Legal Action

Started by ReggieL • 10 replies • 1872 views

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ReggieL (Maryland)
Posts: 5

Posted:

Hello All,

I'm new to "HOATALK". I see that there is some good discussion here. I serve as a new member on our BOD. I joined the board for the simple reason of the need to help with our community covenants. I have stepped to the plate of fore-running the Covenants Committee. I have been very instrumental in my responsibilities and have accomplished quite a lot within a year's time. My question is as a board member, would it be ethically correct to have the BOD investigated for not sharing a yearly financial statement to resident?

MicheleD (Kentucky)
Posts: 4,491

Posted:

Um.

On the surface of it, "No."

Why would you automatically jump to the extreme position of "investigated"?

Sounds very curious to me.

MarianneG (Indiana)
Posts: 170

Posted:

Sounds curious to me, too, Michele.

Reggie. Why would you not work within the board about this matter? What do your documents say? Ours require us to give an annual financial report, and I suspect most HOA documents do the same. If your documents require it, then the board would be required to do so. Have you brought up the subject to the board in a meeting? What is the board's history in terms of sharing financial information? Please tell us more. Welcome to this forum, which is really quite helpful for those of us with questions.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Reggie,

I'm not sure I understand what you mean by saying "investigated". If you feel the board has erred in not providing this document to a member who has made a proper request, as a board member you should try to convince them of their error. Also, when this matter is being discussed during a board meeting you should make it understood that you do not agree with the board's position of denying this request -- make sure your position is stated in the minutes. If this matter should evolve into a lawsuit it would be to your benefit to have it on official record that you did not support the board's actions.

Having said that. . .

If this incident happened (or was started) b/4 you became a board member, it would behoove you to get all the facts straight. If you are going to side with the member who is requesting the documents, you better know exactly what has transpired.

ReggieL (Maryland)
Posts: 5

Posted:

Well my concern is that our bylaws require an expenditures statement each year. We don't have minutes for all of the meetings we have and no yearly statement is sent to residents. I guess my major concern was not approaching the board and being very objective of this. Just wanted someone else idea of how to properly handling this.

Reggie

TracieS (Colorado)
Posts: 460

Posted:

Well, shoot, Reggie, my association is over 25 years old, and there is a huge gap in our records in the mid 1990s (missing about 6 years worth). No minutes, no statements, no nothing.

I'm not being sarcastic here, but why would you want to report YOURSELF to the proper authorities (or whomever in your state you should report bad boards to) to investigate YOU for noncompliance? Regardless of whether it was a previous board or not, YOU are on the board now. If there are fines to be paid because of things in that past...your HOA will have to pay them.

Just make sure everything is done correctly from here on out.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Reggie,

Thx for the clarification!

Well, now that you're a board member you can set about to right those wrongs! If the secretary doesn't prepare minutes for a particular meeting; if the Pres doesn't ask why, then you should. At year's end just remind the BOD that it's time to send the yearly statement to the members. In fact it could be included in the packet mailed for the annual meeting and the Pres could present it at the meeting. By also mailing it you'll be certain every member receives it.

SusanW1 (Michigan)
Posts: 5,202

Posted:

The treasurer should be providing a year to date expenditure vs. budgeted report EVERY month. so at the end of the year, each board member should have some idea where you stand.

At the annual meeting, the members need to see the audited version of the revenue / expenditure report.

RogerB (Colorado)
Posts: 5,067

Posted:

Quote:

Posted By ReggieL on 09/12/2009 9:44 AM
Hello All,

I'm new to "HOATALK". I see that there is some good discussion here. I serve as a new member on our BOD. I joined the board for the simple reason of the need to help with our community covenants. I have stepped to the plate of fore-running the Covenants Committee. I have been very instrumental in my responsibilities and have accomplished quite a lot within a year's time. My question is as a board member, would it be ethically correct to have the BOD investigated for not sharing a yearly financial statement to resident?

No, it would not be ethically correct. But it would be prudent, to share financial statements. This can efficiently be done if you have a website. At a minimum I recommend providing the annual budget to all members.

RobertR1 (South Carolina)
Posts: 5,164

Posted:

Reggie,
Welcome to the site. I think you will grow here. Good advice so far, but it is clear you need a little approach adjustment.

Couple of things: You have done well so far and your interest will serve you well.

Don't think you are going to know your job in the first year.
Learn to piece meal your effort. ten little victories may be better than turning the house upside down.
The more you dig, the more you find out you have to dig deeper.

And my favorite: Wrap your mind around accepting and demanding that nothing should be done unless it benefits the association. Not, the Board, not the squeaky wheel and not the majority. Get above all that and always serve the good of the association.

AnnS5 (Georgia)
Posts: 1

Posted:

Hello

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