Question:
During the Developer Control Period, prior to handing over control to a Board of Directors, the developer has full control over the association and the owners have almost no say in the running of the HOA. My questions are, does the developer still have to hold annual meetings, can the members attend, and must the developer share the association’s financial statements?
– Tim
Answer:
It is important to check your governing documents. If your governing documents require open meetings (annual and board) and give owners the ability to inspect financial records, then the developer must follow these requirements unless otherwise specified. Keep in mind that, under Tennessee law, a nonprofit corporation must allow members to inspect the corporation’s financial statements and records. If your HOA is organized as a nonprofit, then this law applies to you.
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