By Sam Le Blanc Sam Le Blanc is the Director of Association Finance at EJF Real Estate and has worked in real estate for more than 35 years.
The Runaway Board Movie: Monty Python’s The Search for the Holy Grail; Scene: King Arthur comes upon inquisitive peasants in the fields, orders them to be quiet, and his authority is challenged. ARTHUR “I am your King!” PEASANT “Well I didn’t vote for you.” ARTHUR “You don’t vote for Kings.” PEASANT “Well how did you become King then?” ARTHUR “The Lady of the Lake, her arm clad in the purest shimmering samite, held aloft Excalibur, signifying by divine providence that I am your King.”
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his exchange between King Arthur and his peasants is one many of us can repeat verbatim and still crack up. Any manager who has spent substantial time
in the industry can attest to observing the jockeying for position that can occur both to be on a board and within the board. The owners elect a board (a Court if you will)
and the Board votes on a President (a King or Queen). However, the relationship with owners and with the board itself requires a delicate balance of power and fair amount of humbleness mixed with willingness to make decisions. Property managers can spot when a board member or even the entire board begins to act in ways contrary to the best interest of all the owners who elected them. We call this a “Runaway Board.” In a Runaway Board, the board president and members may ignore the property manager, forget who they are there to serve and eschew good advice. Fortunately, managers do have some strategies and tools they can employ to remedy the situation.
1. Governing Documents Rule – Bring Knowledge and Experience One of the most effective tools a manager has is knowledge. Professional property managers have the advantage of experience. Most of the situations and decisions a Board 30 | QUORUM
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