Sec. 2. A nonprofit hospital corporation described in section 1 of this chapter must have articles of incorporation, a constitution, or bylaws that provide that:

(1) the corporation’s incorporators are the corporation’s first board of trustees and the board:

Terms Used In Indiana Code 16-23-5-2

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
(A) is the corporation’s sole governing board; and

(B) elects the board’s successors at stated periods from reputable citizens of the city and vicinity, who:

(i) may include one (1) licensed physician; and

(ii) must be persons interested in the benevolent work of the hospital, chosen without reference to political or sectarian influence, and who receive no compensation for their services; or

(2) the corporation’s general corporate powers will be exercised by a governing board, whose members:

(A) may include one (1) licensed physician;

(B) must be residents of the city in which the hospital is located; and

(C) must be elected by a board of electors consisting of representatives from each organized church, religious association, fraternal, charitable, military, patriotic, civic organization, and labor union in the city.

[Pre-1993 Recodification Citation: 16-12.2-1-1(a) part.]

As added by P.L.2-1993, SEC.6.

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