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setting precedent


Duey

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20 years ago there was a team put in place to acquire additional property for expansion. The wording in the minutes does not show total authority to buy and/or sell the property on behalf of the business. However, the standing team was, at some point, given permission to move forward and have been acting on behalf of the business (in good faith I might add and with integrity) for the past twenty years. Numerous properties have been purchased and/or sold to attempt to complete the over-all plan. 

Most recently it was determined that two pieces of property needed to be sold to assist in the purchase of a more  advantageous piece. A vote was taken by the board to sell the property in order to purchase to additional plot. This is when a question arose as to the authority this team has to act as agents without always securing board authority. Due to the length of time (20 years) and the amount of transactions taken I just wondered if that hasn't set a precedent which supersedes the afore mentioned documentation?

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5 hours ago, Guest Duey said:

Due to the length of time (20 years) and the amount of transactions taken I just wondered if that hasn't set a precedent which supersedes the afore mentioned documentation?

No. Written rules always prevail over custom, no matter how old the custom is. The organization should amend its rules if it wishes to continue this practice.

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The post of Posted Thursday at 02:24 PM makes it clear that it is ambiguous as to what the team is authorized to do. -- That is, unless the bylaws do say something about it, which the original post suggests:

On 6/7/2017 at 4:38 PM, Duey said:

what is written into the by-laws

... So, Guest Duey, what do you see in the bylaws (explictly, verbatim, please, with my heart in my mouth) that says that the team cannot buy properties?

By the same token, how was the team, put in place to acquire properties, put in place?

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