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Illegal Board actions without a vote ?


Gluke

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What is the risk if a few board members (in a non profit) tells the ceo that the board voted and it was unanimous that the board wants the presidents resignation.  

Assume in this case that the rogue members then told the rest of the board that the president no longer wanted the position.  Assume there was never a board vote.

the ceo resigned and it was accepted by the board.

Can the ceo sue.  What is the risk to the board and the organization?

 

Edited by Gluke
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25 minutes ago, Gluke said:

What is the risk if a few board members (in a non profit) tells the ceo that the board voted and it was unanimous that the board wants the presidents resignation.  

Assume in this case that the rogue members then told the rest of the board that the president no longer wanted the position.  Assume there was never a board vote.

the ceo resigned and it was accepted by the board.

Can the ceo sue.  What is the risk to the board and the organization?

If it is desired to take disciplinary action against the board members for misleading the board members and the CEO, see FAQ #20.

As to the possibility of a lawsuit, or any other legal risks which may arise from these actions, those are questions for an attorney.

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