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Albert Marmero
Albert Marmero,
Category: Legal
Satisfied Customers: 193
Experience:  Partner at Long, Marmero, & Associates, LLP
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I am the treasurer of a small non-profit corporation. The

Customer Question

I am the treasurer of a small non-profit corporation. The president of the corporation opened a Facebook account for the corporation. Then the Facebook account was hacked and the bad guy demanded money to undo the damage.
She paid him by purchasing a gift card from her own funds.
She has now requested that I as treasurer reimburse her using the corporation's funds.
Is it legal and appropriate for me to do so?
Submitted: 7 months ago.
Category: Legal
Expert:  Albert Marmero replied 7 months ago.

I don't necessarily see anything illegal in regards ***** ***** reimbursement, however whether or not it is appropriate will come down to how your company's bylaws, operating agreements, and governing documents are drafted. This expense, albeit probably not the wisest, is certainly tied to the operation of the business. and would not be illegal in any way But my question is what do the governing documents say about reimbursements and expenses? Can the president spend company funds without approval of the board? Is the treasurer required to reimburse upon request of the president?

Again these does not appear to be any illegality, but this will all come down to your company's governing documents and the key thing to look at is whether the president can spend company funds on her own without board approval. Oftentimes there will be a provision which states the president requires no approval up to a certain dollar amount but anything above that dollar amount requires approval.

I hope this is helpful. Please provide a rating so I receive credit for promptly responding to you. Also, feel free to ask follow up questions after rating. Thanks!

Customer: replied 7 months ago.
Satisfied.
Expert:  Albert Marmero replied 7 months ago.

Glad I could help. Please provide a rating when you get a chance.