Monday, April 11, 2011

What If Nobody Will Serve on the Homeowners Association Board?

The L.A. Times does some digging.  The short answer: "To encourage volunteerism, [California law] provides that an officer or director is protected from personal liability when certain other conditions are met, including not receiving any salary and carrying the required insurance. Without a board, the entire membership is subject to liability should" soemthing happen.

Steve Clowney

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Thanks for the link. What sparked your interest in this topic? Generally this is how most boards operate.


Posted by: Michael | Apr 11, 2011 10:13:35 AM

The New Zealand Unit Titles Act 2010, which has just come into force, creates a similar problem. Under the Unit Titles Act 1972 that the 2010 legislation replaced, most functions of the "body corporate" (equivalent of homeowners' association) were carried out by the "body corporate secretary", who was usually a professional property manager. The new legislation does away with the "body corporate secretary" and provides that only a unit owner can be "chairperson" (a new role replacing body corporate secretary). The list of functions is extensive (including notices of meetings, minutes, preparation of accounts, etc), and there is no limitation on liability in the legislation. It seems the general rule will be that no one will want to be a chairperson, creating an interesting vacuum.

Posted by: Thomas Gibbons | Jul 25, 2011 2:11:16 AM

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