NCGenWeb, Inc.
Nola Duffy's non-membership corporation
C'est la guerre.
Timeline:
03 July 2007: NCGenWeb, Inc., a North Carolina NON-membership
nonprofit corporation, was formed by Nola Duffy, then ASC of the
NCGenWeb Project, without the knowledge or approval of the membership
of the NCGenWeb Project, a membership project formed in 1996 as part of
the USGenWeb Project.
NOTE: NCGenWeb, Inc., was incorporated by a sole incorporator, Nola Duffy,
who specified on line 7 (b) of the Articles of Incorporation, that
NCGenWeb., Inc.
"will NOT have members." (see scanned image of Articles of Incorporation, below)
North Carolina General Statute § 55A, "North Carolina Nonprofit Corporation Act," differentiates between nonprofit corporations which will not have members and those which will have members. In
NON-membership nonprofit corporations, all voting rights and associated authority
are vested with the corporation's board of directors. By contrast, in corporations WITH members, members hold
specific legal rights regarding voting, termination of membership and other matters of authority regarding their corporation.
Sept. 2007: Nola
Duffy personally registers, in her own name, the internet domain
www.ncgenweb.us, and personally leases server space on BlueHost.com
sufficient to
house all of the NCGenWeb Project. On 15 March 2008, Nola posted that
she could transfer the domain to the project, stating, "although we
have not yet made a
decision about incorporation, I can, even at this point, transfer the
ownership to the NCGenWeb and change the contact person to Denise in her
capacity as SC." However, by 25 August 2008, the domain remained registered in her personal name.
9 (nine) months after NCGenWeb, Inc. was formed...
06 April 2008:
(motion 10 March 2008 by county coordinator of Vance County): the
membership of the NCGenWeb Project votes 31-0, with 3 abstentions, to
incorporate their project as a nonprofit MEMBERSHIP corporation. The project's membership is unaware that Nola Duffy has already incorporated NCGenWeb, Inc., as a NON-membership corporation.
NCGenWeb SC Denise Woodside never proceeds with the necessary steps for the membership to form its membership corporation.
The project's membership is never told of the existence of NCGenWeb, Inc.
13 (thirteen) months (1 year + 1 month) after NCGenWeb, Inc. was formed...
August 2008:
- The NCGenWeb Project's county coordinator of Vance County, a
professional journalist, discovered the record of NCGenWeb,
Inc. (see images, below), while researching North Carolina nonprofits for a story
unrelated to genealogy or the genweb projects.
- Note: it was the Vance
County Coordinator who made the 10 March 2008 motion for the NCGenWeb
Project to incorporate themselves as a *membership.*
- The Vance CC makes public Nola's NCGenWeb, Inc., a NON-membership corporation, and posts the scanned images of the incorporation papers to this web page, along with a timeline of events, to this web page (home.comcast.net/~teylu/ncgwinc.html) where they have been continually posted ever since.
- Nola defended her action without responding to why she incorporated NCGenWeb as a NON-membership corporation, or why she did so more than 8 months before the project's membership even considered a motion TO incorporate as a membership. She said that she, "personally incorporated the state as the first step toward getting the state ready to function as a corporation."
Nola failed to mention that she was sole incorporator of NCGenWeb,
Inc., therefore appointed whatever board the corporation might have.
She stated, "The charter shows that Denise is the current president and
Paul is the VP and I believe I show as the secretary."
The NC Secretary of State does not require filing of NCGenWeb,
Inc.'s charter or names of its directors. Neither have been
filed or presented to the NCGenWeb Project's membership.
- SC Denise Woodside reveals that she was aware Nola had incorporated
NCGenWeb, Inc. Denise offered no explanation for why she never told the
membership about the existing corporation, even after the membership had voted to form a *membership*
corporation.
Following the whoop-lah erupting after discovery of Nola's
NCGenWeb, Inc., there was no further discussion concerning Nola's NON-membership
corporation OR of the *membership* corporation which the project's
membership had voted in March-April 2008 to form, until July 2009,
following the election of a new SC.
-- UPDATE:
30 June 2009: Diane
Siniard was elected SC by a vote of 17-15, with 1 abstention.
There was one other candidate, Ron Dailey. The votes were cast by
emails sent to ASC Paul Buckley, who announced the results.
04 July 2009: Nola Duffy
announces, "We need to get our logo registered with the Sec. of
State. We had it registered at one time but it needs to be renewed and
properly registered to the NCGenWeb, Inc."
NOTE:
The NCGenWeb Project's logo,
in use since about 1996 and cleaned up
graphically in 1998, belongs to the project,
not to the private non-membership NCGenWeb, Inc. Following a
March 2001 vote of the project's membership to do so, then-SC Sharon Williamson
registered the logo with the NC Secretary of State's Trademarks Division
(registration #016354) in the name of the project (as an
"association"). Although not heard from in some time, Sharon was still listed as an
"eligible voter" in the project's June 2009 SC election.
Although registration of our logo is effective for 10 years, our 5-year renewal form, due in April 2006, was never filed.
From the NC Secretary of State, Trademarks Division:
"Once registered, a mark is effective
for ten (10) years and may be renewed for subsequent ten (10) year
terms so long as it continues in use in North Carolina. Please note,
however that after the expiration of five (5) years following initial
or renewal registration, you must submit a specimen to the Trademark
Section showing evidence of current use of the mark, as well as a
signed statement verifying the use of the mark."
07 July 2009: SC Diane Siniard announced a "logo
design contest" will be held "to design or redesign a logo for
NCGenWeb project ... so that we can all pick the best one to use on the
state site."
NOTE:
09 July 2009: The
Vance County Coordinator posts to NCGenWeb-L that the membership of the
NCGenWeb Project has no legal authority to vote or take any action
concerning its project logo or regarding anything concerning Nola's NON-membership
corporation, NCGenWeb, Inc:
"In a nutshell, we're hamstrung because we voted in April 2008 to form
our membership corporation unaware that NCGenWeb Inc. had been
incorporated back in July 2007 as a non-membership corporation. This
resulted in 2 problems under
state law, and a problem under
USGWP
bylaws. Specifically, state law precludes us (or anyone else) from
incorporating an existing corporation, and it grants voting rights &
associated control of non-membership corporations solely to the
corporation's directors. The latter, of course, puts NCGWP out of
compliance with USGWP national bylaws."
However, the Vance CC noted:
"I ran the problem past Daniel Crabb, supervisor in the Corporations
Division, who confirmed the easiest remedy, assuming everyone's
agreeable, is to treat it as a simple clerical error. One of NCGenWeb
Inc's corporate officers can file the 1-page
Form BE-02 "Articles of
Correction" specifying that item #7 within the original Articles of
Incorporation is in error and
should be corrected to: #7.a. "The
Corporation WILL have members." (it was incorporated as #7. b. "The
Corporation will NOT have members.") The form is submitted with a copy
of NCGenWeb Inc's Articles of Incorporation and a $10 fee."
NOTE:
Although former SC Denise Woodside, president of NCGenWeb, Inc.,
made a motion to file the Articles of Correction, no second was made by
a member of the board, and no known action by the board was taken.
The NC Secretary of State's Corporation Division has not received
Articles of Correction for NCGenWeb, Inc.
19 July 2009: A new NCGenWeb state web site is launched www.ncgenweb.us, the domain and server space personally leased by Nola Duffy. The NCGenWeb Project's logo is displayed on the site. The site also features a page showing "board members." The NCGenWeb Project has never had any bylaws, let alone a "board," so apparently this is the "board" of Nola's NON-membership corporation, NCGenWeb, Inc.
24 July 2009: SC Diane Siniard announces the project's state web site will be deleted from http://www.rootsweb.com/~ncgenweb/ where it has resided since June 1998.
30 July 2009:
NCGenWeb SC Diane Siniard, citing alleged "dissatisfaction
[shown] through various emails as well as the lack of
interest you have shown through your work on the Vance County site,"
notified the Vance County Coordinator that "the NCGenWeb Project Board
members have voted to remove you from the NCGenWeb Project." Diane also
immediately removed the Vance CC from all project email lists.
The NCGenWeb Project has never had bylaws, nor any type of
"board." The
"board" referenced by Diane apparently is that of Nola Duffy's NON-membership corporation, NCGenWeb, Inc.
The Vance coordinator is one of the original county coordinators of the
NCGenWeb Project. During her 13-years in the project there has never
been a complaint about her work as a CC or about her NCVance web site.
NOTE:
- Such action by the board of directors of a North Carolina membership corporation would be precluded under NC General Statute § 55A, "North Carolina Nonprofit Corporation Act."
- The action also is without grounds under the USGenWeb Project's bylaws.
- The Vance County Coordinator stated she will not file a grievance with the USGenWeb Project's Grievance Committee, of which Diane Siniard is chairwoman, because she has "no
interest in internet bullies and the games they play. My website is
just an extension of one of my hobbies, genealogy. I'll simply continue
to help Vance researchers as I've always done, but not with these
folks."
31 July 2009:
- Randolph County CC Trent Briles makes a motion "to poll the
current membership for sustainment of the current Board and ASC's (Ron
Dailey, Katherine Benbow, Taneya Koonce, and Derick Hartshorn)." Briles
follows his motion with another post calling for no discussion: "Since
I made the motion to sustain the current board and the ASC's, I prefer
not to discuss this and look forward to the vote."
- SC Diane Siniard sends out announcement and subscription
instructions for a new NCGenWeb email list running from Nola's personal
domain and web space http://ncgenweb.us/mailman/listinfo/ncgenweb_ncgenweb.us. The NCGenWeb Project's business and discussion email lists have been continuously operating on Rootsweb's servers since 1998.
01 August 2009: Nola
Duffy posts a message stating, "Our immediate issue, right or wrong, is
an attempt to treat the entire board as an "elected board".
Because we are now a corporation based on the decision of the CCs to
incorporate, we are faced with adopting By-Laws that will govern all of
us."
NOTE: But the NCGenWeb Project membership never voted to form the NON-membership corporation,
NCGenWeb., Inc. The project membership was not aware of
NCGenWeb., Inc. when it voted in March 2008 to form its own
*membership* corporation.
06 August 2009:
Diane Siniard announces, "The motion has passed to affirm the board as
we have it set up now. Katherine Benbow, Ron Dailey, Derick Hartshorn
and Taneya Koonce."
It appears that Nola Duffy's NCGenWeb, Inc., has effectively taken over
the former membership NCGenWeb Project which never formed its membership corporation.
C'est la guerre.
Also visit: NCGenWeb Project R.I.P.
Download .pdf file of NCGenWeb, Inc.'s articles of incorporation from the NC Secretary of State.
This may be downloaded at no charge directly from the web site of the NC Secretary of State.

