Adams Stirling PLC

Temporary Dues Increase

QUESTION: Can a board raise the monthly assessment for a fixed time period, i.e., twenty four months? How binding would this sunset clause be on future boards?

ANSWER: Provided the increase is within the 20% limit, a board can raise the dues for a fixed period. Even though the board promises to make the increase temporary, that promise is not binding on future boards. Subsequent boards can take into account the needs and economic realities in the years that follow. The next board might decide to discontinue the increase earlier than planned or continue it for additional years.

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Adams Kessler PLC