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Board/President Help

Started by JimP11 • 32 replies • 3150 views

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JimP11 (Michigan)
Posts: 8
Posted:
Hi,

I am new to the forum and glad I found you guys. I have a question about getting rid of a rogue President/Board Member. Our Association is a small one 31 lots. We have a President that took it upon herself to move forward on updating our bylaws at a cost of around $12,000. These cost were from an attorney that is "helping" her. None of the co-owners approved this expenditure, nor did the board of directors. We have no money for operating expences now, so she hit us with a general assesment of $162 to cover those costs. We tried to have a special meeting to remove, signed petition of 19 co-owners. She would not have the meeting stating that the petition was invalid due to the fact that some have not paid the general assesment, so they were deliquent, she said. We had the meeting anyway and had 20 co-owners that voted her out. We took minutes and did everything per the bylaws. My question (Finally)is this a vaild vote? She says no, because she did not call the meeting. We don't understand why 20 people of a 31 unit HOA cannot just move forward with the new board. Any help please!
JanetB2 (Colorado)
Posts: 4,219
Posted:
Hi Jim:

You can go to this link to review your state's statutes: http://www.associationtimes.com/stateInformation.htm

Check the statutes and your HOA documents, if it was not approved then possibly she might be responsiible for the fees personally and cannot force the HOA to pay for the attorney.
SusanW1 (Michigan)
Posts: 5,202
Posted:
Jim - your documents tell you how to call a special meeting for the purpose of recalling a or board member.

What do they say?

If your documents don't cover it, see the Michigan Non Profit Law for member's rights.

Did you send notice of the meeting to all members stating the reason for the meeting?
Did you meet the quorum requirement?
What is the vote threashhold for your voting (majority of members, majority of those in attendance?0

If there is NO motion authorizing this board member to spend that money, SHE may be liable for it.

Call the attorney and state your concerns. He needs a heads up about this.

JimP11 (Michigan)
Posts: 8
Posted:
Susan,

Yes to all. We got the 50% of the owners on the petition. We sent out the agenda, the proxy, and a letter stating the purpose to all unit owners. We had 20 voting members of 31 (there are some people that just own lots that live out of the are, they never attend or care) at the meeting which was well above the 35% for quorm and above the 50% the is need to vote. She claims that since she did not call the meeting and send out the voting packets it is invalid. It does state in the bylaws that the secretary is required to mail out the notices and information. We sent them out to protect our interests. We supplied the secretary with the petition and a copy of everything that we sent.

We have contacted the bank about getting her off the account and they sais they just need a copy of the meeting minutes and the new board member names. I am contacting the insurance to see what there procedure is. She has gotten a lot of people gun shy because she as been sending bills from this attorney to groups of indivuals that fight back. People just don't want to pay any more bills. She does have a meeting scheduled for 10/20 where we are suppose to vote for a new board, but alot of people are concerned that she is going to find was to elimate or disqualify peoples vote.

We are just wondering how legally valid was our meeting and what recourse she would have if we just get her off all of the accounts.

Thanks
JonD1
Posts: 2,350
Posted:
Jim:

While I'm not a lawyer I would guess your actions were not within the guidelines set forth in your governing documents.

You as a unit owner present the petition to the Secretary and then it is up to the Board to set the time, place and mail out the necessary documents. Not a group of unit owners whoi have their own agenda. Rules are rules.

Under your documents you don't take this sort of action. I would think you overstepped your boundaries in your efforts to remove the President.

As they are in fact the President I would also guess you have no legal right to put your name or any other name on the bank accounts. They are not legally YOUR accounts. What position have you been elected to? Any? And as such you feel you have the right to place your name on the accounts? I don't think you have that right.

Nor do you have any right to contact the insurance carrier to change or suggest changing any information or names on that policy.

Was this person elected? By whom? Were they voted in as President? By whom?

And the rest of the members of your Board feel how? Most documents would allow them to vote the President out as President but not off this Board.

I would suggest you use care in moving forward because IF you succeed while violating the governing documents I would guess you have opened yourself up to be liable IF this person were to persue this matter in a court of law.

Just my opinion.

SusanW1 (Michigan)
Posts: 5,202
Posted:
Jim - what do your bylaws say about membership calling a special meeting?

Regardless of this meeting, you must ask this president to PROVE that she had the power to go into a contract with someone or some company without the vote of the board.

She has the burden of proof.

MaryA1 (Arizona)
Posts: 388
Posted:
Jim,

I tend to agree with Jon. In most instances the members do not have the authority to call a special meeting. Where are the other board members? Why have they allowed the Pres to go off on her own. Also,how could it cost $12,000 to update the bylaws???? Frankly, it sounds to me like the whole board needs to go especially if they are allowing the Pres to make decisions that are definitely not in the best interests of the assn One last comment; most special assessments require a vote of the members.
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Tell her if she doesn't resign you will go after her personally for the $12,000 in lawyer fees because it was an un-approved expenditure.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By SteveM9 on 10/11/2010 5:19 PM
Tell her if she doesn't resign you will go after her personally for the $12,000 in lawyer fees because it was an un-approved expenditure.

Steve;

They should not do that as it could be construed as a "threat". Also, whether she resigns or not she could potentially be liable, depending on the in-depth circumstances. I know in certain situations what you stated is tempting (sometimes there are individuals who can try a saint ), but think about later potential consequences.
JimP11 (Michigan)
Posts: 8
Posted:
Our bylaws state it shall be the duty the president to call meeting either by notice of the BOD or a petition signed by 50% of the co-owners. We went ahead with the meeting because the meeting was for an election of a new board and she wasn't going to call the meeting. We were handcuffed and we knew we almost had a super majority.

As far as the other board members, none of them knew this much money had been spent nor did they approve this attorney. They knew she was looking in to some bylaw updates. One board member resigned once all of this came out. She then appointed her husband to the BOD. The other officer has stayed on for some unknown reason.

We did everything by the letter of the bylaws as best we could and still protect ourselves. Like I said the only thing we did not to the letter is we mailed the meeting notice, but we still gave everyone the requuired 10 days notice.

We all want this to go away and are trying not to get any more attorney fees from her. She goes and asks this attorney she retained for the bylaws everything and then her bills the association, then we pay for that.

I find is unbelieveable that we have 66 2/3 of the people who don't want this board and we are handcuffed and hog tied.
JonD1
Posts: 2,350
Posted:
Jim:

If your by-laws call for the President to call any special meeting then that is what is required. YOU or those who support you do not get to do things your way because you don't want to or can't follow the documents. Seems to me you acted BEFORE you had a true understanding of the by-laws. As to some "super majority" you suggest to having that means nothing nor does it change the requirements under the documents of your property.

WHY don't you or the "super majority" have a problem with the other members of this Board? Why are you not working to remove them too?

No one knows anything no one seems to care but just the President needs to go.
I would also like to know under what section of your documents does it allow a member of the Board to resign and then appoint her husband to fill her position on the Board? I would doubt that was allowed under any documents certainloy none I have seen or heard of.

The other member has stayed on for some unknown reason. I would suggest you find out why before you assume what role they have played in all of this.

Maybe you need ALL new Board members not just a President.

"We did everything by the letter of the bylaws as best we could and still protect ourselves." Jim, you certainly did NOT follow the by-laws and "as best we could" does not fulfill the requirements in your documents. You don't ignore or change things because you don't like the way they are written or have requirements you can't follow. Sorry that's not how this works.

Jim, just where were the 66 2/3 of the owners while this was all going on. Who voted in this Board? Who voted in this member who is now President?

You could have 99% of the owners wishing to remove or change the Board still requires you to follow the documents which requires first and foremost an understanding of the by-laws and then acting in a manner that satisfies the letter of those documents, not close.

The owners on your property have allowed this situation to develope now it can't be fixed with a wave of some magic wand. It requires time, effort, and more than likely more money to resolve this to anyone's satisfaction.

MaryA1 (Arizona)
Posts: 388
Posted:
Jim,

If you have that many people who are disenchanted with the Pres then I suggest they all get together and confront her at the next board meeting. Demand her resignation or threaten a lawsuit for violating her fiduciary duty to do what is in the best interests of the assn. Spending $12,000 to update bylaws when that amt of money is not available then charging a special assessment to each member to pay for it is certainly not in the best interests of the assn. Also refusing to call a special meeting when the required number of members have petitioned for one is also a violation of her fiduciary resp. By the way unless your gov docs state that members not in good standing (those delinquent) may not sign a petition, those members may sign the petition. I doubt the Pres had the authority to state those members should not have signed the petition.
JimP11 (Michigan)
Posts: 8
Posted:
Hey Jon, what is with the tone. I am just asking suggestions. My point is we did follow the the bylaws and like Mary said she did not follow through on her end. So, we are to follow the bylaws to a tee but she doen't. How are the co-owners rights protected. If the co-owners want to remove an out of control board and they have to call that meeting they would never do it. As I stated, we voted the whole board out at our meeting. In regards to where we were at, nobody knew she has spent all of this money until we got a genral assessment from her stating we need more fund for the operating costs. The board that was in place had no clue either, that is why one of them stepped down immediately.

All 20 of us have retained our own attorney but, we are try to keep our costs down and get her out by the bylaws. We have elected (3) new board member, and I am one of them. The three of us would like to pull the trigger on getting her off the bank account and insurance, but this lady is a nut case and do not want to cause anymore fees for the other 17 co-owners. Our feeling as a collective of 20, is to go ahead with the removal. We are just unsure how exposed we are.
JonD1
Posts: 2,350
Posted:
Jim:

The "tone" is a result of your not accepting the fact you and your group don't set the conditions under which a special meeting is called and who calls it. The hand you are holding is going to lose.

I was on the other end of this same situation. I have a "nut" who presented a petition ( told the owners the Board planned to make this a 55+ community and they would be forced to leave, among other lies) in order to get signatures.

She demanded to set the date for the meeting herself and held a meeting in which she decided the Board was out and guess who was elected? HER

We went to court, the court ruled that the Board was to set the time and date for the meeting NOT her, then held a special meeting with a vote of the unit owners to remove the Board who by then had been told the truth not rumors and lies and the petition failed with 17 votes of 130+.

Bottom line for you, she was NOT able to set the metting time or date under our documents as yours.

The rules are the rules and my guess this woman you are dealing with will not go quietly into the night now that the rest of your community has woken up. IF this ends up in court my guess under your documents you would fail.

If you have an attorney why did they not make you aware of this? Have they suggested you as the self appointed new Board has the right to go to the bank and change the signature cards as a result of YOUR election and results? I would move carefully as one of the point men on this new Board. Because IF or when this goes to court the courts generally don't rule in favor of close, almost, or majority rules legal arguments.

I understand your desire to save money but my questions remain unanswered.

Who voted this President onto the Board?

Have you seen the invoices for the legal costs of "changing the by-laws"?

Who is your source of information or do you have first hand knowledge of the facts? Not assumptions or speculation.

Sometimes people are informed of some great injustice that must be righted and rather than find out for themselves the actual details they just light their torches and join in the march to remove the wrong doers.

And sometimes in the end what you thought was not the whole story. And not everyone was who they appeared to be.

IMO your petition failed. IMO there should be other ways to remove the President.

The remaining members of the Board could do so.
Or they could be voted out by the membership.
From the details you have provided the remaining members of the Board are incapable of acting in the property's best interest so that might leave it up to the unit owners.

I would check with your attorney and make very sure they have a complete understanding of the laws and property's documents becuase if you proceed in violation of these it will be your name listed as the defendant on any court papers filed in this matter. And my guess this person you are dealing with will not go off and drop this matter.

Good luck.

RichardP13 (California)
Posts: 1,767
Posted:
Quote:
Posted By JonD1 on 10/12/2010 1:11 PM
Jim:

The "tone" is a result of your not accepting the fact you and your group don't set the conditions under which a special meeting is called and who calls it. The hand you are holding is going to lose.

I was on the other end of this same situation. I have a "nut" who presented a petition ( told the owners the Board planned to make this a 55+ community and they would be forced to leave, among other lies) in order to get signatures.

She demanded to set the date for the meeting herself and held a meeting in which she decided the Board was out and guess who was elected? HER

We went to court, the court ruled that the Board was to set the time and date for the meeting NOT her, then held a special meeting with a vote of the unit owners to remove the Board who by then had been told the truth not rumors and lies and the petition failed with 17 votes of 130+.

Bottom line for you, she was NOT able to set the meeting time or date under our documents as yours.

The rules are the rules and my guess this woman you are dealing with will not go quietly into the night now that the rest of your community has woken up. IF this ends up in court my guess under your documents you would fail.

If you have an attorney why did they not make you aware of this? Have they suggested you as the self appointed new Board has the right to go to the bank and change the signature cards as a result of YOUR election and results? I would move carefully as one of the point men on this new Board. Because IF or when this goes to court the courts generally don't rule in favor of close, almost, or majority rules legal arguments.

I understand your desire to save money but my questions remain unanswered.

Who voted this President onto the Board?

Have you seen the invoices for the legal costs of "changing the by-laws"?

Who is your source of information or do you have first hand knowledge of the facts? Not assumptions or speculation.

Sometimes people are informed of some great injustice that must be righted and rather than find out for themselves the actual details they just light their torches and join in the march to remove the wrong doers.

And sometimes in the end what you thought was not the whole story. And not everyone was who they appeared to be.

IMO your petition failed. IMO there should be other ways to remove the President.

The remaining members of the Board could do so.
Or they could be voted out by the membership.
From the details you have provided the remaining members of the Board are incapable of acting in the property's best interest so that might leave it up to the unit owners.

I would check with your attorney and make very sure they have a complete understanding of the laws and property's documents because if you proceed in violation of these it will be your name listed as the defendant on any court papers filed in this matter. And my guess this person you are dealing with will not go off and drop this matter.

Good luck.


Jon,

I am going to respectfully disagree with you. Our Bylaws state that Special Meeting may be called for by the President, two Board Members of by a petition representing 5% of the Voting Power of the Association. Furthermore, if the Board doesn't set a date within 20 days, the members in charge of the petition may set the date and is then in charge of the meeting. Once the Board failed to set a date, they gave up their rights to run the meeting.

The cost of amending Bylaws is under $1000. Based on the information Jim has provided, the group did "due diligence" in preparing and holding the meeting. I am confident that a judge would see that also.

JonD1
Posts: 2,350
Posted:
I too will respectfully see it another way.

Jim stated:

"Our bylaws state it shall be the duty the president to call meeting either by notice of the BOD or a petition signed by 50% of the co-owners. We went ahead with the meeting because the meeting was for an election of a new board and she wasn't going to call the meeting. We were handcuffed and we knew we almost had a super majority"

From the information Jim provided HIS documents don't give those serving the petition the right to set the meeting time and date in the event the Board does not act. If they do he failed to provided that section.

OUR documents do not provide for such an option either.

As I have not read Jim's documents I cannot speak with anything more than opinion as to what is possible in his case. I do know having learned through exposure to this whole process that the petition needs to be filed properly, needs to state clearly what it is the petition requests, and has to meet all the requirements set forth in the property's governing documents. There IS a lot of room for legal error.

And most courts I have been before decide on what is written NOT what should be, or might be, or what most people would like to happen.

IF you appear in court based on that premise in most cases you won't be happy.

RichardP13 (California)
Posts: 1,767
Posted:
Jon,

Given the facts presented, I believe they did the right thing. IF what Jim says about the $12,000 is true, not only would I boot her out, I would file criminal charges.
JonD1
Posts: 2,350
Posted:
Richard:

I will reserve my opinion till such time as I am provided details as to the bills for legal services and a breakdown of what charges were made.

Jim has to date provided no real accounting of what was billed or why the assessment was done. I asked him for his source of information but he hasn't responded to that.

Has Jim seen the bills? Or has he "heard"?

Does Jim have first hand knowledge of what he has represented here? Or was this second hand information?

Sometimes just because most see it one way doesn't mean that is the reality.
Sometimes beleuifs are not based on actual facts.

There are always three sides to any story. I need to hear more before I can decide.

So in my mind there are to many possibilites to consider and without "facts" I do not feel comfortable making a decision as to what I would do or what should be done.

SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Who writes the checks? Has the lawyer been paid?
JimP11 (Michigan)
Posts: 8
Posted:
Steve, This is the other disgusting part. Our doc's say that board members can hold 2 positions as long as it is not Pres. and VP. Guess what other position she decided to hold? Like I said it is a mess all the way around. It is a small subdivision in the country and we have never had this problem in the 11 years it has been in existance. We always depended on the Association plowing the snow and taking care of the community septic system. We all just lived and got along. I understand we were complacent, but all of this just happen over the last 9 months and we all just got word with in the last 2 months.

The other reason we went ahead with the special meeting is because she keeps postponing meetings that she schedules. We have a meeting scheduled for the 20th, where we are suppose to vote for a new board. We all think that she will postpone this meeting or find ways to discount certain votes. I think that the frustration that we have is because it is a small community and we are all being held hostage. We just think the will of the people should be heard and we cannot get that.

We also agree that the bylaws are vague enough that we are in the right.
SusanW1 (Michigan)
Posts: 5,202
Posted:
If you think this is right, then close all accounts and open new ones.

Contact that attorney and fire him.

Get another one, you may need it.

Get her out of the loop ASAP and write letters to all contractors, vendors, etc. and let them know there's a new board. Make sure ALL members know.
MaryA1 (Arizona)
Posts: 388
Posted:
Jim,

Sorry, but you cannot claim the bylaws are vague just because they don't say what you want them to say. You have stated they say the Pres shall call meetings either by notice or a petition signed by 50% of the owners. The fact that the Pres did not call the meeting upon receipt of the petition did not give your group the right to do so unless the bylaws also give the members that right. About all you can do is take her to court for violating the bylaws but you can't just do whatever you like.

You also stated an annual meeting is coming up meaning the members can let their voices be heard at the ballot box. I suggest you thoroughly read your CCRs and bylaws to ensure that she cannot illegally disqualify votes. Also demand that a teller committee be appointed to count the votes. No board member,candidate or relative of a candidate should be allowed to count the votes.
JonD1
Posts: 2,350
Posted:
"We also agree that the bylaws are vague enough that we are in the right."

With that kind of logic you don't have a leg to stand on in a court of law.

And when asked under what authority you removed this person as President of the Board and took control of the property's money. "We thought is was the right thing to do" won't fly. IMO

By-Laws may be vague in their wording that does NOT give you or anyone the ability to do as you think things should be.

I would make sure your lawyer knows about what he is advising you on IMO you need a lawyer well versed in condo/HOA law not the street corner ambulance chaser who will allow you to put your neck in the noose.

Move carefully or the hole you now occupy will sudddenly get much deeper.

JimP11 (Michigan)
Posts: 8
Posted:
Our lawyer has read our bylaws and is advising us how to proceed. So let me get this straight. What people are saying is: we have a President and BOD that has not followed certain, very specific rules in the bylaws. Has been derlict in her duties to call a meeting when requested by over 50% of the required co-owners. She is building up more debt with an attorney that was not voted on by the co-owners. Has postponed and/or not held a proper meeting, and almost 70% of the entire association as no right to vote them out and remove them.

I understand that we have the right to vote her or anyone out at a regular meeting called by her. The key phrase is "called by her". A couple people are not looking at the common sense aspect of this. SHE WON"T HAVE A MEETING BECAUSE SHE KNOWS SHE WILL BE REMOVED AND WILL BE EXPOSED. SO, if the bylaws say that she SHALL and see doesn't, there has to be means when she won't. The term SHALL mean "like it or not" if there are 50% of the co-owners on a petition YOU HAVE TO CALL A MEETING.

This is my question. There has to be some legality to almost 70% of the co-owners voting a DOB out of office by a ballot at a meeting where minutes were taken and people signed in. These positions are voluntary.
CaroleJ (Georgia)
Posts: 70
Posted:
Jim, check out the Michigan non-profit corporations code. There are several sections that may help you out here. 450.2403 Special meeting of shareholders or members; court order; quorum, 450.2404 Notice of time, place, and purposes of meeting of shareholders or members; manner; notice of adjourned meeting; notice not given; attendance at meeting as waiver of notice; participating and voting by remote communication... through at least 450.2413 Making and certifying list of shareholders or members entitled to vote at meeting or adjournment; requirements; noncompliance; adjournment of meeting; validity of action taken. Just keep clicking "NEXT".

Also, check your bylaws for anything that relates to "Waiver of Notice". It is the section in our docs that allows members to have a meeting that the Board refuses to notice, but it doesn't state that in so many words. You have to read around the edges, so to speak.

After you get this straightened out, don't wait for the Michigan laws to change in a homeowners favor. Change your declaration and bylaws instead. It sounds like a few sections need amending to get some (any?) balance in the power department.

Good luck.
MaryA1 (Arizona)
Posts: 388
Posted:
Jim,

I'll say it again, "About all you can do is take her to court for violating the bylaws but you can't just do whatever you like." The action you want to take would amount to breaking the law if you are not authorized by the bylaws to call a meeting. Result: you would be sinking to her level!!!

Please let us know what the attorney advises you. Since we don't have your gov docs in front of us it's really hard to say for sure whether or not the members have a right to call a meeting.

SteveM9 (Massachusetts)
Posts: 3,699
Posted:
The president is under the board of directors. Why cant your board just call a special meeting? The board really runs everything, the officers are just positions appointed by the board.

Lets say your president went into a coma, what would happen then? The board would call for a special meeting. Same thing.
JonD1
Posts: 2,350
Posted:
Jim:

I can inderstand your frustration but you have failed to accept the fact that simply because a majority of the homeowners now have woken up things should be simple and go as you all see fit. You claim she has not followed the documents well neither have you or your group. But it sems that being in the "right" and "majority" in your mind makes your cause valid. It does not.

It does NOT work like that.

I have asked but you failed to answer. Was this President voted into office? By whom? Did you vote for her? Did you vote? Did you or any of those now hell bent on removing her vote her in? Who appointed her President? Are you looking for their heads too?

And your attorney what advice have they provided? As has been suggested one solution is to file suit against her for violating the by-laws and getting a court order to force her to hold a meeting in the hopes you might successfully remove her. Your plan to hold your own illegal non-binding meeting will in the end accomplish nothing. And there is a possibility she might and in most cases CAN us property funds to fight any actioin you might take.

IMO you and those supporting your efforts lack a full understanding of the by-laws, the documents that control your property and the legal sysytem that might in the end decide this matter. IF you have a qualified attorney with knowledge in these sorts of matters they should be providing you with options as to how you might proceed. Not allowing you to go through the motions of holding a meeting based on what you "think" should occur.

I recently sat with one unit owner in depositions regarding a suit he has filed. The lawyer's first question was "can you point out the section in the by-laws that support your actions in this matter?" His answer NO. There happens to be no such section. My question Jim what section will you hold up when asked where you got the authourity to hold your meeting, remove an elected officer of the Board and assume control of the property's assets? I would run that one up the flagpole with your lawyer, and if they don't have an answer that's plausible I'd look for another lawyer.

RichardP13 (California)
Posts: 1,767
Posted:
Quote:
Posted By MaryA1 on 10/13/2010 3:50 PM
Jim,

I'll say it again, "About all you can do is take her to court for violating the bylaws but you can't just do whatever you like." The action you want to take would amount to breaking the law if you are not authorized by the bylaws to call a meeting. Result: you would be sinking to her level!!!

Please let us know what the attorney advises you. Since we don't have your gov docs in front of us it's really hard to say for sure whether or not the members have a right to call a meeting.


Mary

I am going to disagree with you. We have in our Corporations Code a remedy when a date is not set by a board upon receipt of a valid petition presented to the Secretary of the Association. Unfortunately, Michigan doesn't have protections in place that we have in California. It's also tough to tell someone in another state that you are out of luck. I'm sure their attorney will resolve this mess once and for all. Chalk one up for the little guys.

Notice of Meeting. The board has 20 days from receipt of the petition to set the date and give notice of the meeting. If the board does not do so, the persons calling the meeting may set the date and give notice. Corp. Code §7511(c). If the board fails to give notice, the petitioners may give notice which is not less than 10 nor more than 90 days before the date of the meeting.

As I said before, IF the group did as they said they did, they acted with "good faith" and "due dilligence". My Association, was within one day of going down that same route. Clearly, this President overstepped her authority.

RichardP13 (California)
Posts: 1,767
Posted:
There is another issue here and that is the special assessment of $162. In many other states there is a 5% limit on what a Board can assess "Special" without first getting approval from the members.
JimP11 (Michigan)
Posts: 8
Posted:
Well, update for everyone. We had the meeting on the 20th and she is gone. She went with a little kicking and screaming but none the less she is gone. We are now going through and doing a self audit on the books and finding some very interesting things. Remember how she appointed her husband to the BOD after on member resigned? Well, they (her and her husband) had a special meeting on the 18th and approved to payment of this attorney's bills. We have also found phony documents with regard to special BOD meetings where bill payments were approved. I am thinkshe has some liability here. We are gathering on the info then going to talk to an attorney.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Good luck ... keep us informed.

Something to maybe consider down the road is keep whom ever handles the finances and hoa dues (i.e., treasurer, PM, etc.) separate from check signing. Also you may consider having two board members required to sign all checks. This will possibly give you a better check and balance system, and keep someone from abusing in the future.
JimP11 (Michigan)
Posts: 8
Posted:
Yes, we have already discussed doing all of that and added it to the bylaws to make sure that this never happens again.

Thanks

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