448.3-103. Executive board members and officers.
Executive board members and officers.
448.3-103. 1. Except as provided in the declaration, thebylaws, subsection 2 of this section, or other provisions ofsections 448.1-101 to 448.4-120, the executive board may act inall instances on behalf of the association. In the performanceof their duties, the officers and members of the executive boardare required to exercise (1) if appointed by the declarant, thecare required of fiduciaries of the unit owners, and (2) ifelected by the unit owners, ordinary and reasonable care.
2. The executive board may not act on behalf of theassociation to amend the declaration, to terminate thecondominium, or to elect members of the executive board ordetermine the qualifications, powers and duties, or terms ofoffice of executive board members, but the executive board mayfill vacancies in its membership for the unexpired portion of anyterm.
3. Within thirty days after adoption of any proposed budgetfor the condominium, the executive board shall provide a summaryof the budget to all the unit owners, and shall set a date for ameeting of the unit owners to consider ratification of thebudget, which date shall be not less than fourteen nor more thanthirty days after mailing of the summary. Unless at that meetinga majority of all the unit owners, or any larger vote specifiedin the declaration, reject the budget, the budget is ratified,whether or not a quorum is present. In the event the proposedbudget is rejected, the periodic budget last ratified by the unitowners shall be continued until such time as the unit ownersratify a subsequent budget proposed by the executive board.
4. Subject to subsection 5, the declaration may provide fora period of declarant control of the association, during whichperiod a declarant, or person designated by him, may appoint andremove the officers and members of the executive board.Regardless of the period provided in the declaration, a period ofdeclarant control terminates no later than the earlier of (1)sixty days after conveyance of seventy-five percent of the unitswhich may be created to unit owners other than a declarant; (2)two years after all declarants have ceased to offer units forsale in the ordinary course of business; or (3) two years afterany development right to add new units was last exercised. Adeclarant may voluntarily surrender the right to appoint andremove officers and members of the executive board beforetermination of that period, but in that event he may require, forthe duration of the period of declarant control, that specifiedactions of the association or executive board, as described in arecorded instrument executed by the declarant, be approved by thedeclarant before they become effective.
5. Not later than sixty days after conveyance of twenty-fivepercent of the units which may be created to unit owners otherthan a declarant, at least one member and not less thantwenty-five percent of the members of the executive board shallbe elected by unit owners other than the declarant. Not laterthan sixty days after conveyance of fifty percent of the unitswhich may be created to unit owners other than a declarant, notless than thirty-three and one-third percent of the members ofthe executive board shall be elected by unit owners other thanthe declarant.
6. Not later than the termination of any period of declarantcontrol, the unit owners shall elect an executive board of atleast three members, at least a majority of whom shall be unitowners. The executive board shall elect the officers. Theexecutive board members and officers shall take office uponelection.
7. Notwithstanding any provision of the declaration orbylaws to the contrary, the unit owners, by a two-thirds majorityvote of all persons present and entitled to vote at any meetingof the unit owners at which a quorum is present, may remove anymember of the executive board.
(L. 1983 H.B. 177)