South Carolina General Assembly
107th Session, 1987-1988

Bill 2500

                    Current Status

Bill Number:               2500
Ratification Number:       277
Act Number                 192
Introducing Body:          House
Subject:                   Nonprofit corporations, to provide
                           immunity from suit of directors, trustees, or
                           members of governing bodies of electric
                           cooperatives and not-for-profit corporations,
                           organizations, and associations
View additional legislative information at the LPITS web site.

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A192, R277, H2500)

AN ACT TO AMEND CHAPTER 31 OF TITLE 33, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO NONPROFIT CORPORATIONS GENERALLY, BY ADDING SECTION 33-31-180 SO AS TO PROVIDE IMMUNITY FROM SUIT OF DIRECTORS, TRUSTEES, OR MEMBERS OF GOVERNING BODIES OF ELECTRIC COOPERATIVES AND NOT-FOR-PROFIT CORPORATIONS, ORGANIZATIONS, AND ASSOCIATIONS WHICH ARE EXEMPT FROM FEDERAL INCOME TAXATION EITHER UNDER THE PROVISIONS OF SECTION 501(c)(3), (c)(6), OR (c)(12) OF THE INTERNAL REVENUE CODE OF 1986 AND TO PROVIDE EXCEPTION TO IMMUNITY.

Be it enacted by the General Assembly of the State of South Carolina:

Findings

SECTION 1. The General Assembly finds that the services of not-for-profit boards are critical to the efficient conduct and management of the public and charitable affairs of the citizens of this State. Members of these not-for-profit boards must be permitted to operate without concern for the possibility of litigation arising from the discharge of their duties as policymakers.

Immunity from suit

SECTION 2. Article 1 of Chapter 31 of Title 33 of the 1976 Code is amended by adding:

"Section 33-31-180. (A) All directors, trustees, or members of the governing bodies of not-for-profit cooperatives, corporations, associations, and organizations described in subsection (B) are immune from suit arising from the conduct of the affairs of these cooperatives, corporations, associations, or organizations. This immunity from suit is removed when the conduct amounts to wilful, wanton, or gross negligence. Nothing in this section may be construed to grant immunity to the not-for-profit cooperatives, corporations, associations, or organizations.

(B) Subsection (A) applies to the following:

(1) electric cooperatives organized under Chapter 49 of Title 33;

(2) not-for-profit corporations, associations, and organizations, as recognized in and exempted from taxation under Federal Income Tax Code Section 501(c)(3), (c)(6), or (c)(12)."

Time effective

SECTION 3. This act takes effect upon approval by the Governor.