RCW 64.38.025
Board of directors -- Standard of
care -- Restrictions -- Budget -- Removal from board. (Effective until
January 1, 2012.)
(1) Except as provided in the association's
governing documents or this chapter, the board of directors shall
act in all instances on behalf of the association. In the
performance of their duties, the officers and members of the
board of directors shall exercise the degree of care and loyalty
required of an officer or director of a corporation organized
under chapter 24.03 RCW.
(2) The board of directors shall not act on behalf of the
association to amend the articles of incorporation, to take any
action that requires the vote or approval of the owners, to
terminate the association, to elect members of the board of
directors, or to determine the qualifications, powers, and
duties, or terms of office of members of the board of directors;
but the board of directors may fill vacancies in its membership
of the unexpired portion of any term.
(3) Within thirty days after adoption by the board of
directors of any proposed regular or special budget of the
association, the board shall set a date for a meeting of the
owners to consider ratification of the budget not less than
fourteen nor more than sixty days after mailing of the summary. Unless at that meeting the owners of a majority of the votes in
the association are allocated or any larger percentage specified
in the governing documents reject the budget, in person or by
proxy, the budget is ratified, whether or not a quorum is
present. In the event the proposed budget is rejected or the
required notice is not given, the periodic budget last ratified
by the owners shall be continued until such time as the owners
ratify a subsequent budget proposed by the board of directors.
(4) The owners by a majority vote of the voting power in the
association present, in person or by proxy, and entitled to vote
at any meeting of the owners at which a quorum is present, may
remove any member of the board of directors with or without
cause.
[1995 c 283 § 5.]
RCW 64.38.025
Board of directors -- Standard of
care -- Restrictions -- Budget -- Removal from board. (Effective
January 1, 2012.)
(1) Except as provided in the association's
governing documents or this chapter, the board of directors shall
act in all instances on behalf of the association. In the
performance of their duties, the officers and members of the
board of directors shall exercise the degree of care and loyalty
required of an officer or director of a corporation organized
under chapter 24.03 RCW.
(2) The board of directors shall not act on behalf of the
association to amend the articles of incorporation, to take any
action that requires the vote or approval of the owners, to
terminate the association, to elect members of the board of
directors, or to determine the qualifications, powers, and
duties, or terms of office of members of the board of directors;
but the board of directors may fill vacancies in its membership
of the unexpired portion of any term.
(3) Within thirty days after adoption by the board of
directors of any proposed regular or special budget of the
association, the board shall set a date for a meeting of the
owners to consider ratification of the budget not less than
fourteen nor more than sixty days after mailing of the summary.
Unless at that meeting the owners of a majority of the votes in
the association are allocated or any larger percentage specified
in the governing documents reject the budget, in person or by
proxy, the budget is ratified, whether or not a quorum is
present. In the event the proposed budget is rejected or the
required notice is not given, the periodic budget last ratified
by the owners shall be continued until such time as the owners
ratify a subsequent budget proposed by the board of directors.
(4) As part of the summary of the budget provided to all
owners, the board of directors shall disclose to the owners:
(a) The current amount of regular assessments budgeted for
contribution to the reserve account, the recommended contribution
rate from the reserve study, and the funding plan upon which the
recommended contribution rate is based;
(b) If additional regular or special assessments are
scheduled to be imposed, the date the assessments are due, the
amount of the assessments per each owner per month or year, and
the purpose of the assessments;
(c) Based upon the most recent reserve study and other
information, whether currently projected reserve account balances
will be sufficient at the end of each year to meet the
association's obligation for major maintenance, repair, or
replacement of reserve components during the next thirty years;
(d) If reserve account balances are not projected to be
sufficient, what additional assessments may be necessary to
ensure that sufficient reserve account funds will be available
each year during the next thirty years, the approximate dates
assessments may be due, and the amount of the assessments per
owner per month or year;
(e) The estimated amount recommended in the reserve account
at the end of the current fiscal year based on the most recent
reserve study, the projected reserve account cash balance at the
end of the current fiscal year, and the percent funded at the
date of the latest reserve study;
(f) The estimated amount recommended in the reserve account
based upon the most recent reserve study at the end of each of
the next five budget years, the projected reserve account cash
balance in each of those years, and the projected percent funded
for each of those years; and
(g) If the funding plan approved by the association is
implemented, the projected reserve account cash balance in each
of the next five budget years and the percent funded for each of
those years.
(5) The owners by a majority vote of the voting power in the
association present, in person or by proxy, and entitled to vote
at any meeting of the owners at which a quorum is present, may
remove any member of the board of directors with or without
cause.
[2011 c 189 § 8; 1995 c 283 § 5.]
NOTES:
Effective date -- 2011 c 189: See note following RCW 64.38.065.