State Ex Rel. Humphrey v. Delano Community Development Corp.

I respectfully dissent. While I agree with the legal principles articulated by the majority in this case, I would reach the opposite conclusion. My examination of the record before us persuades me that DCDC’s declared purpose and historical conduct plainly demonstrate that it is a nonprofit corporation and, therefore, that its assets may not legally be distributed to its shareholders.

This case calls upon us to determine the legal nature of DCDC. If DCDC is, as the majority states, a corporation formed for-profit, the shareholders have the power under law to dissolve the corporation and…