Discussion»Statements»Rosie's Corner» What responsibilities accrue to BOARD OF DIRECTORS members? Legal jeopardies? What about a CONDO ASSOCIATION BOARD?
From what I understand, a Condo Association is the same as a Homeowners Association. They are elected from the renters/owners ... and are charged with enforcing the by-laws. EG: What decorations you can display, what colors you can paint the exterior of the property, etc.
They likely wouldn't be able to unilaterally contract for major work to be done on the property, without a vote of the membership.
Thank you for your reply Walt. That whole thing seems to me to be a very sticky wicket. It isn't as if no one was aware of anything. Everyone was aware of everything yet no one actually did anything substantive. It boggles the mind actually. Can Board of Director members be held criminally liable for anything? If so why would any sane person ever agree to serve on one? :)
This post was edited by RosieG at July 1, 2021 3:43 AM MDT
I've never heard of anyone of a Board of Directors being held criminally responsible. Even though they are technically above the CEO - it's usually the CEO of a corporation that is held ultimately responsible, legally.
Of course it's the Florida condo collapse that started my brain on that path. What responsibilities does a Board of Directors have then? No liabilities for anything they do/don't do? Thank you for your reply Walt! :)
Generally, they are supposed to look out for the interests of the shareholders. They are supposed to consider the big picture and long term plans of the organization. IE: They don't create a 5-year plan, but they review it and approve/reject/suggest modifications to it.
Since they don't take care of any day-to-day operations, that's probably why they aren't liable for any criminal behavior.
So who is? How do you think this will all be resolved Walt? Mulitiple lawsuits for loss of life loss of property? Will it be one of those long-term things? I wonder how many tragedies like this are ahead of us and when will a specific tragedy affect us personally? Thank you for your reply! :)
If the condos are owned by the individuals living there - I don't know if they can sue anybody, as the property owner is ultimately responsible.
I guess if they bought the condo after the issues were discovered, and if the issues were not stated as defects in the property sale - they could sue the previous owner for failure to reveal potential hazards.
If the condo is owned by a company - they could sue the company.
If you were one of the condo owners Walt what recourse would you have? What course would you take? Why wouldn't it be the fault of the builders? That is a serious risk homeowners take if that's the case. We rent so I don't know how it would apply but I'd be one VERY UNHAPPY owner. I know. It's COMPLICATED! Thank you for your reply! :)
Walt O'Reagun 