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Guest Sandy Ratke

Financial Issue

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Guest Sandy Ratke

Background:  We have one meeting a year where business can be transacted.  Our budget year runs 10/1/XX through 9/30/XX.  A quorum may be met with a combination of members and/or proxies. 

 

Question:  What happens if we don't have a legal meeting?  Can the BOD spend money to meet bills, etc. without an approved budget?  Is there a time limit on spending?  Our bylaws do have a provision for calling another meeting, but a quorum would be extremely difficult as many members leave the area for the winter.

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Guest Curious

You can take emergency action, such as paying bills, at your personal risk and hope the members ratify your actions at a later meeting. Or you can adjourn the meeting to another time and tell the members they had better show up or you will move to dissolve the organization since not enough of them seem to care.

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What happens if we don't have a legal meeting?

The assembly won't be able to do much of anything except to take a few procedural actions, such as scheduling an adjourned meeting. As noted above, the members present may take action as individuals in the hopes that these actions will later be ratified at a quorate meeting. If the actions are not ratified, however, the members are personally responsible for the action involved. The consequences of this can be severe, especially if money is involved.

Can the BOD spend money to meet bills, etc. without an approved budget? Is there a time limit on spending?

I concur with Mr. Huynh, although I would add that nothing in RONR requires a budget in order to spend money, nor does it place a time limit on spending.

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Many thanks.  Your comments helped smooth things over.  We came through Saturday's meeting with hardly a scratch.  And, wonder of wonders, they even had a quorum, so no worries about the budget at all.

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