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President Running Property Could Create Future Conflict

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Published: February 2, 2008

We are faced with a dilemma. The president, whose term will end next January, plans to run for a new term and assures us that he can also be hired as property manager when he obtains his CAM license. He is holding up the investment until he is sure.

Is this legal? A few board members are wondering and would like your opinion.

R.G.

Miami

It is not a question of being legal. The statutes do not restrict a board member from holding a CAM license.

The deeper question is whether it would be the wise thing for the other directors to approve him as manager. It could create a situation of being too close to the association problems.

If you spend the funds to pay the president to act as a CAM, why not engage an outside company to properly assist the board? As a new CAM, he would not have the experience that a managing company would have.

Truthfully, I do not know this person and his experience, but still I recommend caution before having a director assume such an important position. Think of a situation where a future board wants to replace him; he is a resident and a board member. It will result in extreme problems to fire him.

After reading your article about laws governing board of directors meetings, I have a question related to my homeowners association. A new board has started a practice of conducting business by e-mail. That is, the board discusses the item and actually comes to a decision and vote on the issue by e-mail, then takes action based on that e-mail vote.

It justifies the process by listing the items handled this way and confirming the votes at an open board meeting.

Are there Florida statutes that prohibit this? Homeowner input has been eliminated by this.

S.C.

Ft. Lauderdale

This is a thin line answer to the question. Though the board is allowed to discuss matters via e-mail, it should not vote online. The final or formal vote must be taken at a board meeting, in the open, with a limited time for the members to discuss the subject.

If a board member resigns and the letter is accepted by the board, can a homeowner request and get a copy of that resignation?

R.E.

Inverness

Resignation letters should be part of the minutes of the board meeting where the resignation is accepted. Therefore, you should be able to request a copy of the minutes.

Write to Richard White at

camquestion@cfl.rr.com.

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