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Approval for Expenditure of Association Funds


Guest Frank V

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We recently had our club house insulated and the membership approved an expense of over $5000 in April. There was a few complications with the product that was installed and we had the insulation removed. We have now hired a General contractor however, his bid for the entire job is over $9000. Don't we need to get the membership's approval for the additonal expense?

One of our by-laws states that Recreational funds may be expended by the Board of Directors as needed to operate the recreational facilities, and that the board only has to report the expenditures to the membership.

I'ts my view that this project is not part of the recreational facilities. PLEASE ADVISE. Thank you.

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$4 Grand? Or maybe $9 Grand more if the original $5000 was spent.

I'd say those amounts require approval, but I haven't seen the original "Spend it" motion nor can I speak to any interpretation of your bylaws. That is entirely up to the membership. See p. 588 ff. to see what RONR recommends in re "interpretation".

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We recently had our club house insulated and the membership approved an expense of over $5000 in April. There was a few complications with the product that was installed and we had the insulation removed. We have now hired a General contractor however, his bid for the entire job is over $9000. Don't we need to get the membership's approval for the additonal expense?

One of our by-laws states that Recreational funds may be expended by the Board of Directors as needed to operate the recreational facilities, and that the board only has to report the expenditures to the membership.

I'ts my view that this project is not part of the recreational facilities. PLEASE ADVISE. Thank you.

The view that matters is the view of the membership... which seems to have felt its authorization was required when it gave it the first time.

The board works for the membership. Whether or not it is wise to check with the boss, when in doubt, before spending the boss' money, that I'll leave for the board to ponder. After all, it's the board's neck on the block.

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