WA Legal for Not for Profit Club to Share Bank Password?

[Carolyn Foeken]

We are a not for profit licenced club with a constitution. Under our constitution, three signatories are required and two to sign for any financial dealings. Each signatory is given an ID and password by the bank and can access the Club's Bank account. To pay online it is necessary to use a second ID for confirmation.

Is it illegal for a signatory to share their ID and password with the Treasurer so that payment can be made online?

 

[Lance]

First of all, I don't know the answer to it being illegal, but if you are asking the question, it probably doesn't sit well with you. If the funds went missing from the account and the organisation decided to seek to recover the funds from those with access and it was disclosed that the signatory shared account details and passwords even with honest and noble intent, that person could be found to have failed in their duty to protect the funds of the organisation.

This might be a question for the bank. They may have dealt with this before and be able to offer a simple solution. I'm sorry I wasn't able to provide an answer but I hope it helps make it clear in your mind with regard to what you should do.