Source: http://www.calassoc-hoa.com/Homeowners-Association/General-Information/Powers-and-Duties-of-Board-of-Directors.aspx
Timestamp: 2019-04-20 14:31:22+00:00

Document:
Adopt and publish “Rules and Regulations” (R&Rs) to protect the interests of the homeowners by governing the use of the common area and facilities and also regulating the personal conduct of the members, family, guests and tenants and to establish penalties for violation of the association’s Rules and Regulations.
Enter into any Unit when necessary in connection with maintenance or construction for which, the Board of Directors is responsible.
Keep complete minutes and records of all Board actions and corporate matters and present them to the members of the association at the annual meetings.
The officers of the Board of Directors are generally a president, vice-president, secretary, treasurer and member at large.
1. Election of Officers The election of officers generally takes place at the first meeting of the Board of Directors following each annual meeting of the Members.
2. Term of Office for Board Members Officers of an association are generally elected for one term of one year.
3. Special Appointments The Board may appoint other officers as the affairs of the association may require. Each person appopinted will hold the office until the task is completed or released by the Board. Said person will have limited authority and perform duties as the Board may, from time to time, determine.
4. Resignation and Removal Any officer may generally be removed from office at any time with or without cause by the Board. Also, any officer may resign at any time by giving written notice to the Board, the president or the secretary. This resignation takes effect on the date indicated or at any later time as specified on the notice. Acceptance of such resignation is not necessary to make it effective.
5. Vacancies. A vacancy in any office may be filled by appointment by the Board. The officer appointed to fill this vacancy will serve for the remainder of the term of the officer he replaces (unexpired term).
6. Multiple Offices The offices of secretary and treasurer are often held by the same person. except for very small associations, however, this practice is not recommended.
1. President- The president of the Board presides at all meetings of the Board of Directors. The president is ultimatly responsible to see that orders and resolutions of the Board of Directors are carried out. The president generally signs all contracts and other written instruments and co-signs all checks and promissory notes.
2. Vice-President- The vice-president acts in the place and stead of the president in the event of his absence and exercises other duties as may be required of him by the Board.
3. Secretary -The secretary record the votes and keeps the minutes of all meetings and proceedings of the Board and of the Members. The secretary also signs all contracts and other instruments executed in the name of or on behalf of the association. The secretary is keeper of the corporate seal of the Association and affix it on all papers requiring the seal. The secretary also serves or causes to be served, notice of meetings of the Board and of the Members; keeps appropriate current records showing the Members of the Association together with their address, and performs other duties as required by the Board.
4. Treasurer- The treasurer receives and deposits in appropriate bank accounts all monies of the Association and disburses such funds as directed by resolution of the Board of Directors. The treasurer signs all checks of the association; is keeper of the books of account; cause an annual audit of the Association books to be made by a public accountant at the completion of each fiscal year; and prepares an annual budget and a statement of income and expenditures to be presented to the membership in compliance with the civil code, and delivers a copy of each to the Members.
5. Member at Large- The member at large is the fifth member of the Board of Directors and is a voting member of the board. The member at large fulfills duties as assigned by the President or by the board.
The CC&Rs and Bylaws generally provide that the Board cannot enter into contracts which have a term in excess of one year, sell association property, incur aggregate expenditures exceeding a specific limit (for example 5% of the estimated common expenses), pay Board members, and may also include instructions pertaining to filling a vacancy on the Board. Members must vote on amending theCC&Rs and By-Laws, pledging assessment rights, and deciding to reconstruct the common area after damage or destruction. The Bylaws generally give the directors the right to make all decisions, except those specifically reserved to members by the CC&Rs, Bylaws, Articles, and California Nonprofit Law. unless specifically reserved to the owners, all day-to-day decisions are made by the Board, just as the officers (and not the shareholders) of a business would make the daily decisions for the business.
Further support for the above is set forth in Civil Code Section 1363.05, which part of the Davis Sterling Common Interest Development Act, gives the Board the right to convene to executive litigation, contracts, personnel (property managers, contractors, etc.), and violations by individual owners (member discipline). The Board alone determines if litigation should occur. A copy of that Section is enclosed.
Additionally, the California Corporations Code Section 7210 provides that the activities and affairs of a corporation shall be conducted by or under the direction of the Board. A copy of that Section is enclosed.
Also enclosed are excerpts from legal reference books which state some of the basic functions which the Board performs. one article was taken from the California condominium Handbook 2d. written by John Paul Hanna. The other article was taken from Corporations, “California Practice Guide”, by C. Hugh Friedman.
The Rules and Regulations, as well as any amendment made to them, must be delivered to all owners in order to be able to enforce them. The same is true of a system of fines. The Bylaws generally provide the guidelines relating to a system of fines and notices and hearing procedures. If the Rules and Regulations are reasonably related to furthering the best interests of the Association Members and they are properly distributed to all owners, they are as binding as the CCaRs.
1363-05. (a) This section shall be known and may be cited as the Common Interest Development Open Meeting Act.
noted in the minutes of the board of directors.
(d) The minutes, minutes proposed for adoption that are marked to indicate draft status, or a summary of the minutes, of any meeting of the board of directors of an association, other 30 days of the meeting. The minutes, proposed minutes, or summary minutes shall be distributed to any member of the association upon request and upon reimbursement of the association’s costs for making that distribution.
(e) Members of the association shall be notified in writing at the time that the pro forma budget required in Section 1365 is distributed, or at the time of any general mailing to the entire membership of the association, of their right to have copies of the minutes of meetings of the board of directors, and how and where those minutes may be obtained.
(g) Unless the time and place of meeting is fixed by the bylaws, or unless by bylaws provide for a longer period of notice, members shall be given notice of the time and place of a meeting as defined in subdivision (f), except for an emergency meeting, at least four days prior to the meeting. Notice may be given by posting the notice in a prominent place or places within the common area, by man or delivery of the notice to each unit in the development or by newsletter or similar means of communication. (h) An emergency meeting of the board may be called by the president of the association, or by any two members of the governing body other than the president, if there are circumstances that could not have been reasonably foreseen which require immediate attention and possible action by the board, and which of necessity make it impracticable to provide notice as required by this section.
Subject to the provisions of this part and any limitations in the articles or bylaws relating to action required to be approvedby the members (Section 5034), or by a majority of all members (Section 5033), the activities and affairs of a corporation shall be conducted and all corporate powers shall be exercised by or under the direction of the board. The board may delegate the management of the activities of the corporation to any person or persons, management company, or committee however composed, provided that the activities and affairs of the corporation shall be managed and all corporate powers shall be exercised under the ultimate direction of the board.
Preparing periodic and annual reports (see § 13.39).
§ 1 1. Obtaining legal and accounting services.
The board may by resolution adopted by a majority of the number of directors then in office, provided a quorum is present, create committees to serve at the pleasure of the board. The committees shall consist of two or more directors to serve at the pleasure of the board. The bylaws may authorize one or more committees, each consisting of two or more directors. Any such committees, to the extent provided in the resolution of the board or in the bylaws, shall have the full authority of the board except with respect to certain matters. See § 14.85. The board may also appoint committees composed of directors, or nondirectors, or both, provided the bylaws so allow. Corp. Code §§ 7210, 7212. See Form 6 (condominium bylaws), Article IX.
Normally, management and control is vested in the board of directors, elected by the shareholders of the corporation. The directors generally make policy and major decisions but do not individually represent the corporation in dealing with third persons. Rather, such dealings are conducted through officers and employees. to whom authority is delegated by the directors.
(1) [2:41) The same persons may be stockholders, directors and officers of the corporation (and usually are in small corporations). Although the shareholders elect the board of directors, they do not directly control the board's activities or decisions.
As a separate legal entity the corporation is capable of continuing indefinitely. Its existence is not affected by death or incapacity of its shareholders, officers or directors, or by transfer of its shares from one person to another.
Corporationsmay exercise some-but not all--of the constitutional protections granted to natural persons.
[6:6] Corporations normally function through their boards odirectors rather than their shareholders. But there are a number matters upon which shareholder action or approval is required or permitted (see below).
While §-153 “aproval by shareholders” (above) expressly includes after-the-fact ratification, §152″ approval byoutstanding shares” does not. There is no apparent reason for this distinction and, presumably, § 1 52′approval” should be construed to include ratification as well.
The only action required to be taken by the shareholders on a regular basis is the annual election of directors (Corps.C. §600(b); below).
Otherwise, shareholder action is relatively infrequent. Shareholders may initiate action without prior board action (e.g., removal of directors, or adopting or amending bylaws). But, normally, shareholder action occurs only after the board of directors has taken or proposed certain major actions for which shareholder approval is required as a matter of law.
The election of directors at a shareholders’meeting requires ,”approval by shareholders”; i.e., the vote of a majority of the shares represented and voting at the meeting (Corps.C. § 1 53, above).
(a) [6:39]Shareholder approval requirements: See 6:473 ff.
· Advances for expenses: See Corps.C. §315(d); discussed 116:478.
· Employee stock purchase loans: See Corps.C. §§315(f)(1), 408; discussed 16:475.
Loans from other employee benefit plans: See Corps.C. §315(a); discussed 16:475. 1.
Certain other loan transactions: See Corps.C. §315(f)(1),(3); discussed 16.478. 1. [6:411 Reserved.
Cross-refer”Interested”directortrinsactions are discussed in greater detail at 16:285 ff. [6:45] Reserved.
· Cross-refer Indemnification is discussed in greater detail at 16:436 ff.
A shareholders’ meetIng is required once a year for the election of directors (annual meetings); and at any other time a meeting has been properly called (special meetings).
If the shareholders and directors are one and the same (or nearly so), it may be convenient for them to notice and hold ajoint annual meeting.

References: § 13

§ 1
 § 14
 §152
 § 1
 §600
 § 1
 §315
 §315
 §315