Relating To Condominiums.
This legislation would significantly alter the legal landscape for officers and directors of condominium associations by implementing a reasonable person standard of negligence. By applying this standard, the bill aims to mitigate instances of negligence whereby officers and directors might otherwise evade accountability due to overly protective legal provisions. The changes would obligate these individuals to perform their duties with care that a reasonably prudent person would exercise under similar circumstances, thus prioritizing the interests of the corporation and its members.
House Bill 835 aims to amend existing statutory provisions concerning the standards of conduct for officers and directors of condominium associations in Hawaii. Specifically, it seeks to impose a less deferential standard of negligence on officers and directors, ensuring that these individuals are held accountable for their actions. The bill proposes to strengthen the standards of conduct outlined in the Hawaii Revised Statutes under sections 414D-149 and 414D-155, which govern the responsibilities and liabilities of non-profit corporations, particularly those operating condominium associations.
While the bill appears to promote accountability, it may raise concerns among current officers and directors who could be exposed to increased legal liabilities. The existing protections that shield non-remunerated officers from liability may be diminished, creating apprehension among those involved in governance within condominium associations. The focus on enhancing accountability might be viewed positively by residents but could face opposition from those who fear that increased exposure to liability might dissuade individuals from serving in these critical governance roles. Additionally, the bill excludes heightened protections previously available under certain sections, which might be contested by those advocating for more lenient standards.