HOA does not disclose info on entities owned

Michael, you need to look at the Missouri Non-Profit corporation codes found here:
http://www.moga.mo.gov/statutes/C355.htm Particularly these sections. (bold by me)

Member's inspection of records.

355.826. 1. Subject to subsection 3 of section 355.831, a member, or resident of a class of residents who have paid into the corporation for services or other charges over fifty percent of the corporation's operating expenses, is entitled to inspect and copy, subject to subsections 2 and 3 of this section, at a reasonable time and location specified by the corporation, any of the records of the corporation required by this act* if the member or resident gives the corporation written notice or a written demand at least five business days before the date on which the member or resident wishes to inspect and copy.

2. Subject to subsection 5 of this section, a member or resident of a class of residents who have paid into the corporation for services or other charges over fifty percent of the corporation's operating expenses is entitled to inspect and copy, at a reasonable time and reasonable location specified by the corporation, any of the following records of the corporation if the member or resident gives the corporation written notice at least five business days before the date on which the member or resident wishes to inspect and copy:

(1) Any records required to be maintained under subsection 1 of section 355.821, to the extent not subject to inspection under subsection 1 of section 355.826; and

(2) Financial statements of the corporation.

3. A member or resident may inspect and copy the records identified in this section only if:

(1) The member or resident describes with reasonable particularity the purpose and the records the member or resident desires to inspect; and

(2) The records are directly connected with this purpose.

4. This section does not affect:

(1) The right of a member to inspect records under section 355.271 or, if the member is in litigation with the corporation, to the same extent as any other litigant; or

(2) The power of a court, independently of the provisions of this chapter, to compel the production of corporate records for examination.

5. The articles or bylaws of a public benefit corporation which is a church or convention or association of churches may limit or abolish the right of a member under this section to inspect and copy any corporate record. This subsection shall not apply to residents or a class of residents of a religious corporation when such residents have paid into the corporation for services or other charges in excess of fifty percent of the corporation's operating expenses.

6. When a corporation has no members and makes provision for a self-perpetuating board of directors, any recipient or beneficiary of the services or activities of such corporation may inspect and copy the books and records of such corporation under the same conditions and rights as provided for a member. A recipient or beneficiary may designate an agent or attorney for the purpose of conducting such inspection and making such copies.

Scope of inspection right.

355.831. 1. A member's or resident's agent or attorney has the same inspection and copying rights as the member the agent or attorney represents.

2. The right to copy records under section 355.826 includes, if reasonable, the right to receive copies made by photographic, zerographic, or other means.

3. The corporation may impose a reasonable charge, covering the costs of labor and material, for copies of any documents provided to the member or resident. The charge may not exceed the estimated cost of production or reproduction of the records.

4. The corporation may comply with a member's demand to inspect the record of members under subdivision (3) of subsection 2 of section 355.826 by providing the member with a list of its members that was compiled no earlier than the date of the member's demand.

Court-ordered inspection.

355.836. 1. If a corporation does not allow a member or resident who complies with subsection 1 of section 355.826 to inspect and copy any records required by that subsection to be available for inspection, the circuit court in the county where the corporation's principal office, or, if none in this state, its registered office, is located may summarily order inspection and copying of the records demanded at the corporation's expense upon application of the member or resident.

2. If a corporation does not within a reasonable time allow a member or resident to inspect and copy any other record, the member or resident who complies with subsections 2 and 3 of section 355.826 may apply to the circuit court in the county where the corporation's principal office, or, if none in this state, its registered office, is located for an order to permit inspection and copying of the records demanded. The court shall dispose of an application under this subsection on an expedited basis.

3. If the court orders inspection and copying of the records demanded, it shall also order the corporation to pay the member's or resident's costs, including reasonable counsel fees, incurred to obtain the order unless the corporation proves that it refused inspection for good cause.

4. If the court orders inspection and copying of the records demanded, it may impose reasonable restrictions on the use or distribution of the records by the demanding member or resident.
Furnishing of financial statements.

355.846. 1. Except as provided in the articles or bylaws of a public benefit corporation which is a church or convention or association of churches, a corporation upon written demand from a member or resident shall furnish that member or resident its latest annual financial statements, which may be consolidated or combined statements of the corporation and one or more of its subsidiaries or affiliates, as appropriate, 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 must also be prepared on that basis.

2. If annual financial statements are reported upon by a certified public accountant, the accountant's report must accompany them. If not, the statements must be accompanied by the statement of the president or the person responsible for the corporation's financial accounting records:

(1) Stating the president's or other person's reasonable belief as to whether the statements were prepared on the basis of generally accepted accounting principles and, if not, describing the basis of preparation; and

(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.

Michael,

I can understand the BOD not wanting to give you financial statements of the Golf Course. However if the HOA is contributing to the financial obligations of the golf course, then the members of the HOA should be entitled to see those financial statement. If, on the other hand, the golf course operate solely on the membership fees and any other fees collected from members or nonmembers, then it's a different story. Having said that, IMO, the HOA members should at least be informed about the financial status of the golf course since it is owned by the HOA.

I'm curious to know how the golf course came about to be owned by the HOA. Did the developer just give it to the HOA? Also, can you tell me how the golf course is shown on the HOA's balance sheet?

Michael,

It seems to me that the members of the HOA should not be kept in the dark regarding the financial difficulties of the golf course. Since so much $$$ is owed to the HOA and the HOA is having to subsidize the operations of the golf course, IMO, the HOA members have a right to know that a certain portion of their assessments are being used for this purpose. You may want to get a group of like-minded HOA members together to confront the BOD and demand that this info be disclosed to the members. If this board is not receptive to your demands, perhaps a new board would be. Board members may be recalled if they are not performing their duties in a manner that is in the best interests of the assn. When a BOD holds back certain info from its members it makes you wonder what else they are not telling the members!!

I've heard that many golf courses are have financial difficulties at this time. Perhaps it's because the real estate market has played such havoc on the finances of so many people. The Legends golf course is located in my HOA but it is privately owned and operated.

Rory,

Welcome to the forum. This post is over a year old. The original poster hasn't posted since this thread and is most likely no longer active on the site.

Tim