NRS 116.3103
Power of executive board to act on behalf of association

  • members and officers are fiduciaries
  • duty of care
  • application of business-judgment rule and conflict of interest rules
  • limitations on power.

1.

Except as otherwise provided in the declaration, the bylaws, this section or other provisions of this chapter, the executive board acts on behalf of the association. In the performance of their duties, the officers and members of the executive board are fiduciaries and shall act on an informed basis, in good faith and in the honest belief that their actions are in the best interest of the association. Officers and members of the executive board:

(a)

Are required to exercise the ordinary and reasonable care of officers and directors of a nonprofit corporation, subject to the business-judgment rule; and

(b)

Are subject to conflict of interest rules governing the officers and directors of a nonprofit corporation organized under the law of this State.

2.

The executive board may not act to:

(a)

Amend the declaration.

(b)

Terminate the common-interest community.

(c)

Elect members of the executive board, but notwithstanding any provision of the governing documents to the contrary, the executive board may fill vacancies in its membership for the unexpired portion of any term or until the next regularly scheduled election of executive board members, whichever is earlier. Any executive board member elected to a previously vacant position which was temporarily filled by board appointment may only be elected to fulfill the remainder of the unexpired portion of the term.

(d)

Determine the qualifications, powers, duties or terms of office of members of the executive board.

3.

The executive board shall adopt budgets as provided in NRS 116.31151.

Source: Section 116.3103 — Power of executive board to act on behalf of association; members and officers are fiduciaries; duty of care; application of business-judgment rule and conflict of interest rules; limitations on power., https://www.­leg.­state.­nv.­us/NRS/NRS-116.­html#NRS116Sec3103.

116.3101
Organization of unit-owners’ association. 116.3102
Powers of unit-owners’ association 116.3103
Power of executive board to act on behalf of association 116.3104
Transfer of special declarant’s right. 116.3105
Termination of contracts and leases of declarant. 116.3106
Bylaws. 116.3107
Upkeep of common-interest community. 116.31031
Power of executive board to impose fines and other sanctions for violations of governing documents 116.31032
Period of declarant’s control of association 116.31034
Election of members of executive board and officers of association 116.31035
Publications containing mention of candidate or ballot question: Requirements 116.31036
Removal of member of executive board. 116.31037
Indemnification and defense of member of executive board. 116.31038
Delivery to association of property held or controlled by declarant. 116.31039
Delivery to association of additional common elements constructed by declarant or successor declarant. 116.31043
Liabilities and obligations of person who succeeds to special declarant’s rights. 116.31046
Successor not subject to certain claims against or other obligations of transferor of special declarant’s right. 116.31065
Rules. 116.31068
Notice to units’ owners. 116.31073
Maintenance, repair, restoration and replacement of security walls. 116.310305
Power of executive board to impose construction penalties for failure of unit’s owner to adhere to certain schedules relating to design, construction, occupancy or use of unit or improvement. 116.310312
Power of executive board to enter grounds of unit to conduct certain maintenance or remove or abate public nuisance or to enter grounds or interior of unit to abate water or sewage leak or take other action 116.310313
Collection of past due obligation 116.310315
Accounting for fines imposed by association. 116.310395
Delivery to association of converted building reserve deficit.
Last Updated

Feb. 5, 2021

§ 116.3103’s source at nv​.us