Q&A: Can Managers Serve on a Board?

Q My question is about being elected to the board of a condo association. We have  a building management company hired by our board. Can the management company  executive be elected to the board? How about any other persons from the  company? Does the executive have any influence in running the election and/or  meeting for the election?  

 —Conflicted in Chittenden

A “The answer is, of course, it depends. We need more information, such as the  state in which the property is located and whether the association is  incorporated or not. Also important is what the association’s governing documents say about qualifications of directors,” explains attorney Carl Lisman of the law firm of Lisman Leckerling, P.C in  Burlington, Vermont.  

 “Generally speaking, governing documents for a property often require that  directors be owners or spouses (or civil union partners) of owners, with  similar rules for owners that are entities (such as a member of an LLC, a  general partner of a partnership, a significant owner of a corporation and so  on).  

 “Absent those limitations, the biggest issue will be whether the management  executive will face regular financial conflicts of interest that will force him  or her to recuse him- or herself from discussions and votes. I would be very  cautious here. On balance, the combination of legal limitations and practical  consequences counsels against it.”  

 

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2 Comments

  • is it "normal" to a condo assoc. not having a complete audit for 20 plus years? nervous in Waterbury CT
  • NO, NO, NO! That is a financial disaster waiting to happen. You need a CPA to look at your records, see that bank statements are reconciled, tax returns are filed, financial statements are prepared and given to owners. That is a starting minimum!!