1-888-800-1042
Kaman Cusimano Logo

Condo | HOA Lawyers

Budget Approval Motion NOT Needed at Owners’ Meeting

As community associations hold their annual meetings, boards should be reminded that for most associations, owners do NOT need to approve the treasurer’s report or annual budget.  The majority of association Bylaws provide an outline for the annual meeting agenda, which includes approval of last year’s annual meeting minutes by owners, reports of officers, and a board member election.  A Bylaw provision requiring owners to approve the treasurer’s report or budget at an annual meeting would be extremely rare.  However, boards often make the mistake of asking owners for their approval of these financial items at annual owners’ meetings.  If no such owner approval is required by the Bylaws, owners may be confused as to their role within the association and assume a false sense of empowerment, especially regarding delicate financial decisions.

All boards should carefully review the association’s Bylaws in preparation for the annual meeting.  Organization and a clear understanding of the appropriate agenda items are key tools for a smooth meeting.  Approval of the budget or the treasurer’s report is generally a board function, NOT a function of the owners.  As a result, such a motion at the annual owners’ meeting would NOT be appropriate.

Categories

Three bars icon gold

Recent blog Posts

Three bars icon gold

Effective Communication Strategies for Community Association Boards

Effective communication is vital for board members. In fact, it is the cornerstone of a ...
Read More →

Evaluate Your Sign Restrictions Now To Avoid Legal Issues In the Future

     As we are approaching the end of winter, it is a perfect time ...
Read More →

Partner Shannon McCormick appointed to the Northern Ohio CAI Board

We are thrilled to announce that Shannon McCormick, Partner, and Chair of our Cleveland Office, ...
Read More →

Attorney John Izzo presented at CAI Central Ohio Chapter’s Annual Meeting

On January 25, 2024, Attorney John Izzo took the stage as a distinguished panelist at ...
Read More →