August 11, 2009

Powers of the Board

Filed under: Questions from Bloggers — Joe @ 3:16 pm

Is it accurate to say that the Board of Directors is authorized by the Maine Condominium Act to manage the condo association effectively and efficiently?

Yes, the Board actually has almost exclusive power to manage the condominium association – some say too much power.  It is easier to list the things that only the unit owners can do.  They are:

A.  amend the Declaration, the Articles of Incorporation and, if provided for in the Declaration or Bylaws, approve amendments to the Bylaws.

B.  terminate the Condominium

C. elect members of the Board or determine the qualifications, powers and duties, or terms of office of Board members, but the Board may fill vacancies in its membership for the unexpired portion of any term.

D. ratify the budget (but the Board has the sole power to adopt the budget, subject to such ratification.

E. remove a Director by a 2/3 vote, after proper notice, according to Section 704 of the Maine Nonprofit Corporation Act.

F. other rights given to owners found in the Declaration of Bylaws.

Number of Directors

Filed under: Factoids,Questions from Bloggers — Joe @ 9:48 am

Is there a rule or regulation regarding the number of Board of Directors a Condominium Association must have to remain a non profit entity?

If the condominium was formed after January 1, 1983, then the condominium association is required to be a Maine Nonprofit Corporation.  The Maine Nonprofit Corporation Act requires all Maine nonprofit corporations to have at least three directors.   The association is required to file an annual report to the Maine Secretary of State each year listing the directors, and if there aren’t at least three names listed, the Secretary of State may not accept your annual report and your status as a nonprofit corporation may be threatened.  I don’t know what the practical consequences of that are.   Be aware that non-profit does not mean tax exempt.  Condominium associations may be liable for income taxes in certain circumstances.

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