NRC/KAB merger not approved by members
Board votes to file bankruptcy
The board of directors of the National Recycling Coalition,
Inc. (NRC) announced that the membership vote on the
proposed combination of NRC and Keep America Beautiful,
Inc. (KAB) has fallen short of the two-thirds majority
required to approve the proposal.
Forty-six percent of NRC’s membership voted on the combined
proposal, with 57 percent voting in favor.
The board had asked the NRC members to support a proposal
to combine NRC with KAB as a means to continue the recycling
mission of the NRC. The boards of KAB and NRC had voted
in favor of the proposal on June 2 and June 5, respectively,
but the NRC could not proceed without the approval of
two thirds of the member votes cast, as required by the
governing law in New York State where NRC is incorporated.
“Although the KAB proposal received the support of a
significant majority of our members – 57 percent – it
did not receive the necessary two-thirds majority in
order for the NRC board to proceed with implementing
the proposal,” stated Melinda Uerling, president of the
NRC board. “We recognized from the beginning that the
two-thirds majority was a steep hill, and the results
In the absence of the KAB combination, the NRC board
of directors of the voted that it will expeditiously
file for Chapter 7 bankruptcy.
“The decision was a very difficult and troubling one,
but in the end, as a matter of our fiduciary responsibility,
the board was left with very few options given the organization’s
cash position. Our hope – however distant right now –
is that a stronger organization, with broad representation,
may emerge from within our community,” said Melinda Uerling,
NRC board president.
In light of NRC’s financial circumstances, it will cease
operations and terminate all staff effective close of
business September 4, 2009.