H. RanzenhoferSD-61Affects Economy
Status
In Assembly Committee
Corporations, Authorities And Commissions
Impact
Pending
Passage
Pending

Bill progress

Step 5 of 7

In Assembly · Corporations, Authorities And Commissions

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Who cares

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Sponsors

Primary sponsor
Michael H. Ranzenhofer

Senator · Senate District 61

Chair, Corporations, Authorities And Commissions

No co-sponsors yet.

History

  1. Referred to corporations, authorities and commissions
  2. Delivered to assembly
  3. Passed senateVote 59–0
  4. Ordered to third reading cal.1551
  5. Committee discharged and committed to rules
  6. Referred to corporations, authorities and commissions

Full text

The text isn't available here yet. Check nysenate.gov.

Sponsor's memo

BILL NUMBER:S7838

Title of bill

An act to amend the not-for-profit corporation law, in relation to independent directors and related party transactions; and repealing certain provisions of such law relating thereto

Summary of provisions

Section 1 - repeals paragraph (f) of section 713 of the Not-For-Profit Corporation Law.

Section 2 - amends subparagraphs 21 and 24 of paragraph (a) of section 102 of the Not-For-Profit Corporation Law.

Section 3 - effective date.

Purpose & justification

To modify the definitions of independent director and related party transactions, and to repeal a provision relating to an employee serving as chair of a board.

Certain not-for-profit corporations specifically hire a person to serve as the chair or president of their board, which is different from the typical situation of an employee-employer relationship. The current language in section 713 (f) does not adequately recognize this and the bill repeals current language with the expectation that a new provision will be enacted next year. The change in the definition of independent director addresses a conflict with the Insurance Law, and the change in the definition of related party transactions is intended to clarify that related party transactions only refer to matters that would come before the board for approval in the normal course of business.

Legislative history

New Bill.

Fiscal implications

None to state.

Effective date

This act shall take effect immediately provided that section two shall take effect on the same date an in the same manner as section 29 of Chapter 549 of the Laws of 2013

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.