Tennessee § 48-60-206 - Amendment to bylaws may not divert property held in trust for charitable purpose from that purpose — Exception — Financial benefit in connection with bylaws amendment prohibited — Exception.

§ 48-60-206. Amendment to bylaws may not divert property held in trust for charitable purpose from that purpose — Exception — Financial benefit in connection with bylaws amendment prohibited — Exception.

Property held in trust by a corporation or otherwise dedicated to a charitable purpose may not be diverted from its purpose by an amendment of its bylaws unless the corporation obtains an appropriate order of a court of competent jurisdiction to the extent required by and pursuant to the law of this state on cy pres or otherwise dealing with the nondiversion of charitable assets. Unless a corporation, after notifying the attorney general and reporter obtains an appropriate order of a court of competent jurisdiction under the law of this state on cy pres or otherwise dealing with the nondiversion of charitable assets, an amendment of its bylaws may not affect: Any restriction imposed upon property held by the corporation by virtue of any trust under which it holds that property; or The existing rights of persons other than its members. A person who is a member or otherwise affiliated with a public benefit corporation may not receive a direct or indirect financial benefit in connection with an amendment of the bylaws unless the person is itself a public benefit corporation or an unincorporated entity with a charitable purpose. This subsection (c) does not apply to the receipt of reasonable compensation for services rendered. Acts 2014, ch. 899, § 63; 2016, ch. 688, § 3.