If a board member of an HOA takes money from the Board's petty cash without authorization and also deposits his HOA dues in the HOA petty cash account instead of mailing them to the bookkeeper, can he be barred from accessing all finances without removing him from office?
A: The board, by majority vote can do whatever it chooses with respect to management of the association assets. But, the board must vote on the record to do so.
Or do we have to remove him as an HOA board member first?
A: You don't need to remove a director from office as director. You only need to remove the director from any office as President, Treasurer, Secretary, or whatever office he or she may hold. A removal as a director requires a vote of the association membership, but removal as an officer requires only a majority vote of the board members.
The follow up question is whether we could get sued for barring him from bank transactions while he is still an officer by keeping the funds with our bookeeper.
A: You can hold an emergency meeting, remove the director from all official duties, except to vote in board meetings, and after you do that, the director will have no power to act on behalf of the association in any manner. You can't stop the director from suing, but if you handle the situation as I've described, the director won't have a case.
I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer -- otherwise, I receive nothing for my efforts in your behalf.
Thanks again for using Justanswer!