QUESTION: Our directors did not seek
member approval nor advise the membership when they overspent the approved
budget. Wouldn't overspending require membership approval?
ANSWER:
No, it does not require membership approval. Boards are sometimes faced with unexpected increases in insurance premiums, utility rates, legal
fees, etc. that leave them no choice but to spend more than was budgeted. When
that occurs, boards can overspend the budget, impose an emergency special assessment, borrow from
reserves, or take other actions--none of which require membership
approval. See
unexpected expenses.
ASSISTANCE: Associations needing legal assistance can
contact us.
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