Ask the Manager: How to Maintain and Record Board Resolutions
Ask the Manager:
Q. What is the best way for a board to keep track of board resolutions for historical reference and for the benefit of future boards? A. A board resolution is a motion that follows a set formula and is formerly adopted by the board. Resolutions may enact rules and regulations or formalize other types of board decisions (clicking here to view sample resolution). If your community association doesn't already do so, you may want to consider creating a Book of Resolutions to keep historical record of all board resolutions. Typically this can be done by dividing a three-ring binder book into sections based on type of resolution. The Book of Resolutions approach is most typically composed of four main sections: one for Policy Resolutions, one for Administrative Resolutions, one for Special Resolutions and one for General Resolutions; such resolutions are arranged in each section in order of their adoption. They should be placed in the appropriate section of the Book of Resolutions attached to the Minutes of the meeting at which they were adopted. (Please see various types of resolutions defined below).
1. Policy Resolutions affect owners' rights and obligations such as rules for the use of common areas and recreational facilities, architectural guidelines and enforcement procedures.
2. Administrative Resolutions address the internal operations of the community association. Examples include operating procedures, collection procedures and where board meetings will be held.
3. Special Resolutions document board decisions that apply a policy or rule to an individual situation, such as a decision about an alleged rule violation.
4. General Resolutions involve routine events, such as adopting the annual budget and approving a contract.
It is important to remember that the power of the board to enact rules and regulations is generally defined in the declaration and/or the bylaws. Sometimes a board's right to enact rules is limited by the requirements that the members approve the rules.
It really is a sound practice for a board to make sure that all adopted resolutions be systematically maintained for the association and future board members. A Book of Resolutions is a good way to accomplish that.
Thank you for reading the Imagineers Board Newsletter. If you have any question or need any additional information on any articles provided in this newsletter, please contact us at 1-800-560-7268.
Imagineers LLCEmail: Gpassacantando@imagineersllc.com
Phone: 1-800-560-7268
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