Moving Money to CD with no Board Meeting

Started by AnnaD2 • 4 replies • 1382 views

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AnnaD2 (Florida)
Posts: 960

Posted:

Need your opinions please. Today our property manager informed us that we could transfer some of our money from our reserves account to a CD that is currently paying 2% for one year. It sounds like a wise move. However, we're afraid to make this move without discussing it at an open board meeting. But by the time we have our next meeting the 2% rate may have expired.

Our property manager said we "could" decide to do it if a majority of the board agrees then we could "ratify" it at the next meeting. I don't know. This is Florida. Help all!

DonnaS (Tennessee)
Posts: 5,671

Posted:

AnnaD,

If the Board approves this transfer one member at a time (Meeting together needs to be posted, etc) then there is no reason not to move the funds to a safe CD. It's not like there is an expenditure or non budget item being assessed or spent. My Board in Florida does it all of the time. It is the Boards responsibility to care for those funds in any way that is safe and productive without owner input.

PeterB1 (Florida)
Posts: 257

Posted:

As the Treasurer of our HOA, I had to go to the bank to 'buy' our first CD. One of the documents the bank asked for was a copy of the minutes where the BOD decided to put money into a CD.

I don't know if this is standard procedure - but you might want to check.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Anna,

Following is the FL nonprofit corp statute which allows for an action w/o a meeting:

BUSINESS ORGANIZATIONS Chapter 617
CORPORATIONS NOT FOR PROFIT

617.0821 Action by directors without a meeting.--

(1) Unless the articles of incorporation or the bylaws provide otherwise, action required or permitted by this act to be taken at a board of directors' meeting or committee meeting may be taken without a meeting if the action is taken by all members of the board or of the committee. The action must be evidenced by one or more written consents describing the action taken and signed by each director or committee member.

(2) Action taken under this section is effective when the last director signs the consent, unless the consent specifies a different effective date.

(3) A consent signed under this section has the effect of a meeting vote and may be described as such in any document.

SusanW1 (Michigan)
Posts: 5,202

Posted:

With the amount of money I think you are talking about, I'd insist on minutes authorizing the transcation (CYA) Don't worry, there are going to be many "incentive" rates offered in the upcoming months.

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