QUESTION: By a vote of 3 to 2 my board approved a bid to repair a fence. The treasurer voted against it. A week later he asked our management company to hold off on the repair. At our next meeting I was told that the treasurer has the right to stop motions approved by the board. Is this true?

ANSWER: A treasurer does not have veto power. His vote is the same as every other director’s. He does not have special powers that gives him the right to overrule the board’s decision and give contrary instructions to the management company. However, if cash flow is a problem, he can put a temporary hold on the work until funds become available, but he cannot stop the repairs. The treasurer can also ask the board to reconsider its decision if he has new facts that were not considered when the board made its decision. Absent that, he must step aside and allow the repairs to proceed. If the treasurer continues to interfere with board decisions, he should be removed as treasurer.

Sincerely yours,

Adrian Adams, Esq.
Adams Kessler PLC