>Message: 21
>Date: Mon, 23 Apr 2001 08:39:49 -0500
>From: "Barbara Nelson" <[EMAIL PROTECTED]>
>To: [EMAIL PROTECTED], "Minneapolis Issues" <[EMAIL PROTECTED]>
>Subject: Re: [Mpls] Accountability in NRP
>
>. . .
>Is there an attorney on the list who can, in plain English, explain what
>happens
>to Officers and/or Directors found sleeping at the wheel when good-hearted
>non-profit organizations do terrible things to vulnerable people?
>
>Barbara Nelson
>Seward
I'm not an attorney, but I had to research this issue a few years
back for another organization's board. Here is what I found at that time
(and I don't think any of these laws have changed since):
In Minnesota, Directors of non-profit organizations who volunteer
their services (unpaid) are protected by law from being personally liable
for actions of the non-profit corporation. The only exception to this is
if it can be proved that the directors acted with 'actual malice' (which
was defined to me as "you knew it was illegal, but you voted to go ahead
and do it anyway"). This is quite a tough standard to prove in court; just
"sleeping at the wheel" (legally, neglect or malfeasance) would not qualify.
This was passed by the Mn Legislature with the specific intent of
protecting directors of non-profit organizations from any risk of losing
their house, car, bank account, etc. in a lawsuit over the actions of the
non-profit corporation. It was done to deal with the problem of non-profit
groups like girl scouts, church boards, soccer leagues, etc. having
difficulty finding people willing to serve as directors when they faced
this risk of personal liability.
So I think that NRP Boards of Directors are protected by these laws, as
long as the NRP is a non-profit corporation, and the directors volunteer
their services, without pay.
Tim Bonham, Standish Erickson
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