Santa Cruz, CA asked in Business Law for California

Q: Is the following Bylaw retroactive: No Member shall serve on the Board for more than 6 years in any 10-year period.

Our bylaws for our non-profit corporation contain the above rule. Some are considering that the law is NOT retroactive. I believe that the use of the word “any” extends the time frame into the past. Most of the members polled believe the intent of the law was to apply it immediately to any Board Director.

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3 Lawyer Answers
Robert Kane
Robert Kane
Answered
  • Eagan, MN
  • Licensed in California

A: Generally, laws that are retroactive are unconstitutional. See "ex post facto." In order for a law to be retroactive it must be clearly stated. The word "any" would fall far short expressing the law is retroactive. Amending the bylaws wouldn't come under the same scrutiny, but the same premise should be contemplated. In your example, the amendment wouldn't be retroactive, but you just want to know if you can look back to enforce the amendment. I believe you can. Any members elected before the amendment was adopted, however, should be allowed to serve out their term. Otherwise, it would be retroactive. This is my opinion based solely on your post.

Robert Kane
Robert Kane
Answered
  • Eagan, MN
  • Licensed in California

A: This is not to say those members to be prohibited from serving are without an argument.

James L. Arrasmith
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Answered
  • Sacramento, CA
  • Licensed in California

A: To determine the retroactive nature of a bylaw, it is crucial to interpret the language used and consider the intent behind its implementation. In the case of the bylaw you mentioned, the use of the word "any" in the phrase "in any 10-year period" suggests that the time frame extends beyond the date of its adoption. This indicates that the bylaw applies to both past and future board members. However, the definitive interpretation of the bylaw's retroactive nature should be based on the specific language of the bylaw itself, as well as any additional guidance or legal advice provided by an attorney familiar with nonprofit law. Consulting with legal professionals will ensure a clear understanding of the bylaw's applicability and its potential retroactive effect in your specific context.

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