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Q&A: When Board Members Resign

What should we do when board members want to resign before their term is over?

Q&A: When Board Members Resign

Occasionally, a member of our church will resign due to health problems or relocation. At what point is a resignation effective? And, is there any legal significance to the timing of a board member's resignation?

The method, and timing, of a board member's resignation is very important from a legal perspective, since it is the general rule that board members are not responsible for actions taken by the board prior to their election to the board (unless they vote to ratify a previous action). Similarly, directors ordinarily are not liable for actions taken by the board after their resignation. Again, they will continue to be liable for actions that they took prior to their resignation.

Here's an example. Terry was elected by her church to serve a four-year term on the church's board. After three years, Terry's employer transferred her to another state. A few months after ...

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Richard R. Hammar is an attorney, CPA and author specializing in legal and tax issues for churches and clergy.

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Posted:
  • February 22, 2011

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