QUESTION
Is it legal in Tennessee for a non-profit corporation board to move reserve funds around to pay for maintenance? Ex. Painting Reserves for Concrete
Asked on Jul 13th, 2012 on Corporate Law - Tennessee
More details to this question:
In the state of Tennesee is it legal for a corporation to use funds that are set aside for a specific purpose, i.e. painting, for another purpose, i.e. concrete?
1 ANSWER
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It depends on your corporate bylaws or other governing documents. If you are forbidden from such actions in the bylaws, or have governing documents that state the the designated funds must be used for a specific defined purpose, then you must either amend the bylaws or governing documents, or use the funds for the specific purpose. If, however, there is no such provision or governing law, the corporation may use the funds for any purpose the board sees fit.
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Answered on Jul 19th, 2012 at 11:50 AM