March 22, 2009

WITHDRAWING A RESIGNATION

QUESTION: One of our board members used exactly those words, "I quit!!!" in written board communication when things did not go to her liking -- but now she acts as if nothing ever happened and is making decisions for the board. Is she on or is she off?

ANSWER: She is off the board. As provided for in Corp. Code §7224(c), a resignation takes effect upon written notice to the board and does not need approval by fellow directors to be effective.

If your resigning director had made her resignation effective at a future date, she could have withdrawn it. From your question, it appears the director did not qualify her resignation nor did she withdraw it. Accordingly, she is no longer on the board and the remaining directors may appoint someone to fill the vacant seat.

MORE COMMENTS
On Protecting Volunteers

Gentlemen: The last item in your newsletter [by the Workers' Compensation Specialist] refers to amending bylaws to incorporate reference to "volunteers" under a section of Labor Code §3363.6 as employees of an HOA and thereby limit liability from the civil arena. I think the advice is flawed in that the section referred to applies to volunteers of a "public agency" and the Labor Code defines a public agency as quasi-governmental and section 1720.4(a)(1) specifically defines the public agency as a non-profit 501(c)(3).

The Labor Code does include language that certain volunteers are excluded from coverage under workers' compensation and not deemed employees, but that applies to ski patrol and a few limited areas. The other exceptions are the 501(c)(3) categories only.

As you know, HOAs are 501(c)(4) organizations. Consequently, it would appear that advice to modify the bylaws to incorporate section 3363.6 as applicable to volunteers being included in the category of "employee" of an association may be in error. -David Caine, Lake Arrowhead, CA

COMMENT: I invite those with workers' compensation expertise to send information and comments on this issue. -Adrian Adams

COMMON AREA STORAGE

QUESTION: Our association was built in 1960 and, since then, has allowed residents to share use of a storage room in the underground parking. People have stored boxes, mattresses, appliances, etc, at their own risk. The board suddenly wants to order everything removed so they can use it for storing documents and cleaning items. Can the board make this decision, or does it have to put the question before owners?

ANSWER: If the room is part in the common area it is under the control of the board on behalf of the membership. If the board decides the space is needed for storing corporate records and cleaning supplies, the board can use it for that purpose without a membership vote.

OWNER WEBSITES

QUESTION: I am a resident in an over-55 condominium community. I also operate an unofficial website for the community. Do I have a right to post on my website public documents of the association, such as Articles of Incorporation, Rules and Regulations, and CC&Rs?

ANSWER: Yes, but you need prominent disclaimers making it clear that your website is not the association's website and you do not speak for the association. Otherwise, you may incur potential liability for misrepresentation.


Very truly yours,

Adrian Adams, Esq.
Adams Kessler PLC


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Professional Law Corporation

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