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BonnieG1 (Nebraska)
Posts: 1,186
Posted:
Our President and Vice President set up and interview date with a bookkeeper without the knowledge of the other two board members. I just happened on the meeting and the other board member knew nothing about it until the board meeting later in the day. A vote was not taken by the board to hire this bookkeeper, but I few days later I learned from an owner (not board member) that we had hired a book keeper. This bookkeeper did not stay with us due to problems arising from the way he was hired. Our by laws state the board has the authority to into into contracts and the President has the authority to execute contracts. The President and Vice President interpreted exucuting contracts to give them authority to hire the bookkeeper this way. What do you think about this?
JonD1
Posts: 2,350
Posted:
I think it would be poor practice for the Pres. and VP to act without the knowledge of the other members. IMO whether allowed under the documents or not two members should never take that sort of action on their own UNLESS the remainder of the Board has authorized them to do so.

Hopefully, they now know this should not happen again.

From the verbage you have provided this was not permitted under your documents. IMO
BonnieG1 (Nebraska)
Posts: 1,186
Posted:
From the problems this caused, I believe they will never try to do it again. Before I was a board member there was talk of these two running the show, but I thought it was just talk.
SusanW1 (Michigan)
Posts: 5,202
Posted:
I suppose the argument could be made that the entire board does not have to hire a single person to perform work. A motion to have 2 board members and the treasurer interview and make a recommendation back to the board could have sufficed. Then the board could have approved the contract.

Delegate, delegate, delegate . . .!
BonnieG1 (Nebraska)
Posts: 1,186
Posted:
Susan, if had had been done like that, we probably would have a bookkeeper now. The way it is the Vice-President who is the manager is also doing the bookkeeping.
DanielH1 (California)
Posts: 482
Posted:
Interviews are not a Board Meeting. A Board Member can interview a bookkeeper by himself. He cannot hire or make promises or "speak for" the Board without being authorized by the Board at a Board Meeting.

The President may have the authority to execute contracts but he does not have the authority to agree/enter into them. To execute the contract, the President signs the contract as an official representative of the HOA. However, by implication, he can only execute contracts that the Board votes on and agrees to enter into.
BonnieG1 (Nebraska)
Posts: 1,186
Posted:
Don't you think it would be a good idea for the other board members to at least know an interview was scheduled. The contract was signed without the vote (approval) of the board. If only the other two members would have know about this bookkeeper, he may be our bookkeeper. The way it is we found a cpa firm that is willing to to the bookkeeping for about the same amount he would charge and do more work (the billling) than he was going to do.

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