Can he raise his payment? Legal Advice from David Searl

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Legal advice from David Searl Photo credit: Pinterest

Q.

Is it legal for the president of a large community to award himself an increase in his gratuity, without this matter appearing in the agenda for the AGM or previous discussion with the Committee?  Neither does this appear in the minutes of said AGM.

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A.

No, it is not legal.  Community expenditures must be discussed and approved by the AGM. The only way this increase can have the appearance of legality is if it is included in the proposed community budget for the following year. I am supposing that you received a copy of the budget before the AGM. And we suppose the committee discussed it previously.  If one of the budget items is the president’s gratuity and the budget is approved without dissent, this seems to cover the issue.  If nobody noticed that the president’s payment had been increased, it has been passed as part of the budget.  This covers the legal side of it.  The transparency leaves something to be desired because the members really had no opportunity to object to the higher gratuity.

 


Send your questions for David Searl through lawyers Ubeda-Retana and Associates in Fuengirola at Ask@lawtaxspain.com, or call 952 667 090.





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