Saturday, November 15, 2008

Court Says It Can Decide On Validity of Board Expansion By Jewish School

In Schwimmer v Welz, (NY App. Civ., Nov. 12, 2008), a New York appellate court held that a civil court could decide whether an amendment to the certificate of incorporation expanding the number of board members of United Talmudic Academy of Boro Park, and the election of new board members under those amendments, were valid. The court said that even though the Academy is a religious corporation, deciding the case does not turn on religious issues: "Membership on the Board is not conditioned upon any religious criteria, and the issues raised with respect to the challenged status of the various individuals claiming to be Board members concern only notice requirements, requisites for the conduct of Board meetings and elections, and requirements for amending corporate documents." The case was remanded to the trial court for it to join additional necessary parties. [Thanks to J.J. Landa for the lead.]