Treasurer Resignation

Started by JohnB26 • 10 replies • 2362 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

JohnB26 (South Carolina)
Posts: 1,569

Posted:

126 detached singe family home HOA (Inc. as not-for profit)

Treasurer required by both the Art. of Inc. & By-Laws (and state corp. law)

Treas. resigns effective 1st of the month, BOD accepts resignation

No other BOD willing to assume Treas. duties (3 BOD still directors at large)

?? Breach of fiscal responsibility)

Treas. signature + Pres. signature REQUIRED on ALL expenditures (checks)

EX Treas. continues to write checks (all in good faith w/o malice) until the 15th of month

No D&O insurance, HOA 'self indemnifies

Legal ramifications if director countersigns a check NOT WRITTEN BY TREASURER ?????

HEEEEEEELP

RobW (California)
Posts: 279

Posted:

It doesn't matter who writes a check. A check could be generated by a computer. What we're talking about is whether or not a check not signed by a treasurer of your HOA is valid. I would say that we can't answer that question here. It's a legal matter, and you need to raise this question with your HOA attorney.

Rob

SusanW1 (Michigan)
Posts: 5,202

Posted:

We asked that the bank insist that our checks be signed by TWO signees and were told that with so many tellers, branches, etc, it was impossible to follow up on that kind of restriction. No one will take the time to insist that there are TWO signees.

So . . . the bank does not care, and unless there is a complaint from the person receiving (cashing) the check, don't worry about it. Your president's signature is valid enough for the bank.

Get that position filled, even if you have to hire a treasurer!! (check your bylaws to see if all officers MUST be members)

Sometimes Sec - treas. is combined.

ShawnaT (Maryland)
Posts: 20

Posted:

Okay, I was going to chime in and say something similar to what Susan said. We had a similar situation with our POA, I was the Treasurer but then our President resigned and I was elected in his place. Rather than turn the books over mid year, the board decided that I would serve both positions. When I wrote a check, I would not sign it myself, I would have our Vice President sign it. (who was also on our signature card) I would definitely ask an attorney though, just to CYA.

JohnB26 (South Carolina)
Posts: 1,569

Posted:

Quote:

Posted By SusanW1 on 02/06/2011 12:39 PM
We asked that the bank insist that our checks be signed by TWO signees and were told that with so many tellers, branches, etc, it was impossible to follow up on that kind of restriction. No one will take the time to insist that there are TWO signees.

So . . . the bank does not care, and unless there is a complaint from the person receiving (cashing) the check, don't worry about it. Your president's signature is valid enough for the bank.

Get that position filled, even if you have to hire a treasurer!! (check your bylaws to see if all officers MUST be members)

Sometimes Sec - treas. is combined.

treasurer MUST be director as per by-laws

JohnB26 (South Carolina)
Posts: 1,569

Posted:

p.s.

just to be clear: treas. continues to both write AND SIGN checks

JohnB26 (South Carolina)
Posts: 1,569

Posted:

oops:

EX treas. continues to sign checks

JohnB26 (South Carolina)
Posts: 1,569

Posted:

oops:

EX treas. resigned his DIRECTOR position, not just his treas. duty

RobW (California)
Posts: 279

Posted:

That's not such a good situation, but until the treasurer's name and signature card is revoked at the bank, the checks are valid (as far as the bank is concerned). As far as your HOA's rules and legality are concerned, that's a different matter. You need legal advice.

Rob

TimB4 (Tennessee)
Posts: 21,062

Posted:

You need to get a current director to step up and take on those duties or appoint a new director who is willing to take on those duties.

If no one can be found, then petition the court to place the Association into receivership (which will cost money).

SusanW1 (Michigan)
Posts: 5,202

Posted:

What do yur bylaws say about appointments?

Re-appoint the ex treasurer as a director to fill a vacancy, then elect as treasurer, if desired.

This is an INTERNAL issue, not a bnk issue.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here