Money Held By A Committee Treasurer

[horseshoes]

About 2 years ago, our village formed a committee to raise funds to benefit everyone, but especially the childrens' play area. It was all done on a formal basis with a chairperson, secretary, treasurer etc etc and until recently went merrily along. They had a weekly bonus ball draw and events. But now, apparently there has been a falling out of committee members.

My question is this: if people gave their money to support THIS group, how legal is it for the treasurer, now, to give what funds are residue (@ £2000) to a different group against the wishes of some members.

There's a meeting concerning this tomorrow evening and I'd like to be able to give a view from a legal perspective rather than a personal one. Thank you.

[Peter Pedant]

It ( I am getting used to this ) depends on how you set up your committee and what if any the article of association say.

There is no doubt the money is not the treasurers and is in fact held in trust by him for the benefit... of what you agreed it should be

so... have you kept minutes and what did you say your group that benefits is ?

add in the cy-pres doctrine - [ sort of benefit nearest ] that says if you have done as many swings for the kids you can then you can ( under cy-pres) do slides and roundabouts. But you cant give it to the Royal Water-Voles society ( as it is not cy-pres)

Honestly I think you can lay down the law (see above it isht that complicated) have a vote to remind him he is not the sole treasurer and doing it against committee wishes must makes trouble.

You should go for unanimity because I dont suppose your srticles allow for majority votiing. Spending money for children's benefits shouldnt be that hard to agree on.

Any litigation would be on the basis of 'breach of trust' and it worth remembering that the trustees become personally liable ( unless the articles have excluded that )

and away you go ! It is likely that at the end of the meeting the treasurer will throw the books at someone and say - OK you do it.
You should have someone in reseerve who will do the job.

There is a book on this - Law of unincorporated societies - I think

[boxtops]

This isn't a legal perspective per se, but based on my experience of Chairing and Secretarying different voluntary groups which raise money for specific activities.

What happens to the money depends on the Constitution of the group One voluntary group which I belong to has it clearly laid out that "in the event of the group folding (etc) - the funds would be distributed in accordance with the agreement of the majority of the current committee".

In any event, no voluntary group should have a bank account which has one signatory only - there should be at least two names on the cheque, and a process for agreeing any requests for payment at regular committee meetings.

[Peter Pedant]

Hi boxie - yeah the easy answer is.... read your articles of association - and I think Bx your was efficiently done.....

I think here it may be an informal arrangement.

In the group I did - we found we couldnt fire trustees for non attendance. so we ended up with 47 of whom 44 were not attending and non contactable. oopth

[horseshoes]

Thanks both for your replies. Boxy, I'm pretty sure that will be the case; I do recall the group being set up properly. I know that the cheques issued DO need more than one signature. It's the distribution of the money "if the group folds" which is of concern. It's not complicated as such, but tring to describe it IS! the group was set up in our village (not as large as a village - more a hamlet) as Ive said, but the hamlet is part of a larger Parish Council which has VERY strange boundary lines which results in half of that Parish Council being about 8 miles away and not IN ANY WAY part of our community. The treasurer and some other (not sure of numbers) wants to give the money to this Parish Council. Others, want to distribute it amongst those who gave it! I'll pop back and tell you the result at the end of the week - always assuming matter is resolved!

[cassa333]

God don't give it to the parish council unless you intend to make it a requisit that it is spent on specificly on something for children.

If you must fold then spend it in the way intended and do it quickly or try to find someone to take the group over from you.

[Peter Pedant]

Yeah the people who want it back who say it is not going to the thing they gave it for have a justified legal claim

If you are gonna give it to the Parish as Cassa says you could so long as you give on condition that it is spent on kids ( the Parish C can of course refuse the gift ) otherwise see cypres doctrine

and heavens if it is all the in articles of association
dont ask us ! read the document !

Once you know what the law says
you really should go for unanimity

and then think seriously about winding it all up

You arent Mosterton P C by any chance are you ?
They are going through this sort of thing

[horseshoes]

No we are not Moreston PC Peter. It's not so much as we don't want the Parish Council to have it, rather than the boundaries of the Parish Council place it miles away from us and they are NOT involved in this group neither have they paid into it. Anyway, as I said,I'll be back to tell you the outcome.

[cassa333]

It doesn't matter where the boundry is or where the PC office is. As long as you stipulate it is spent within a specified area or remit is all that matters.

[horseshoes]

No, I realise that Cassa. I was just trying to point out WHY we don't want to give it to the PC!