Do I need to provide a contract to our managing director in Texas?

Full question:

i recently became the board president to a nonprofit organization recently found out that our managing director never received a contract. Now, a year later we are at will to work state TX. Do I have to give our manager a contract? Please help the previous president did offer a contract but it was never signed.

  • Category: Corporations
  • Subcategory: NonProfit Corporation
  • Date:
  • State: Texas

Answer:

The Articles of Incorporation is a document filed with the state to incorporate a nonprofit. It typically includes the corporation's name, address, general purpose, and share information. While bylaws are required, they are usually not filed with the state. Bylaws outline how the organization operates, including hiring procedures for officers and directors.

Generally, a corporate officer is not obligated to have an employment contract unless the bylaws or board resolutions specify this requirement. Therefore, you should review the bylaws, resolutions, and meeting minutes related to the hiring of the managing director to determine if a contract is necessary.

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.

FAQs

Nonprofits are primarily accountable to their board of directors, which oversees the organization's operations and ensures compliance with laws and regulations. Additionally, state and federal agencies, as well as donors and the public, can hold nonprofits accountable through audits, reporting requirements, and transparency measures.