BlueSKy

Court refuses to pierce corporate veil of hospital and foundation

Court refuses to pierce corporate veil of hospital and foundation

Court refuses to pierce corporate veil of hospital and foundation

An appellate court in Texas has refused to pierce the corporate veil between a hospital and its fundraising foundation and has refused to require the hospital to disclose financial information to the public. The Texas Business Organization Law provides that a nonprofit corporation must make its financial books and records available for public inspection, but provides an exception, among others, for a nonprofit that does not intend to solicit or actually receive contributions of more than $10,000 a year from a source other than its own membership. An attorney sought a lengthy list of financial documents from the Knapp Medical Center but the hospital refused on the ground that it did not...

lock The full text of this article is available to paid subscribers only. Login or subscribe to read more

 

Sign-up for our weekly Q&A; get a free report on electioneering