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CONDO LINE

Directors can't abstain, but rule likely to change

CAMquestion@cfl.rr.com

Q: I was recently elected to a community homeowners master association board and was surprised to be told that, in Florida, directors can never abstain from voting yes or no on a question unless they can state a clear conflict of interest on the matter. In this particular case, I felt that, being new to the board, I had missed the key previous discussions and was not comfortable taking a position, and it was not necessary as the motion was clearly going to pass anyway. I have been reading the Florida statutes to try to figure out if they are right about that requirement, but have not been able to find any such prohibition. Can you tell me if there is a prohibition on abstentions and, if so, what is it based on?

W.A., Land O Lakes

A: Directors have never been allowed to abstain from voting because it was thought that each director had a responsibility to the members and was required to always act for the best interest of them. While there is no change in the HOA act as of yet, last year the state changed the condominium act to allow abstention by condominium directors. I expect the state to review this change for HOAs.

As a director it is your responsibility to know as much as possible about agenda items before the meeting. Demand that you receive a meeting package at least 48 hours before meeting. Then study the agenda and the meeting information package and if you have questions, ask them before the meeting. You are allowed to call or talk to other directors, the officers, and manager as long as you do not have a quorum present. The meeting package should include an agenda, minutes to be approved, and copies of reports, information on bids to be approved, financial reports, and all information on any agenda item to be discussed. It can include draft motions to be presented.

Q:I wonder if you could tell me if it is legal to have only one signature on the checking account for our homeowners association. Our association is extremely small with a small annual budget. We have very little legal strength or authority other than the statutes and our documents. But, as secretary of the association, I was wondering if the one signature is legal. Our treasurer is insisting on this because it makes handling the little bit of finances easier for her. We have three officers authorized to sign on the account.

Hudson- BE

A: Keep in mind that the board has a fiduciary duty to the members to protect the funds. There is no statutory requirement to have check signatures. A second signature is a way to help reduce unauthorized use of funds. If you decide that you only want one, you must have in place strict monitoring of the association funds. Never allow one person to act for the association unless the actions are verified.

I always recommend that the person or persons that sign checks should not reconcile the bank statements. So if you only have the treasurer sign the checks, have a second person open the bank statement envelope and reconcile the statement.

Write to Condo Line, Home, 1 Herald Plaza, Miami, FL 33132, or e-mail CAMquestion@cfl.rr.com. Include name and city.

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