A judge ruled April 23 that Shorter College can proceed with its plan to dissolve and transfer its assets to a newly formed foundation, but the Georgia Baptist Convention (GBC) still has the right to elect the college’s board of trustees.
DeKalb County Superior Court Judge Daniel Coursey Jr. lifted a temporary restraining order, allowing the college’s plan for reorganization to move forward.
But the judge also ruled that the GBC, though not an ‘owner’ of the college, has the right to elect under college’s board of trustees. Under the reorganization plan, however, it appears that elected trustees of the college will have little power.
Shorter College, located in Rome, Ga., has 2,100 students and has been affiliated with the GBC since 1959.
Late last year, the Shorter College board of trustees voted to sever ties with the GBC and transfer the assets of the college, estimated at $50 million, to the Shorter College Foundation.
This action was taken in response to a March 2002 report by the Southern Association of Colleges and Schools that claimed “undue pressure is being placed on the board of trustees by an outside agency, namely the Georgia Baptist Convention” and recommended the school change its bylaws.
The convention, however, said the reorganization was an attempt to “steal” the college from Georgia Baptists.
Unclear ruling
The April 23 ruling left both sides claiming victory but several key issues unclear. Judge Coursey noted the ruling is likely to be reviewed by the Georgia Supreme Court.
“We won the case,” Shorter president Ed Schrader told the Rome News-Tribune.
“The J=judge saw we had the right to reincorporate the college,” he said.
But the GBC issued a statement saying the convention is “gratified” that the convention still has the right to elect trustees. “The convention believes it would be a mistake for Shorter to continue with its dissolution in that it is not in the best interest of the college, its students or its financial viability.”
It is unclear if the college will have to seat trustees nominated by the convention last November but rejected by Shorter. Those trustees did not participate in the vote to dissolve and reconstitute the college.
“We intend for the properly constituted board to reconsider this dissolution plan,” said Richard Robbins, an attorney representing a group of trustees opposed to the Shorter reorganization.
However, Shorter officials filed the school’s new articles of incorporation April 23, which create a new, separate board.
(ABP)
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