I audit the accounts of a mutual sports club. The club rules state:
The Committee shall manage the affairs of the club according to these Rules and shall cause the funds of the club to be applied solely to the objects of the club or for a benevolent or charitable purpose nominated by General Meeting. No expenditure excluding salary shall be made in excess of £3500 (unless raised by voluntary contribution) without a majority of two thirds of the votes of those members present and voting at a General Meeting.
Taking advantage of the Covid19 closure, the Committee have spent some £15,000 in refurbishing the clubhouse, and now they've suddenly remembered the Rules.
The choices they've put forward are:1. Hold an EGM and retrospectively pass the resolution. 2. Call for donations from the members to reduce the expenditure to sub £3500.
I have advised the Committee that the Rules make no provision for virtual EGMs and they can't hold a physical EGM under current conditions. Similarly retrospective motions are not covered in the Rules, so are not allowed. Donations to reduce the expenditure may be a solution, but the act has already been committed and I'm not sure that it can be remedied by subsequent donations.
Does anyone have a solution to this problem, or does the Committee have to carry the can for their misdemeanors?