Question: Our board asked our current management company to get competitive quotes from other management companies. Somehow this seems ill advised.
Answer: There is an obvious conflict of interest in what the board proposes. Instead, the board should appoint a committee to develop a Request for Proposal (RFP) which is given to at least three qualified companies, which may include the current management company, depending on what the board is trying to achieve. There is a sample RFP in the Manager Issues section of www.Regenesis.net
Question: The board is proposing that, since some people are not comfortable addressing others in person at the annual meeting, that they can submit questions or comments in writing for a board member to read. Is it appropriate?
Answer: The board is not given some special authority to speak for other members. If certain members are too timid to speak for themselves, they are entitled to appoint a proxy (legal representative) to speak or act on their behalf. That representative, of course, could be one of the board members.
Question: Our annual meeting proxy form has an option that reads: “This proxy is valid for quorum purposes only”.
Answer: This is a common proxy option. It means that the proxy is not valid for voting purposes but can be counted toward achieving a legal quorum (as defined by the governing documents) so that the meeting can be held.
Question: Our board president does not like one of the members and will not recognize her when she wants to speak. Does the president have the power not to recognize someone?
Answer: If a general member is speaking out of turn or otherwise acting disrespectfully or rudely, yes, the president can refuse to acknowledge her. However, not liking someone is not a valid reason. If this president cannot overcome this self-serving and immature tendency, the board should remove and replace her with another director who can.
For more innovative homeowner association management strategies, see Regenesis.net.
Published: December 29, 2010
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 Richard Thompson owns Regenesis, a management consulting company that specializes in condominium and homeowner associations. He is a nationally recognized expert on HOA management issues.Regenesis publishes The Regenesis Report, a monthly newsletter for HOA boards, developers and managers. To subscribe, go to Regenesis.net. He can be contacted by email at . |
