Theos-Talk Archives (June 1996 Message tl00310)

On Wed, 5 Jun 1996, Dr. A.M.Bain wrote:

> In message <2.2.32.19960605182554.006cf550@mail.slip.net>, alexis
> dolgorukii <alexei@slip.net> writes
> >The TSA has for too long been monopolized by a small and
>>>clip>>>
> If I understand Sy correctly, it may be that the laws of Illinois (or
> even Federal law) could be in direct conflict with the articles of
> association of the T.S. (Adyar) - which would put the TSA in a similar
> situation to Canada ... if so, one of them would have to change, or the
> TSA would have to quit being a Section under Adyar rules ...
>>> clip >>>

	There are two issues relating to this. First the Illinois Law and
second is the Federal Tax Laws.

	The second is critical one from tax exempt status. Federal Tax
laws do not allow a non US entity to control tax exempt organization. The
control has to reside in the USA. So TSA cannot have a clause in the
ByLaws which says whenever International Rules change, they automatically
apply to TSA. As changes take place in International Rules, they have to
be submitted to the membership for voting per the bylaws of TSA per
Illinois Laws and has to be approved by members by majority votes. Then
only the International Rule change can be reflected in the Bylaws of TSA.
If members do not approve a change, then the change cannot be applied in
administering TSA. There seems to be some confusion in the minds of some
people as if International Rule overrides the TSA Bylaws by virtue of the
Charter provided by the International Headquarters. If Federal Tax laws
are violated, then it could have serious retroactive tax consequences.
What is even more serious is, if there is any hint of any indirect
control of the TSA from Adyar, this could be investigated by Federal Tax
Authorities and as such investigations are made under penalties of
perjury. If such control can be proven, then Federal Tax authorities may
vigorously investigate and it may lead to action from Illinois State
authorities. While I am not a lawyer, (BTW Sy is), this is the general
scenario and it would be in the interests of TSA to be aware of all these
implications.

	....Ramadoss