Homeowners association board members have a lot of responsibilities on their plates. From the financial aspects of the position to handling issues within the community, HOAs are full of tasks that can confuse or even frustrate its members.
An important part of the role, as well as something not fully understood by those involved, is the Executive Session. These sessions are meetings that are provided by statute so an HOA board can handle privileged information and deal with private matters. Let’s take a closer look at what these executive sessions mean for those involved.
What Are Executive Sessions?
Not all homeowners association members are involved in these hands-on meetings, which can frustrate some. Members who are not part of the proceedings being discussed are not allowed to attend these sessions, especially if it pertains to disciplinary action of personal matters.
The issues handled at executive sessions are usually pretty limited and specifically laid out for the board to go over. HOA members need to make sure they’re following rules and regulations as well as legal statutes to make sure they don’t cause any legal matters. Meetings are very specific and to the point, doing away with any ambiguity for the sake of transparency.
Some of the reasons why an HOA board will put together an executive session include dealing with contracts, disciplinary actions, legal matters, personal matters, and assessments.
HOA boards have a number of ways in which they come together to discuss the issues at hand. They can be executed in person or over telephone or video conference, with partiality to the former. Having an in-person meeting shows more value as matters are handled more transparently when individuals come together.
Keeping Insurance a Priority
Having dispute resolutions standardized will help to alleviate the stress of dealing with complaints and costly claims. It’s a way to protect an HOA in the event of member issues that could possibly get out of hand. Another way to be protected is to invest in HOA insurance coverage, such as Directors & Officers insurance, which can protect members from a myriad of issues like discrimination, breach of contract and mistakes related to governing documents.
Having this supplemental coverage is a way to make sure that additional claims don’t make a big impact on an HOA’s overall operation, especially during an important time around executive sessions.
Documenting Everything
With such importance in an issue such as an executive session, it’s vital that everything is documented and recorded for future use and accountability. Executive sessions are regulated by a number of specific rules and outlines so avoiding major issues after the fact should be a main point of priority.
Someone among the group should be taking diligent notes, such as a brief but descriptive summary of what was discussed in the executive session. However, it should be known that not all members (i.e. those who did not attend an executive session) have the right to view these notes.
HOA board members have a major responsibility to follow the rules and regulations while understanding the importance and weight of an executive session. It’s in a board’s best interest to be responsible and understand fully their rights and duties.
About Kevin Davis Insurance Services
For over 35 years, Kevin Davis Insurance Services has built an impressive reputation as a strong wholesale broker offering insurance products for the community association industry. Our president Kevin Davis and his team take pride in offering committed services to the community association market and providing them with unparalleled access to high-quality coverage, competitive premiums, superior markets, and detailed customer service. To learn more about the coverage we offer, contact us toll-free at (877) 807-8708 to speak with one of our representatives.