Among the key duties of a community association's board is holding regular meetings to keep its members informed and engaged. These meetings provide a platform for discussing critical updates, financial matters, and fostering a sense of transparency. To ensure productive and effective meetings, establishing clear ground rules is essential. Equally crucial is maintaining accurate and official records of these meetings in the form of minutes, which serve as the official documentation of the association's activities.
Navigating the world of meeting minutes can raise several questions, particularly for those involved in Tennessee condo associations or HOAs. From understanding who is responsible for recording minutes to determining their content and accessibility, there are various aspects to consider. Let's delve into the key elements of keeping comprehensive and compliant meeting minutes.
When should you take meeting minutes?
Formal meetings of the board of directors and any committee should always have minutes recorded. Committees may include those focused on finances, events, capital improvements, and more. Essentially, any gathering convened to conduct official association business, from financial discussions to social event planning, necessitates the creation of meeting minutes to document the proceedings.
Who should take minutes?
Typically, the board secretary is tasked with the crucial role of recording and preserving meeting minutes. Think of the secretary as the association's official record keeper, ensuring all board decisions and actions are accurately documented. This meticulous record-keeping helps prevent misunderstandings and provides a reliable reference for future discussions. The secretary's signature on the minutes also serves as verification and authentication of the documented proceedings.
While the secretary is ultimately responsible, the process of minute-taking can vary. Some associations may have an on-site staff member create the initial draft, which the secretary then reviews and approves. In other cases, the secretary may take the minutes directly during the meeting. Regardless of the method, the focus should remain on capturing a concise summary of key motions, decisions, and outcomes, rather than a verbatim account of every discussion.
For committee meetings, the chairperson can appoint a designated minute-taker. These minutes then become part of the committee's official report to the full board.
What should you include in your meeting minutes?
To create effective meeting minutes, start with a well-structured agenda. As Ivy Montero, vice president at FirstService Residential, suggests, "Once you have a solid agenda, use it as your condo or HOA meeting minutes template." A good agenda helps ensure you capture all the essential information.
Begin by clearly stating the date, the official name of the association or committee, the location of the meeting, and the start and end times. Using your agenda as an HOA meeting minutes template automatically covers these key details. Remember to record the names of all attendees and any board member absences. It's not necessary to list absent general association members.
Remember that meeting minutes should not be a verbatim transcript of the meeting. Focus on capturing the key decisions and actions taken. Here are the essential elements to include in your minutes:
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Approval of previous minutes: Begin by reviewing and approving the minutes from the previous meeting. This step ensures that all board members agree on the accuracy of the official record. It doesn’t take long, but it’s incredibly important.
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Financial decisions: Clearly record all financial transactions, including reserve expenditures, bank account activity, and any significant financial decisions. This maintains transparency and demonstrates the board's commitment to its fiduciary duty.
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Reports: Summarize reports from officers and committees. The order of these reports can be determined by the president or chairperson.
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Discussions and motions: Document the key points of new business discussions and any motions made. Include the names of those who proposed or seconded motions, as well as voting outcomes.
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Voting records: For each motion or decision, accurately record how each board member voted (in favor, opposed, or abstained). This information is crucial for maintaining an accurate and transparent record of the board's actions.
Because they are a neutral record of the meeting, use plain text as much as possible under each section header of your condo or HOA meeting minutes template. “Don’t use bold, italics or other colors to draw attention to any particular item, such as green type for yes votes and red type for no votes,” recommends Montero. “Your record needs to be impartial.”
Who can see your association and committee board meeting minutes?
It's important to recognize that meeting minutes are not just for board members. Owners have a legal right to access these records, which should be made available for review.
Furthermore, meeting minutes are increasingly sought after by external parties, such as potential buyers, real estate professionals, and financial institutions. These stakeholders rely on minutes to assess the community's financial well-being and governance practices, particularly during real estate transactions. “Think of them as a window into your association, offering transparency to those considering joining or investing in the community,” says Katherine Effron, vice president at FirstService Residential.
While they are important, crafting good meeting minutes for your association doesn’t have to be difficult. Download our Board Member Toolkit to find out more about your roles and responsibilities.
To learn more about how the right property management partner can help your board with this and other board education matters, contact FirstService Residential today.