SB 546

Bill Subjects

Commoninterestdevelopments Accounting

Abstract

Existing law requires the board of directors of a nonprofit corporation or unincorporated association created for the purpose of managing a common interest development to, on a monthly basis, review specified documents, including account statements, reconciliations, and ledgers, unless the association's governing documents impose more stringent standards. Existing law authorizes those review requirements to be met when every individual member of the board, or a subcommittee of the board consisting of the treasurer and at least one other board member, reviews the documents and statements independent of a board meeting, so long as the review is ratified at the board meeting subsequent to the review and that ratification is reflected in the minutes of that meeting. This bill would repeal those provisions authorizing the review requirements to be met when individual members or a subcommittee of the board review the documents and statements independent of a board meeting as described above.