Connecticut House Bill HB05633

Connecticut 2019 Regular Session

• Introduced: 1/18/19
• Refer: 1/18/19

Caption

An Act Concerning Persons Who May Serve As The Directors Or Officers Of A Nonstock Corporation.

Impact

The bill's passage would amend existing regulations found in sections 33-1081 and 33-1109 of the general statutes. By instituting this eligibility requirement, it aims to enhance the integrity of nonstock corporations, which are often established for charitable, educational, or community-focused purposes. The underlying intent is to protect the interests of stakeholders in these corporations by ensuring that their leadership is composed of individuals with a cleaner background, thus potentially fostering trust among members and the public.

Summary

House Bill 05633 addresses the eligibility of individuals to serve as directors or officers within nonstock corporations. The key provision stipulates that individuals who have been convicted of a felony within the past ten years are ineligible for such positions. This legislation seeks to ensure that the leadership within nonstock organizations is maintained by individuals who have not recently engaged in serious criminal activity, promoting greater accountability within these entities.

Contention

Notably, while the legislation is aimed at safeguarding nonprofit governance, it raises questions around fairness and rehabilitation. Some opponents may argue that the ten-year disqualification period could unduly penalize individuals who have served their time and reformed. This point of contention may spark discussions about second chances and the balance between organizational integrity and inclusive leadership practices. Critics could express concerns that such a prohibition may limit the pool of qualified candidates, potentially hindering the operational effectiveness of nonstock corporations.