Our board would like to eject a troublesome individual from our club. The individual has requested a formal hearing but, frankly, we're not really inclined to waste our time that way. However, club members are common stock holders and we're not really sure what that means in this context.
In NH, is it allowable/legal for a non-profit board to deny a hearing to a stock-holder before terminating their stock?
First, if the rules or procedures of your organisation deal with disciplinary actions, then they must be strictly followed. Failure to do so is a denial of procedural fairness and will render the action invalid.
Irrespective of your rules:
Before expulsion, a member must be served the following:
- a notice of intention to proceed;
- a recital of the charges or accusations; and
- a fair, impartial hearing at which the member may respond to charges.
Given that you are “not really inclined to waste our time that way”, it seems unlikely that the member will receive “a fair, impartial hearing”. It might be advisable to appoint a disinterested third-party to conduct and rule on the hearing.
