Timeshare Board Membership: A Key to a Successful Resort
Boards of directors of owners associations in the U.S. Virgin Islands and elsewhere play a critical role in managing timeshare resorts. This is especially true in mature resorts that are past the development stage and are being run by their owners. Boards frequently contract with management companies to handle the day to day operations of the resorts and may rely on their expertise -- so long as all is going well. But even with the best of management companies, board members bear a fiduciary obligation to the ownership and must monitor and review the performance of the manager, resolve policy issues, and engage in the long range planning that is essential for a resort to remain healthy.
A primary challenge for any interval ownership regime is attracting qualified people to serve on boards of directors of owners’ associations. Because interval owners usually own only a week at a resort and don’t reside where the resort is located, their interest in participating in the management of the resort may not be a high priority. In fact, many owners just want to visit and have fun. To participate in board functions takes time and effort that few are willing to expend. That being said, there seems to be, in most cases, people who are willing to step forward, either because they like to be involved or have a sense of duty or, in the case of a troubled resort, to protect their interests.
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