Michael J. asked
I am a member of a nonprofit board for a high school cheer program in California. We were recently threatened with a lawsuit for not following the bylaws, which require a budget to be adopted by the membership before any funds are disbursed. We made an unintentional mistake and disbursed funds for cheer camp, uniforms, and supplies. I need advice on the following: 1) What course of action should we take? 2) What is the liability of individual board members? Can they be sued personally, and for how much? 3) Given that we are all working moms with limited financial resources, should we comply with the demands? 4) If other board members disagree on the proper way to rectify the situation, am I within my rights to resign from the board?
August 4th, 2023
Todd M. answered
1) The first step is to call a meeting to discuss the bylaws and how to remedy the situation. Draft ...
August 4th, 2023
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