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Legal action towards a officer


Guest Princess_Mayhem

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Guest Princess_Mayhem

As president of a club what actions can be taken if, president along with 2 other members, believe that the treasurer is showing true malice towards another member that could possibly result into legal action? Without going into a bunch of detail, treasure sent out a 1099 tax document to a member without approval of board and refuses to amend it. We have even had our CPA tell us it needs to be amended and now the treasurer is saying they will write a statement to IRS how they disagree with the amendment. Tried to get a committee formed to investigate the treasurer for wrong doing and overstepping of treasurer duties but it was not seconded so motion was dropped. Is there anything else that can be done if this truly turns into a legal issue. Does president and vice president have the right to get an attorney on retainer without the approval of the board? And can the club in turn press charges against treasurer if club ends up getting audited due to their overstepping of duties? Its quite a mess really. 

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It appears that this question is a legal one and should be directed to your attorney.

Depending how your bylaws are written, the membership might be able to instruct the Treasurer to issue a corrected 1099, but that might depend on how the duties of the Treasurer are described in the bylaws.  Removing the Treasurer might be an option, but not if you can't even get a second on a motion to investigate.  

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