Why did the Cinema Buying Group LLC vote to become a NATO program?

Continuing as an independent for-profit entity would have been very costly — for example, in obtaining necessary insurance and paying substantially greater costs for accounting and legal work. Managing director Wayne Anderson sought independent legal advice from a specialist in taxation and tax-exempt organization law. The specialist recommended that CBG use the existing 501(c)(6) non-profit trade association — NATO — and thereby greatly simplify CBG’s organizational and financial burdens. Did the CBG LLC follow legal and contractual requirements to terminate and become a NATO program? Yes. First, at the annual meeting in Dana Point, the NATO board of directors voted to accept the CBG into NATO. Second, at a special meeting of CBG members convened during ShowEast, CBG members voted to terminate CBG LLC, become a NATO program, and transfer CBG assets to the NATO program. CBG managers determined that a 2/3 vote of all CBG members was necessary to terminate CBG LLC. Counting proxies, ...  more