Old Board member makes withdrawal of CD's

Hello all,
Is it legal for a previous board member, who is still on the paper work, to withdraw/transfer money from our CD account to a new account? It takes 2 board members to do this according to our by-laws/ccr's. One person was on the board and one was from the previous board. I hope you can explain this to me. Thanks, Mary

Our arrangement with our bank requires that two signatures are required for anything like this. We have to go to the bank and submit our names and signatures in advance. The authority for the old officers is removed at that time.

For somethine that has already happened, you need to check your CC&Rs and your arrangement with the bank.

As far as being "illegal", has this person diverted the money for personal benefit or just caused confusion?

It seems to me like it is a non-issue now. The ex board member was still on the paper work and probably did the board member a favor by going with him to make this transaction for the board. He still had the authority to make the transaction notwithstanding that he was no longer a board member.

The bank only cares about the signatures.

Now all you have to do is thank the ex board member for volunteering his time to help get the transaction completed; then get the ex board members name removed and a new board members name added.

The transaction was in violation of the by-laws, it was improper. You don't reward improper activity by saying thank you. A favor would have been for the past board member to refrain from the transaction, point out the by-law to the Board President, and uninvolve him/herself.

GeraldT1
NNJ

First, I suggest that you try to get yourself elcted to the BOD so you can see that it's done right. In the meantime, talk with them, write or e-mail them, and attend meetings if possible.

It should not be possible for them to "make up their own rules as they go along", nor should they be able to ignore existing "rules" as long as they are legal rules. If, for example, a neighbor is parking his RV on the lawn and it's against your CC&Rs and the BOD seems to be ignoring this, ask for a written explanation. I would not wait for a membership meeting to stand up and attempt to embarass them in public, try it in private first.