Q: Our board has relieved our treasurer of her position while disclosing at a shareholder meeting that she has done nothing wrong or illegal. Now three people on the board have taken over the job of writing checks and distributing funds. The board is also talking about having a nonvoting shareholder do data entry of the finances. From what I have been told, a nonvoting shareholder does not have to be bonded. If this is so, who would be accountable for financial errors or losses?

S.L., Tampa

A: The duties of the officers, including the treasurer, can be found in your bylaws. Unless the board appoints or elects a new treasurer, the old treasurer still has the duty to verify the accounting.

A committee of three is a good procedure. I always recommend that two non-allied persons sign checks. As for having a third nonmember do the bookkeeping, that is fine as long as she or he does not have direct access to the funds and the work is supervised. Any person handling association funds or their records should have fidelity coverage, not necessarily a bond.

Q: What penalties can be placed on HOA members if they do not follow their rules and regulations? N.E., Lakeland

A: Some documents allow fines but I do not recommend that type of penalty. Instead I recommend that the board establish a rules enforcement policy. That policy should include two or three letters sent to the owner concerning the violation. If not corrected, then the matter would be turned over to the association attorney to send a correction letter. If the owner still does not correct the problem, the attorney would file court action. If you take one or two owners to court, then most owners will know the board means business.

If your documents do allow fines, you must have a committee to review the matter and recommend action to the board. The problem begins if the owner does not pay the fine and the board has no power to collect. Then the matter must go to court. Q: During a hurricane, when we lose power, my neighbor installs a large generator on the terrace that joins mine. You cannot understand how the noise disturbs me. Is there any way he can be stopped?

L.N., Miami

A: In many cities, the fire department will not allow cooking on condominium balconies because of carbon dioxide, carbon monoxide and smoke. Call and find out if the same would be true for generators. As an alternative, ask your neighbor to allow you to plug an extension cord into his generator. Maybe if you are able to use his power source, it will make the noise bearable.

Q: I am in a HOA. Is it proper for a member of the board to place his name on a petition that could compromise his fiduciary duty to the association? I feel that it is a conflict of interest as well as that it could not be in the best interest of the association.

A.L., Winter Haven

A: All directors and officers are owners and have also fiduciary duties and responsibilities to the members and the association. While owners do not have the same responsibilities, they have other duties.

It could be said that your board member is wearing two hats, that of a director/officer and that of an owner. As long as he does not conflict with the director and officer's responsibilities, as an owner he can take a different position. Conflict of interest primarily occurs when a relationship between duty and personal gain involves a significant financial relationship or an expectation of compensation.

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