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Ultra Vires Act
An "ultra vires" act is one performed without legal authority; something done which is beyond the scope of the board's or an individual director's authority.

Director Liability. Individual directors who act without authority may become personally liable for those actions. For example, when the board decides against hiring a particular landscape company and the board president signs the contract anyway, the president has committed an ultra vires act. When that happens, the president may not be covered by the association's insurance and may be personally liable for his acts. Although the contract may be voidable by the association, the president may be personally liable for any damages suffered by the association.

Board Actions. Boards who act outside their authority may have their actions reversed by the courts.
Where the association exceeds it scope of authority, any rule or decision resulting from such an ultra vires act is invalid whether or not it is a "reasonable" response to a particular circumstance. Where a circumstance arises which is not adequately covered by the CC&Rs, the remedy is to amend the CC&Rs. Major v. Miraverde HOA.

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