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Executive board members and officers - 68 Pa. Cons. Stat. § 3303

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     § 3303.  Executive board members and officers.
        (a)  Powers and fiduciary status.--Except as provided in the
     declaration, the bylaws, in subsection (b) or other provisions
     of this subpart, the executive board may act in all instances on
     behalf of the association. In the performance of their duties,
     the officers and members of the executive board shall stand in a
     fiduciary relation to the association and shall perform their
     duties, including duties as members of any committee of the
     board upon which they may serve, in good faith in a manner they
     reasonably believe to be in the best interests of the
     association and with such care, including reasonable inquiry,
     skill and diligence, as a person of ordinary prudence would use
     under similar circumstances. In managing the association's
     reserve funds, the officers and members of the executive board
     shall have the power to invest the association's reserve funds
     in investments permissible by law for the investment of trust
     funds and shall be governed in the management of the
     association's reserve funds by 20 Pa.C.S. § 7203 (relating to
     prudent investor rule). In performing his duties, an officer or
     executive board member shall be entitled to rely in good faith
     on information, opinions, reports or statements, including
     financial statements and other financial data, in each case
     prepared or presented by any of the following:
            (1)  One or more other officers or employees of the
        association whom the officer or executive board member
        reasonably believes to be reliable and competent in the
        matters presented.
            (2)  Counsel, public accountants or other persons as to
        matters which the officer or executive board member
        reasonably believes to be within the professional or expert
        competence of such person.
            (3)  A committee of the executive board upon which he
        does not serve, duly designated in accordance with law, as to
        matters within its designated authority, which committee the
        officer or executive board member reasonably believes to
        merit confidence.
     An officer or executive board member shall not be considered to
     be acting in good faith if he has knowledge concerning the
     matter in question that would cause his reliance to be
     unwarranted. The executive board and its members shall have no
     liability for exercising these powers provided they are
     exercised in good faith, in the best interest of the association
     and with such care in the manner set forth in this section.
        (b)  Limitation on authority.--The executive board may not
     act on behalf of the association to amend the declaration
     (section 3219), to terminate the condominium (section 3220) or
     to elect members of the executive board or determine the
     qualifications, powers and duties or terms of office of
     executive board members (section 3303(e)) but the executive
     board may fill vacancies in its membership for the unexpired
     portion of any term. The executive board shall deliver to all
     unit owners copies of each budget approved by the executive
     board and notice of any capital expenditure approved by the
     executive board promptly after either such approval. In addition
     to other rights conferred by the declaration, bylaws or this
     subpart, the unit owners, by majority or any larger vote
     specified in the declaration, may reject any budget or capital
     expenditure approved by the executive board, within 30 days
     after the approval.
        (c)  Status during period of declarant control.--Subject to
     subsection (d), the declaration may provide for a period of
     declarant control of the association during which period a
     declarant or persons designated by him may appoint and remove
     the officers and members of the executive board. Any period of
     declarant control extends from the date of the first conveyance
     of a unit to a person other than a declarant for a period not
     exceeding seven years in the case of a flexible condominium
     containing convertible real estate or to which additional real
     estate may be added, or five years in the case of any other
     condominium. Regardless of the period provided in the
     declaration, a period of declarant control terminates no later
     than 180 days after conveyance of 75% of the units to unit
     owners other than a declarant. A declarant may voluntarily
     surrender the right to appoint and remove officers and members
     of the executive board before termination of that period but in
     that event he may require, for the duration of the period of
     declarant control, that specified actions of the association or
     executive board, as described in a recorded instrument executed
     by the declarant, be approved by the declarant before they
     become effective.
        (d)  Election of members during transfer of declarant
     control.--Not later than 60 days after conveyance of 25% of the
     units to unit owners other than a declarant, not less than 25%
     of the members of the executive board shall be elected by unit
     owners other than the declarant. Not later than 60 days after
     conveyance of 50% of the units to unit owners other than a
     declarant, not less than 33 1/3% of the members of the executive
     board shall be elected by unit owners other than the declarant.
        (e)  Election of members and officers following declarant
     control.--Not later than the termination of any period of
     declarant control, the unit owners shall elect an executive
     board of at least three members at least a majority of whom must
     be unit owners, except that the executive board may consist of
     two members, both of whom must be unit owners, if the
     condominium consists of two units. The executive board shall
     elect the officers. The persons elected shall take office upon
     election.
        (f)  Calculation of percentages of units conveyed.--In
     determining whether the period of declarant control has
     terminated under subsection (c), or whether unit owners other
     than a declarant are entitled to elect members of the executive
     board under subsection (d), the percentage of the units conveyed
     is presumed to be that percentage which would have been conveyed
     if all the units the declarant has built or reserved the right
     to build in the declaration were included in the condominium.
     (Dec. 18, 1992, P.L.1279, No.168, eff. 45 days; Nov. 30, 2004,
     P.L.1509, No.191, eff. 60 days)

        2004 Amendment.  Act 191 amended subsec. (a).
        Cross References.  Section 3303 is referred to in sections
     3102, 3103, 3222, 3304, 3305, 3311, 3320 of this title.

Last modified: November 27, 2007