Legal Question in Business Law in Missouri

I am a president of a non for profit organization. About 8 years ago there were some legal issues that came up against the organization and myself. The issues went to court and the verdict was in the organization and my favor. There were attorney fees and CPA fees of the amout of $15,000 to fight the charges. The club did not have the funds to pay for these services so I paid the $15,000 myself. After 43 years of services the organization is closing. The organization is going to have over $100,000 to give to other non for profit organization's from the profits of the sale. My question is, the board of directors want to pay me the $15,000 that I paid for legal services and CPA fees around 8 years ago. Is it legal for me to be repaid the money I spent on the organization behalf?


Asked on 9/14/09, 12:20 pm

1 Answer from Attorneys
Anthony Smith LawSmith

Your is a situation that is nto easily decided in vague generalities. The legality of the NonProfit recompensing you for legal and accounting services paid, would be somewhat determined by the nature of the litigation as well as the accounting work performed, the form that the $100,000 is in, and whether there was a service agreement or employment contract between you and the organization. You should have an attorney in your area, have access to all the relevant documents before deciding how to act. In a general sense, if the board approves the recompense, there there would be little that others could complain to you about. They might have issue with the nonprofit though. That could indireclty affect you, as an officer.

Good luck

Read more
Answered on 9/14/09, 12:52 pm


Related Questions & Answers

More Business Law questions and answers in Missouri