Question: " I am a recently appointed director of our HOA board. I would like to review the associations past records. What are my inspection rights?"
Many newly elected board members may wish to inspect the past records of the HOA. There may be a variety of reasons why the board member wishes to inspect the records. Some of which may be to become acquainted with the history of the community, its fiscal management, review meeting minutes, or to determine whether the board is acted appropriately in the past.
Corporations Code § 8334 states the following as it relates to director inspection rights:
"Every director shall have the absolute right at any reasonable time to inspect and copy all books, records and documents of every kind and to inspect the physical properties of the corporation of which such person is a director."
Corp Code § 8334 gives a director of the board much broader discretion inspection rights than a non-director member would receive. The director does not need to provide written notification of their inspection rights, nor does the board member need to provide a reason for the inspection of the associations records.
It is also clearly evident that the board member has a broad inspection right to the type of documents they wish to inspect. The board member has a right to inspect and copy "...all books, records, and documents of every kind..." This is a much broader inspection right than non-board members receive under Corporations Code § 8333, which states the following:
"The accounting books and records and minutes of proceedings of the members and the board and committees of the board shall be open to inspection upon the written demand on the corporation of any member at any reasonable time, for a purpose reasonably related to such person's interests as a member."
Note: The information contained is not legal advice and does not establish an attorney-client relationship. Contact us via email Ryan.McClure.Esq@gmail.com or call us at 951.818.0687.
Wednesday, December 26, 2007
Inspection Rights for HOA Directors
Posted by
Ryan P. McClure, Esq.
at
11:03 AM
Labels: Board Inspection rights, Corporations Code § 8333, Corporations Code § 8334
