Hopefully, most of us enter into relationships with the expectation that they will last. However, for those of us past adolescence, we realize that even long-term relationships can end and, even when they were good for a long time, the manner in which they do can overshadow everything that preceded that ending.
In the next few posts in this Breaking Up blog series, I will discuss the various transitions a board can face including transitions from the developer, from former counsel and from a long-standing predecessor board.
In the context of a community’s relationship with professional management, the stakes can often be quite high. More and more volunteer boards have come to rely upon professional management to undertake the daily operation and administration of their communities. For some boards, this reliance is reasonable and a balance is struck between the directors’ responsibilities and that of their licensed manager. However, for a growing number of communities, the professional manager has supplanted the board with the staff, contract vendors and professionals, and, in extreme cases, even with the members. What these boards may not realize, is that the ultimate responsibility and accountability will legally and stubbornly cling to them regardless of their efforts to transfer much of the operational control to management. As such, it is time for boards to become more proactive about how a relationship with a professional advisor might end and what can be done before that happens to insert some clarity into that process. Otherwise, the transition can be difficult and even damaging to the community.