QUESTION
If a board director resigns while the finances are a mess, can they still be held responsible if they did nothing wrong?
Asked on Oct 06th, 2012 on Business Law - Wisconsin
More details to this question:
Our non profit treasurer has not kept any receipts or record of any kind and has been using the funds for her personal use. We revoked all fiscal privileges as soon as I found out. How can the rest of us avoid legal responsibility if we can't straighten it out. I would like to just hand the corp over to her, then resign and let her fight out her own mess. Would I still be held responsible if she gets audited?
1 ANSWER
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You misunderstand the duties of a director and the circumstances under which a director may be held liable for the criminal acts of a corporate officer. You and the other innocent directors should consult an attorney. This is different from asking a question anonymously on a computer. Get a lawyer.
Answered on Oct 06th, 2012 at 5:22 PM