Unauthorized account changes

[mtthwslrann]

What should we do? Our church has 3 trustees, according to our by-laws their duties are "(1) hold in trust all properties of the church and all trust funds belonging to the church as authorized by church action,(2) be empowered by church authority to sign all deeds, mortgages, or other conveyances.(3)review, at least annually, the church insurance program, and act as agents of the church in the purchase of and handling of claims relating to buildings, vehicles, and activities." 2 of the trustees went to our bank and changed the names on the signature card and who can cash in CDs and other changes. The church did not authorize these changes, so who is to be held accountable, the trustees or the bank employee? They and the assistant treasurer have also taken it upon themselves to "fire" our treasurer, the by-laws require a 30 day notice from either party. How do we rein these people in.

 

[Michael Wechsler]

(1) Your by-laws are what they are. If the trustees violated the bylaws, then they are liable for violating the by-laws.

(2) Your bank should have its own set of rules and requirements as to who can make changes on the accounts, jointly and severally. I don't know those rules but you should find out what they are. The bank may be within their abilities to make the changes even though your internal by-laws wouldn't permit it. You should see if they work together.

From my experience there is no 30 day notice for fraud, which is firing with cause. The 30 day policy might be without cause.