Legal Question in Business Law in Vermont

Does an officer of an unincorporated nonprofit association have a right to exami

Our tenant association treasurer has kept the books secret from everyone, even the club presidents, for the last five years. Witnesses have reported seeing her use club money for personal expenses, and we have much less money in the bank than comparable tenant organizations in this area. As a newly elected officer of the club I'm determined to see the books and find out what she's hiding -- or if there are really any books being kept at all. Do I have a legal right to demand the books, and what are my options if the treasurer refuses?


Asked on 2/18/05, 7:56 pm

1 Answer from Attorneys

Michael Hermann Law Office of Michael Hermann

Re: Does an officer of an unincorporated nonprofit association have a right to e

This falls under fiduciary law, not corporate law. There are several issues here, some which may be of a criminal nature, so you may want to be careful how you approach this.

Generally, when one party acts as a trustee or agent for others, as in a tenant organization or club, there is a fiduciary responsibility that is specific to the party who has access to and controls the funds for the benefit of others.

Even in the corporate world, every shareholder of a corp, or member of an LLC or general/limited partner has a RIGHT by law to examine the books of the entity in specific times and manners.

It sounds like you have a big problem here, and you may need "public support" (your tenant assoc.) to demand an independent audit going back at least 5 years. SOunds like a nasty situation ahead. Good luck. (You may want to contact authorities if large amouonts of money are missing.) Note: I do not do any criminal law, but can advise you on your legal rights to have an "accounting" made.

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Answered on 2/18/05, 10:15 pm


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