How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask MShore Law Your Own Question
MShore Law
MShore Law, Attorney
Category: Business Law
Satisfied Customers: 25285
Experience:  Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
17924466
Type Your Business Law Question Here...
MShore Law is online now
A new question is answered every 9 seconds

Our board of directors spent $148,000.00 reconstructing their

Resolved Question:

Our board of directors spent $148,000.00 reconstructing their hallway. This was after en expensive repair due to mold. They called further work "Phase" which was replacing the ceiling, lighting, carpeting,woodwork, etc.

I have asked for documents relating their activities and have been put off for 8 months. I however did receive a binder outlining the expenses but no indication of how they were paid for. Fourteen months of minuets during this period are missing.

Are they allowed to pour association money into one limited element, their hallway? There are another 19 floors with an old and dated appearance.
Submitted: 6 years ago.
Category: Business Law
Expert:  MShore Law replied 6 years ago.
Thank you for the post, do your bylaws grant the board of directors sole discretion to appropriate funds?
Customer: replied 6 years ago.
The budgets include a section for "Maintenance and Repairs" I have been told they tapped this fund which has $60,000.00 budgeted. But the projected budgets made no mention of this and are inadequately funded for what they spent.

What they did was reconstruction and replacement of the entire floor. Part of this was for a mold problem. The rest was discretionary and couched in meetings as Phase 2 of the Penthouse problem.

There is an amendment that the board can spend 3% for the total budget, $3,000,000.00. Amounts in excess of that require an association meeting with a vote.

However the total spent, to date, is over $148.00. This is being charged to the other unit owners via maintaince funds.

Thank you, XXXXX XXXXX I haven't paid much for this.

Geoffrey
Expert:  MShore Law replied 6 years ago.
Thank you Geoffrey, from your description the expenditure was technically permissible. However, I understand your argument that though permissible it is an irresponsible allocation of the association's resources. The homeowners' recourse is to move for a vote on the expenditure at the next meeting or circulate a petition for an emergency meeting to stop the board from continuing the allocate resources to the project.
MShore Law and 4 other Business Law Specialists are ready to help you

Related Business Law Questions