Can Management Companies Force Boards To Comply With Arizona Laws?

QUESTION:  Can a management company force a board to comply with what it believes is Arizona law.

ANSWER:  Generally, a management company cannot step into the board’s shoes unless authorized to do so.   This is because management companies are agents of the association.  This means that any authority a management company has is delegated to it by the board.  Boards owe a fiduciary duty to the association.  Boards need to do the best they can to comply with Arizona laws.  The management company can do its best to help the board understand arizona laws but when it comes down to it, at the end of the day, the board will ultimately decide association matters.  Perhaps the best thing a management company can do in this situation is to…

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