DIRECTOR LIMITATIONS

Even though Corp. Code 8334 gives directors the absolute right to inspect all records, that right was modified by the courts. Chantiles ran for the board and won but thought his friend should have won as well. He wanted to inspect the ballots and proxies to see how people voted. The board refused and he sued. The court agreed with the board and decided that privacy rights outweighed a director's "absolute" rights to inspect records. Chantiles v. Lake Forest II,

QUESTION: Does the management company have a right to charge a director for the cost of retrieving records from storage?

ANSWER: If provided for in their contract with the association, management companies have the right to charge a fee for retrieving records from storage.

Updated by ADAMS KESSLER 5/13/2008