Phil Dirt raises one or two important questions.
First, he suggests that the board of directors is shirking its duty by referring the matter of the amendment to our articles of incorporation to the membership for a vote. Here is a portion of the board committee report to the board on this particular point. The Oregon Revised Statutes, Article 65, governs non-profit corporations.
“To convert our tax status, we need to amend our Articles of Incorporation on file with the Oregon Secretary of State. Those amendments would include altering slightly the purpose for which the corporation was organized, and altering the language concerning income and disposal of corporate assets upon dissolution.
“It appears that the board of directors has no authority to make such amendments. Section 65.434 of the Oregon Non-Profit Corporations Law generally provides that “a corporation’s directors may adopt one or more amendments to the corporation’s articles without member approval”, but then limits the subject matter of directors’ amendments to five things, all of them of minor importance, and none including the amendments necessary to convert our tax-exempt status. Our own bylaws provide:
“Section 10.01. The board of directors shall have the power by majority vote to alter, amend, or repeal the by-laws, or to adopt new by-laws for the management of the club affairs so long as they do not conflict with the existing laws applicable to non-profit corporations for the state of Oregon and so long as they do not conflict with the stated purpose of the club in Section 1.02. [Amended July 25, 1998. Note: This includes amending the Articles of Incorporation. Please refer to the Articles of Incorporation.]”
“The Articles of Incorporation currently state in pertinent part: “The business and affairs of this corporation, including amending the Articles of Incorporation as necessary, shall be managed by a Board of Directors.” This provision can not avoid the limitations on the power to amend the Articles of Incorporation found in Section 65.434 of the Oregon statute. Further, it was unnecessary to place that provision in the Articles of Incorporation as the board already had authority to amend the Articles of Incorporation (although limited as to subject matter).
“Therefore, the membership must approve any of the proposed changes to the articles of incorporation. Section 65.437(b) of the Oregon Non-Profit Corporations Law provides that approval of such amendments requires “at least two-thirds of the votes cast or a majority of the voting power, whichever is less”. Section 65.001(45) defines “voting power” as “the total number of votes entitled to be cast on the issue”. Voting power in our club is about 3,200 votes. Clearly, 2/3 of the votes actually cast are the lesser amount, and accordingly, the amendments must be approved by 2/3 of the votes cast."
Second, Phil suggests that the club is not a democracy. Well, the answer is, it is a representative democracy. While it is true that the Oregon Revised Statutes gives the board of directors the responsibility for the business and affairs of the corporation, the members elect the board, and the members can remove the individual members of the board. So the board is ultimately answerable to the members of the club. Does not that sound something like "democracy"?
As for the possibility that someone will commit fraud and submit multiple copies of the ballot, it is possible but not probable. If it happens, we can defer the matter to a live meeting of members at the 2008 Woodland show, and vote all over again. I can't see any reason why someone would be dishonest about the matter - the vote, either way, doesn't put any money in anybody's pocket, and there is no obvious advantage to an individual member in throwing the election. If you want to stretch that far, it would make ordinary every-day life next to impossible. We will see what happens.
GWH