Among the steps you can take are to request a variance (an exception to the rule they have promulgated and are trying to enforce against you), file a grievance, request a hearing, correspond with your Board and Property Management Company, or pay the fine or pay to take the action they are requiring you to take and …

The California Attorney General’s Office recommends that if you believe fraud, theft or embezzlement by your HOA board or any of its individual members is present, report it to the police or sheriff’s department.

While most HOAs do their jobs well, the nature of these organizations often invites corruption. From nepotism in the assignment of work contracts to issues with board members receiving large portions of the monthly fees in pay, there are many ways people can abuse the HOA system.

A board member can be personally liable if they were negligent in their duties. If there are problems because the board treasurer did not check financial reports against bank accounts, they can potentially get sued. Homeowners can also sue a board member if he puts his personal interests above the community.

Exceptions to the Limited Liability Rule In a few situations, people involved with a nonprofit corporation can be held personally liable for its debts. A director or officer of a nonprofit corporation can be held personally liable if he or she: personally and directly injures someone.

General liability: This involves issues like gross negligence. Board members can be held liable for bad things they didn’t take steps to prevent or eliminate. Examples include not screening childcare workers or not fixing that faulty handrail on the stairway of your facility. Get protection.

Limited liability protects shareholders, directors, officers and employees against personal liability for actions taken in the name of the corporation and corporate debts. Ordinarily, an officer of the corporation, whether also a shareholder, director or employee, cannot be held personally liable.

Founders and/or startup CEOs should approach building their boards the same way they would in building their management team. First, decide how many seats are needed/wanted; as mentioned, the recommended number of seats for young companies is three to five, with five being optimal.

Can my board of directors contain family members? Yes, but be aware that the IRS encourages specific governance practices for 501(c)(3) board composition. In general, having related board members is not expressly prohibited.

No one person or group of people can own a nonprofit organization. Ownership is the major difference between a for-profit business and a nonprofit organization. But nonprofit organizations do not have private owners and they do not issue stock or pay dividends.

In simple terms, the CEO is the top senior executive over management while the board chairperson is the head of the board of directors. Boards usually meet at least quarterly to set long-term plans, review and monitor the financial reports, monitor and oversee the senior-level executives, and vote on major decisions.

Directors of a corporation – members of the governing board – are defined by statute as non-employees. If an exempt organization pays its board members to attend board meetings or otherwise compensates them for performing their duties as directors, the organization should treat them as independent contractors.

Board members are not considered employees of the organization, even though they may be compensated for participation on retainer or with per-meeting fees. Board members are typically outside experts and leaders who hold full-time positions of leadership outside in their chosen profession.

Board members aren’t paid by the hour. Instead, they receive a base retainer that averages around $25,000. On top of this, they also may be paid a fee for each annual board meeting and another fee for meeting by teleconference. At any given company, director pay may be set up differently.

L.A. Unified’s seven board members are elected by district; constituent service to those districts has also become a major part of the job. Board members should — and mostly do — work full time. They are just not paid like it.