You are here

Does the Board have the right to hire an attorney?

Your Legal Questions Answered

Does the Board have the right to hire an attorney?

Does the Board of Directors of a 501(c) corporation have the right to hire an attorney to represent the corporation if one of the members of the organization will be taking legal action against the corporation for what the member perceives to be irregularities? Can the Board make the decision to hire an attorney? Does the Board have to present this issue to all members for a vote? Can the fees for this attorney be paid from the general corporate funds?

The Board is charged with the responsiblity to run the organization and ordinarily has the authority to hire an attorney to represent the organization from the general funds, unless there is something in the bylaws that might prohibit them from doing so in a case brought by a "member". If members don't like what is going on, they can probably vote the current directors out of office. Check your insurance policies to see if you have insurance to defend against specific charges when they are actually made.

Saturday, March 24, 2007

Sign-up for our free weekly Q&A

Add new comment

Sign-up for our weekly Q&A; get a free report on electioneering