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The Duties Of HOA Board Of Directors California

By Eric Jones


In many companies, the topmost management role rests with the board of directors. They constitute the apex decision making organ in the company. However, as you will note, these responsibilities are held in trust. They are supposed to work in the best interest of the shareholders. The role is no different with the Home Owners Association located in California. These are the duties of Roles of HOA Board of Directors California.

Directors are mainly entrusted with the responsibility of making sure the association documents are neatly kept and safe at all times. These records include minutes if the previous meetings, the financial statements and any other document deemed to be material. They are the face of a firm in the outside world representing HOA in a properly known way. Legally, they should convene the various meetings in the association.

The managers are in charge of staffing needs of the association. They hire the top ranking managers of the firm. These managers report directly to them. In case of misconduct, it is the same board that penalizes the wrong doers. Where the misconduct is gross, they can recommend for the manager to get fired. This responsibility requires they follow the existing labor laws lest the company is charged in a court of law.

They execute contracts and approve purchases on behalf of shareholders. All these transactions are executed as laid out in the company policy. They have to consult the members in the association before making any major announcement. This is normally done during the annual general meetings or on special general meetings. Normally and as a rule, the BOD in this firm cannot execute any long term contract exceeding one year without the approval of members.

These are the officials tasked with the role of managing liabilities and assets of the firm. Before taking credit, they have to ensure the company has its gearing at the best levels. They understand the importance of credit and the risks such brings when the inevitable happens. They also assess the exposure of a business to risk and provide possible measures to mitigate this.

The board is the sole organ tasked with the responsibility of making sure the resolutions passed are implemented. There are different types of these resolutions with the common being an ordinary resolution. The difference between them is how they are adopted and the rules governing the adoption. The firm specifies the difference in its memorandum.

The managers are responsible for determining whether they will pursue any legal action in case of default or not. Even when the association is sued, it is the managers who prepare difference and authorize for the firm to be presented by a legal officer in court. They are therefore tasked by relevant laws of California to ensure that their firm upholds the rule of law.

As seen, the HOA board has some responsibilities to handle. The managing process becomes easier when they have a supportive management team and excellent shareholders. As a shareholder, let your voice be heard by adjudicating on the matters at hand through the use of your vote. That is the simplest way to ensure you participate in decision making.




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