us board of directors - hawaii

Learn more about the Real Estate Branch (REB) of the Department of Commerce and Consumer Affairs CheckouttheREBwebsitewww.hawaii.gov/hirecformoreinformationandsomefrequentlyaskedquestions.

WhatservicesdoestheREBprovidetothecondominiumcommunity?

WheredoIfileacomplaintagainstmyassociation?

Whatlawsapplytomycondominiumassociation?

HowdoIgetacopyofmyassociationdocuments?

Real Estate Branch About Us TheRealEstateBranch,aspartoftheProfessionalandVocationalLicensingDivision,assiststheRealEstateCommissionincarryingoutitsresponsibilityfortheeducation,licensureanddisciplineofrealestatelicensees;registrationofcondominiumprojects,condominiumassociations,condominiummanagingagents,andcondominiumhoteloperators;andinterveningincourtcasesinvolvingtherealestaterecoveryfund. 

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Contact Us CondominiumHotline:808‐586‐2644Hours:9:00AM–3:00PMEmail:hirec@dcca.hawaii.govWeb:www.hawaii.gov/hirec

CONDOMINIUM: BOARD OF DIRECTORS RealEstateBranch335MerchantStreet#333Honolulu,HI96813

CONDOMINIUM: BOARD OF DIRECTORS

RealEstateBranchDepartmentofCommerceandConsumerAffairs

Rev.March2019

BoardofDirectorsTheassociationisgovernedbyaboardofdirectorselectedbytheunitownerstorepresentthemingoverningandmanagingthecondominium.TheCondominiumPropertyActprovidesthateverydirectorowestheassociationa“fiduciaryduty”intheperformanceofthedirector’sresponsibilities,toexercisethedegreeofcareandloyaltyrequiredofanofficerordirectorofanonprofitcorporation(HRS§514B‐106(a)).

Theboardmustmeetatleastonceayear(HRS§514B‐125(e)).Asaunitowner,youhavetherighttoparticipateinallboardmeetings,except“executivesessions”,pursuanttoownerparticipationrulesadoptedbytheboard(HRS§514B‐125(a)).

OfficersTheofficersoftheassociationareresponsibletotheboardfortheday‐to‐dayoperationsoftheassociation.Officersarenormallyelectedbyandfromtheboardofdirectors.Chapter514Bprohibitsanyunitownerwhoisanemployeeofthemanagingagentfromservingatthesametimeasanofficer(althoughnotasadirector),andanydirectorwhoisalsoanemployeeofthemanagingagentshallnotparticipateinanydiscussionofthemanagementcontractataboardmeeting,andshallbeexcludedfromanyexecutivesessioninwhichthecontractorthepropertymanagerarediscussed(HRS§514B‐107(c)).Notenant,residentmanager,orcondominiumemployeecanserveontheboard.

ExcerptfromCondominiumPropertyRegimes:OwnerRightsandResponsibilities.ThefulldocumentmaybefoundattheREBwebsitewww.hawaii.gov/hirec

BusinessJudgmentRuleInjudgingtheactionsofdirectors,courtsfrequentlyapplyatestcalledthe“businessjudgmentrule”.Thecourtsrecognizethattheyshouldnotsecondguessthelawfuldecisionsoftheboardofdirectors.Theboardofdirectorsisthedulyelectedrepresentativeoftheassociation;itsmembersownunitsintheprojectandhaveknowledgeoftheneedsanddesiresofthecommunity.Thebasicself‐governanceprincipleofthecondominiumlawlimitsjudicialinquiryintoboarddecisions.

Thebusinessjudgmentrulerecognizesthatvolunteerboardmemberswillnotalwaysmaketherightdecision,butiftheyfollowtherightproceduresandactintheinterestoftheassociation,theywillusuallynotbepersonallyliablefortheiractionsonbehalfoftheassociation.