Adams Stirling PLC


Unless an association's governing documents state otherwise, convicted felons are not automatically precluded from serving on boards. Even so, association's can exclude them from serving on the board.

Corporations Code. Since the Corporations Code authorizes boards to declare vacant the office of any director who has been convicted of a felony (Corp. Code §7221(a)), boards can decline a felon's nomination to run for the board or, in the alternative, vacate their seat if elected.

Fidelity Insurance. Boards have good reason to keep felons from serving on the board, especially if the conviction involved embezzlement or some form of theft. Associations should be aware of potential problems with their fidelity bond if a felon were to serve in any capacity that involved access to the association's funds. Many crime policies have an exclusion that preclude coverage in such situations.

Director Qualifications. Associations should consider amending their bylaws to avoid this situation. It can be done through a formal amendment approved by the membership or a change in director qualifications via a change in the Election Rules approved by the board.

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