us board of directors - hawaii

Learn more about the Real Estate Branch (REB) of the Department of Commerce and Consumer Affairs Check out the REB website www.hawaii.gov/hirec for more information and some frequently asked questions. What services does the REB provide to the condominium community? Where do I file a complaint against my association? What laws apply to my condominium association? How do I get a copy of my association documents? Real Estate Branch About Us The Real Estate Branch, as part of the Professional and Vocational Licensing Division, assists the Real Estate Commission in carrying out its responsibility for the education, licensure and discipline of real estate licensees; registration of condominium projects, condominium associations, condominium managing agents, and condominium hotel operators; and intervening in court cases involving the real estate recovery fund. Subscribe Receive emails on relevant condominium educational materials. Sign up now at http://cca.hawaii.gov/reb/subscribe/ Contact Us Condominium Hotline: 808‐586‐2644 Hours: 9:00 AM – 3:00 PM Email: [email protected] Web: www.hawaii.gov/hirec CONDOMINIUM: BOARD OF DIRECTORS Real Estate Branch 335 Merchant Street #333 Honolulu, HI 96813 CONDOMINIUM: BOARD OF DIRECTORS Real Estate Branch Department of Commerce and Consumer Affairs Rev. March 2019

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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.

Subscribe Receiveemailsonrelevantcondominiumeducationalmaterials.Signupnowathttp://cca.hawaii.gov/reb/subscribe/

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.

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