Board of Directors: Who Are They and What Do They Do?

The Board of Directors is the governing body of the association responsible for operating the association. They are unpaid volunteers, elected by a vote of the association members, who donate their time for service.

The board is given the responsibility of setting the association's policies, standards, programs, and annual budget. In most associations, the board is specifically empowered and directed to:

  • Prepare the annual budget for the association
  • Establish the rate of the assessments
  • Collect all assessments due the association
  • Provide for necessary operational personnel
  • Make and amend the community rules
  • Enforce all provisions of the governing documents
  • Provide for insurance for the common areas
  • Keep detailed association financial and accounting records
  • Provide for care and upkeep of the common areas
  • Perform all acts necessary for the association's administration
  • Oversee the maintenance of all common areas and any amenities located within the community

While these duties provide the board significant authority, members have the opportunity of participating in the decision-making process through voting in board elections, serving on any special committees required by the bylaws, and by providing input at association meetings.

The bylaws of an association more clearly define the role and responsibility of the board as a whole as well as the individual directors. As volunteers, directors are not personally liable for their actions, but they are not immune from litigation should they act in a criminal or negligent manner. The primary duty of a director and board is to act in a way that benefits the community as a whole, not themselves or another individual. The legal standard most often used in weighing a board's action is whether it used "reasonable judgment" in making a decision.

Many associations have difficulty finding owners willing to serve on their board. Those members who really care about their community and fellow residents should take the time to serve. After all, the best way to stay involved with your association is by taking a leadership role.

Source: Association Times
Search All Articles
Related Articles
Deed Restriction Enforcement
Deedrest1_thDealing with Deed Restrictions and Enforcement
Closing Out Your Year End Financial Statements
Feb1_thWhat to consider when closing out the year's books
Making The Most of The Annual Meeting
PreventionThe different aspects of planning and holding a succesful annual meeting for an association.
Budget Preparation Tips
Abudgetprep1_thThings to take into account when preparing the association's budget.

More...
Most Popular
Establishing A Successful Dog Park In Your Community
Bignose_thHow a dog park can enhance your community and steps for creating one.
How To File A Homeowners insurance Claim
UmbrellasmSix steps to help ease the process of filing a homeowners insurance claim.
Year End Tax Tips To Save You Money!
TaxessmDon’t pay more in taxes than you need to. Learn how a few simple steps could help save you money on April 15.
Service Contracts: Should You Buy One?
Warranty_thService contracts and extended warranties: Should you buy them?

More...

Zip Code Profiler

Neighborhoods, Home Values, Schools, City & State Data, Sex Offender Lists, more.

Instant Home Value!