55-510 - Access to association records; association meetings; notice.
§ 55-510. Access to association records; association meetings; notice.
A. The association shall keep detailed records of receipts and expendituresaffecting the operation and administration of the association. All financialbooks and records shall be kept in accordance with generally acceptedaccounting practices.
B. Subject to the provisions of subsection C and so long as the request isfor a proper purpose related to his membership in the association, all booksand records kept by or on behalf of the association, shall be available forexamination and copying by a member in good standing or his authorized agentincluding but not limited to:
1. The association's membership list and addresses, which shall not be usedfor purposes of pecuniary gain or commercial solicitation; and
2. The actual salary of the six highest compensated employees of theassociation earning over $75,000 and aggregate salary information of allother employees of the association; however, individual salary informationshall not be available for examination and copying during the declarantcontrol period.
This right of examination shall exist without reference to the duration ofmembership and may be exercised (i) only during reasonable business hours orat a mutually convenient time and location and (ii) upon five days' writtennotice reasonably identifying the purpose for the request and the specificbooks and records of the association requested.
C. Books and records kept by or on behalf of an association may be withheldfrom inspection and copying to the extent that they concern:
1. Personnel matters relating to specific, identified persons or a person'smedical records;
2. Contracts, leases, and other commercial transactions to purchase orprovide goods or services, currently in or under negotiation;
3. Pending or probable litigation. Probable litigation means those instanceswhere there has been a specific threat of litigation from a party or thelegal counsel of a party;
4. Matters involving state or local administrative or other formalproceedings before a government tribunal for enforcement of the associationdocuments or rules and regulations promulgated pursuant to § 55-513;
5. Communications with legal counsel that relate to subdivisions 1 through 4or that are protected by the attorney-client privilege or the attorney workproduct doctrine;
6. Disclosure of information in violation of law;
7. Meeting minutes or other confidential records of an executive session ofthe board of directors held in accordance with subsection C of § 55-510.1;
8. Documentation, correspondence or management or board reports compiled foror on behalf of the association or the board by its agents or committees forconsideration by the board in executive session; or
9. Individual unit owner or member files, other than those of the requestinglot owner, including any individual lot owner's or member's files kept by oron behalf of the association.
D. Prior to providing copies of any books and records to a member in goodstanding under this section, the association may impose and collect a charge,reflecting the reasonable costs of materials and labor, not to exceed theactual costs thereof.
E. Notwithstanding the provisions of subsections B and C, all books andrecords of the association, including individual salary information for allemployees and payments to independent contractors, shall be available forexamination and copying upon request by a member of the board of directors inthe discharge of his duties as a director.
F. Meetings of the association shall be held in accordance with theprovisions of the bylaws at least once each year after the formation of theassociation. The bylaws shall specify an officer or his agent who shall, atleast 14 days in advance of any annual or regularly scheduled meeting, and atleast seven days in advance of any other meeting, send to each member noticeof the time, place, and purposes of such meeting. Notice shall be sent byUnited States mail to all members at the address of their respective lotsunless the member has provided to such officer or his agent an address otherthan the address of the member's lot; or notice may be hand delivered by theofficer or his agent, provided the officer or his agent certifies in writingthat notice was delivered to the member. Except as provided in subdivision C7, draft minutes of the board of directors shall be open for inspection andcopying (i) within 60 days from the conclusion of the meeting to which suchminutes appertain or (ii) when such minutes are distributed to board membersas part of an agenda package for the next meeting of the board of directors,whichever occurs first.
(1989, c. 679; 1991, c. 667; 1992, cc. 69, 71; 1993, cc. 365, 827; 1999, cc.594, 654, 1029; 2000, cc. 905, 1008; 2001, c. 419; 2003, c. 442; 2004, c.193; 2007, c. 675; 2008, cc. 851, 871; 2009, c. 665.)