Full question:
I was in an Emergency Food and Shelter meeting and a board member deciding how to divide up the grant voted on giving me a larger share of the money; which was approved and voted in my favor. Two days later one of the board members decided that it was not fair and talking to other board members so now they have decided to change their vote. This vote was recorded and taking was official. Do I have any legal recourse on this matter?
- Category: Corporations
- Date:
- State: Ohio
Answer:
The answer to your question depends on the bylaws of the organization and whether the rules for board voting were followed. It's advisable to consult a local attorney who can review the relevant documents and facts.
A corporation is managed by a board of directors elected by shareholders. Directors have a fiduciary duty to act in the best interests of the corporation, which includes acting with care and loyalty. If a director breaches this duty, they may be held personally liable by shareholders.
Decisions made by the board require a quorum, which is a minimum number of directors present, as defined by the bylaws or state law. If the board's decision to change the vote did not follow proper procedures, there may be grounds for legal recourse.
Directors are not liable for poor decisions if they act based on reasonable information and rational judgment. This protection is known as the business judgment rule.
For specific guidance, it's best to consult with an attorney who can provide advice based on the details of your situation.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.