Q: What section/article of MD Code deals with requirements for non-profit associations re: budget approval by board?
The board of our 501(c)(6) non-profit association is spread out geographically throughout the Eastern and Western Shores of MD, and our budget needs to be approved. We want to know if the State of Maryland Code allows voting on approval of our budget electronically (via email). Thank you.
A:
MD Code, Corporations and Associations, § 2-409. Place and notice of meetings
(a) Unless the bylaws of the corporation provide otherwise, a regular or special meeting of the board of directors may be held at any place in or out of the State or by means of remote communication.
(b)(1) Notice of each meeting of the board of directors shall be given as provided in the bylaws.
(2) Unless the bylaws provide otherwise, the notice:
(i) Shall be in writing or delivered by electronic transmission; and
(ii) Need not state the business to be transacted at or the purpose of any regular or special meeting of the board of directors.
(c) Whenever this article or the charter or bylaws of a corporation require notice of the time, place, or purpose of a meeting of the board of directors or a committee of the board, a person who is entitled to the notice waives notice if the person:
(1) Before or after the meeting delivers a written waiver or a waiver by electronic transmission which is filed with the records of the meeting; or
(2) Is present at the meeting.
(d)(1) Unless restricted by the charter or bylaws of the corporation, members of the board of directors or a committee of the board may participate in a meeting by means of a conference telephone or other communications equipment if all persons participating in the meeting can hear each other at the same time.
(2) Participation in a meeting by these means constitutes presence in person at the meeting.
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