(a) General rule.--The bylaws may require that an internal corporate claim must be brought exclusively in a specified court or courts of this Commonwealth and, if so specified, also in other courts sitting in this Commonwealth or in any other jurisdiction with which the nonprofit corporation has a reasonable relationship.
(b) Jurisdiction.--A provision of the bylaws adopted under subsection (a) shall not have the effect of conferring jurisdiction on any court or over any person or claim and shall not apply if none of the courts specified in the provision has the requisite personal and subject matter jurisdiction. If none of the courts of this Commonwealth specified in a provision adopted under subsection (a) has the requisite personal and subject matter jurisdiction and another court of this Commonwealth does have such jurisdiction, then the internal corporate claim may be brought in the court with jurisdiction, notwithstanding that it is not specified in the provision.
(c) Definition.--For the purposes of this section:
(1) Except as provided in paragraph (2), "internal corporate claim" means:
(i) an action that is based upon an alleged violation of a duty owed to the nonprofit corporation under the laws of this Commonwealth by a current or former director, member of an other body, officer or member in that capacity;
(ii) a derivative action or proceeding brought on behalf of the corporation;
(iii) an action asserting a claim arising pursuant to any provision of:
(A) this title;
(B) the articles of incorporation or bylaws; or
(C) an agreement regarding the governance of the corporation or the transfer of memberships in the corporation if:
(I) the corporation and at least one member are parties to the agreement or stated or intended beneficiaries thereof; and
(II) the agreement is entered into after the adoption of the forum selection provision under this section and the agreement does not contain an inconsistent forum selection provision; or
(iv) any action asserting a claim regarding the internal affairs of the corporation that is not included in subparagraphs (i), (ii) and (iii).
(2) An internal corporate claim does not include a claim, action or proceeding described in paragraph (1) that is subject to section 5107 (relating to subordination of subpart to canon law).
(Nov. 3, 2022, P.L.1791, No.122, eff. 60 days)
2022 Amendment. Act 122 added section 5513.
Cross References. Section 5513 is referred to in section 102 of this title.
Structure Pennsylvania Consolidated & Unconsolidated Statutes
Pennsylvania Consolidated & Unconsolidated Statutes
Title 15 - CORPORATIONS AND UNINCORPORATED ASSOCIATIONS
Chapter 55 - Corporate Powers, Duties and Safeguards
Section 5501 - Corporate capacity
Section 5503 - Defense of ultra vires
Section 5504 - Adoption, amendment and contents of bylaws
Section 5505 - Persons bound by bylaws
Section 5506 - Form of execution of instruments
Section 5507 - Registered office
Section 5508 - Corporate records; inspection by members
Section 5509 - Bylaws and other powers in emergency
Section 5510 - Certain specifically authorized debt terms
Section 5511 - Establishment of subordinate units
Section 5512 - Informational rights of a director
Section 5513 - Forum selection provisions
Section 5541 - Capital contributions of members
Section 5543 - Debt and security interests
Section 5543.1 - Usury not a defense (Repealed)
Section 5544 - Dues and assessments
Section 5545 - Income from corporate activities
Section 5546 - Purchase, sale, mortgage and lease of real property
Section 5546.1 - Insolvency or bankruptcy (Repealed)
Section 5547 - Authority to take and hold trust property
Section 5548 - Investment of trust funds
Section 5548.1 - Nonjudicial settlement agreement
Section 5549 - Transfer of trust or other assets to institutional trustee
Section 5550 - Devises, bequests and gifts after certain fundamental changes
Section 5551 - Dividends prohibited; compensation and certain payments authorized
Section 5553 - Liabilities of members
Section 5554 - Annual report of directors or other body
Section 5585 - Establishment or use of common trust funds authorized
Section 5586 - Restrictions on investments
Section 5587 - Determination of interests