A court ruled that the directors of a nonprofit corporation breached their fiduciary duty of care in managing the corporation's investments.

To illustrate, the nonprofit corporation laws of many states specify that a 'quorum' will constitute 10% of the active voting members.

Several state nonprofit corporation laws specify that board members are personally liable for approving a transaction that violates a board member's fiduciary duty of loyalty.

First, many state nonprofit corporation laws prohibit loans to officers and directors.

The nonprofit corporation laws of most states prohibit loans to directors and officers.