I am a director, and during this past summer, a fellow director, along with our
president who has been given approval privileges, have been spending and making
unnecessary repairs without the knowledge or votes of the other 5 directors.
Our treasurer had no knowledge. I only found out when making summer visits and
saw with my own eyes what was going on. Our president just keeps signing the checks.
What can we do and can they be held responsible for this spending which was not
authorized by the board and was performed without our knowledge? They seem to think that it is their own building and they are making their own
updates and spending. I hope you have some answers on what can be done. I would like to see them punished. This is unfair to the owners.
—Wasteful Spenders in West Palm Beach
A “There are several options that are available to a unit owner in this
predicament,” says Russell M. Robbins, a managing partner with the law firm of Mirza Basulto & Robbins, LLP, in the Coral Springs office. “There is an opportunity to inspect books and records of the association (see §718.111(12), Florida Statutes), filing a written inquiry requiring a substantive
response (see §718.112(2)(a)(2), Florida Statutes), petitioning the board to address the issue
at a meeting (see §718.112(2)(c)(1), Florida Statutes). Sometimes the addressing of the issue in the open is sufficient for the board to
see the ‘error of their ways’ and ensure such action does not occur in the future. If unsuccessful, an owner may file a complaint with the Department of Business
and Professional Regulation’s (DBPR’s) Bureau of Compliance or if the facts merit, with the local police or sheriff’s department. Consequently, the board is afforded protection by their Directors & Officers (D&O) insurance policy and the ‘business judgment rule’ codified in Florida Statutes, unless such actions constitute gross negligence,
criminal activity, a conscious disregard for the best interest of the
corporation, or an improper personal benefit to the director(s).”