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zoltron

Fiduciary duty...

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I can't really go into matters too deeply as there maybe onlookers to the matter.

 

In a nutshell legally who would become accountable for mis-appropriation of funds?

 

The Treasurer solely or other members of an organisation? It has since been discovered the treasurer gave direct access to funds via a debit card and PIN number which allowed the mis-appropriation to take place.

 

Does liability rest with the treasurer as fiduciary, or the person whom mis-appropriated the funds?

 

Sorry for the smoke and mirrors post.

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depends on the organisation.

are you saying the treasurer allowed someone else to take funds from an account who had no lawful excuse for doing so? Generally that would mean the treasurer is liable for the loss but it may be that all other officers of the organiation are equally liable for the debt if the treasurer cant pay it.

as permission was granted by treasurer to the person who took the funds they may well not be liable at all.

look up vicarious liability

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It turns out the treasurer gave a member the debit card and PIN, the treasurer never asked for the return of the debit card over the period of approximately 24 months , neither did the treasurer resign their role.

 

Innocent members of the group realise, while the mis-appropriated funds is down to one person alone, they cannot help believe the overall negligence remains with the treasurer, as the person whom mis-appropriated the funds should never have been placed into the situation they were placed for such an extended amount of time. The treasurer never asked for the return of the card, nor did they request a stop on the card.

 

Quote

 

 

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it is as I surmised so treasurer is responsible as the person supposedly mususing the card may well not have done as far as the law goes because they were given it and unless it can be proventhat the written instruction that came with its issue are watertight then the person using the card would be entitled to. If they had left the employ/group then they will know that they no loger had any authority to use the card and that would be a different kettle of fish 

Treasurer is liable and if they cant pay then the rest of the officers of the organisation have to make good to the membership.

Law to consider is what applies to unincorporated members clubs if for example treasurer or secretary claim they arent responsible.

A bit of sacking by way of emergency members meeting may be needed

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Credit Union?


DO NOT PAY UPFRONT FEES TO COLD CALLERS PROMISING TO WRITE OFF YOUR DEBTS

DO NOT PAY UPFRONT FEES FOR COSTLY TELEPHONE CONSULTATIONS WITH SO CALLED "EXPERTS" THEY INVARIABLY ARE NOTHING OF THE SORT

BEWARE OF QUICK FIX DEBT SOLUTIONS, IF IT LOOKS LIKE IT IS TO GOOD TO BE TRUE IT INVARIABLY IS

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Social Club.

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Aaah I see,  Just as bad.

 

I was Treasurer for our CU for five years, the bain of my life the "company" chequebook.

 

It depends really, did the Treasurer give access to the person, or did he just take it, I presume you have a Procedures book, does that say who should have access to the company funds?

 

In the CU the treasurer is the only one permitted to draw on funds if he is off then a temp treasurer is appointed.

 

It is laid in ABCULS procedures book, which all regulated CU must operate, I guess a social club has a more casual approach.


DO NOT PAY UPFRONT FEES TO COLD CALLERS PROMISING TO WRITE OFF YOUR DEBTS

DO NOT PAY UPFRONT FEES FOR COSTLY TELEPHONE CONSULTATIONS WITH SO CALLED "EXPERTS" THEY INVARIABLY ARE NOTHING OF THE SORT

BEWARE OF QUICK FIX DEBT SOLUTIONS, IF IT LOOKS LIKE IT IS TO GOOD TO BE TRUE IT INVARIABLY IS

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read a book called "practical club law" opublished by Sweet and Maxwell. that covers most of what you need to know

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