Community Management Terms Flashcards
Ad Hoc Committees
Used when an objective needs consideration and no standing committee within the organize can absorb that issue into its scope. Usually these committees are on short term basis, such as oversight of a n issue ore review of the standing rule of that community
Board Liaison System
Directors are assigned to certain committees to guide the committee on the Board policy and procedures and report back to the Board. Directors serving as a liaison must distinguish their role from the role of the committee chair person.
Business Judgement Rule
If a Board has excised reasonable business judgement in making a decision, the court will generally not consider the board negligent in its fiduciary duty, nor will the court substitute its its judgement for that of the board. However, the board must demonstrate how it has take car in reaching a decision. it is up to the court to decide if the board has exercised reasonable business judgement.
Fiduciary duty
Requires directors to act in the best interests and for the benefit of the corporation, thus the community as a whole. This duty has two components:
- members are required to avoid conflicts of interest and actin out of self interest.
- Members are also required to act as reasonable people in managing in the associations affairs.
Management Ethics
Specific choices to me made by an individual in his or her relationship with others. Professional ethics are the rules or standards that govern the conduct o f members of a profession. The assumption is that special expertise held by members of he profession holds them to a high standard of trust by others.
Management Audit
Consists of a review of governing documents and existing policies and procedures, current condition of the property, owner/resident satisfaction, and fiscal operations. This review can be don by the Board and manager together, or a third party consultant can be hired.
Management Plan
Statement of goals and objectives approved by the Board that includes the yearly cycle of the tasks that management should perform on the community associations behalf.
Standing commitee
Committees which have continued existence and are not related to the accomplishment of a specific, one-only tasks. Budget an nomination committees are examples of standing committees.
