LGC Takes Regulator To Court Over Reorganization
The Local Government Center is taking its regulator to court—again. This time, over how the organization is restructuring. On Tuesday, the LGC requested a Merrimack Superior Court judge to declare the restructuring legal.
Last Sunday, the LGC finalized its split into three separate organizations—the New Hampshire Municipal Association, the HealthTrust risk pool, and Property-Liability Trust risk pool. Each has its own board, bylaws, and general counsel. And State Senator Peter Bragdon oversees the risk pools as Executive Director.
In a letter dated August 22nd, The Bureau of Securities Regulation told the LGC it objects to the reorganization plan. The bureau says under state law, non-profits can only merge with or transfer assets to other non-profits. The LGC umbrella was actually set-up as a Limited Liability Corporation. So, the bureau says, the LGC can’t move its money into the non-profit HealthTrust and Property-Liability Trust risk pools.
But the LGC decided that the action was legal, and went ahead with the reorganization.
Now, it’s asking the Merrimack Superior Court to agree.