Tuesday, March 01, 2005

What is executive session?

Under Hawaii Condo Law, boards of directors are authorized to enter executive session under certain limited situations. In executive session, the members of the Board of Directors have a duty to keep the discussions confidential and people unnecessary to the deliberations are excluded from the executive session. As a general rule, the Association members are not permitted to attend an executive session of the Board of Directors.

Before the Board enters executive session, a majority of the Board must approve the executive session. The nature, but not the details about the business to be conducted in executive session must first be announced in open session. Currently, executive session is appropriate for personnel matters and litigation in which the association is or may become involved.

Under the Recodification, the provisions relating to the appropriate topics for executive session have been clarified. Executive session will be appropriate under the Recodification for personnel matters, litigation in which the association is or may become involved, matters necessary to protect the attorney-client privilege of the association, and matters necessary to protect the interests of the association while negotiating contracts, leases, and other commercial transactions. The two additional matters permitted for executive session under the Recodification were probably included as litigation in which the association is or may become involved under current law.