A bill supported by NJBIA that would allow members of nonprofit corporations to participate in meetings via remote communication, beyond a state of emergency, was released Monday by the Senate Commerce Committee.
The bipartisan legislation, S-4112, sponsored by Senators Anthony Bucco (R-25) and Patrick Diegnan (D-18), clarifies that remote meetings among nonprofit corporations, currently allowed as a result of New Jersey’s response to the pandemic, will be able to continue regardless of any state of emergency – to the extent a board authorizes and adopts guidelines governing such a meeting.
“We think this is just good, common-sense policy,” said NJBIA Vice President of Government Affairs Christopher Emigholz. “It’s good to lean into some positive changes resulting from the pandemic, especially as online meetings are often less expensive for nonprofits to hold and more convenient for participants.
“Virtual meetings typically generate higher attendance and greater engagement. Allowing our nonprofit corporations to have that flexibility on a permanent basis will be of great benefit,” Emigholz noted.
Earlier this year, Gov. Phil Murphy signed into law legislation, also supported by NJBIA, that gives corporations and other financial institutions the flexibility to permanently conduct fully remote shareholder meetings.