Absentee Half-Owner on the Board

Source: Adrian J. Adams Es

QUESTION: Does a member have to hold 100% title in the unit to be eligible for the

board of directors? If the candidate shares 50% title with another and does not reside in the unit but leases it, is the member eligible to run for board?

ANSWER: Unless your governing documents state otherwise, directors do not need to be members. That means someone not on title can serve on the board.

Ownership Interest. If your governing documents require directors to be members but don’t set an percentage ownership interest, someone with a 1% interest can serve on the board. When I restate documents for associations, I set a minimum ownership interest of 10%. That way, directors have more of a stake in keeping the development in good shape.

Residency Requirement. If your governing documents are silent, then residency is not a requirement for someone to serve on the board. I include this as an option when restating bylaws. Some associations want it. For others, it may be an impossible requirement if the development is a resort with few if any permanent residents.

RECOMMENDATION: Most associations lack sufficient director qualifications and need to update their bylaws to meet current Davis-Stirling election requirements. Contact me if you need assistance.