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.
. 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.
. 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.
. 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.
: Associations needing legal assistance can contact us
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