Saturday, August 30, 2014 Login
Quick Links:
Subject: Can President also be treasurer?
Prev Next
Please login to post a reply (click Member Login on the menu).
Author Messages
BeckyF2
(Oregon)

Posts:3


06/28/2011 12:45 PM  
According to our CCR's the treasurer can also be the secretary but our new president seems to also want to be the treasurer. Is that ethical or legal? Thank you.
BrianB
(California)

Posts:2803


06/28/2011 1:48 PM  
1) ethical? it depends on your ethics. My ethics are just fine with it. Your mileage may vary.
2) Legal? Typically, yes it would be legal, unless a by-law stated differently. Some (few) states may also have a law about it, but I would guess most don't.
3) advisable? Not normally, no.
BruceF1
(Connecticut)

Posts:2466


06/28/2011 1:51 PM  
Do your bylaws prohibit it?

Our bylaws allow any two offices to be held by the same person except the offices of President and Vice President (for obvious reasons) and the offices of President and Secretary. Nothing in our bylaws prohibits the same person from holding the office of President and Treasurer.

Usually the association's bank account has two signatories on it: the treasurer and the president. In the absence of the treasurer, the president can then act as the treasurer and sign the checks.

Perhaps your president feels he is more skilled in accounting than the other board members, or maybe no one else wants the job. If there is nothing to prevent it OK, but I wouldn't recommend having only one person with signature authority on the bank account. I'd choose a second person, maybe the vice president, to also have signature authority as back up.

Some HOA documents allow non-board members and even non-owners to fufill the offices of secretary and treasurer. Some even allow those offices to be compensated. Those are other solutions if your documents allow it.
DonnaS
(Tennessee)

Posts:5671


06/28/2011 2:19 PM  

Becky,

Your governing documents, especially your incorporation document will state how many officer positions there need to be. How many people are required to sit on your Board. If an officer takes 2 positions, that may not be okay with your number of Board members required. Why do they want to take on 2 times as much work? I would be wary of this. I am not saying that there are unethical intentions there but maybe a power grab?
TimB4
(Virginia)

Posts:8983


06/28/2011 3:31 PM  
Becky,

What do your governing documents (Articles of Incorporation, CC&Rs, Bylaws) say about people holding two offices?

Typically, when there is language allowing the Treasurer to hold the Secretary position, there is also language preventing other offices from being held by the same person.

Tim
RichardP13
(California)

Posts:1588


06/29/2011 5:02 PM  
I can give you two examples. I looked up an HOA in Portland, Oregon and they only allow a Director to hold only one position or office. My Association does not allow a Director to hold the position of President and Secretary.

I would surmise, it depends on the wording of the specific HOA.
BeckyF2
(Oregon)

Posts:3


06/30/2011 1:18 PM  
Definitely a power grab. This new president seems to think he can do all the jobs. We didn't see this side when he was just on the board. Maybe he is just trying to understand all the positions of the board but he is driving me nuts and I am about to let him have my job.
TimB4
(Virginia)

Posts:8983


06/30/2011 2:07 PM  
Becky,

Does your Board appoint officers?
Did others step forward to serve as Treasurer?
Did you voice concerns at the meeting when the appointments were made?

What is the exact language about appointing officers in your CC&Rs?

Tim
BruceF1
(Connecticut)

Posts:2466


06/30/2011 2:17 PM  
It depends on what your bylaws say. If they don't prohibit the president from also being the treasurer, then I guess he can. Our bylaws don't prohibit such a situation.

BUT -

It doesn't matter what he wants. As Tim said, if the board elects the officers, it depends on what the BOARD wants.

If the bylaws don't prohibit it and the board elects the officers and the majority of the board is OK with the president also being the treasurer, then so be it. Otherwise, pick someone else as treasurer and tell the president to be happy he was elected president. Of course, if the board elects the president, they also have the power to remove him from office (if the bylaws say so). Then he won't be anything but a board member.
Please login to post a reply (click Member Login on the menu).
Forums > Homeowner Association > HOA Discussions > Can President also be treasurer?



Condo & HOA Websites by Community123.com  Terms Of Use  Privacy Statement