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
Money Tips for Young People
TaxespreadsmFinancial matters can seem complicated as a Millennial.
Are You Prepared for a Blizzard?
Blizzard2017 saw some of the most extreme weather in years
5 Things To Do in a House Fire
FireAs soon as you hear a smoke detector go off, smell smoke, or see fire, get out as soon as possible.
How to Prevent House Fires
05fire-jumboThere are several things you can do to prepare and prevent disaster from striking your home.

More...
Most Popular
Selecting and Contracting Service Providers
Working_thWhat to consider when selecting a service provider and creating the contract with the Association
Kentucky - The Bluegrass State
KentuckythumbAdmitted into the Union in 1792, Kentucky is the 15th state and the first state west of the Appalachian Mountains.
How To Collect Delinquent HOA Dues and Fees
DuessmLearn simple, effective and low-cost ways to collect past-due homeowners association fees.
Workers Compensation Insurance?
Workerscomp1_thReasons why HOA's are required to carry Workers Comp Insurance

More...

Zip Code Profiler

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

Instant Home Value!