Alcohol @ closed board meeting?
I recently attended my open BOD meeting when they discussed a legal workshop the HOA attorney will be putting on open to only the board of directors of my HOA. They discussed having alcohol provided, including a “nice bottle of Pinot noir” for the attorney. My question is—is that legal? I’m assuming they would be using HOA funds to purchase their alcohol for the event. I might add it is a “community association that is non-profit”. TIA
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Jamie,
Such a practice is not illegal only because there is no specific law preventing it. Corporate law allows for these social events as a business expense and most if not all of these communities are incorporated as a non-profit corporation. But it is totally inappropriate for the association to use community funds for social activity that is not available to all members. While these communities are incorporated for convenience, they are in no way normal corporation as their entire income arises out of assessments on the homeowners to pay for the expenses of the community to maintain common property and manage the affairs of the association. Your articles of incorporation most typically have a provision that prevents any association funds from being used for the benefit of any individual homeowner including board members. If the board wanted to provide alcohol for this event at their own personal expense it would be totally appropriate.
Dennis