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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 112762
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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I am listed as a board member on the form 990 for a small non-profit

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I am listed as a board member on the form 990 for a small non-profit in Washington State.

I was not elected by the members but rather listed by the President of Board. This President has suddenly died. The agency had no cash controls (We have always just trusted the President).

The current 3 members of the board have chosen not to seat me but promised to keep the money safe and keep me informed about what is going on. I am told that they may be attempting to shut down the agency and distribute the money to other non profits.

There is more than half a million dollars in cash with no over site. I was told that I would be kept informed and I have not heard from them in the 3 weeks since the Presidents death.

The by laws require a 4 member board. I have pointed this fact out to the current board and they said they felt comfortable only having 3. The current board is an elderly woman and a mother and daughter.

What should I do?
At this point, because you were duly appointed by the president and the board is not complying with the bylaws, your only remaining recourse if they will not comply with the bylaws would be to file a suit against the board on behalf of the non-profit, which is called a derivative action and requires you to engage an attorney to represent the non-profit and stop the other board members from acting improperly against the bylaws and against the best interests of the organization itself.


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