When board members find themselves faced with a conflict of interest, it can derail an entire association – that’s why it’s so important for board members to nip these types of problems in the bud before trouble begins.
Door Prizes, Proxies Are Used to Boost Annual Elections
While the election format in a condominium community is pretty much the same as for any other club or organization, property managers and board members are looking to make the process easier and increase unit owner participation. Unit owner participation, in particular, can be a challenge as some condos find it hard to get enough members for a quorum at their annual meetings.
To combat low attendance, some community associations are using raffles, or offering prizes –drawing names from returned ballots at the annual meeting, or combining the meeting with a cookout or other social event. Other communities with low attendance are trying to increase proxy voting. And the use of online voting is definitely trending upward as more business is conducted by computer.
Summary: FEMA adopted new debris removal rules in 2006 that may impact private roads and gated communities, particularly in coastal areas.
by Kevin Davidson
Property Owners Association of Ono Island, Inc.
Reference: Department of Homeland Security, Region IV Memorandum for Infrastructure Staff of 7 July 2006.
Subject: Debris Removal from Roadways in Private or Gated Communities.
Why do directors have a fiduciary duty?
A fiduciary duty arises out of a relationship in which one person or entity is entrusted to control the decisions or interests of another. For example, the common estate planning device of an inter vivos trust sometimes provides for a lending institution to be the trustee and to control the funds within the trust. In such a relationship, the lending institution would be a fiduciary and have fiduciary duties to the beneficiaries of the trust. Similarly, the board of directors of a homeowners’ association exercises control over the affairs of its membership, and based on this special relationship, the directors of the association owe a fiduciary duty to its members. Most jurisdictions have either enacted statutes or have specific case law on point which provides that directors of non-profit corporations are fiduciaries.