Governance Alert: Treasurer Confirms Lack of Awareness Regarding Major Financial Proposal

Date: Nov 18, 2025 Category: Association Governance / Fiduciary Duty

Summary A fundamental requirement of serving on an HOA Board is the duty to review Association business materials to make informed decisions. During the Open Board Meeting for the Radius at Whisman Station HOA in Mountain View CA on November 10, 2025, it was revealed that the Board Treasurer, Patrick Szeto, was unaware of the details and costs of a major landscaping proposal—despite the fact that the information had been provided to the Board nearly five months prior.

The Incident: November 10, 2025 During the Open Session of the Board Meeting on November 10, a discussion arose regarding the recently completed shrub-to-turf conversion project. During this discussion, Treasurer Patrick Szeto stated that he was not aware of the proposal details.

This admission was witnessed by residents in attendance.

The Timeline of Information (The 5-Month Gap) While the Treasurer claimed unawareness in November, Association records confirm that the information was available to him long before.

  • June 17, 2025: The full Board Packet—containing the specific landscaping proposal, the scope of work, and the cost—was distributed to all Directors, including Patrick Szeto.

  • July 1, 2025: The Board met to approve the proposal. Patrick Szeto did not attend this meeting.

  • November 10, 2025: Patrick Szeto attended the Board meeting (his first attendance since January 2025 - after nearly 10 months) and admitted he was unaware of the proposal.

Governance Fact Check: Can a Director Claim "I Didn't Know"? Some may ask: "Is it possible the proposal was sprung on the Treasurer at the last minute?" Legally and procedurally, the answer is no.

1. The Law on Agendas (No Surprises Allowed) Under California Civil Code § 4930, the Board is legally prohibited from discussing or voting on any item—especially a major contract—unless it was placed on the posted agenda and the proposal details such as the scope of work and the cost are included in the board packet.

  • The Timeline: Civil Code § 4920 requires this agenda to be posted for the membership at least 4 days before the meeting.

  • The Reality: In this case, the decision to discuss the contract was made at least 15 days in advance. A Director cannot simply "walk in" with a surprise spending proposal and pass it. The topic must be agendized, which means the materials (the proposal) exist and are ready for review well before the meeting starts.

2. The Duty to Read (California Corp. Code § 7231) Under California law, every Director has a fiduciary "Duty of Care." This statute requires Directors to act with "such care, including reasonable inquiry, as an ordinarily prudent person in a like position would use."

  • What this means: An "ordinarily prudent person" responsible for community funds reads the Board Packet sent to them.

  • The Violation: A Director's absence from a meeting does not absolve them of this duty. If a packet is sent on June 17, and the Director claims on November 10 that they "didn't know" the cost, they are admitting to a 5-month failure of reasonable inquiry. They didn't know because they chose not to read.

The Governance Failure The timeline reveals a critical lapse in fiduciary duty.

  1. Access to Information: The Treasurer was "privy" to the proposal on June 17.

  2. Failure to Review: Between June 17 and November 10—a period of nearly 5 months—the Treasurer failed to review the Board Packet or the proposal attached to it.

  3. Abdication of Duty: A Director’s absence from a specific meeting (July 1) does not absolve them of the responsibility to read the packet and stay informed about Association expenditures. Claiming ignorance five months later suggests a total failure to perform the "reasonable inquiry" required by law.

Conclusion Effective governance requires Directors who read the packet, understand the budget, and show up prepared. When a Treasurer—the officer specifically tasked with financial oversight—admits to being unaware of a major contract cost five months after receiving it, it raises serious questions about the financial stewardship of the Association.

Legal Authority for this Disclosure:

  • California Civil Code § 4515: Protects the rights of members to communicate about association governance.

  • Fiduciary Duty of Care (Cal. Corp. Code § 7231): Directors must perform their duties with "such care, including reasonable inquiry, as an ordinarily prudent person in a like position would use." Failing to read a Board Packet for five months violates this standard of reasonable inquiry.

  • Truth as Defense: The statements regarding the meeting dates and packet distribution are factual.

Location: Circuit Wy, Mountain View, CA 94043, USA

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