Thursday, April 29, 2010

Board of Directors Role

So what exactly do Board of Directors do for their association. Well that depends on the person. In associations where the boards are active the members do a lot. They run the day-t0-day activities, for example. Below is an excerpt taken from the Florida Division of Professional Regulation explaining the role of Boards of Directors.

The Board of Directors
The board of directors, initially appointed by the developer and subsequently elected by the unit owners, is responsible for managing the affairs of the association. The board may appoint committees to assist with the various duties of the association. Often such committees include a Bylaws Committee, Budget Committee, and Grounds Committee. Effective committees are important to a well-run condominium association because they help the board carry out its powers and duties.
A director is expected to carry out his or her powers and duties, as any other ordinarily prudent person would do under reasonably similar circumstances. Directors have a fiduciary relationship with the unit owners, and have the responsibility to act with the highest degree of good faith and to place the interests of the unit owners above the personal interests of the directors.
Although the board of directors is essentially the decision-making body for the condominium, the association’s effectiveness rests primarily with its membership -- the unit owners. For an association to be successful, unit owners must take an active part by serving in leadership positions on the board of directors and/or its committees, attending association meetings, voting, and assisting in other affairs of the association whenever possible. These roles are essential to an association’s success. Apathy on the part of the unit owners will render an association ineffective.
Each unit owner has the right to be informed and have a voice in the operation of the condominium. For this reason, Chapter 718, Florida Statutes, requires each condominium association to hold an annual meeting of its unit owners, provide adequate notice of meetings, allow unit owner participation at meetings, conduct elections,
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permit unit owner inspection of the official records of the association, and prepare and distribute a year-end financial report to the members. These are just some of the requirements that unit owners can expect to be fulfilled by an association’s board of directors.

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