16-6a-826 - Common members, directors, or officers.
16-6a-826. Common members, directors, or officers.
(1) Two or more nonprofit corporations may have members, directors, or officers that arecommon to each nonprofit corporation.
(2) The fact of common members, directors, or officers in two or more nonprofitcorporations may not, by itself, create an inference that the nonprofit corporations individually orcollectively:
(a) are agents or alter egos of one another; or
(b) have been formed or availed of, for an improper purpose.
(3) The doctrine of "piercing the corporate veil" may not be applied to one or morenonprofit corporations solely because of the fact of common members, directors, or officers.
Amended by Chapter 127, 2001 General Session