Board intentionally excludes 2 directors from meetings on the 2014 budget

I am on a 7-member Board of Directors and I was out of the country for seven weeks and returned two days ago. In addition, another director, "Mike," who also is on our finance committee also was out of the country during that period and will return next week. We do have one vacancy on our Board.

Despite knowing about our trips well in advance, the Board met three times on the 2014 budget--one regular meeting and two special meetings. The last special meeting was held five days before my return. Our full time onsite PM was out of the country for the last meeting and someone from her MC sat in for her. She returned a day after I did.

I begged the Board by email prior to the most recent special meeting to postpone it till Mike, our PM, & I returned. They refused. There is no urgency as the letter discussing the 2014 budget and also reserves is not required to go to Owners until 12/1/13.

Both Mike & I study proposed budgets carefully and always make significant contributions. We both also find errors, which doesn't always please the other board members. I'm far more knowledgeable about our reserves than any other director and have a strong grasp of our operating budget. Mike has a background as a financial analyst and served on the Board of a hospital. I've been on our Board for almost 7 years and Mike, almost 5 years.

The Board inexplicably voted to purchase some new furniture for one of our common areas using funds from our reserves at one of the three meetings. The minutes of that meeting already have been approved. In addition, they voted without having data on what these items will cost. I estimate the cost to be about $4,000.

CA Civil Code does not permit HOAs to spend funds from reserves for new items unless they replace components that have worn out.

I'm really upset about this. What is your opinion about using reserves in this way?

What is your opinion about a Board purposely excluding two seasoned directors from budget meetings?

Carol,

This sounds like a majority of the five stupid members on the board took advantage of the absence of the two smart members and did what they knew they should not do.

At least three of those board members voted for their budget and the furniture. If two opposed it, then you and Mike might be able to get their support to reverse what has been done. If four or even all five voted in favor, you will have an uphill battle.

Just out of curiosity, did they give proper notices for the three meetings they held in your absence?

Remember Carol, the PM works for the Board. being "not obligated" is almost the same as "will not". I have walked away from two properties where they said "you will".

In my opinion, if the reserves are being used improperly, I would first go to the Board with my concerns, and if need be, go to the community, through an open Board meeting and put it on the record as being opposed. You have then fulfilled your obligation.

Thank you, Richard. Very helpful!

John46: It's hardly clever "outfoxing" to schedule meetings when it's known that certain directors cannot attend. It's merely downright sleazy.

I asked our PM to email her management reports and the Board's agendas, which she prepares, to me while I was away and she promised she would. It's no different than if I were in town and does not involve "chasing me down."

As I wrote above, apparently proper notice was given to owners via postings in our mail rooms. As a director, I could waive written notice by signing a form, but I have not done that.