Court Allows Note Holders to Sue Officers and Directors for Securities Violations
Complaint is sufficient if it gives defendants notice; It need not plead specific facts or knowledge

Even Though Beneficiaries Agree
Attorney General opposes proposal to distribute all assets outright to charitable beneficiaries

Insurance Carrier Must Pay Legal Fees When It Fails to Provide Defense Under Policy
Court grants summary judgment to school to recover costs of defense before carrier appoints counsel

Challengers Fail To Stop Sale of Audubon Folio 
Members presented no evidence that bylaw changes expanding membership voting were not properly approved

Ready Reference Page
Grantmakers May Not Support Terrorism
Welter of new and revised rules make it difficult to know how to comply with governmental expectations 

Issues Notes

Happy vacation
Kramer to talk on Lobbying, Tax Returns
Thursday with the Editor, September 1

To the Point

I understand that a foundation cannot make a grant to a nonprofit, where the grant is more than half of the agency's budget. For example, if a nonprofit's annual operating budget is $100,000, a foundation cannot make a grant of $51,000, the theory being that it may be able to exert undue influence and "tip" the agency to do the foundation's bidding. Is this true?

Lessons from Litigation

• Who are the victims? And for how much?
• Articles of incorporation are contract with nonprofit shareholders

Tax Matters

• Museum Foundation is private nonprofit
• Remote housing units not exempt

Employment Law

• Court invalidates covenant not to compete
• signed by home health agency field workers

Say That Again?