View Author 4 November 2011
As part of a comprehensive reform of the District of Columbia’s business organizations law, the Council of the District of Columbia approved the Nonprofit Corporation Act of 2010 (the “new Act”), which applies as of January 1, 2012. The new Act sets defaults and parameters for the governance of the affairs of nonprofit corporations formed under the laws of the District of Columbia. The new Act and other provisions of the District’s new Business Organizations Code address items not covered in the current Nonprofit Corporations Act (the “old Act”) and address other items in greater detail. New provisions of note impose new requirements on membership organizations, mandate the protection of certain assets, codify fiduciary standards for directors and broaden indemnification of officers and directors.