COLUMN: Barbara Holland

Q. When there are not enough owners interested in serving on the board, does the management company assume the board's responsibilities?

Also, if an owner is spreading falsehoods about the board and association, can the board fine that owner?

A. In theory, the management company is probably quite capable of managing the association without a board. But, few management companies would assume that kind of responsibility and liability.

The management company and the remaining board members should take all means necessary to find owners willing to serve on the board. They could ask former board members to serve for at least one year.

The management company could, on behalf of the board, send letters to the individual members, stressing the urgency of the situation and asking for volunteers. Special meetings also could be called to discuss the crisis. It may even be necessary for existing board members to visit the owners one-on-one. In an extreme case, a court of law could appoint a receiver to manage the association (which could be the current management company) until a new board was formed.

You may find more people willing to serve if the number of board meetings were reduced. State law requires at least one meeting per quarter.

The bottom line is that a board is needed -- it is required by your governing documents and it is state law.

As for your second question, if any member is telling lies of a substantial nature, the association's legal counsel could send that owner a warning letter because libel and slander are against the law. The association could initiate legal action against the owner, pending advice from legal counsel. The owner would not be fined, but the owner could be held responsible for any legal fees incurred by the association.

Q. We own townhomes in a development that has an inexperienced board of directors. Does state law specify the qualifications necessary to serve on the board?

A. No. In most cases, if you are a member in good standing (not delinquent or in violation of the governing documents), you could run and be elected to the board without any business or management experience.

It can be challenging for an association to be self-managed because of the continual turnover and burnout of directors and continual changes in state law.

Questions for Barbara Holland may be sent to Association Q. & A., P.O. Box 7440, Las Vegas, NV 89125. Her fax number is 385-3759.

Barbara Holland, Certified Property Manager, is president and co-owner of H&L Realty and Management Co. She is a member of the Institute of Real Estate Management and is the author of two books on the subject. Holland is a past president of the Greater Las Vegas Association of Realtors.

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