(a) The majority group of any local organization may withdraw from the parent organization and, upon withdrawal, shall be permitted to devote the fraternal property to the uses originally intended free of the influence of the trust clause; provided, that the facts upon which the right of withdrawal is conditioned under this section shall be judicially determined to exist in and by a judicial proceeding as provided for in this article.
(b) While this article is not intended to control any rules, fraternal, educational, social, or other formula or practice of the parent organization, one of its purposes is to afford an effective remedy and procedure for the preservation and protection of trust, charitable, educational, or fraternal property from impairment or loss thereof when the intended trust use thereof is threatened as a proximate result of subsequent action by the parent organization inconsistent with the basic intent or assumption inherent in, or expressed and fixed before, during, or in, the acquisition or dedication thereof.
Structure Code of Alabama
Title 10A - Alabama Business and Nonprofit Entities Code.
Chapter 20 - Special Purpose Entities.
Article 8 - Local Fraternal Orders.
Section 10A-20-8.01 - Definitions.
Section 10A-20-8.02 - Right of Majority Group of Local Organization in Fraternal Property.
Section 10A-20-8.04 - Right to Set Up Unit Independent of Parent Corporation.
Section 10A-20-8.05 - Declaratory Actions - Institution of Action.
Section 10A-20-8.06 - Declaratory Actions - Service of Process.
Section 10A-20-8.07 - Declaratory Actions - Averments of Plaintiff.
Section 10A-20-8.08 - Declaratory Actions - Judgment.
Section 10A-20-8.10 - Effect of Article on Existing Liens or Mortgages.