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misappropriation


Guest RANDY

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I have a board member that back in 2003 was D.O. of our company, where he had a company creit card. He used this card for personal use. Now he is back on the board of directors. Can he still be dismissed from the board now, even if it happened in 2003. Is this a member not in good standings?

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Q1. Can he still be dismissed from the board now, even if it happened in 2003.

Q2. Is this a member not in good standing?

A1. As far as Robert's Rules of Order goes, YES, there is no such thing as a "statute of limitations" on fraud, embezzlement, etc.

E.g., a theft from the safe in 1999, and embezzlement in 1985, are still things which RONR recognizes as justifications for disciplinary action.

You won't find a rule in RONR which says, "If the serious breach occurred more than [N] years ago, then no punishment can be issued."

A2. Unknown.

RONR never defines the term "good standing", even as it uses the term, but not in a context which allows the reader to link that term to an explicit meaning.

The fact that this person now sits on your board would suggest to me that he probably is in good standing, since he is neither suspended nor expelled, at this time.

If he were to be suspended or expelled, then I'll go out on a limb and say that he will have lost "good standing."

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