Hoa Confidentiality Agreement

Musey was not happy. “They`re trying to get me to sign a confidentiality agreement that`s not meaningful, every time records are leaked, they could hire a lawyer and review it, and I have to pay for it, even if I`m told I`m not responsible – so they can set up my account,” Musey says. “It also prevents me from using the information in the court documents or connecting it with other shareholders. I signed a standard non-disclosure agreement from the Court of Justice – the New York City Bar Association has a non-disclosure agreement for commercial litigation. But I think the board wants his. “Confidentiality is first and foremost a fiduciary responsibility,” he says. “To maintain confidentiality, you must protect the information you receive in your role as a board member.” As a general rule, an elected member of the board of directors can only be removed by a vote of the owners, not by the board of directors itself. Accordingly, the House can only deny access to confidential information to the recalcitrant member of the Board of Directors. The purpose of the confidentiality agreement is, of course, to confirm that the member of the Board of Directors fulfils his duty to the association not to pass on the contents of confidential documents to those who are not on the Board of Directors. In addition, even managers say they are generally not immersed in strictly confidential information. “I understand confidentiality agreements in management contracts, things like `don`t give up our business secrets`,” says Patrick Clark, president of Excel Association Management in Plano, Texas, which manages more than 100 condominiums and HOAs. “I don`t use it because there are not many trade secrets in the administration of the municipalities.

We all do the same thing. We can do this with different procedures and systems. But that`s all customer service. “Liquidated damages” means that the association, for breach of the agreement, must freeze an agreed amount of money, regardless of whether or not the association has suffered damage. The Court of Appeal, which considered this issue, found that the House could not require each board member to accept a liquidated provision. It did not, however, dispute whether the board could require such an agreement. Here is an interesting question from readers: “Under what circumstances would an HOA ask its staff to sign a confidentiality agreement?…? This is where we`ll find out. “With regard to these agreements, a common question is: if a member of the board of directors refuses to sign such an agreement and the administrative documents do not require it, what can the association do? In most cases, the answer is that the House cannot deny service to the board member. The most frustrating part of this problem? It is completely in the control of a board member to prevent.

“If board members have a problem with the confidentiality agreement, they don`t need to be on the board,” says van Rooyen. “You can resign. It`s so simple. When Armand Musey, a Koop shareholder on 425 East 86th Street, began seeking access to relevant co-op documents, he was brought to justice. Finally, the board allowed him to verify certain documents at the management company`s office, which he did on May 25, 2016. What he saw raised other questions, and he wrote to the chairman of the board requesting a specific list of additional documents. On May 2, 2017, the Tribunal ordered that the board comply with Musey`s request within 30 days. On June 1, the executive representative of Co-op Musey sent an electronic copy of the court-ordered documents and a confidentiality agreement.

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