Anyone up on business law?

[charlottesmum5]

I am the chairwoman of an Association which I am trying to wind down and close (with the agreement of the trustees). However we have a credit balance in our account and the terms of the Association states that this should be paid to a local charity. However the 2 cheque signatories are refusing to sign the cheque and I dont know what to do. The reason they are refusing is that the ex-chairwoman (who resigned) has told the signatories not to sign and them three are bezzy mates. The ex-chairwoman hates me by the way. The Bank have suggested that they can BACS the money over to the charity and a signature will not be required but this will cost £70 which is one third of the total balance. I am already nearly £100 out of pocket personally because of expenses incurred, which I won't even bother to claim because of the hassle. I really don't know what to do. My mum is the Secretary and this has nearly drove her to the brink, as she needs to do the accounts for HMRC.
Please help xxx

Two alternatives:

1. Give the cheque to one of the 'trustees' (this isn't a charity is it? or a company? just an unincorportated association?), tell them the situation and get them to sort it.

1. Resign (you and your mother).

1. Call a general meeting. Prepare a motion for the meeting setting out the proposal:

i) that the Association be wound up
ii) that the costs associated with winding up, being: (itemise the £100 you have spent plus anything else you can forsee, plus the words 'and any other costs properly incurred') shall be paid or reimbursed from the Association's funds
iii) that the account with xxx bank be closed and the balance after the payment of any costs be paid to xxx [local charity]
iv) that all officers of the Association and signatories to the Association's account(s) shall act promptly in cooperation with the Chairman in the winding up of the Association

Make sure notices go out for the meeting in accordance with the Association's constitution.

Produce proper minutes of the meeting signed by the Chairman and Secretary.

If the EGM passes the motion you can use it to persuade the signatories that they need to sign the cheques: if they still won't, the bank should accept the minutes of the meeting as authority to close the account and make the transfer to the charity.

Oh, that's three alternatives.

Of course if the EGM doesn't pass the motion, you should resign immediately - if whoever else remains in the Association doesn't want it wound up, they will need to manage it themselves.

Thanks Mranchovy - the association had only 5 trustees - me, my mum, and 3 others. We were a small voluntary organisation that couldn't register as a charity with the charity commission. My mum has already resigned, one of the trustees is severely mentally ill and unable to make decisions, there's me and the 2 x Mrs.Nasties. Before Christmas we (I) proposed that the Association be wound up and as no-one would/could commit to attending an AGM then I did it by email and recorded delivery letter - which the 2 Mrs.Nasties signed and returned. When the accounts were sorted, a cheque was drawn up and sent (by RD) and of course I am now in the situation where they won't return the cheque (signed or unsigned lol) or respond to email. My mum(secretary) completed official minutes of the 'email AGM' - so I will ask her to contact the bank and see if they will accept these as confirmation of the closure.
I decided to wind up the Association because it was me doing all the work and spending hours (unpaid) supporting the needs of women with mental health problems - however a local registered and established charity has offered me a position with them so I can continue this work. Thanks so much for your help.

Hope it works out OK with the bank and you have fewer hassles with the 'new' organisation!