§ 5513. Forum selection provisions.

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(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).

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(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.

15c5541h

SUBCHAPTER B

FINANCIAL MATTERS

Sec.

5541. Capital contributions of members.

5542. Subventions.

5543. Debt and security interests.

5543.1. Usury not a defense (Repealed).

5544. Dues and assessments.

5545. Income from corporate activities.

5546. Purchase, sale, mortgage and lease of real property.

5546.1. Insolvency or bankruptcy (Repealed).

5547. Authority to take and hold trust property.

5548. Investment of trust funds.

5548.1. Nonjudicial settlement agreement.

5549. Transfer of trust or other assets to institutional trustee.

5550. Devises, bequests and gifts after certain fundamental changes.

5551. Dividends prohibited; compensation and certain payments authorized.

5552. (Reserved).

5553. Liabilities of members.

5554. Annual report of directors or other body.

Subchapter Heading. The heading of Subchapter B was carried without amendment December 21, 1988, P.L.1444, No.177, effective October 1, 1989.

15c5541s