NRA Declares Bankruptcy to Facilitate Move from New York

Opinion

NRA Board of Directors
NRA Declares Bankruptcy to Facilitate Move from New York

Liberty, Arizona, USA – -(AmmoLand.com)-  In a surprise move, NRA Executive Vice President Wayne LaPierre sent a notice to the NRA Board of Directors today, announcing that the Association is filing Chapter 11 bankruptcy in order to reorganize the Association in the state of Texas, abandoning its almost 150 year charter in New York.

The announcement came in the form of an email from NRA Secretary John Frazer, addressed to the members of the NRA Board of Directors and the Executive Council.

That in itself would seem problematic, since such a major decision about the NRA and its future, should have been made by the Board of Directors, not the paid staff, but the court filing in Texas answers that concern, to some degree. Apparently, the NRA Board passed a resolution during their meeting on January 7, reconfirming that EVP LaPierre has the authority to “exercise corporate authority in furtherance of the mission and interests of the NRA, including … to reorganize or restructure the affairs of the Association.

There was also a vote at the January Board meeting, formalizing the creation of a Special Litigation Committee consisting of Carolyn Meadows (NRA President), Charles Cotton (First Vice President), and Willis Lee (Second Vice President), and authorizing that committee to hold “corporate authority” in regards to any matter involving the legal cases of NY v. NRA, Washington DC v. NRA Foundation, and NRA v. Letitia James.

So, with those two votes at the January Board meeting – one of which was apparently done in Executive Session, behind closed doors – the Board of Directors abdicated their authority and responsibility, by delegating it directly to LaPierre and the three top officers of the Board.

I have to wonder how many of the Directors who voted on those two resolutions, had any idea that they were giving so much power and authority to these four people?

It’s clear that plans for all of this were being worked on for at least the past couple of months, and perhaps there was some private conversation among Directors about making this move, but there was no mention of the idea during the Members’ Meeting in Tucson in November, nor in the Board meeting that followed the Members’ Meeting, nor in the Board meeting a couple of weeks ago.

While I have no doubt that the majority of the current Board would have gone along with whatever plan LaPierre and the other officers presented to them, I think it’s pretty sketchy that LaPierre and company would make this move without any formal vote of the Board on the matter. After all, filing bankruptcy, even just for purposes of reorganization, isn’t an insignificant thing. In fact, it’s one of the most significant actions the NRA has taken in decades, yet there was no formal discussion, much less a vote by the Board. And there certainly wasn’t any discussion with the Members.

Along with moving the charter from New York to Texas, it looks like LaPierre is also planning to move some of the NRA’s operations from Virginia to Texas.

Remember that moving the charter has no impact on the physical operations of the Association. The NRA has been incorporated in New York since its inception, but its operations have been in the Washington, DC area for decades. It might make sense for the Association to move some operations to Texas, where the cost of living is lower and recruitment would be easier, but the location of their corporate charter has no bearing on that at all, raising the question of why LaPierre is trying to incorporate a physical move into the effort to move the corporate charter. Perhaps he’s hoping to finally get that mansion on the lake outside of Dallas that he claimed he wasn’t trying to get NRA to buy for him, even though the Association paid $70k toward the purchase of it, and there were decorating notes from Susan LaPierre… We’ll see.

One thing we don’t have to wait to find out is whether attorney William Brewer – who is based in Dallas – is going to make even more money with this move. We’re actually informed in the court filing that Brewer Attorneys and Counselors will be representing NRA on all matters beyond the actual bankruptcy case.

In his announcement to the Board, LaPierre stressed that this bankruptcy filing is not based on any financial troubles, but is just a tool for reorganization.

He reassures the Board that NRA is financially sound and not having any money troubles. That’s probably true. Gun owners are pretty worried right now, thanks to the results of the 2020 elections, and when gun owners get worried, many of them tend to express their concern in checks to the NRA.

There’s a possibility that this move and reorganization of the NRA could result in some positive opportunities for those of us who have been calling for reform within the organization. Unfortunately, any opportunity it might create for us will also be opportunities for others, like LaPierre, Brewer, and Cotton, to solidify their power and make true reform even more difficult.

I’m sure I’ll be having many conversations with attorneys in the coming weeks, looking at ways to prevent any further abuse of the Association, and try to make the leadership more accountable to the Membership. I’ll keep you posted as to what I find. In the meantime, I encourage you to ask Directors whether they knew this was happening, and why they would turn over their responsibility to LaPierre, Cotton, and company.


About Jeff Knox:

Jeff Knox is a second-generation political activist and director of The Firearms Coalition. His father Neal Knox led many of the early gun rights battles for your right to keep and bear arms. Read Neal Knox – The Gun Rights War.

The Firearms Coalition is a loose-knit coalition of individual Second Amendment activists, clubs, and civil rights organizations. Founded by Neal Knox in 1984, the organization provides support to grassroots activists in the form of education, analysis of current issues, and a historical perspective of the gun rights movement. The Firearms Coalition has offices in Buckeye, Arizona, and Manassas, VA. Visit: www.FirearmsCoalition.org.

Jeff Knox

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Viper G2 Bronze
Viper G2 Bronze
3 months ago

The NRA should have escaped from New York a long time ago.
Just too bad they didn’t come to North or South Dakota.

JSNMGC
JSNMGC
3 months ago

The governance is so bad within the NRA that there is very little chance of new, good people being put on the board. That, combined with the membership who are eligible to vote, but don’t vote (or not understanding who to vote for), mean that it will never be improved. The costs related to the bankruptcy will be enormous – and Wayne will surely take care of the lawyers. Even if Wayne passed away tomorrow, the NRA would not right itself. They have lived largely on a subset of elderly people who are for “common sense” gun control* and are… Read more »

Sisu
Sisu
3 months ago
Reply to  JSNMGC

My up vote canceled a down vote. … At present you have no votes. But, I still agree and applaud your “truth”.

JSNMGC
JSNMGC
3 months ago
Reply to  Sisu

Thanks for reading the word “subset.”

Stag
Stag
3 months ago
Reply to  JSNMGC

I find it baffling that people actually believe Wayne is the only thing wrong with the NRA. This organization has been using our rights as bargaining chips since 1934. Wayne just found a way to make money doing it.

toomanyhobbies
toomanyhobbies
3 months ago

THEY SHOULD HAVE LEFT 20 YEARS AGO!!!
people have been (many of them famous) have been leaving Tax York for 30 years or more…

ahhiyawa
ahhiyawa
3 months ago

Retaining lawyers and launching lawsuits by aggrieved NRA members will not save the NRA. Though I sympathize with Aquila hes’ not likely to see one penny of the millions in sunk costs he & others DONATED to the NRA. Can I or any member demand a court to order reimbursement of our Life memberships, dues or other contributions? Cold day in hell before that happens. Though the BOD has near plenary powers, Lapierre and his inner circle have in fact been the de-facto power base in the organization for years. But the BOD’s latest action has officially and publicly done… Read more »

Dogma Factor
Dogma Factor
3 months ago

Why bankruptcy

Because I like a lot of my fellow life members, plus the dwindling number of annual members refuse to give money to the NRA as long as Wayne is there

mlhtd51
mlhtd51
3 months ago

Reorganization WITHOUT LaPierre would be a “Good Start”.

MICHAEL J
MICHAEL J
3 months ago

While I personally like the idea of pro 2nd Amendment organizations leaving hostile environments, I question NRA’s bankruptcy method of doing so.
Given the controversy which surrounds the NRA, a new start with new leadership is in order.

Commiefornia Sucks
Commiefornia Sucks
3 months ago

I didnt understand anything you typed. Are you intoxicated?

Dogma Factor
Dogma Factor
3 months ago

It’s only an illiterate Lefty troll with far-left Antifa, BLM conspiracy theories that no one can understand but themselves. Thay are all on hallucinogens, so you may be correct as well.

Itsherlock
Itsherlock
3 months ago

LaPierre is driving the NRA airplane right into the ground. Fire him or see the NRA vanish into a puff of smoke.

Levelhead
Levelhead
3 months ago

I’m not up to speed on the machinations of NRA politics but I am putting my money into the Virginia Citizens Defense League. This is the organization that organized the “demonstrations” in Richmond last year and is the one that represents me here in VA. The only reason I continue to belong to the NRA is that membership is required by my gun club to be a member. And I doubt it would be required other than the NRA insists on 100% membership or they won’t sell us insurance. There a bad smell attached to the NRA, a scent which… Read more »

Ltbdb
Ltbdb
3 months ago

This is a prime example of LaPierre’s shenanigans. I’ve been a member for 45 years but not another dime from me until LaPierre is gone. This is a bad time to cut off funding to the NRA but until things are straightened out my money is going to SAF and GOA. They are doing more meaningful things than the NRA right now anyway. Pick another 2nd amendment organization to support and starve La Pierre out now.

LonnieG
LonnieG
3 months ago

Just what are you trying to say? You obviously dropped out of the 3rd grade.

Jeff
Jeff
3 months ago

The fact that “LaPierre stressed that this bankruptcy filing is not based on any financial troubles” is a very poor sign. LaPierre is acting like a church pastor who has lost his credibility with half the congregation, has removed the Elders who are acting responsibly and is a hypocrite to outsiders. Do NOT think that I’m against the NRA. I am a member and have donated in the past. The last couple of years, I’ve donated to SAF.org as they have done amazing work in the legal field. Like the leadership of SAF, I agree that we NEED a strong… Read more »

Sisu
Sisu
3 months ago
Reply to  Jeff

The filing had to be based on “financial troubles” – the specter of the cost of the NYS litigation. The fact that the filing “stayed” the litigation allowed Wayne to say “financial troubles” in the context of current liquidity and financial assets now not burdened by the “litigation”. … It’s “marketing reality” in that the targeted audience was “the members”.

Mike Carbine
Mike Carbine
3 months ago

Getting hell out of blue state holes is always a good move, but the anti-NRA cunts will bitch about anything WLP does at this point, right or wrong.

TheRevelator
TheRevelator
3 months ago
Reply to  Mike Carbine

Hey Mike,
You know… Some of us have a problem when the guy who has repeatedly stabbed us in the back stays in command, helps issue rule changes on the board to make it harder for us to get people we want to elect put on the ballot, wastes millions of dollars that are not his own in some shady partnerships…..

Then again, given your choice words I doubt you have the intellect to fully understand such things. By comparison, you may be just enough of a Shill that you would defend WLP no matter what he does.

Sisu
Sisu
3 months ago
Reply to  Mike Carbine

The Country is suffering today because of the “common wisdom” (emphasis “common” = “self center”) of “voting with one’s feet” – running away from “conflict”, expecting others to “fix what’s wrong”. … Now there is no place left to run. … Read the news (if you can find any “uncensored”), look in the mirror, ask yourself “Now that I live in a “blue state hole” where am I (that’s you – Mike Carbine) gonna run next.”

Dasher_Dork
Dasher_Dork
3 months ago

I want the NRA to succeed but I’m not giving them any more of my money until the structure/personnel at the top change. No more WLP and I want more visibility of how my money is spent…best of luck to you but I’m out for now. GOA, SAF, and ASA for me now days.

TheRevelator
TheRevelator
3 months ago
Reply to  Dasher_Dork

Dasher,
That is where a lot of us are at.

RoyD
RoyD
3 months ago
Reply to  Dasher_Dork

Welcome to the late 1990’s for me.

AZ Lefty
AZ Lefty
3 months ago

Apparently, the NRA Board passed a resolution during their meeting on January 7, reconfirming that EVP LaPierre has the authority to “exercise corporate authority in furtherance of the mission and interests of the NRA, including … to reorganize or restructure the affairs of the Association.” Gee after the mismanagement and sell enrichment the B.O.D. is still Wayne’s pets. I expect the NYAG to vigorously contest the Bankruptcy and to move to have it transferred to NY where they are incorporate. Then there is the real possibly of them moving from civil charges of the Corporation to criminal Charges of Wayne… Read more »

Last edited 3 months ago by AZ Lefty
WI Patriot
WI Patriot
3 months ago

They could move to Timbuktu for all IGAF…

Former Director
Former Director
3 months ago

When Neal Knox and I joined the NRA Board in 1991, I (a corporate lawyer) recommended reincorporation outside NY at my second Board meeting in 1991. The idea was poo-pooed by the Board Counsel and all the NRA Executives including WLP. They never gave me a sound reason. It would have been sooo easy and sooooo much cheaper to do it in 1992.

Sisu
Sisu
3 months ago

So then as now the “board” was both “too many” and “without understanding” that their individual and collective roles; was no more than “go through the motions”, “prestige” and “rubber stamp” … “We’re ‘nose in, but hands-off.” … The problem with “governance”, and all defering to legal counsel (Yes I read your parenthetical, but you were a “board member” and stepping on “others’ toes” too boot.). … The “board” is “too many, by design” to provide effective oversight.

Larry
Larry
3 months ago

Leave Wayne behind. Ex-NRA member

Z
Z
3 months ago

New York stinks

Sisu
Sisu
3 months ago
Reply to  Z

I think we all just were provided convincing evidence that the “election systems” are less than “unbiased”. … And, like your family ancestors lots of “self centered” New Yorkers are leaving to live by you; it’s your turn to start packing (again). … Know before you respond the “sh*ts” that are leaving in “self-interest” are the same “sh*ts” who came here from your state to “make it”. … What goes around, comes around. – Stinky.

Sisu
Sisu
3 months ago
Reply to  Z

I think we all just were provided convincing evidence that the “election systems” are less than “unbiased”. … And, like your family ancestors lots of “self centered” New Yorkers are leaving to live by you; it’s your turn to start packing (again). … Know before you respond the “sh*ts” that are leaving in “self-interest” are the same “sh*ts” who came here from your state to “make it”. … What goes around, comes around. – Willy.

Sisu
Sisu
3 months ago
Reply to  Z

Read above responses and place your name last on the list.

Sisu
Sisu
3 months ago

Appears a shrewd litigation strategy, but they need to address their arrogant “governance” practices. … I trust the board did not unanimous vote to abdicate authority to the few (?) – had to be some desenters. Those that abdicated, I would guess they are not shielded from the NYS litigation vis a vis depositions despite that litigation being “stayed” by the filing (?). And, it would seem the board members that abdicated may have breached their duties to the corporation and creditors. … Likely going to be an interesting show.

billybob
billybob
3 months ago

Just make sure NOT to set up in Austin. It combines the worst of New York City and Seattle!

The other Jim
The other Jim
3 months ago
Reply to  billybob

What about Houston, Dallas and San Antonio; aren’t they similar to that toilet they call New York City?

LonnieG
LonnieG
3 months ago
Reply to  The other Jim

Ahh, that explains your lack of fundamental English composition. Living at 12,000 feet deprives your brain of much needed oxygen. So, basically, you are brain dead.