Why Does the Condo Have an Executive Board and a Board of Directors?

C.G. from Litchfield County writes:

Dear Mister Condo,

We have both an Executive Board and Board of Directors. Is it necessary to have both? Also, who comprises the Executive Board?

Mister Condo replies:

C.G., the association’s governance documents dictates the governing bodies for the corporation that is the condo association. It is necessary to have both as long as that is what the incorporation papers call for and both must hold meetings and keep Minutes from those meetings as called for in the by-laws. The question of who comprises the Executive Board is also spelled out in your condo documents. In my experience, Board of Directors are called for to govern either an entire complex or a division or phase of a complex. The latter is more common in larger communities that roll out over time. There are many of those here in our state. Once you have multiple associations within one complex, an Executive Board is also needed to handle the business of the association as a whole. Phase 1, 2, and 3 may need to purchase electricity or other utilities for the entire complex as a whole. That would be the purview of the Executive Board. Perhaps there is a clubhouse or other amenity that all unit owners have access to but is not under their Phase. Again, the Executive Board may take responsibility for the management and maintenance of that asset. Still other associations are simply top heavy in their governance and have an Executive Board as part of a single complex. In that case, the Executive Board may have a very specific function as outlined in the governance documents. Check your governance documents for more detail or consult with a community association attorney who can also advise you if your documents can be amended to do away with the Executive Board if it is truly unwarranted. Good luck!

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