Legal Question in Business Law in Louisiana

Private club

300 shares of stock, stockholder and associate members, Corporation with Articles stating that if you own more than one share, can only vote one ''And'' must be an active member. I think both are legally wrong. In that if you purchase a share of stock, you should be able to vote it. Secondly, if you own multiple shares, you should be able to votes those as well. This is a private country club with no other ownership other than the stockholders. Is the club violating the law by holding to the articles that allow only one vote per active member. I realize there are more stock classes but here only the one. Is there case law that challenges this type of voting rights. Second question, a proxy went out with votes on several issues. The only two catagories to vote were yes and abstain to assign your proxy to the board. No was not an options. You had to be present to physically stand and vote against the two items. Is this proxy legal? thank you for your answers and I realize the difficulity in other information needed.


Asked on 4/02/09, 6:58 pm

1 Answer from Attorneys
Nick Pizzolatto, Jr. Pizzolatto Law Office

Re: Private club

My knee jerk reaction is that the Articles and by-laws are the law of the Corporation. What is the benefit of owning more than 1 share if you have no greater say so in decision making. As you said, more details are necessary, but I do not believe anything you wrote was "illegal."

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Answered on 4/03/09, 7:59 am


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