Articles Posted in Board Service

hands-and-breaking-handcuffs_shutterstock_58240561-300x184In the pursuit of association fraud and embezzlement, one of the most important aspects of the major legislation that was adopted earlier this year is the law’s effort to curb conflicts of interest by association board members and officers.

The new law provides that presumptions of conflicts of interest exist in the following circumstances:

  • A director, officer or one of their relatives enters into a contract for goods or services with the association.
  • A director or officer . . . holds an interest in a corporation, LLC, LLP or other business entity that conducts business with the association or proposes to enter into a contract or other transaction with the association.

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Term-LimitsAmong the major changes to Florida’s condominium laws in 2017 is a new provision mandating term limits for board members.  The new legislation marks a significant departure from the past policies for most associations pertaining to the tenures of their board members, and it only applies to condo associations and not HOAs.

The newly codified law allows for board members to serve two-year terms, if that is what is called for in their association’s bylaws.  However, a board member may not serve more than four consecutive two-year terms.  The only exemptions to this cap would be granted to candidates who achieve a 2/3 super majority of the total voting interests and to associations that do not have enough eligible candidates to fill the board vacancies.

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Community association board members are asked to do a great deal for the communities they serve.  They give up a great deal of their time and lend their varying expertise to help their communities run as smoothly and effectively as possible.  Given that so much is asked of the directors, it is important that they take appropriate steps to delegate responsibilities to committees comprised of association members.

For most community associations, the benefits of involving committees are extremely worthwhile.  Not only do they create a forum for the implementation and enforcement of vital policies and decisions, they also serve as ideal incubators for prospective future board members.

By their very nature, committees comprised of volunteer owners and residents should have a good understanding of the best policies and practices for their community.  They may be ideally suited to oversee matters that involve the collection of information from the owners as well as the subsequent assessing of the data in order to make strong recommendations for suggested solutions.

Association boards should take the time to closely consider the use of different types of committees and their intended roles and responsibilities.  Most association governing documents will include provisions governing the establishment of volunteer committees and how their decisions will be enacted.

Some of the most popular types of committees are:

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For those who live in community associations, board membership should be viewed in the same vein as a civic duty.  An effective board of directors is essential for the financial and administrative wherewithal and stability of every community association, so all unit owners who are able should volunteer to serve at least one term to contribute to their community’s overall success.

Some association members have the mistaken perception that the responsibilities of serving as a director are too complex and demanding for their capabilities and skill sets.  While it is a serious commitment in terms of time and attention, board membership should not be viewed as being too daunting of an undertaking for the average unit owner.

The key to success for practically every board member lies in their use of the most effective professional and educational resources that are available.  Of course, this should begin with relying on only the most experienced professionals such as attorneys, property managers, accountants, insurers, etc., but that is just the start.

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