How would you handel this?

Started by GregoryB • 3 replies • 1525 views

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GregoryB (Florida)
Posts: 15

Posted:

In our community we have an ex board member that has started a petition using false statments made by the board to try and overturn our existing budget. The budget they are proposing would leave the community little recources to fix necessare items that this person has threatend to sue over.

Additionally if passed it would most likely bankrupt our association by the years end.

RogerB (Colorado)
Posts: 5,067

Posted:

Gregory, first read your By-laws. It is probable that a properly approved budget may not be overturned by a petition. Educate the members via letter, newsletter, email, and/or website in a manner which would defuse false statements and would thoroughly explain the needed budget.

BrianB (California)
Posts: 2,820

Posted:

take roger's advice.. typically in a corporation, no petition has any power except perhaps a recall petition, but even then, that typically forces a vote, not a recall in and of itself)... You will want to deal with the ISSUES involved, through education, but you can ignore the petition...

DonN (Michigan)
Posts: 357

Posted:

GregoryB

I suggest that you read the nonprofit act for your state or the state law under which your association was formed. Many nonprofit acts provide for calling a special members' meeting upon petition of a specified percentage of members for a specific named purpose. If such a petition is presented, the association is obligated to call a special members' meeting.

A members' meeting for considering a motion is for the purpose of debating the motion as a means of providing members with the facts and considerations. The board should be neutral and evenhanded in noticing the motion. The board would have the opportunity to present its facts as should any other member. Likely, the motion could be amended at the meeting as part of consideration.

The vote should take place after the debate and any motions to amend. The members voting should have all of this information before voting so they can make an informed vote. The members' motion should stand or fall on its merits.

Turn the tables. Suppose you wanted the members to consider a motion and were willing to gather the required signatures for a valid petition. How would you want to be treated?

Don Nordeen
Governance of Property Owners Associations

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