Steps to Recalling Secretive Board

QUESTION: We live in a large condominium project and a number of us are quite concerned about our board of directors. We are not permitted to attend their board meetings, we have tried to get copies of the financial statements without success, and we suspect that at least one of the board members is getting kickbacks from the various contractors who are hired to do work at the project.

The current board will continue to serve until October when there will be an annual meeting and another election. Many of us are interested in having a recall of the board, but when we have circulated newsletters to other owners, we have been threatened with libel suits by several of the board members.

What legal rights do we have?

ANSWER: If it is any consolation to you, I have heard these complaints from unit owners throughout the country. Unfortunately, many board members of condominiums, cooperatives or homeowner associations are on an ego trip. They want to be called “Mr. or Ms. President.” They fail to recognize that there is a fiduciary responsibility owed by the board member to the constituents who elected them to office.

In fairness, the great majority of boards of directors are fair and honest. Often, because this is a volunteer position and because it can consume a lot of personal time, many board members just do not understand what their role is.

You have indicated that your board meetings are closed to the membership. You should read the law in the jurisdiction where your condominium is located, to determine if there are any specific statutes requiring open meetings.

Even if your state law is silent on this question, you should then read your association documents. You may find some guidance in those basic documents, which could include the declaration and bylaws, or the covenants, conditions and restrictions (also known as CC&Rs;).

Finally, if you cannot find anything specific to assist you in your own documents, you still have the right to demand that the membership vote that board meetings be open. This vote could come at the annual meeting, or (pursuant to your bylaws), you could also call a special meeting specifically for that purpose.

If your association documents are silent on the issue, the board of directors must follow the wishes of the majority of the association.

With respect to your inability to obtain financial information, I feel quite confident that you will find some language in your documents giving you the absolute right to inspect and review financial documents of the association.

You should send a demand letter to the board of directors, by registered, return receipt mail, and give them 10 days in which to make these documents available to you for your review and inspection. If the board refuses to give you access, you might want to consider filing a suit against the board. You should also talk to a number of other owners in your association to see if they will join you in this litigation. Not only will there be strength in numbers, but the legal fees can be divided up among more than just yourself.

You have also indicated that you are being threatened with a libel suit when you speak up in opposition to your board of directors. You have an absolute, constitutional right of free speech. As long as what you are saying is truthful, you should have no fear by communicating your concerns--and indeed your opinions--to other members of the association.

Meet Benny Kass

Real estate and tax attorney Benny L. Kass, who also writes for The Times and the Washington Post, will take part in a symposium for small investors at today’s session of The Times’ Home Buyers and Sellers Fair.

The fair will be held from 9:30 a.m. to 5 p.m. today at the Los Angeles Convention Center. For details, see page K9.