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BY – LAWS
of
SHOTOKAN KODANSHAKAI INTERNATIONAL


ARTICLE I

    Section 1. Principal Office. The principal office of the Shotokan Kodanshakai International (hereinafter referred to as “corporation” or “SKI”) shall be maintained at such place in the State of Hawaii, and the corporation may have such other offices in the State of Hawaii and else where as the Board of Directors shall determine. Initially, the principal office of the corporation shall be located at: 2480 Pali Highway, Honolulu, Hawaii 96817.
    Section 2. Place of Meetings. All meetings of the membership and/or of the Board of Directors shall be held at the principal office of the corporation, unless some other place is stated in the call.
    Section 3. Seal. The seal of the corporation shall be circular in form and shall bear the name of the corporation and such other words, devices and inscriptions as the Board of Directors shall prescribe.

ARTICLE II

Membership

    Section 1. Member. A member is any person who 1) has attained the minimum rank of shodan in Shotokan Karate recognized by SKI, or 2) has been training in Shotokan Karate for a minimum of twice weekly for four (4) years and who takes and passes the dan examination conducted by SKI, or 3) who has been accepted for membership by a majority of the Board of Directors. An applicant who has attained the rank of shodan or higher in Shotokan Karate, shall provide a copy of his highest dan certificate along with a declaration stating the length of his training in Shotokan Karate, the names of his instructor(s) and the Shotokan Karate organization he/she was affiliated with; other martial arts studied, the names of his other martial arts instructors and the length of time training in the other martial arts.
    Section 2. Annual Meeting. The annual meeting of the corporation shall be held on such day within ninety (90) days following the close of each calendar year as the Board of Directors shall designate or, if the Board of Directors shall not have designated such day by the end of the second month following the close of the fiscal year, and unless the president designates some other date. 
    Section 3. Special Meetings. Special meetings of the membership may be held at any time upon the call of the president, or upon the call of any two directors, or upon the written request of one-fourth of the voting members calling for such special meeting. Upon receipt of such call or written request, the secretary shall send out notices of the meeting to all members entitled to vote thereat.
    Section 4. Notice of Meetings. A written or printed notice of every meeting of the membership, stating whether it is an annual or a special meeting, the authority for the call of the meeting, the place, day and hour thereof and the purpose therefor shall be given by the secretary or by the person or persons calling the meeting, at least three days before the day set for such meeting. Such notice shall be given to each member entitled to vote thereat in any of the following ways: (a) by leaving the same with him/her personally, or (b) by leaving the same at the residence or usual place of business of such member, or (c) by mailing it, postage prepaid, addressed to such member at his/her address as it appears on the membership roster of the corporation, or (d) by publishing such notice in any newspaper of general circulation in the county in which the principal office of the corporation is located, such notice to be published not less than two times, on successive days, the first publication thereof to be not less than three days nor more than ten days prior to the day assigned for the meeting, or (e) by electonic mail (email) over the internet. If notice is given pursuant to the provisions of this section, the failure of any memberr to receive actual notice of meeting shall in no way invalidate the meeting or any proceedings conducted thereat.
    Section 5. Notice Unnecessary. The presence at any meeting of all of the members, in person or by proxy, entitled to vote at any meeting shall render the same a valid meeting, unless any member shall at the opening of said meeting object to the holding of the same for noncompliance with the provisions of Section 3, immediately above. Any meeting so held without objection, notwithstanding the fact that no notice of meeting was given or that the notice given was improper, shall be valid for all purposes and at such meeting any general business may be transacted and any corporate action may be taken.
    Section 6. Quorum. At any meeting of the membership of which proper notice has been given, with a majority of the members in attendance, present in person or by proxy, shall constitute a quorum. The concurring vote of a majority of the membership constituting a quorum, shall be valid and binding upon the corporation, except as otherwise provided by law or by these By-Laws or by the Articles of Incorporation of the corporation.
    Section 7. Voting. Except as otherwise provided by law or by the Articles of Incorporation of the corporation or by these By-Laws, any member shall be entitled, either in person or by proxy, to one vote at all meetings of the membership of the corporation. A member must be in good standing, be current on his/her annual dues/membership fees in order to vote. At any meeting of the membership, the authority given by a member entitled to vote thereat to any person to represent said member at such meetings, shall be in writing signed by said member and shall be filed with the secretary. A proxy shall not be valid after six months from the date of execution unless otherwise provided in the proxy. Voting rights shall not succeed to an executor, administrator, guardian or trustee. 
    Section 8. Adjournment. Any meeting of the membership, whether annual or special, may be adjourned from time to time, whether a quorum be present or not, and without notice other than the announcement at the meeting. Such adjournment may be continued to such time and to such place as shall be determined by the holders of a majority of the members present and entitled to vote thereat. At any such adjourned meeting (which was continued to a later date) at which a quorum shall be present, may transact any business which might have been transacted by a quorum at the original meeting as originally called.
    Section 9. Consent of Members in Lieu of Meeting. Anything contained in these By-Laws to the contrary notwithstanding, whenever the vote of members at a meeting thereof is required or permitted to be taken in connection with any corporate action, the meeting and vote of the members may be dispensed with if all of the members who would have been entitled to vote upon the action if the meeting were held, consent in writing to the corporate action being taken.

ARTICLE III
Board of Directors

    Section 1. Directors. A director is any person who 1) has attained the minimum rank of sandan in Shotokan Karate and said rank is recognized by SKI, or 2) has been training in or teaching Shotokan Karate for a minimum of twice weekly for a minimum of fifteen (15) years and who takes and passes the dan examination conducted by SKI. All directors of SKI shall be members of SKI in good standing with a minimum of six months prior membership in SKI.
    Section 2. Election. There shall be a Board of Directors of the corporation to consist of not less than three (3) directors, but no more than twenty-one (21) directors at any given time. There shall be elected an odd number of directorships in order to preclude any stalemate on voting. The directors shall be members of SKI for a minimum for six (6) months. The number of directors for the ensuing year shall be fixed at each annual meeting by the membership entitled to vote thereat. The number of directors so designated shall then be elected by ballot or such other method, including the use of electronic medium, by such members, to hold office until the next annual meeting and thereafter until their successors shall be duly elected, and, within the foregoing limitation as to the minimum number, the number of directors may be decreased or increased by the members at any special meeting and, in case the number is increased, the additional directors shall be elected by ballot or such other method, including the use of electronic medium, as if elected at any annual meeting.
    Section 3. Annual Meeting. A meeting of the Board of Directors shall be held at the place of each annual meeting of the membership immediately following said annual meeting of the membership. At such annual meeting the Board of Directors shall elect the officers of SKI for the ensuing year.
    Section 4. Regular Meetings. The Board of Directors may establish regular meetings to be held in such places and at such times as it may from time to time by vote determine, and when any such meeting or meetings shall be so determined, no further notice thereof shall be required.
    Section 5. Special Meetings. Special meetings of the Board of Directors may be called at any time by the Chairman of the Board, President or by any Vice- President or by twenty-five percent (25%) of the members of the Board of Directors.
    Section 6. Action by Directors Without a Meeting. Anything contained in these By-Laws to the contrary notwithstanding, any action required or permitted to be taken at any meeting of the directors or of a committee of the directors may be taken without a meeting if all of the directors or all of the members of a duly appointed committee (of directors), as the case may be, sign a written consent setting forth the action taken or to be taken at any time before or after the intended effective date of such action. Such consent shall be filed with the minutes of the directors' meetings or committee meetings, as the case may be, and shall have the same effect as a unanimous vote.
    Section 7. Notice of Meetings. A written, printed or electronic notice of each meeting of the directors of the corporation, stating the authority for the call of the meeting and the place, day and hour thereof, shall be given to each director by the secretary or by the person or persons calling the meeting at least five (5) business days before the date set for such meeting. Such notice may be given to each director in any of the five ways specified in Section 4 of Article II hereof relating to notice of meetings of members, and may be given in person or by telephone or by electronic mail (email) to each director at least twenty-four hours prior to the time of the meeting. No notice of a meeting need be given to any director who is at the time absent from his/her residence or is outside his/her State or Province. The failure of any director to receive actual notice of meeting shall in no way invalidate the meeting or any proceedings thereat, if notice shall have been given as required by this Section 7.
    Section 8. Quorum. A majority of the total number of directors at which the Board has been fixed by the membership shall constitute a quorum to transact business, and, in order to be valid, any act or business must receive the approval of a majority of such quorum. A vacancy or vacancies in the membership of the Board of Directors shall not affect the validity of any action of the Board of Directors, provided there is present at the meeting a quorum of the directors at which the Board has been fixed.
    Section 9. Adjournment. In the absence of a quorum at the date, time and place of a meeting duly called, and at any meeting duly called and held, the presiding officer or a majority of the directors present may adjourn the meeting from time to time without further notice and may convene or reconvene the meeting when a quorum shall be present. 
    Section 10. Notice Unnecessary. If, at any meeting of the Board of Directors, however called or wherever held, all of the directors shall be present or shall waive notice of such meeting by a writing filed with the records of the Board of Directors, or after any such meeting shall express consent to the holding of the meeting and all actions taken thereat by a writing on or filed with the records of the Board of Directors, then all actions taken at such meeting shall be legal and deemed validly taken.
    Section 11. Powers. The Board of Directors shall manage the property and business of the corporation and shall have and may exercise all of the powers of the corporation except such as are reserved to or may be conferred from time to time by law or by the Article of Incorporation and any amendments thereto or by the By-Laws upon the members of the corporation.
    Section 12. Committees. The Board of Directors may create and appoint such general or special committees as the business of the company may require and define the authority and duties of such committees; except that such committees shall not have the power incur debt or to make payments, the power to fill vacancies in the Board of Directors, and such other powers as may be reserved to the Board of Directors by statute or otherwise. The Board of Directors may also appoint a general manager for the company and define his duties.
    Section 13. Salaries. The salaries and compensation of all officers, subordinate officers, agents and employees shall be determined by a majority of the board of directors.

ARTICLE IV
Officers

    Section 1. Appointment and Term. The officers of the corporation shall be a president, one or more vice presidents, one of whom may be an executive vice president, a treasurer and a secretary. Each of the officers shall be appointed at the annual meeting of the Board of Directors immediately following the annual meeting of the membership of the corporation and shall hold office at the pleasure of the Board of Directors until the next annual meeting and/or until a successor shall be duly elected and qualified. The Board of Directors may also elect or appoint a Chairman of the Board. All officers are required to be members of SKI. Any two or more of said offices may be held by the same person; provided that the president may not also be a vice president and provided further that the corporation shall not have less than three persons as officers.
    Section 2. Other Officers and Agents. The Board of Directors may appoint or employ such other officers, including assistant treasurers and assistant secretaries, agents and employees as may be deemed proper, who shall hold their positions at the pleasure of the Board of Directors and who shall have such powers and duties as may be assigned to them by the Board of Directors. The authority to employ agents and employees and fix their powers and duties may be delegated by the Board of Directors. Any officer of the corporation may also be a subordinate officer, agent or employee.
    Section 3. Salaries. The salaries and compensation of all officers, subordinate officers, agents and employees shall be determined by the Board of Directors. The authority to fix the salary and compensation of agents and employees may be delegated.

ARTICLE V
Chairman of the Board

    If one is elected, the Chairman of the Board shall be the senior officer of the corporation and shall preside at meetings of the members and Board of Directors at which he is present and, when called upon by any of the principal officers, advise them upon corporate matters. He shall perform such other functions as the Board of Directors may assign.

ARTICLE VI
President

    In the absence of a Chairman of the Board, the President when present shall preside at all meetings of the membership and of the Board of Directors. Subject to the control of the Board of Directors, he shall be the chief executive officer of the corporation, shall exercise general supervision and direction over the management and conduct of the business and affairs of the corporation. He shall also have such other powers and duties as are given to him elsewhere by law or in these By-Laws and as may be assigned to him from time to time by the Board of Directors. The president shall be a director and shall cast the deciding vote to break any tie votes of the Board of Directors, should any stalemate occur.

ARTICLE VII
Vice President

    The executive vice president, if one is appointed, shall be the senior vice president. The executive vice president, if one is appointed, and the vice presidents, in the order of priority of appointment, shall assume and perform the duties of the president in the absence or disability of the president or whenever the office of president is vacant. Each vice president shall have such other powers and duties as may be given to him by law or in these By-Laws and as may be assigned to him from time to time by the Board of Directors.

ARTICLE VIII
Treasurer

    The treasurer shall keep or superintend the keeping of all the financial books and accounts of the company in a thorough and proper manner. He shall prepare and render monthly financial statements to the Board of Directors in such form and as often as directed by the Board of Directors. He shall, subject to the control of the Board of Directors, have the custody of all funds and securities of the corporation. He shall perform all other duties usually pertaining to the office of treasurer of a corporation and such duties as may be assigned to him by the Board of Directors or required to be exercised by him under the provisions of these By-Laws. The Treasurer and one other officer shall be required as signatories on all checks issued by SKI. There shall be two signatures on all checks issued by SKI.

ARTICLE IX
Secretary

    Section 1. Powers and Duties. The secretary (1) shall attend and keep the minutes of all meetings of the membership of the corporation, and, when requested, shall attend and keep the minutes of meetings of the Board of Directors and of any committee, in books provided for that purpose; (2) shall have charge and custody of the records for the membership roster and list those members and directors in good-standing and entitled to vote at any duly noticed meeting; (3) shall give all notices as provided by these By-Laws or at the direction of the Board of Directors; and (4) shall have such other powers and duties as may be incidental to the office of secretary or elsewhere given to him by law or in these By-Laws and as may be assigned to him from time to time by the Board of Directors.
    Section 2. Secretary Pro Tem. If the secretary shall not be present at any meeting, the presiding officer shall appoint a secretary pro tempore. He shall keep the minutes of such meeting and record them in the books provided for that purpose.

ARTICLE X
Auditor

    Section 1. Election. At any annual meeting, or at any special meeting called for that purpose, the members or directors, as the case may be, entitled to vote thereat may appoint some person, firm or corporation licensed and engaged in the business of accounting to act as the auditor of the corporation.
    Section 2. Disqualification. No director or officer shall be eligible to serve as auditor of the corporation.
    Section 3. Duties. The auditor shall, at the direction of the Board of Directors, examine the books and papers of the corporation and compare the statements of the treasurer with the books and vouchers of the corporation, and otherwise make an audit or financial review, as directed by the Board of directors, of the books of the corporation, and thereafter make appropriate reports to the Board of Directors.

ARTICLE XI
Examination Committee

    Section 1. Examination Committee. There shall be established an examination committee, selected by the Board of directors, to conduct examinations of any person seeking membership in SKI. The examination committee shall consist of three members of SKI. The Examination Committee shall conduct the dan examinations based upon the examination requirements established by SKI for the appropriate rank being applied for.
    Section 2. Committee Members. 
        A. Examinations up to godan: The Examination Committee shall be made up of three (3) members who shall be selected by the Board of Directors and shall have an aggregate Shotokan Karate experience level of 40 years. For example, one member could have 25 years, another could have 5 years and another could have 10 years of Shotokan Karate experience; together they would have 40 years and this would be sufficient to conduct examinations up to the godan level. All examinations are to be video taped and submitted to the Board of Directors. At the discretion and consent of the Board of Directors, a video taped promotion examination without the presence of the Examination Committee may be allowed; this exception should be exercised with caution and much discretion.
        B. Examinations for Rokudan and above: The Examination Committee shall be made up of five (5) members who shall be selected by the Board of Directors and shall have an aggregate Shotokan Karate experience level of 70 years. All examinations are to be video taped and submitted to the Board of Directors for reference and review. To the extent possible, the Examination Committee shall have one of its members from the applicant’s country. All examinations are to be video taped and submitted to the Board of Directors. In exceptional cases, such as inability to travel, health or governmental restrictions, and at the sole discretion and consent of the Board of Directors, a video taped promotion examination may be conducted without the presence of the Examination Committee.
    Section 3. Promotion/Recognition of Rank. After conducting a mandatory background and reference check, if the applicant shall meet the criteria of SKI, an examination of the applicant shall be conducted. If the Examination Committee shall recommend approval of a higher rank to the applicant, the Examination Committee shall make its recommendation to the Board of Directors within 15 days. With the concurrence and approval of a majority of the Board of Directors (with the Examination Committee’s decision), the Board of Directors shall direct the President and the Secretary to issue a dan certificate to the applicant to the rank so designated. The dan certificate shall be issued within 30 days from the date of Applicant’s dan examination. In the event the applicant fails the examination, the Examination Committee shall be empowered to recognize the applicant’s current rank, or to grant the applicant probationary rank upon such terms and conditions it shall determine in its sole discretion; the Examination Committee shall direct the President and the Secretary to issue the appropriate rank for the applicant and accept him for membership into SKI.
    Section 4. Examination fees. The fees for examinations, including the dan certificate award, shall be determined as follows:
        A. Shodan – 0.6% of the average annual per capita income of the country wherein the applicant resides;
        B. Nidan – 0.7% of the average annual per capita income of the country wherein the applicant resides;
        C. Sandan - 0.8% of the average annual per capita income of the country wherein the applicant resides;
        D. Yondan - 0.9% of the average annual per capita income of the country wherein the applicant resides;
        E. Godan –1.0% of the average annual per capita income of the country wherein the applicant resides;
        F. Rokudan – 1.15% of the average annual per capita income of the country wherein the applicant resides;
        G. Shichidan –1.3% of the average annual per capita income of the country wherein the applicant resides;
        H. Hachidan – 01.45% of the average annual per capita income of the country wherein the applicant resides;
        I. Kudan – 1.6% of the average annual per capita income of the country wherein the applicant resides;
    Section 5. Per Capita Income Verification. . Applicants from countries other than the U.S.A., Western Europe (EU), Canada and Australia, shall submit a copy of the latest per capita average income, for the country wherein he resides, along with his examination fees, to SKI. All fees are payable in advance. All fees payable to SKI shall be paid in U.S. dollars.
    Section 6. Site of Examination. All of the examinations for dan ranking shall be conducted in the dojo of any one of the Examination Committee members., or such other site as may be approved by the Board of Directors. 
Subject to the consent of the Board of Directors, in extraordinary cases where the applicant is unable to travel abroad to the examination site, for whatever reason, the applicant may request the highest ranking member of the Examination Committee to travel to the applicant’s country to conduct the examination. If the Board of Directors shall grant the applicant’s request, the costs of travel, food, lodging and per diem shall be at the expense of the applicant.
Subject to the discretion and consent of the Board of Directors, the Applicant may request of the Examination Committee, in exceptional circumstances, to perform the applicant’s examination by means of a video tape, to be reviewed by the Examination Committee. If the Board of Directors shall grant the applicant’s request, the applicant shall perform the examination (on the video) pursuant to the requirements of the SKI and such additional conditions as shall be imposed by the Board of Directors. All costs associated with the video examination, in lieu of and without the presence of the Examination Committee, shall be at the expense of the applicant.
    Section 7. Time Criteria for Applicants. An Applicant shall be a member in good standing with SKI for the immediate six (6) month prior to taking any dan examination. Further, the Applicant shall have, at minimum, a total number of years of training/teaching experience in Shotokan Karate and an age minimum as specified hereinbelow, before being deemed qualified and allowed to take the appropriate promotion examination:
        A. Shodan – 4 years or more training/teaching;
        B. Nidan – 6 years or more training/teaching;
        C. Sandan – 9 years or more training/teaching; minimum age 18
        D. Yondan – 13 years or more training/teaching; minimum age 21
        E. Godan – 18 years or more training/teaching; minimum age 25
        F. Rokudan – 24 years or more training/teaching; minimum age, 30 years old.
        G. Shichidan –31years or more training/teaching; minimum age, 40 years old.
        H. Hachidan – 39 years or more training/teaching; minimum age 50 years old.
        I. Kudan – 48 years or more training/teaching; minimum age 60 years old.
        J. Judan – 58 years or more training/teaching; minimum age 65 years old.
Substitute Martial Arts Training. Two years of training in another martial art (“other martial arts experience”) may be substituted for one year of the Shotokan Karate training/teaching experience requirement pursuant to Article XI, Section 7 for promotion examination qualification purposes, PROVIDED, HOWEVER, that the total number of years of other martial arts experience shall be less than the total number of years of Shotokan Karate training/teaching experience. For example, an applicant for sandan may use his/her 6 years of judo training for a credit of 3 years toward the 7 year minimum Shotokan Karate training/experience requirement. In the foregoing example, the applicant must have 4 years of Shotokan Karate training/teaching experience and 6 years of Judo training to meet the minimum requirements of Article XI, Section 7C. All other martial arts training/experience shall be verified. 
    Section 8. Examination Requirements. The examination requirements for promotion to higher rank shall be as set forth in Attachment “A” which is annexed herewith and made a part hereof. 
Photo Requirement. The applicant shall submit a color photograph of himself/herself in karate gi. The color photograph shall be taken of the applicant from the chest up (no full body photographs, please). The color photograph shall accompany the applicant’s application for testing for higher rank.
    Section 9. Other affiliation. The SKI is designed to meet the needs of instructors who seek an alternative to the “recognized Shotokan association/federation”. The applicant should have his/her own dojo, meet the training/teaching experience requirement for the rank that he wishes to be tested for, and the appropriate fee payment in order to qualify to take an examination for higher rank by SKI. The instructor’s affiliation with other Shotokan associations/federations shall not be a bar to his membership or ability to test for higher rank under SKI.
    Section 10. Compensation of Examiners. The Examination Committee shall be compensated by SKI for their efforts in a manner to be decided by the Board of Directors.

ARTICLE XII
Non-Regulatory

    Section 1. Non-Regulatory. Shotokan Kodanshakai International shall make no rules or regulations nor impose any condition that shall restrict, impose, or attempt to control the martial art curriculum in any member’s dojo.
    Section 2. Seminars / Camps. Seminars and camps among members are encouraged. 
       A. SKI shall not restrict any member from conducting a martial art seminar in any other person’s dojo. 
       B. SKI shall not restrict any member from inviting any other martial artist to conduct a martial art seminar at a member’s own dojo. 
       C. SKI shall not regulate, restrict or attempt to control the content of any martial art seminar held in any member’s dojo.
       D. SKI shall not regulate, restrict or attempt to impede any member from attending or participating in any martial art seminar or camp.
       E. SKI shall not organize seminars requiring mandatory attendance by its members. Should SKI organize any seminars, it shall be published on the SKI website for voluntary attendance by its members. 
    Section 3. No jurisdiction over member’s students. SKI shall not demand that an affiliate member conduct kyu or dan examinations of an affiliate member’s students under the auspices of SKI. SKI shall not sell or offer to sell dan or kyu certificates to its members. It shall be at the sole option and discretion of the member instructor as to whether or not the member instructor will submit his/her black belt students for testing by SKI.

ARTICLE XIII
Website

    SKI shall establish a website, the content and management of which shall be as determined by the Board of Directors. The website, at minimum, should contain 1) the purpose for which SKI was created, 2) a membership page, 3) a directors page, 4) a contact email address, 5) a Calendar of Events, 6) a membership application page, 7) the Articles of Incorporation, 8) the By-laws, and 9) the requirements for promotion to higher rank. The SKI shall secure a credit facilitator such as Pay Pal to handle all of the fee payments and to make the deposits directly into SKI’s bank account. The Board of Directors shall make such other rules and regulations concerning the content, charges, and such other business decisions as may be required.

ARTICLE XIV
Removals, Vacancies and Absences

    Section 1. Removals. Members may at any time depose or remove from office, for or without cause, any director, officer, subordinate officer, agent or employee. The Board of Directors may at any time, for or without cause, remove from office or discharge from employment, any officer, subordinate officer, agent or employee appointed by it or by any person under authority delegated by it.
    Section 2. Vacancies. In case of any vacancy occurring in the Board of Directors between annual meetings of the membership, through death, resignation, disqualification, removal or other cause, other than temporary absence or illness, the directors remaining, notwithstanding any provision contained in the By-Laws to the contrary, may, by affirmative vote of a majority of them, appoint a successor or successors to hold the office or offices so vacant for the unexpired term or terms thereof, respectively, or until the members shall, by election, fill the same. The Board of Directors may elect a successor for any officer whose office becomes vacant for any of the foregoing reasons.

ARTICLE XV
Execution of Documents; Counterparts

    Section 1. Facsimile Signatures. The execution of checks shall be by two (2) officers of SKI, one of which shall be the treasurer. Facsimile authorization by another officer shall be sufficient for another officer to rely upon to countersign a check with the treasurer. Facsimile signatures shall be acceptable for any other document for SKI business purposes.
    Section 2. Counterparts. A document executed by several persons at different dates and at different locations (counterpart) shall be allowed. The counterparts, when combined and taken as a whole shall be deemed valid for all SKI purposes.

ARTICLE XVI
Liability of Officers and Directors

    Section 1. Exculpation. No director or officer of the corporation shall be liable for acts, defaults, or neglects of any other director or officer, or for any loss sustained by the corporation, unless the same has resulted from his own willful misconduct, willful neglect or negligence.
    Section 2. Indemnification. Every director and officer shall be indemnified by the corporation against all reasonable costs, expenses and liabilities (including counsel fees) actually and necessarily incurred by or imposed upon him in connection with or resulting from any claim, action, suit, proceeding, investigation or inquiry of whatever nature in which he may be involved as a party or otherwise by reason of his being or having been a director or officer of the corporation, whether or not he continues to be such director or officer of the corporation at the time of the incurring or imposition of such costs, expenses or liabilities, except in relation to matters as to which he shall be finally adjudged in such action, suit, proceeding, investigation or inquiry to be liable for willful misconduct, willful neglect or negligence toward the corporation in the performance of his duties as such director or officer. The corporation shall advance payment for the director’s costs, expenses and liabilities (including counsel’s fees) until and unless a Court of law shall make a finding and judgment of liability for willful misconduct, willful neglect or negligence toward the corporation in the performance of his duties as such director or officer. As to whether or not a director or officer was liable by reason of willful misconduct, willful neglect or negligence toward the corporation in the performance of his duties as such director or officer, in the absence of such final adjudication of the existence of such liability, the Board of Directors and each director and officer may conclusively rely upon this indemnity clause until there is a finding in a Court of law that there has been willful misconduct, willful neglect or negligence by such director or officer toward the corporation in the performance of his/her duties as such officer or director. The corporation shall secure legal counsel for the affected officer or director within fourteen (14) calendar days of any lawsuit brought against any officer or director of the corporation. The foregoing right to indemnification shall be in addition to and not in limitation of all other rights to which such person may be entitled as a matter of law, and shall inure to the benefit of the legal representatives of such person.

ARTICLE XVII
Fiscal Year

    The fiscal year of the corporation shall be such as may from time to time be established by the Board of Directors.


ARTICLE XVIII
Reserve Fund

    The Board of Directors may set aside out of the profits of the corporation such sum or sums as they shall deem proper as a reserve fund, from which to meet contingencies, or extending or maintaining the works, business, trade, or property of the corporation, or any part thereof, or for meeting any other debt of the corporation, or for setting up a fund for the pensioning of employees.

ARTICLE XIX
Disallowed Payments

    Any payments made to an officer or employee of the corporation such as salary, commission, bonus, interest, or rent, or entertainment expense incurred by him, which shall be disallowed in whole or in part as a deductible expense by the Internal Revenue Service, shall be reimbursed by such officer or employee to the corporation to the full extent of such disallowance. It shall be the duty of the directors, as a Board, to enforce payment of each such amount disallowed. In lieu of payment by the officer or employee subject to the determination of the directors, proportionate amounts may be withheld from him future compensation payments until the amount owed to the corporation has been recovered.

ARTICLE XX
Amendments to By-Laws

    These By-Laws may be altered, amended, added to or repealed by the Board of Directors, subject, however, to repeal or change by an affirmative vote of not less than a two-thirds (2/3) majority of the members entitled to vote at any duly noticed meeting of the membership of the corporation.

Attachment A contains examination requirements, and can be accessed through this link here.