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Business by polling can't trump called meetings

By RICHARD WHITE
Published June 10, 2006

It is common practice for our co-op board to conduct business by polling the members on issues that aren't emergencies. They sign off on these polls at the office. Many of these polls involve expenditures for items or projects not in the budget, financed out of the operational account. A board member tried to get the board to approve a guideline that only emergency items or projects could be voted upon in this manner, but it was defeated. Our documents are silent on this. Is this way of conducting business legal?

Private meetings or signing off on a ledger is not a correct procedure. Business must be discussed and approved at legal, properly publicized, open board meetings. Proceeding otherwise could be considered improper and unenforceable. I strongly urge that the board seek the advice of your lawyer about this.

Harness owner's energy

One of our condo owners is constantly asking others if they are interested in selling their property. She and her sons own three units; she is going around saying that when she owns a certain percentage of the units, she will be able to control the board. I'm the president. How should I respond?

Don't worry about her. It's a lot less expensive just to run for the board and exercise her influence that way. When I have an aggressive owner, I give them an assignment or a committee position. Keep her busy. And there's nothing illegal about her asking others if they're interested in selling.

Getting off inactive status

According to the state Web site, our condominium has an inactive status. Both the compliance office for the state Department of Business and Professional Regulation and our registered agent have expressed concern about this. What are the legal ramifications?

Each year the association must file an annual report with the state. Several other annual filings must be made as well, including an IRS tax form. Adult communities must file a report every other year about their qualification as an adult community. Boards without legal assistance or professional management sometimes overlook these reports. To do so may make the legal status of the association unenforceable and expose the association to lawsuits. An association that neglects to file the necessary reports loses the right to enforce its rules and collect fees, among other things. You can rectify this oversight by contacting the specific state agencies and filing the back reports.

Richard White is a licensed community associations manager. Write to him c/o Community Living, St. Petersburg Times, P.O. Box 1121, St. Petersburg, FL 33731. Sorry, he can't take phone calls or provide personal replies by mail, but you can e-mail him at CAMquestions@cfl.rr.com Please include your name and city. Questions should concern association operations; legal opinions cannot be offered. For specific legal advice, contact an association attorney. Readers may call the state Division of Condominiums Bureau of Customer Service toll-free 1-800-226-9101 with questions or requests for materials. Access the Bureau of Condominiums Web site at www.state.fl.us/dbpr/lsc/index.shtml; or write to Bureau of Customer Service, 1940 N Monroe St., Northwood Centre, Tallahassee, FL 32399-1032.

Please note that this office provides no information about homeowners' associations. The state has no bureau or department covering those associations.

[Last modified June 12, 2006, 09:48:03]