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VETO BOARD SPENDING

QUESTION: When the board approved a large sum of money ($420,000) to re-do landscaping for the community, there were no bids and I do not feel the community was clearly informed, can we overturn this act?

ANSWER:
The membership has no veto rights over the board's spending any more than citizens have veto rights over the deficit spending in Washington D.C. Instead, members have indirect veto power through annual elections and board recalls. If enough members are unhappy with the board's actions, they can elect directors who agree with their fiscal policies.

Legal Challenge. If the board acted outside of its authority, members have the right to go into court to reverse the board's action. However, if members wait until contracts have been entered into and monies spent, their challenge may be moot. The board would likely raise a laches defense.

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Adams Stirling PLC