Who Runs Your Association?

There is sometimes confusion as to who runs the association. If the association is professionally managed, it is easy for the board to delegate many of its responsibilities to the association manager. Sometimes it can look like the manager is running the association. Boards must be careful to recognize that the board, and not the manager, runs the show. The manager takes their orders from the board, and it is not the other way around. The manager is obligated to act as the agent for the board under the terms of the management contract with the board. The board authorizes the manager to act and to carry out the board’s instructions. When a board abdicates its management responsibilities and expects the manager to run everything, the board risks violating its duties under Ohio law to manage the affairs of the association. It will not be a defense in a lawsuit for negligence or breach of fiduciary duty that “the manager did it.” As a board member, you have the legal responsibility to hold the manager to account and to make the policy decisions which govern the affairs of the association. The manager is a valuable resource and can provide advice and information, but the final decisions rest with the board members.

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