Q&A: The Board Rules?

Q As permitted by our condominium's bylaws, our board promulgated a proposed new  rule and regulation relating to the creation of a fund to be utilized to repair  our common elements. As it affected a common element, the board was required to  first obtain the approval of a majority of our unit owners in favor of adopting  this new rule and regulation for it to create the fund. The majority of unit  owners was obtained and the fund was established pursuant to the unit owner  adopted rule and regulation.  

 My question is, can a board thereafter unilaterally modify and/or terminate the  rule without first obtaining unit owner approval for any or all of the  foregoing?  

 —Amended in Avalon  

A “Any rights and/or obligations owners and/or the board have with regard to any  funds, votes, rules, amendments, etc. will be set forth in the Condominium Act  and this condominiums recorded master deed and bylaws,” says attorney Elysa D. Bergenfeld of the law firm Herrick, Feinstein, LLP. “It is impossible to provide any useful response without a thorough review and/or  consideration of the law and those documents. A necessary resource would also  be any resolution or other document by which the fund in question was created.  

 “Also, generally condominium master deeds and/or bylaws contain provisions by  which a board can act in certain ways in the face of an emergent situation.  Depending on various factors, the business judgment rule may shield any board  decision from judicial review.”   

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