New Bill Poses Limitations and Unnecessary Expenditures

  • Mar 15 2016

By: Roy Schneider, Esq.

Early this year, an act to amend Section 4925 of the Civil Code, relating to common interest developments was introduced by assembly member, Don Wagner. The proposed bill will allow any community association member’s attorney to attend all association board meetings which the member may attend.

While it may seem like common sense to allow a member’s attorney to be present at any board meeting where he or she may be present, the realistic implications of the proposed bill pose discussion limitations and unnecessary expenditures for common interest association boards. For example: Not all associations currently have legal counsel, and those that do, do not always have their counsel attend the entire board meeting. Should a board choose to continue that approach, they could experience discussion limitations at meetings due to volunteer board members’ fears of liability and of how the discussions may be used in the future. In another instance, an association board may decide to combat liability and discussion limitations by having its own counsel present at all meetings- then threats of increased legal fees ensue.

If you serve as a volunteer on a community association board and you have questions about how this proposed bill amending section 4925 will impact the way your association board will operate, contact an attorney at Schneiders & Associates, LLP, a law firm providing comprehensive legal services including advice and assistance on these types of matters for more than thirty Homeowners Associations in Ventura, Santa Barbara, and San Luis Obispo Counties.

 

Posted in: Client Alerts, Homeowners Associations & Non-Profits

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