ARS § 10-3621. Termination, expulsion and suspension

ARS § 10-3621. Termination, expulsion and suspension2018-01-14T10:37:49+00:00

A. No member of a corporation may be expelled or suspended, and no membership or memberships in such a corporation may be terminated or suspended, except pursuant to a procedure that is set forth in the articles of incorporation, bylaws or an agreement between the member and the corporation or a procedure that is otherwise appropriate.

B. For purposes of subsection A, a procedure is otherwise appropriate if either:

1. The following are provided:

(a) A written notice at least fifteen days before the expulsion, suspension or termination and the reasons therefor.

(b) An opportunity for the member to be heard, orally or in writing, at least five days before the effective date of the expulsion, suspension or termination by a person or persons authorized to decide that the proposed expulsion, termination or suspension should not take place.

2. It is fair and reasonable taking into consideration all of the relevant facts and circumstances.

C. Any written notice that is mailed shall be sent to the last address of the member shown on the corporation’s records.

D. Any proceeding challenging an expulsion, suspension or termination, including a proceeding in which defective notice is alleged, shall begin within six months after the effective date of the expulsion, suspension or termination.

E. A member who has been expelled or suspended may be liable to the corporation for dues, assessments or fees as a result of obligations incurred or commitments made prior to expulsion or suspension.

F. This section does not apply to corporations organized primarily for religious purposes.

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