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Condo Management Company Influencing Board and Unit Owners

L.B. from Hartford County writes:

Dear Mister Condo,

Can a management company interfere with the board? Specifically, by asking to have a member resign or complain to only a few of the 5-member board about another member? And allow statements to be used and passed to unit owners in an effort to get the required signatures for special meeting to remove said board member?

Mister Condo replies:

L.B., the function of the management company is to assist the Board as outlined in the management company contract. This is typically handling all things financial and accounting such as collection of dues and assessments, payment of vendors, and collection efforts, budget preparation and so on. Governance of the association is strictly the duty of the Board. However, due to the nature of Boards being served by volunteers, it is not uncommon for a Board to rely upon the knowledge and expertise of a management company to help them make good decisions and keep the community association and Board on track. That being said, you have described a campaign to remove a Board member led by the management company. This is not a common practice although I am not sure it is illegal. You would need to review the laws for your state to see if that is the case. Other than that, the management company can only suggest things to the Board that the Board can either ignore or take action upon. In this case, it would appear that the Board is in agreement with the management company. The Board can always select another management company if the existing management company isn’t serving their best interests. If the Board is pleased with the performance, that isn’t likely to happen. Regardless of the source of information, if a Board member is recalled by the unit owners, there isn’t too much the Board Member can do. After all, this is an elected, volunteer position. It is not like they are being fired from a paying job. It is politics and being voted out is always a possibility. Good luck!

1 thought on “Condo Management Company Influencing Board and Unit Owners”

  1. One Tiny action I have done with my boards is set up a board group email- only use thus so all members are included in everything so no one board member is excluded. We don’t play ‘the leave out’ game and it may help.

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