Chapter 2 Terms Flashcards
What is an Ad Hoc Committee?
Committees that have a purpose of taking a charge from the board to deal with a one-time issue and make recommendations to board within a specific time frame to assist with decision making.
Who is an association-employed manager?
A manager who is directly employed by the community itself
Describe a board liaison system?
Board directors are assigned to certain committees to oversee and report back to the board on activities.
Why? When distinguishing oversight role from their role as committee chairperson.
What is the business judgement rule?
If a board has exercised reasonable business judgement in making a decision the court will generally not consider the board negligent in its fiduciary duty.
What is conflict of interest?
A situation in which an individuals duty to one leads to a disregard of a duty to another.
What is an employment agreement?
Agreement in which an an association employed manager engages an agreement to manage.
What is fudiciary duty?
Requires directors to act in best interest and for benefit of the corporation, thus community as a whole
What is management?
A process of planning, organizing, leading, and controlling an organizations use of its resources in order to achieve its goals.
What is a management audit?
a review of the following: governing documents, policies, and procedures property and its condition owner/resident satisfaction fiscal operations
What is a mangement contract?
an agreement to manage entered by a community and a management firm
What is a management plan?
a statement of goals and objectives provided by the board
What is a mandatory committee?
required by the governing documents. Usually for elections, nominations, and architectural standards
What are professional ethics?
Rules or standards that govern the conduct of members of a profession.
What is a standing committee?
A committee the board determined is needed and created by administrative resolution
What is volunteer or self management?
When a community association is managed by the board itself or by committees under the direction of the board
