In the Absence of Law. The legal frame of an Non-Profit Association's General Assembly resolution.

Abstract: The first aim of this study is to investigate what it takes for a nonprofit association (NPA) to become a legal entity, specifically regarding requirements addressing decision-making organs within the NPA’s organization. Secondly, since within the legal framework of associations there exist general principles of law, this study also explores which general principles of law are applicable to a general assembly meeting and how these general principles affect the decision-making process. Thirdly, this study aims to investigate what possibilities members of NPAs have to put forward proceedings in response to a faulty resolution. Finally, this study has, in a limited form, tried to look into the question of whether the freedom of association would affect, or be affected by, the general assembly’s decision-making process. In this essay, the traditional legal method has been utilized in order to identify the fundamental legal principles that are applicable to NPAs. Since there is only one particular law for religious associations, a law that is very limited, one can state that most of the legal principles applicable to NPAs are unwritten rules. Research has revealed that even in the absence of law there is law. The legal framework of NPAs consists of mandatory requirements for the NPA’s constitution and form of organization as well as the freedom of association and general principles of law. Among the general principles of law, the general clause and the principles of equal treatment, majority rule, and conflict of interest have been identified as applicable to an NPA general meeting. The analysis shows that in order for an association to become a legal entity in the form of an NPA, it must have a hierarchical structure with a board and a general assembly. The NPA must conduct annual general meetings or similar. It seems that the NPA must be of a democratic nature. Non-democratic nonprofit associations that would like to become legal entities should organize themselves in the form of a different type of association. An NPA is not at liberty to abandon majority rule. The freedom an association has as a legal entity to decide internal matters is, in practicality, quite limited. This limitation of power is, however, not perceived as a limitation by legal authorities but as minority protection rules designed to protect members and third parties. An implication of the principle of equal treatment is a profound protection against abuse. Moreover, probably in particular because of the more democratic nature of NPAs, members have extensive rights to take action against faulty resolutions.