Most community associations in South Carolina are incorportated, therefore they are governed by the South Carolina Nonprofit Corporation Act . Pursuant to the Act, there are certain requirements that community associations must follow in terms of record keeping. The Act also provides members the opportunity to inspect and copy certain documents within the statutory guidelines. The issue of member inspection will be addressed in a subsequent article.

Meeting Minutes- It is necessary to keep permanent records of all meetings of corporation members and board of directors, a record of all actions taken by the members or directors without a meeting, and a record of all actions taken by committees of the board of directors. The Act does not specify the amount of detail required for these documents.

Accounting Records- The Act provides that corporations must maintain "appropriate accounting records." Appropriateness depends on the size, nature, and other characteristics of the corporation. Accounting records do not have to be kept permanently, so it is up to the corporation to establish a document retention policy. Community association accounting records will typically include checkbooks, canceled checks, and receipts.

Membership Lists- A corporation must maintain a record of its current members in a form that can easily be put into alphabetical order and shows the number of votes each member is entitled to cast.

Form of Records- Records must be kept in either written form or a form that can be converted into written form in a reasonable amount of time.

Location of Records- A corporation is required to keep the following records at its principal office (or the home of an officer or director):

• Articles of Incorporation
• Bylaws
• Resolutions adopted by the board of directors
• Minutes of all meetings of members and records of all actions approved by the members for the last 3 years
• All written communications to members generally within the past 3 years, including the financial statements furnished for the past 3 years
• A list of all names and addresses of the current directors and officers
• The most recent reports filed with the Secretary of State

    This site and any information contained herein is intended for informational purposes only and should not be construed as legal advice. Seek a competent attorney for advice on any legal matter.