Memo
To: Patricia
McElroy, Treasurer Coronado Neighborhood Association
From: Michelle Steinberg and Wayne Murray
CC: Diane Brennan, President, CNA Board of Directors and Mike Slaven, Secretary
Date: 5/23/2008
Re: Financial Record Request
The
following is to be considered an official, written request:
We,
We
do hereby state that we have been members of record at least six months
immediately preceding this request. This request references ARS 10-11602
subsection A 1 and 4.
ARS
10-11602 Subsection C. The conditions
are met as follows:
1)
The demand is in good faith, and our
purpose is a desire to act as good fiduciary agents of the association. We are newly elected members of the board
want to have a clear understanding the financial health of the organization,
and any possible inconsistencies in the balance statements as recorded in the
minutes of various general meetings. We
are concerned that in many meetings from May, 2006 to April, 2008 no financial
information was disclosed to the membership.
2)
The records requested are bank
statements, financial reports and records, revenue and expense reports, tax
filings, complete list of delinquent receivables and any other documents that
will provide us with a clear understanding and certain knowledge of the
financial situation of the association from May 2006 through April 2008.
3)
The requested information is directly
connected to the responsibilities, duties and possible liabilities of a board
member.
10-11620. Financial statements
for members
A.
Except as provided in the articles of incorporation or bylaws of a corporation
organized primarily for religious purposes, a corporation on written demand
from a member shall furnish that member its latest annual financial statements that
may be consolidated or combined statements of the corporation and one or more
of its subsidiaries or affiliates, as appropriate, and that include a balance
sheet as of the end of the fiscal year and statement of operations for that
year. If financial statements are prepared for the corporation on the basis of
generally accepted accounting principles, the annual financial statements shall
also be prepared on that basis.
B.
If the annual financial statements are reported on by a certified public
accountant, that report shall accompany them. If not, the statements shall be
accompanied by a statement of the president or the person responsible for the
corporation's accounting records both:
1.
Stating that person's reasonable belief whether the statements were prepared on
the basis of generally accepted accounting principles and, if not, describing
the basis of preparation.
2.
Describing any respects in which the statements were not prepared on a basis of
accounting consistent with the statements prepared for the preceding year.
10-11602. Inspection of records
by members; applicability
A.
Subject to subsections E and F of this section, any member who has been a
member of record at least six months immediately preceding its demand is
entitled to inspect and copy any of the records of the corporation described in
section 10-11601, subsection E during regular business hours at the
corporation's principal office, if the member gives the corporation written
notice of its demand as provided in section 10-3141 at least five business days
before the date on which the member wishes to inspect and copy.
B.
Subject to subsections E and F of this section, a member who has been a member
of record at least six months immediately preceding its demand is entitled to
inspect and copy any of the following records of the corporation during regular
business hours at a reasonable location specified by the corporation, if the
member meets the requirements of subsection C of this section and gives the
corporation written notice of its demand as provided in section 10-3141 at
least five business days before the date on which the member wishes to inspect
and copy the following:
1.
Excerpts from any records required to be maintained under section 10-11601,
subsection A, to the extent not subject to inspection under subsection A of
this section.
2.
Accounting records of the corporation.
3.
Subject to section 10-11605, the membership list described in section 10-11601,
subsection C.
4.
The corporation's most recent financial statements showing in reasonable detail
its assets and liabilities and the results of its operations.
C.
A member may inspect and copy the records identified in subsection B of this
section only if the following conditions are met:
1.
The member's demand is made in good faith and for a proper purpose.
2.
The member describes with reasonable particularity the member's purpose and the
records the member desires to inspect.
3.
The records are directly connected with the member's purpose.
D.
This section does not affect either:
1.
The right of a member to inspect records under section 10-3720 or, if the
member is in litigation with the corporation, to the same extent as any other
litigant.
2.
The power of a court, independently of chapters 24 through 40 of this title, to
compel the production of corporate records for examination on proof by a member
of proper purpose.
E.
The articles of incorporation or bylaws of a corporation organized primarily
for religious purposes may limit or abolish the right of a member under this
section to inspect and copy any corporate record.
F.
Unless the board of directors has provided express permission to the member, a
member of a corporation that is a rural electric cooperative is not entitled to
inspect or copy any records, documents or other materials that are maintained
by or in the possession of the corporation and that relate to any of the
following:
1.
Personnel matters or a person's medical records.
2.
Communications between an attorney for the corporation and the corporation.
3.
Pending or contemplated litigation.
4.
Pending or contemplated matters relating to enforcement of the corporation's
documents or rules.
G.
This section does not apply to any corporation that is a condominium as defined
in section 33-1202 or a planned community as defined in section 33-1802.
H.
This section does not apply to timeshare plans or associations that are subject
to title 33, chapter 20.
Respectfully
submitted this 23th day of May 2008.
CC: Diane Brennan;