Adams Stirling PLC


QUESTION: Since no one in our association is willing to serve on the board, can we hire professional board members?

ANSWER: Theoretically yes but you would need to amend your governing documents to allow for paid non-member directors.

Elevated Risk. Paid professional directors are held to a higher standard than volunteer directors. Homeowner associations being what they are, the constant risk of being sued by disgruntled homeowners would discourage anyone from serving without appropriate safeguards. 

Hold Harmless & Indemnity. In the event you found individuals willing to serve as professional directors, it is unlikely they would do so unless your association signed a written agreement holding them harmless from their own negligent acts and indemnifying them against third party lawsuits. If they were smart, they would also require that your association provide them with professional liability insurance.

Higher Dues. Since professional directors don't work for free, your dues will go up. If no one is willing to serve, you may end up with a receiver. The other possibility is paying homeowners to serve on the board but that carries its own set of problems.

ASSISTANCE: Associations needing legal assistance can contact us. To stay current with issues affecting community associations, subscribe to the Davis-Stirling Newsletter.

Adams Stirling PLC