Establishes that no corporation shall have a membership comprised of fewer than three persons, except for a corporation that has no members; may have a corporation, joint-stock association, unincorporated association or partnership as a sole member, if it is owned or controlled by no fewer than three persons.
STATE OF NEW YORK
April 10, 2018
Introduced by M. of A. PAULIN, COOK, MONTESANO, BARRON, GUNTHER, JAFFEE,
MAGNARELLI, RIVERA, ERRIGO, GALEF -- Multi-Sponsored by -- M. of A.
CROUCH, LAWRENCE -- read once and referred to the Committee on Corpo-
rations, Authorities and Commissions -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
AN ACT to amend the not-for-profit corporation law, in relation to
requiring that no corporation have a membership of fewer than three
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph (a) of section 601 of the not-for-profit corpo-
2 ration law, as amended by chapter 549 of the laws of 2013, is amended to
3 read as follows:
4 (a) A corporation shall have one or more classes of members, or, in
5 the case of a charitable corporation, may have no members, in which case
6 any such provision for classes of members or for no members shall be set
7 forth in the certificate of incorporation or the by-laws. Corporations,
8 joint-stock associations, unincorporated associations and partnerships,
9 as well as any other person without limitation, may be members, provided
10 however, that effective July first, two thousand nineteen, no corpo-
11 ration except a corporation that has no members, shall have a membership
12 comprised of fewer than three persons. A corporation may have a corpo-
13 ration, joint-stock association, unincorporated association or partner-
14 ship as a sole member, if such corporation, joint-stock association,
15 unincorporated association or partnership is owned or controlled by no
16 fewer than three persons.
17 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 is old law to be omitted.