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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.
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