VOLUNTER TREASURE

Started by MichaelJ8 • 16 replies • 1670 views

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MichaelJ8 (Illinois)
Posts: 113

Posted:

Is there a way that I could be the tresure AND not be on the board. I was on the board before, so as they say, been there and done that and not again. If the answer is yes then how would I protect myself if a problem should come up?

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Treasurer is an office position on the board. Whether you could do this without being on the board is irrelevant as you could not do your job without interacting with the board. The accountant does whatever the board tells them to do. So what would be the diference except you want money?

Former HOA President

TimB4 (Tennessee)
Posts: 21,062

Posted:

Yes (but check your governing documents).

The Board of Directors is made up of "Directors" who were elected or appointed. Directors, via majority vote, make the decisions for the Association.

Typically, Officers of the Association are appointed by the Board. Officers implement the decisions of the Directors and carry out the day to day tasks of the Association. Officers do not cast any votes at the board meeting.

Some Assocaitions do have qualification requirements for Officers. The most common one I've seen is that the President and VP must be members of the Board (i.e. serving as a Director). When this happens, the individual serving as President is actually filling two positions (Director and Officer). As a Director, they are entitled to cast a vote.

You need to check your governing documents and then contact the Board so they can discuss it at the next meeting.

MichaelJ8 (Illinois)
Posts: 113

Posted:

I did say I wanted money. I wanted to be protected in case someone thinks I took money, etc. I do not want the job of making decisions as a board member does.

MichaelJ8 (Illinois)
Posts: 113

Posted:

correction=== I did not say i wanted money in the original post.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Michael

As my dear old English Grandmother used to say: In for a Penny...in for a Pound.

Sounds like I want control, credit, the title, etc. but no responsibility. With command, comes responsibility.

SherryS2 (Washington)
Posts: 47

Posted:

To expand on that question, I recently volunteered to serve on a number of committees. How would I protect myself if a problem should come up? Two of them were the audit committee and finance committee. Does the D&O insurance typically cover committee members? - Sherry

TimB4 (Tennessee)
Posts: 21,062

Posted:

Michael,

As an Officer of the Association, you would be covered under their insurance policy.

Just so you know, as Treasurer of my Association, I do more interacting with the membership than I ever did as President or when I served on the Architectural Committee. Serving as Treasurer does require a time commitment. You will likely still be required to attend Board meetings to give reports and answer financial questions.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Sherry

Interesting question.

My first blush is you are a helper/advisor (and thank you for such) but one with no actual control, decision making duties which Directors and Officers have, thus the insurance coverage for them.

Were I you, I would not be concerned.

TimB4 (Tennessee)
Posts: 21,062

Posted:

Sherry,

You are correct, D&O insurance covers Directors, Officers and Committee members.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Tim

D&O insurance aside (does not cover her), by serving on committees do you think she needs to or should have some liability protection? I say not needed. Your opinion please.

Thanks

TimB4 (Tennessee)
Posts: 21,062

Posted:

John,

Our D&O insurance would cover committee members. I don't think our policy is anything special and believed that other D&O polices would be similar. Of course, everyone needs to read their policy to be sure. Here is what ours says [emphasis added]:

"Insured Persons means any persons who were, now are, or shall become: (I) duly elected or appointed directors, trustees or officers of any Insured Organization; or (2) employees, members of duly constituted committees or volunteers of any Insured Organization that is a non-profit entity."

As for my opinion if committee members need liability protection - no.
However, it's nice to know it's there.

SherryS2 (Washington)
Posts: 47

Posted:

Quote:

Posted By TimB4 on 02/03/2013 6:06 PM
John,

Our D&O insurance would cover committee members. I don't think our policy is anything special and believed that other D&O polices would be similar. Of course, everyone needs to read their policy to be sure. Here is what ours says [emphasis added]:

"Insured Persons means any persons who were, now are, or shall become: (I) duly elected or appointed directors, trustees or officers of any Insured Organization; or (2) employees, members of duly constituted committees or volunteers of any Insured Organization that is a non-profit entity."

As for my opinion if committee members need liability protection - no.
However, it's nice to know it's there.

Thanks for the input. I don't anticipate any issues but you never know in this litigious society we live in. I'm sorry Michael if I stole your thunder with my questions but maybe it has some applicability to your question. I suppose it would depend on your scope of responsiblity and if you are actually making any decisions as treasurer. I am new to the world of the HOA. I'm learning a lot thru this forum. Thanks.- Sherry

FrankM7 (Pennsylvania)
Posts: 61

Posted:

Quote:

Posted By TimB4 on 02/03/2013 6:06 PM

As for my opinion if committee members need liability protection - no.

... because committees normally don't make decisions. They feed comments, opinions, suggestions, recommendations, and researched findings to the board where decisions are made.

TimB4 (Tennessee)
Posts: 21,062

Posted:

Frank,

That's not the reason I feel committee members don't really need the protection. Heck, our Architectural Committee makes decisions all the time. I don't feel that they need the protection because, in our Association, a member has the right to appeal any decision made by a committee.

FrankM7 (Pennsylvania)
Posts: 61

Posted:

Quote:

Posted By TimB4 on 02/04/2013 7:34 AM
Frank,

That's not the reason I feel committee members don't really need the protection. Heck, our Architectural Committee makes decisions all the time. I don't feel that they need the protection because, in our Association, a member has the right to appeal any decision made by a committee.

Yes, I understand. In our very small association, there are few committees and all decisions come from the board. I overlooked the possibility of an Architectural Committee, as such, being separate and authorized to make decisions which affect the homeowner members and do not necessarily need approval of the board when their decisions and directives are based on guidelines as hopefully set forth by the board.

I suspect when a member appeals to the committee that a final decision ruling could then come from the board if the committee and member cannot come to some degree of satisfaction or agreement.

TimB4 (Tennessee)
Posts: 21,062

Posted:

correct

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