As far as the effective management of a condominium or community association is concerned, it’s critical to hold an organizational meeting of the board of directors following its election. In fact, this is considered a best practice by professional association management companies such as CAMS.
Many associations even have legal documents stating that it is required to hold an organizational board meeting within a certain time period. This is usually following an annual meeting or an election of board members at a special meeting of the membership.
Typically, the first order of business at an organizational meeting of the board of directors is the electing of officers. In the absence of a president, it may be acceptable to have a professional manager chair the meeting until the officers are elected. After a president is elected, that person is usually responsible for taking over as chair of the meeting.
The officers of an association’s board of directors generally include a president, vice president, secretary and treasurer, but there isn’t a limit as far as titles and positions are concerned, unless it’s spelled out in the articles of incorporation or bylaws. The articles or bylaws are a set of legal documents, which may also state that multiple officer positions can be filled by one person and whether or not there is a limit on the amount of terms that an officer could serve.
It is important to note that the membership elects the board of directors, except during the declarant control period, when the board members may be appointed by the declarant. The board of directors then elects the officer positions. It may not be required that officer positions only be filled with members of the board. In many cases it is acceptable to have a member in good standing fill an office.
The second order of business should be to schedule the next board meeting or ideally, all of the dates for the upcoming year. Having a set board meeting schedule, such as the first Tuesday of the first month of each quarter, allows everyone to plan and attend so they may participate in discussions and voting. This also ensures a quorum is present at each meeting.
An essential task that is performed by a professional community association management company is to draft of a code of ethics, which may include a confidentiality agreement. This is to protect the security of information pertaining to litigation, personnel and collections. Having a good code of ethics may also foster ethical expectations and a consistency of behavior among board members.
As another agenda item, the board of directors and professional manager may also review and discuss any pending items that need to be addressed. The organizational meeting is vital to the successful management of a community association, since it can be used as an opportunity to discuss initial goals and plans for the future.
For a consultation about how to conduct an organizational board meeting for your association, please call 910-256-2021, email [email protected], or visit www.CAMSmgt.com.
Mike Stonestreet is a 26-year veteran of the professional HOA management industry who has achieved one of the highest education-based designations in the field, that of Professional Community Association Manager (PCAM). Community Association Management Services (CAMS) has been a leading association management company since its inception in 1991. CAMS is a trusted provider of management services for more than 265 associations throughout North Carolina, South Carolina and Georgia. To find out how CAMS can benefit your community, call 910-256-2021, email [email protected], or visit www.CAMSmgt.com.
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