Delegating Fines – Article by Adrian J. Adams of Adams Kessler PLC

Article by Adrian J. Adams of Adams Kessler PLC

QUESTION: At a recent board meeting, a director questioned the authority of the architectural committee to send out violation notices. He felt it was reserved exclusively to the board. Others argued that the board had given the committee that authority and owners could always appeal their fines to the board. Which is it?

ANSWER: Door number two. Boards can delegate the task of issuing violation notices, holding hearings and imposing fines. Architectural violations can be allocated to the Architectural Committee or they can be assigned to a Rules Committee to handle all violations. The board can then hear appeals.

Delegating Duties. By statute, boards are given authority to delegate many of their duties to committees, provided the committee’s activities are under the ultimate direction of the board. Corp. Code §7210. There are some things that boards cannot delegate. Nondelegable duties include: (i) attending meetings and voting on motions, (ii) filing vacancies on the board, and (iii) staffing executive committees.

RECOMMENDATION: Because there may be disagreement by some lawyers on this issue, boards should consult with and follow the advice of their association’s legal counsel.

– To view the original article, click here

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