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How to handle misuse of charity funds by a trustee? (Anonymous post 🤫)

Governance
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Ocean King Staff Senior Community Executive at CharityConnect Posted 19 hours ago

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This question is from a member of our community that wishes to remain anonymous:
I am a trustee of a dog rescue charity, I am really looking for advice on difficulties the charity is facing currently. 
Our chairman has been unwell for sometime and has not attended a meeting in at least a year and has not been actively involved in that time, one of my co-trustees is his wife and she believes she can make decisions without consulting the rest of the trustees or if the trustees make a decision she will overturn it. 
Because they joined the charity and I believe put money in the charity over 30 years ago that it is their charity and they can do what they like, she is very toxic she manipulates people and talks about everybody to everyone else and it causes a lot of bad feeling and mistrust. She is supposed to be line manager to our 2 employed staff but she doesn't and she never wants to know about bad things only when it's good, she herself is in ill health but neither of them will step down voluntary, we have nothing in our governing document about removing trustees or to be honest anything else as this document was made in 1993. 
I believe our charity structure is not right as we are unincorporated but we actually employ 2 staff and own land, the land is in the name of the chairman, his wife and a another current trustee the rest are previous trustees who were not even trustees when the land was bought. She does all the paperwork for these things and does the trustee report for the charity commission and she just duplicates previous ones, our charity has gone from having a good reputation to being a talked about charity, we have lost numerous volunteers and we have a volunteer who thinks she is in charge and bullies everyone else. 
Sorry for the long post but there are so many issues that 4 of us are trying to change things but whatever we try to do we come up against resistance from the chairman's wife, recently we discovered that she was withdrawing money from the charity PayPal account into her personal bank account when confronted she said she was reimbursing herself for charity purchases but had not provided invoices, receipts etc. She has for some now but there is still some missing transactions, I believe our only option is to report us to the Charity Commission because we just don't know what else to do every time we try and change things for the better we get nasty messages from her and are told that the chairman can get rid of us just like that. 
Please help!
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