Wednesday, July 25, 2007

Who Signs Contracts?

If it’s the executive director your organization might be putting itself in danger, at least that’s what Steven John Fellman says in the latest issue of “Bottom Line Briefing.”

In the article “Who Signs the Association’s Contracts?” Fellman (Galland, Kharasch, Greenberg, Fellman & Swirsky, P.C.) argues that while the staff should provide the board with information on the risks involved with a contract, especially economic risks, it’s the Chair of the Board that should ultimately sign the contract. Fellman states that this practice both protects staff members and makes board members increasingly aware of their financial responsibilities.

The article introduces an interesting point but fails to expand on the specifics of the memo that outlines the risks (and, one can assume, the benefits) of the contract. Who signs significant contracts in your association? If you use the memo format, as the article suggests, we welcome you to share your experiences with us.

0 Comments:

Post a Comment

<< Home