Funds transferred without official vote...help

Started by CandyS • 4 replies • 1151 views

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CandyS (Idaho)
Posts: 2

Posted:

Our board only has three members. Two of those members got together and we able to tranfers fund from the associations bank account to a CD fund with my vote or knowledge. Isn't there a law against this or something?? It is scary and I don't want to be caught in the middle of something I had nothing to do with but should have known about....help!

BradD2 (Florida)
Posts: 418

Posted:

Well it depends on the state. In order to do something like that they would need to vote and in quite a few states it is not permitted for a majority of the board to get together without sufficient notice.

GloriaM (North Carolina)
Posts: 829

Posted:

Quote:

Posted By CandyS on 07/05/2007 12:08 PM
Our board only has three members. Two of those members got together and we able to tranfers fund from the associations bank account to a CD fund with my vote or knowledge. Isn't there a law against this or something?? It is scary and I don't want to be caught in the middle of something I had nothing to do with but should have known about....help!

Also as Brad stated they should have called a meeting given you ample notice to attend the meeting. Getting together out in the driveway and making a decision is not a meeting. Minutes should be taken of their votes and decisions.

On another note is it illegal to transfer funds to a CD, no. This is usually done through a bank that is secure and considered a safe way to invest funds.

Most of my communities invest in CD's as a way of getting additional income through interest. I would not be afraid, however I would certainly voice my opinion as a board member that they should include you in all board meetings.

CandyS (Idaho)
Posts: 2

Posted:

I should have re-read my post... I meant with OUT my vote or knowledge. I asked them to look into the CDs to make the HOA some money on funds we had just sitting there. Next thing I know they have transferred money without a vote or discussing how much, where to, and when. We are in the state of Idaho.

GloriaM (North Carolina)
Posts: 829

Posted:

Quote:

Posted By CandyS on 07/05/2007 6:18 PM
I should have re-read my post... I meant with OUT my vote or knowledge. I asked them to look into the CDs to make the HOA some money on funds we had just sitting there. Next thing I know they have transferred money without a vote or discussing how much, where to, and when. We are in the state of Idaho.

Candy:

Placing funds into a CD is not illegal, but the way they did it may not have been proper proceedure for your governing documents or your state laws. I would definately voice my concerns that they did this without you being present and without a duly called meeting.

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