Bylaw change to allow outgoing President and Treasurer to sign cheques for interim period

[Guest joanna]

Our Community Association is recommending a change to the by-laws which would allow an outgoing President and Treasurer to retain their signing authorities for issuing cheques until the new President and Treasurer have established their signing authorities with the Association's bank.   The by-laws currently provide for 3 signing officers to be authorized (the President, Treasurer and another Officer to be selected by the Board).   Only two signatures are required on the cheques.   The new provision was suggested because the bank requires all 3 signatories to come to the bank together to sign all the papers required to authorize them and in the past this has been difficult to organize and the Association was unable to pay outstanding invoices for over a month.   Does Roberts Rules have any advice on this type of issue?    

[jstackpo]

No, but it seems like a reasonable response to the tightened bank rules.

[Dan Honemann]

I agree that nothing in Robert's Rules of Order deals directly with issues of this nature, but nothing in Robert's Rules of Order suggests that rules relating to who is authorized to sign checks (or cheques, if you insist) should be in the bylaws to begin with. Appropriate resolutions adopted by the Association's membership from time to time, or by the Association's Board if it is authorized to do so, should suffice. If not required by applicable law, you might want to consider removing these provisions from your bylaws altogether.

 

As far as the bank's requirements are concerned, if you find them unreasonable (and they do appear to be unreasonable), why not move your account to another bank?

[Guest Edgar]

 . . . why not move your account to another bank?

 

Perhaps one that accepts checks, not those exotic "cheques".

[jstackpo]

Maybe its a French-Canadian banque.

[Guest joanna]

All over Canada -- not just in Quebec, checks are for check marks or checking to see if something is correct.   Cheques are for paying bills.   Also in UK, Australia and New Zealand (according to wikipedia).   I have just checked with the Pres and apparently the bank has modified its procedures and allows each member to come in separately if necessary.   Apparently, they prefer to have everyone together to sure that the people know each other to prevent someone walking in with the papers and getting signing authority.   Very cautious banks in Canada.  This one (TD) operates in the US as well.    

[sMargaret]

I will further note that if you check, you'll doubtless find that these are coloured cheques. 

 

PS: I've found at least two different Canadian banks changing procedures to tighten things up recently - both in signing authority, and ability to deposit a cheque made out to a couple. 

[Rev Ed]

As far as the bank's requirements are concerned, if you find them unreasonable (and they do appear to be unreasonable), why not move your account to another bank?

 

That sounds like a better idea to me.  I am involved with not for profit organizations, and the banks they deal with do not require this (normally, the outgoing Treasurer will notify the bank of the change in the signing authorities, normally with the new signatures for the new Board members and a copy of the draft Minutes of the AGM/Board meeting where the new signing officers were elected/appointed.)