Directors of Nonprofit Corporation Have No Fiduciary Duty to Members

Court dismisses case claiming that director breached fiduciary duty to member

A director of a nonprofit corporation has a fiduciary duty to the corporation but only to the corporation and not to the individual members of the corporation, a federal District Court in New Jersey has ruled. It has dismissed, without leave to amend, a second amended complaint by a member of the National Association of minor league baseball teams against a member of the board. Sports Enterprises, Inc., a member of the Association, filed suit against Marvin Goldklang, a director, claiming a breach of duty owed by Goldklang to Sports Enterprises. A Court dismissed the first complaint with leave to amend. It has now dismissed the second amended complaint with prejudice. It did not elaborate...

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Directors of Nonprofit Corporation Have No Fiduciary Duty to Members

Directors of Nonprofit Corporation Have No Fiduciary Duty to Members