CHAPTER 8. RESIGNATION AND TERMINATION OF MEMBERS

IC 23-17-8
    Chapter 8. Resignation and Termination of Members

IC 23-17-8-1
Resignation; liability for obligations
    Sec. 1. (a) A member may resign at any time.
    (b) The resignation of a member does not relieve the memberfrom any obligations the member may have to the corporation as aresult of obligations incurred or commitments made before aresignation.
As added by P.L.179-1991, SEC.1.

IC 23-17-8-2
Expulsion, suspension, or termination; procedures; limitation ofactions; liability for obligations
    Sec. 2. (a) A member of a public benefit or mutual benefitcorporation may not be expelled or suspended and a membership ormemberships in such a corporation may not be terminated orsuspended except under a procedure that is:
        (1) fair and reasonable; and
        (2) carried out in good faith.
    (b) A procedure is fair and reasonable under either of thefollowing conditions:
        (1) The articles of incorporation or bylaws set forth a procedurethat provides the following:
            (A) Not less than fifteen (15) days prior written notice of theexpulsion, suspension, or termination and the reasons for theexpulsion, suspension, or termination.
            (B) An opportunity for the member to be heard, orally or inwriting, not less than five (5) days before the effective dateof the expulsion, suspension, or termination by a personauthorized to decide that the proposed expulsion,termination, or suspension should not take place.
        (2) The procedure is fair and reasonable taking intoconsideration all of the relevant facts and circumstances.
    (c) Written notice given by mail must be given by first class orcertified mail sent to the last address of the member shown on thecorporation's records.
    (d) A proceeding challenging an expulsion, a suspension, or atermination, including a proceeding in which defective notice isalleged, must be commenced within one (1) year after the effectivedate of the expulsion, suspension, or termination.
    (e) A member who has been expelled or suspended or whosemembership is terminated may be liable to the corporation for dues,assessments, or fees as a result of obligations incurred orcommitments made before expulsion, suspension, or termination.
As added by P.L.179-1991, SEC.1.

IC 23-17-8-3
Purchase of memberships or membership rights; public benefit or

religious corporation; mutual benefit corporation
    Sec. 3. (a) A public benefit or religious corporation may notpurchase any of the corporation's memberships or any right arisingfrom a membership.
    (b) A mutual benefit corporation may purchase the membershipof a member who resigns or whose membership is terminated for theamount and under the conditions set forth in or authorized by thecorporation's articles of incorporation or bylaws. A payment may notbe made in violation of IC 23-17-21.
As added by P.L.179-1991, SEC.1.