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Illegal by-laws


SportsDad

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What are some examples of major consequences that might result from having illegal(?) by-laws?  I'm not sure if illegal is the right word, but there are major holes in the organization's structural documents. The annual budget is small - less than $75,000/year - but there has been financial malfeasance (2 significant instances of monies missing) in the non-too-distant past, so there is still a stench of scandal in the air surrounding the board's operations.  But even though the budget is small, I stand firm in my belief that we need to be operating the right way, rather than operating the way it's always been done. 

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What are some examples of major consequences that might result from having illegal(?) by-laws? I'm not sure if illegal is the right word...

 

A provision in the bylaws is only invalid if it conflicts with some higher-level rule, such as the organization's constitution or articles of incorporation (if you have those documents), the governing documents of the parent society (if you have one), or procedural rules in applicable law (in which case, the term "illegal" may be appropriate). The parliamentary consequences are that the provision in the bylaws is invalid, since the higher-level rule supersedes the bylaws. Actions which violated the higher-level rules might be null and void. There may also be legal consequences (especially if the conflict is with applicable law), but that's a question for a lawyer.

 

...there are major holes in the organization's structural documents.

 

Having "major holes in the organization's structural documents" is not, in and of itself, improper (although it may be unwise). Do you have a specific concern?

 

The annual budget is small - less than $75,000/year - but there has been financial malfeasance (2 significant instances of monies missing) in the non-too-distant past, so there is still a stench of scandal in the air surrounding the board's operations.  But even though the budget is small, I stand firm in my belief that we need to be operating the right way, rather than operating the way it's always been done. 

 

I'm not clear what this has to do with your question.

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A provision in the bylaws is only invalid if it conflicts with some higher-level rule, such as the organization's constitution or articles of incorporation (if you have those documents), the governing documents of the parent society (if you have one), or procedural rules in applicable law (in which case, the term "illegal" may be appropriate). The parliamentary consequences are that the provision in the bylaws is invalid, since the higher-level rule supersedes the bylaws. Actions which violated the higher-level rules might be null and void. There may also be legal consequences (especially if the conflict is with applicable law), but that's a question for a lawyer.

 

Having "major holes in the organization's structural documents" is not, in and of itself, improper (although it may be unwise). Do you have a specific concern?

 

I'm not clear what this has to do with your question.

 

I didn't have a specific question with respect to the rules of order, but I believe you have addressed what one of my concerns was. I was wondering if a person could mount any sort of legal challenge to our non-profit organization's operations on the basis of what is in (or not in) the by-laws.  One of the things I've been worried about is the organization beyond called to account for its finances.  

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