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CA4 (Colorado)
Posts: 5
Posted:
I have noticed that on some posts people say that it's okay for a husband and wife to both be on the board together. But is it legal for the husband to be President (who must co-sign all checks and make decisions on behalf of the board including financial decisions) and the wife to be Treasurer (who must sign all checks and handle the HOA funds). This would give this couple complete control of our HOA funds, with no one supervising where the funds are going unless requested. To me, this is an embezzlement case waiting to happen and a conflict of interest. Our By-Laws state that the Treasurer and President both must sign all checks, that means that if they are husband and wife then all funds associated with our HOA is all in ONE household’s hands.

Also the wife was not a current board member and was not voted by our members to be a board member, we had someone step down as Treasurer and she was automatically given the position without a vote by the members or voted in as a board member. Can the board of Directors do this? I know the members that know about this are not happy that she was just put in without a membership vote and now all the powers are given to her and her husband. For what my understanding is and what I read in our bylaws is that the board members are voted in by the members and the officers are voted in by the board of directors. But aren't the Officers board members?

Thanks in advance for any input and suggestions.
TimB4 (Tennessee)
Posts: 21,059
Posted:
CA4,

Your correct that Directors are elected by the membership and Officers are appointed by the Board. Typically, the Officer positions are appointed from amongst the Directors. When this happens, that individual is actually doing two different jobs and have different responsibilities. Directors make decisions by majority vote. Officers implement those decisions.

If your governing documents have no qualifications for Officers that would prevent two individuals from the same house hold being on holding office, then it would be legal for it to happen.

I don't think its smart but legal doesn't always = smart (or ethical).

Perhaps there just weren't enough volunteers to fill the Officer positions. You could certainly contact the board and offer to fill one of the Officer positions so this perceived issue doesn't become a real issue.

Hope this helps,

Tim
CarolR11 (Colorado)
Posts: 2,563
Posted:
If your documents permit it, usually your bylaws, the Board is permitted to appoint someone to fill a Board vacancy if one occurs. So the Board very likely could have legally appointed the wife by a vote to do so. Then the Board should've voted again to appoint that wife as treasurer. In CA, both of these votes must be done in an open meeting.

The other directors are responsible to review "the books" too.

If you & other HOA members worry about this situation, you can vote them out at the next election. Or if many feel you don't want to wait that long, you can start a campaign one r more board members. But you need to learn your governing documents first.
PaulT6 (California)
Posts: 409
Posted:
Our governing documents prohibit that type of arrangement. I guess it all depends on how your GD's are written. If they allow it you might consider changing them, sounds like it could be easily abused or mis-managed.

Paul T
CA4 (Colorado)
Posts: 5
Posted:
Thanks so much for your help. What do you mean by starting a campaign?
CA4 (Colorado)
Posts: 5
Posted:
Can members request for that change to be voted on? Or does it have to requested by the Board of Directors?
Thanks for help.
CA4 (Colorado)
Posts: 5
Posted:
Thanks so much for the advice and clarification. It's not that I don't think that two people from the same household should be on the board, it's more about the two positions that the couple would be holding.Thanks again.
CarolR11 (Colorado)
Posts: 2,563
Posted:
Sorry, CA4; we aren't able to edit messages that we've already posted.

I meant to write that you could mount a recall campaign to remove one or more directors. But you'd want to make sure you're doing it properly and that you have enough support from other Owners (voters).

If you want to change your documents, probably your Bylaws, so that joint owners may not serve simultaneously on the Board, You can request that the Board let Owners vote on the topic, which probably is required by your docs. Or you can get a petition going.

How to do these things would be in your governing documents--these matters can vary state by state.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
I have mixed emotions on spouses serving together on a BOD. Overall I do not like the idea, but I could go along with it if only one can fill an officer position.

AlbertN (California)
Posts: 10
Posted:
For real fun, try husband and wife who also control the Board! And who do not believe documents or law applies!
CA4 (Colorado)
Posts: 5
Posted:
That's pretty much the problem we are having also.
PaulT6 (California)
Posts: 409
Posted:
Sounds like your situations are similar to trying to put the toothpaste back into the tube, not impossible, but very difficult. I am guessing this happens because no other Members want to step up to the plate and contribute some time and effort? It would appear the only answer is to mobilize the troops and change the "Its good to be the King, & Queen" arrangement. Then change your GD's to prohibit it.

Paul T
DaveD3 (Michigan)
Posts: 796
Posted:
How many other members are on the board? If it was only a 3 member board, I might be concerned. With 5+ members, I presume the others are able to review all finances and keep the married members in check. I don't know that I'd be concerned about a husband and wife any more than I would over close friends serving together.
PaulT6 (California)
Posts: 409
Posted:
Quote:
Posted By DaveD3 on 09/06/2012 10:40 AM
How many other members are on the board? If it was only a 3 member board, I might be concerned. With 5+ members, I presume the others are able to review all finances and keep the married members in check. I don't know that I'd be concerned about a husband and wife any more than I would over close friends serving together.

With the exception of James Carvell and Mary Matilin, probably most husband and wife teams think pretty much the same? In addition to prohibiting husbands and wives from serving together on our Board they also cannot serve on our two committees that can revise rules and apply fines. Nor can a husband or wife of a Board member serve on those committees. Point taken on close friends but I guess whoever wrote our GD's felt they had to start somewhere. A few years ago we changed our Director's terms so that no more than two out of five can come up for election at the same time.

Paul T

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