SENATE JUDICIARY COMMITTEE
ASSEMBLY, No. 2844
STATE OF NEW JERSEY
DATED: JUNE 5, 1997
The Senate Judiciary Committee reports favorably Assembly Bill No. 2844 (1R).
Currently, any nonprofit corporation which has had its certificate of incorporation or certificate of authority revoked for failure to file an annual report with the Secretary of State may, within two years of the revocation, make an application for reinstatement. The corporation must also pay double the amount of the fee and file a current annual report. This bill would eliminate the two year limitation period for reinstatement and establish a procedure for reinstatement similar to the procedure for the reinstatement of business corporations.
The bill provides that any nonprofit corporation having its certificate of incorporation or its certificate of authority revoked may cause a reinstatement of the certificate upon payment to the Secretary of State of: the fee payable upon the filing of the certificate of incorporation; a current annual report fee; and a $50.00 reinstatement filing assessment.
The bill also provide that the reinstatement would relate back to the date of revocation of the certificate and all actions taken in the interim would be validated. These modifications will prevent nonprofit corporation, which include charities, from being dissolved solely as a result of the failure to file an annual report, which is inconsistent with the treatment of business corporations.
In addition, the bill makes provisions for a situation in which the corporate name becomes unavailable in the interim.