Jump to content
The Official RONR Q & A Forums

RRO vs Board Policy


Guest Quietstorm

Recommended Posts

Good morning.  I'll try to be brief and hope for some clarity. Our Treasurer is now attempting to manipulate RRO in order to maintain total control over the finances of the association (refusing to follow directives from the President and the Board of Directors). It was explained to him that we do have bylaws and that RRO are a guide, for example, if an issue may come up that is not covered under our bylaws. He is claiming that RRO "specifically states that no financial reports may be disseminated to the Pres. or Board of Directors.  I can't find anything in RRO like this. Also, can't the Board also create policies as well that address the day-to-day operations of the association so this meathead can finally realize that he is way off-base?   Thanks

Link to comment
Share on other sites

First step:  Get rid of that treasurer and CHECK THE BANK ACCOUNTS ASAP!!!!!  (Before you start getting postcards from the Cayman Islands.)

 

You sed:  "He is claiming that RRO "specifically states that no financial reports may be disseminated to the Pres. or Board of Directors.  I can't find anything in RRO like this."

 

For the simple reason that it isn't there.  Challenge him to show you that statement - he won't be able to. Then you show him p. 477ff.

 

You sed (with a touch of annoyance in your tone):  "Also, can't the Board also create policies as well that address the day-to-day operations of the association so this meathead can finally realize that he is way off-base?"

 

You bet you can. Your adopted rules supersede RONR's rules when they differ, and you are free to establish whatever Standing Rules (AKA "policy")  you (collectively) wish.  p. 18.

Link to comment
Share on other sites

He is claiming that RRO "specifically states that no financial reports may be disseminated to the Pres. or Board of Directors.  I can't find anything in RRO like this.

That isn't surprising since RONR says no such thing and if he insists it does he should be able to show you all where.  If he persists in being difficult steps may need to be taken to put him back in line.  See FAQ #20 for details.

 

 

Also, can't the Board also create policies as well that address the day-to-day operations of the association

It is pretty common to adopt policies that deals with the details of running the organization.  However, you will need to check the bylaws as to whether the Board has the authority to adopt policies that are binding on the General Membership.

Link to comment
Share on other sites

I also recommend that every organization should, at least annually, adopt a "resolution of financial accounts and signers" detailing the financial accounts in which you have money deposited, who has the authority to create new accounts or close existing accounts, to move money among the accounts, to sign checks on each of the accounts, to order the purchase or sale of securities in the accounts and the number of signatures required for each such action.  This resolution should include a statement that explicit board actin is required for any other actions not covered by this resolution.  

 

-Bob

Link to comment
Share on other sites

I also recommend that every organization should, at least annually, adopt a "resolution of financial accounts and signers" detailing the financial accounts in which you have money deposited, who has the authority to create new accounts or close existing accounts, to move money among the accounts, to sign checks on each of the accounts, to order the purchase or sale of securities in the accounts and the number of signatures required for each such action.  This resolution should include a statement that explicit board actin is required for any other actions not covered by this resolution.  

 

-Bob

 

 

And it wouldn't be a bad idea to send a certified copy (or relevant excerpt) to each of the financial institutions referenced, as they are the first line of defense when it comes to things like number of signatories, and such.   In fact, they may require this, especially if any of the information has changed

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...