I'm with your principal on this one. Regardless of which way he went, he's gone--that's the important part.
I think it will come back to us that we did not do our job properly and continued to let him be on the board until it was his decision to leave.
It doesn't sound like you were going to get rid of him long before he resigned--he would have been gone at roughly the same time no matter what. So, I don't see how this can come back to haunt you. It's not unusual to let people "resign" when they're in a bad situation to help them save face. You have a payment plan (I'm assuming in writing), so there's documentation about what happened, when, and how it was resolved if it is ever needed.
In a nutshell....VP and wife stole $5,000+. We voted VP out but he beat us to the punch and resigned 24 hours after board meeting (I think my house is bugged!) Now they're (Bonnie and Clyde) are telling everyone that he resigned because he couldn't work with the board nor the Principal because it's her way or no way. (I guess if she tells him he can't continue to steal money, his statement would be correct!)
I know I preach to take the high road, but if he continues to bad mouth principal and board members to parents, I'm afraid that all bets to keep his indiscretions will be off. I feel like he's controlling the whole situation. The board is all very supportive to each other but it's getting more and more difficult to hold each other back from lashing out at him.
Principal wants us to write a letter accepting his resignation. I think we should write him a letter stating he was voted off the 'island' and his resignation was really not needed. I would rather not have anything in writing that we accept his resignation but rather that we got rid of him. I think it will come back to us that we did not do our job properly and continued to let him be on the board until it was his decision to leave.
Any thoughts and thanks for letting me vent....
P.S. They're on a payment plan to pay back, otherwise we would have pressed charges by now.