Ousted Directors Must Join Nonprofit in Suit to Recover Seats

Ousted Directors Must Join Nonprofit in Suit to Recover Seats

Corporation is deemed a “necessary and indispensible” party for declaratory judgment

A suit invalidating the ouster of two directors of a nonprofit corporation has been reversed because the ousted directors sued only the other directors individually and did not join the corporation itself as a party to the action.  An appellate court in Missouri has held that the corporation was a “necessary and indispensible” party to the declaratory action and failure to join it as a party to the suit required reversal of the trial court’s decision.

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