Directors & Officers is a Thankless Job
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Last updated: Thursday, December 6, 2007

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Occasionally we hear how Director and Officers accept private association deals from contractors who will in-exchange return the favor in the form of money, services or free trips. Or they will hire a contractor friend that will offer a service for a similar service. This is commonly known as a “kickback”.  There is sometimes a misconception that since the Director or Officer are not a licensed manager it’s all right to accept these types of kickbacks.  See Condominium Act and Cooperative Statutes below:

The Condominium Act (1) Corporate Entity:

An officer, director, or manager may not solicit, offer to accept, or accept any thing or service of value for which consideration has not been provided for his or her own benefit or that of his or her immediate family, from any person providing or proposing to provide goods or services to the association. Any such officer, director, or manager who knowingly so solicits, offers to accept, or accepts any thing or service of value is subject to a civil penalty pursuant to s. 718.501(1)(d).

The Cooperative Statutes (8) Corporate Entity:

The officers and directors of the association have a fiduciary relationship to the unit owners. An officer, director, or manager may not solicit, offer to accept, or accept any thing or service of value for which consideration has not been provided for his or her own benefit or that of his or her immediate family, from any person providing or proposing to provide goods or services to the association. Any such officer, director, or manager who knowingly solicits, offers to accept, or accepts any thing or service of value is subject to a civil penalty pursuant to s. 719.501(1)(d).

What is interesting enough, we can’t find similar regulations regarding Homeowner Associations. This by no means Homeowners are exempt from these rules, we simply can’t find any Homeowners Act or Statute with similar rulings.

Although we are sure there are bad apples out there, we never experience a Director or Officer engaged in these types of activities. The majority of Directors and Officers volunteer their time with no strings attached or with no hidden agendas. They donate precious time to serve their community and even at times criticized for it. It’s a wonder why now and again we hear the phrase, “Being a Director and Officer is a thankless job”.

For relative posts see, “The Board has the Right to Adopt Reasonable Rules” and “Condominium Verses Homeowners“. If your are a Director or a Florida Homeowner, please don’t miss any important posts by subscribing to our community. Or by our complimentary email service.

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