Coporate Officer is aware the corporation owes debts to an individual, acknlowedges the fact the debts are owed but closes the bank account of the corporation without authorization so the treasurer can not pay the debts. Can the corporate officer be held personally responsible for the debts since he acted outside the scope of his authority. This is a small claims suit
The answer to your question is unclear from your fact pattern. The key duties every nonprofit executive and director owes to their charitable organization are the duties of loyalty and care. Thus, executives and board directors are required to take decisions that impact the nonprofit using ordinary reasonable care (arm's length standard) in a manner which always benefits the nonprofit's interests. Your fact pattern does not identify the relationship of the individual creditor to the nonprofit or the circumstances surrounding the debt. The president may be obstructing a valid business relationship, or could be preventing the distribution of charitable monies to an insider on a questionable deal. Consider engaging competent local counsel to assist you with this matter.
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The question does not provide enough information to answer. There are always small details that must be known when trying to answer a question like this. I would recommend you find someone that you can meet with to discuss the specifics.
This answer is based on general legal principles only and is not intended to provide specific legal advice. This answer is for informational purposes only and does not constitute the formation of a lawyer-client relationship. Any reader of this answer should not make decisions based upon in without first directly consulting with an attorney
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