Rehoa Board of Trustees

From the get-go, this Board did not waste time to help themselves to Association Funds.  Here are excerpts of minutes in a special board meeting, held on April 26, 2022: Mr. Subia: I moved for the approval for the increase of Board per diem from P 1,000 to P 2,000 monthly. (All approved) Mr. Ayop: I proposed that all members of Execom members be provided with a gas allowance amounting to P 1,000 per attendance, and all Committee heads will have a meal allowance every meeting. (All approved.) Mr. Servando: For the approved committee allowance, I suggest to continue giving the monthly allowance (All approved.) Since REHOA was organized more than a dozen years ago, trustees received a per diem of P 1,000 for every meeting. My understanding is that some trustees were still residing outside Riviera early on, and it was a token given for attendance. Committee meetings were mostly held in the REHOA office where coffee was served. No committee heads received any extra monetary compensation...

  The tests of essentiality, necessity, and beneficiality A  fiduciary is expected to justify any expenditure of Association funds on the grounds of essentiality, necessity, and beneficiality.  It appears an exaggerated sense of entitlement trumps the written law.  Do our trustees need to be compensated 300% more to motivate them? Whatever happened to volunteerism? to pro bono service? How is increasing per diems by 300% essential?  Consider a thought experiment: what catastrophe or disaster would have happened if no such increase was made?  Rehoa could not function? It will disintegrate? Become inutile? Unable to secure our homes? Garbage will not be collected? More frequent water interruptions? Number of guards will be reduced? The grass will not be cut? Streets will be dark at night? Home break-ins will double? Vicious dogs attack walkers, children playing, bikers? Nonsense . The previous boards have managed our affairs in fairly good ...

REHOA and its legal environment This blog is intended as a medium to enhance communications between the REHOA Board of Trustees and Association members. The focus of this blog is on the financial management of Association Funds. The legal environment under which REHOA is administered is defined by two laws. REHOA is a corporation, so we are governed under REPUBLIC ACT NO. 11232, referred to as the Revised Corporation Code of the Philippines (2018). We constitute a Homeowners Association, and thusly are governed by the REPUBLIC ACT No. 9904 (An Act providing for a Magna Carta for homeowners and homeowners’ associations, and for other purposes). This law is usually referred to as the Magna Carta. Essentially both these laws prescribe duties of the Board of Trustees and the rights of corporate stockholders and Association members. In 2009, the SEC promulgated in 2009 REVISED CODE OF CORPORATE GOVERNANCE which advocated for a s trong corporate governance that is founded on the principles o...