- L. Ron Hubbard,
Legal Basics
Articles of Incorporation are the primary rules for governing the management of a corporation.
Additionally, California's Nonprofit Religious Corporations law, under which CSI was formed and is regulated, sets specific requirements for religious corporations.
Bylaws spell out specific rules for the operation of a corporation, are drafted by the corporate founder or its directors in accordance with its Articles of Incorporation.
For example, all affairs and activities of a California religious corporation must be exercised by and under the direction of a board of directors. California Corporations Code Section 9210.
These are not mere legal formalities but form the basis for special privileges afforded nonprofit entities, including tax-exempt status, which can be revoked for non-compliance; not to mention the duties and obligations to LRH to fulfill his wishes.
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A trust agreement is a legal document in which one entrusts property to another for the benefit of a third person or entity. LRH gave his rights in Scientology trademarks and Advanced Materials to RTC subject to the right of CST to purchase them for a nominal sum should RTC fail in its duties.
Scientology: Clear Procedure, Issue One, December 1957; Tech Volumes, Vol. 4, p. 199
“I charge you with this - look to source writings, not to interpretations. Look to the original work, not offshoots.”
