On Monday, April 8, 2011, the CUE Board of Directors took action in order to remain in compliance with the California Nonprofit Public Benefit Corporation Law (Section 5227) and keep its 501(c) 3 status. This action refers to CUE by-law 6.14: "RESTRICTION ON INTERESTED PERSONS AS DIRECTORS. No more than 49 percent of the persons serving on the Board may be interested persons. An interested person is (a) any person compensated by the corporation for services rendered to it within the previous 12 months, whether as a full-time or part-time employee, independent contractor, or otherwise, excluding any reasonable compensation paid to a director as director; and (b) any brother, sister, ancestor, descendant, spouse, brother in-law, sister-in-law, son-in-law, daughter-in-law, mother-in-law, or father-in-law of such person."
After seeking legal counsel, the Board added language to the current election policy for this yearís election and all future elections:
"In the event that an election would bring the percentage of 'interested persons' on the CUE Board of Directors over the 49 percent threshold, the lowest vote winner among those who are 'interested persons' will be disqualified. The next candidate with the most votes, who is not an 'interested person,' is elected to the open seat. "If you have questions regarding this action, please contact Mike Lawrence,