Is a meeting needed to terminate the management company?

GENERALLY speaking No.

You mentioned the builder. Have you assumed control of the HOA from the builder?

If so then the BOD is in control and can hire / fire as they decide.

Imagine having to get membership votes to make decisions?

Membership typically votes only to elect the BOD, to change governing docs. or approve special assessments with SOME exceptions (not trying to be conclusive).

Thanks SureshD and JonD1,

Yes the new board does have the control of the association.
We already started the process of interview 2 MC and we are trying to get all records from the current MC and they are not cooperating. The last fiscal year end March 31, 2010 and up till now the year-end statement is not accurate therefore the board can not approve before send out to homeowners yet.

Ninh

Ninh, while the Board can take action without a meeting if all directors give their written consent Civil Code 7211(b), I would say that the action to remove the MC would have to be held during a Board meeting with proper notice of it in the agenda.

As others have posted the terms for terminating the MC should be spelled out in the contract which may be self renewing so the first step is to get a copy of the contract and read it. You need to follow the requirements exactly i.e. requires 30, 60, 90 days notice to terminate. You need to have your replacement MC in place and they should be able to help you through the transition process.

Roger and I have both posted lists of things that need to be done during MC transition; this is a re-post of mine:

Make sure any contract spells out exactly what the Management Companies duties and responsibilities are; if it's not in writing it doesn't exist. After you notify your current Management Company of the Association's intent to terminate or not renew their contract within the notification period set in the current contract, you need to sign the contract with new Management Company specifying the date they are to assume control of the Association.

While any management company you change to should have a transition checklist to make the changeover easy; here are just a few things to keep in mind. The new Management Company should handle all of this but it is the BOD's duty to make sure that it's done.

Notify all owners of change in Management Company and the date the change is effective and any change in where they mail their assessments to and whether they will need to file a new ACH (auto debit) Authorization Form if they use that option.

Notify Secretary of State of change of Management Company and new address and any change of Registered Agent.

File Form 8822 - Change of Address with the Internal Revenue Service and notify your local County Tax Office.

Notify all vendors including Utility Companies of change of Management Company and new billing address.

Notify the Associations attorney.

Review all homeowner's in the collection process (Past due, lien, foreclosure) to make sure none fall through the cracks.

Setup new banking accounts and transfer funds if necessary; order checks and deposit slip's. Or
remove former Management Company's employees from the bank signature cards and make sure you have the original ACH (auto debit) Authorization Form for homeowners that utilize that service.

Arrange to transfer all files from the former MC to the new one including but not limited to:
Association Documents including but not limited to:
1. Articles of Incorporation, CC&R's, By-laws and any Rules, Regulations, Resolutions.
2. Any Board Policies and Procedures.
3. Site plans and maps.
4. Architectural Control Rules (ARC), guidelines - if separate from CC&R's.
5. Originals of all warranties, permits or other documents received from the developer.
6. Reserve study (if done).
7. Association Federal Tax ID.
8. Copies of all minutes and meeting files
9. All association correspondence and replies, including e-mail.
10. All current contracts.
11. All legal files and correspondence.
12. All management reports.
13. A current list of vendors and maintenance contractors, including contact names, addresses & phone numbers including a listing of all utility companies and account numbers, meter numbers.

Accounting/Bookkeeping including but not limited to:
1. Current budget.
2. Current financial statement.
3. Delinquency list and status
4. A/P history for current year (needed for 1099's)
5. Check registers/stubs/canceled checks
6. Paid invoices
7. Open invoices
8. Bank statements - operating and reserve
9. Bank reconciliations - operating and reserve
10. Investments, CD's, passbooks , Money Market Accounts
11. Any payroll reports
12. General Ledger with journal entries
13. Tax files/coupon book
14. All audits and tax returns.

Homeowner files including but not limited to:
1. Current property owner and resident list.
2. Property files.
3. Copies of all work orders completed and in process.
4. All past and pending ARC submissions.
5. All past and pending violation letters.
6. Pending and completed work orders

Does anyone have the sample of the “Consent To Action Without A Meeting” and the 60 days contract termination notice? We are new association and we can NOT ask the existing MC to draft a termination notice to terminate the contract between the association and the MC itself.

Regards,

Ninh