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Tennessee Code Title 48. Corporations and Associations § 48-56-302

Current as of January 02, 2024 | Updated by FindLaw Staff

(a) Unless the charter provides for the removal of a member and termination of a membership without cause, no member may be expelled or suspended, and no membership or memberships may be terminated or suspended except pursuant to a procedure which is fair and reasonable and is carried out in good faith.

(b) A procedure is fair and reasonable when either:

(1) The charter or bylaws set forth a procedure which provides:

(A) Not less than fifteen (15) days' prior written notice of the expulsion, suspension, or termination and the reasons therefor; and

(B) An opportunity for the member to be heard, orally or in writing, not less than five (5) days before the effective date of the expulsion, suspension, or termination by a person or persons authorized to decide that the proposed expulsion, suspension, or termination not take place; or

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

(c) A procedure is not necessarily unfair nor unreasonable:

(1) If a member's attorney is excluded from the hearing;

(2) If the member is not allowed to cross-examine adverse witnesses; or

(3) If the person or persons authorized to make the decision consider matters and evidence which would be inadmissible in a court of law.

(d) Any written notice given by mail must be given by first class or certified mail sent to the last address of the member shown on the corporation's records.

(e) Any proceeding challenging an expulsion, suspension or termination, including a proceeding in which defective notice is alleged, must be commenced within one (1) year after the effective date of the expulsion, suspension or termination.

(f) A member who has been expelled or suspended may be liable to the corporation for dues, assessments or fees.

(g) This section shall not apply to any amendment of the charter or bylaws meeting the requirements of chapters 51-68 of this title and § 48-60-302.

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Cite this article: FindLaw.com - Tennessee Code Title 48. Corporations and Associations § 48-56-302 - last updated January 02, 2024 | https://codes.findlaw.com/tn/title-48-corporations-and-associations/tn-code-sect-48-56-302/

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