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CrystalK1 (South Carolina)
Posts: 14
Posted:
I am Secretary of a 7 member HOA board of trustees. Four members want to hold closed board meetings, and three (including me) want to hold open board meetings.

There are some reasons we would want to go into closed session, and we have done that infrequently. Examples that come to mind are to discuss the purchase of property and to discuss a pending legal matter.

One trustee has cited this part of the Open Meetings Act as a reason that we can go into closed session for "any reason":

15.267 Closed sessions; roll call vote; separate set of minutes.
Sec. 7. (1) A 2/3 roll call vote of members elected or appointed and serving is required to call a closed
session, except for the closed sessions permitted under section 8(a), (b), (c), (g), (i), and (j). The roll call vote
and the purpose or purposes for calling the closed session shall be entered into the minutes of the meeting at
which the vote is taken.

Is the trustee's interpretation correct? Could 2/3 of the trustees vote to go into closed session for other than the permissible purposes? If true, then a corrupt board (or 2/3 corrupt board) could conduct business in private.

Help!

MelissaP1 (Alabama)
Posts: 13,836
Posted:
Number one...Did the board forget they are on the board because they are representing ALL the owners? Board members are elected by the general membership to represent their needs/desires in the daily operations of their HOA. So as a person who is just a member...How would you feel if your board went into closed meetings? As a board member, how do you feel when you have closed meetings?

I am not against having closed door meetings to discuss serious personal/legal issues. They are needed sometimes so that when you have the open meetings everyone is on the same page. However, you must recognize that the membership has a right to know the results of your closed door meetings as well. Closed meetings are more for getting things under control and organized than conspiracy. It just comes off as conspiracy and corrupt to have them. I'd say have them both but don't keep anything hidden at the same time. Just closed door the logistics part of the decision making not the results....

Former HOA President
BradP (Kansas)
Posts: 2,640
Posted:
I don't know how the laws in Michigan apply, I do know in Kansas our meetings are required to be open. In my feeble opinion any attempt to not have open meetings is a red flag to the community (if they are paying attention). There are appropriate times for executive sessions for appropriate topics. From a board members perspective if there is something I can't say in front of all the homeowners then i need to rethink what I am doing.
SusanW1 (Michigan)
Posts: 5,202
Posted:
I am thinking that what is meant here is that the Board can vote to go into Executive Session. But those gone in to by motion and are to discuss such topics as disciplinary issues, lawsuits, legal issues, hearings about past dues requested by the homeowner.

Being "open" means that the meeting is held at a place where the Members can attend and watch the proceedings, not to participate in the meeting.

JeanI (Louisiana)
Posts: 112
Posted:
Your bylaws should state whether regular and special meetings of the board are open to the membership. HOA's are not public entities and therefore do not come under the states' Open Meeting Laws. Jean
BradP (Kansas)
Posts: 2,640
Posted:
Quote:
Posted By JeanI on 08/26/2011 2:03 PM
Your bylaws should state whether regular and special meetings of the board are open to the membership. HOA's are not public entities and therefore do not come under the states' Open Meeting Laws. Jean

some states they do come under open meeting laws...varies by state
CrystalK1 (South Carolina)
Posts: 14
Posted:
Our bylaws state: "All meetings are open to Members in Good Standing." Currently, the only way a member would lose their good standing status would be for nonpayment of annual dues.

WillR (Michigan)
Posts: 68
Posted:
Michigan Non profit act has no provision regarding who may attend a board meeting, MCL 450.2521, however it seems that your by-laws cover the attendance issue. Why would the BOD want to exclude members from attendance, what ever the reason it is not a wise move. Things that take place behind "closed doors" only can be seen as an attempt to hide information from the general membership. The more open the Board the less chance to be accused of wrongdoing.
CrystalK1 (South Carolina)
Posts: 14
Posted:
Thank you to everyone for your thoughtful replies.

As you might guess, the background to my initial question is long and complicated. The new HOA president does not understand Robert's Rules of Order, the difference between a rule and a bylaw, how to amend or create a rule or bylaw, and many other facets of running a HOA. Worse, the new president talks with other trustees privately and inappropriately. Worse still, the new president has harassed a few members who live adjacent to the beach by staying out late on our HOA beach. Worst of all, the new president is making decisions on his own and generally behaving like a bull in a china shop. I could go on, but you get the idea.

I don't think our HOA would fall under the Michigan Nonprofit Act. Our HOA was formed under PA 137, Incorporation of Summer Resort Owners.

I am biased and very much want to hold open trustee meetings.

HOA Secretary
SusanW1 (Michigan)
Posts: 5,202
Posted:
If you are incorporated, then you DO fall under the MI. Non-profit Act.

You can Google the Michigan Nonprofit Act and run out the 61 pages - the last 20 pages deal with foreign corporations and there's other info that may not apply.

There is nothing in it that talks about whether HOA Members can or cannot attend Board Meetings

Some boards don't like an audience. They say they are trying to conduct business and so why should anyone else be in attendance? - that it inhibits true freedom of expression by board members.

Either way, the Members must be provided the minutes of the meeting, by request.

The Members need some kind of access to the Board, some way to get their attention. There should be some kind of time slot, maybe at the beginning of the meeting, for Members to speak about a topic or to ask a question. Most of the time they then leave, because the business is so . . . boring.

A newsletter telling the Members what the board is working on and what projects have been planned for the term ,and providing the wording for any motion or rule and regulation that has been passed is the best way to keep everyone informed.

WillR (Michigan)
Posts: 68
Posted:
If you are under the Summer Resort Act, then there is a whole different set of rules. You can do a search for Michigan Summer Resort act and you will find some really useful information. The Summer resort act considers members as "freeholders" and is a "governing body" of its own. Attorney General Frank Kelly and the Michigan Bar Association have some good articles and decisions as well that are useful. Either way "keep it open" as much as possible. Transparency is better than looking shady!
CrystalK1 (South Carolina)
Posts: 14
Posted:
I am strongly in favor of holding open meetings.

For the most part, the trustees who are looking for permission to meet in closed session are those who have been rude to members, who are notorious for breaking HOA rules, and who don't perform their duties as trustees. This is conjecture on my part, but I believe the main reason some trustees want to meet in private is so they can disparage members who have asked that the bylaws be enforced.

Almost in unison, the trustees who want to meet in closed session have complained, "But how do we get any work done?" I have explained that members may comment in the "Member Comment" section of the meeting, but may not participate in the remainder of the meeting.

I breathe a sigh of relief that our bylaws state, "All meetings are open to Members in Good Standing."
SusanW1 (Michigan)
Posts: 5,202
Posted:
So you have answered your own question.

Members CAN attend - but are not given permission to pariticpate in discussions UNLESS recognized by the presiding officer to give input.

Things are in the hands of your presiding officer. That person needs to know how to run a meeting and how to deal with outbursts from the audience OR other board members.

LawrenceC1 (Georgia)
Posts: 480
Posted:
Crystal,

An executive session is provided by law to shield the discussions of sensitive issues such as litigation or personnel issues. Votes on any motion cannot be taken in an executive session, but must be made outside the executive session, in an open meeting.

So the board member who wants to vote for an executive session may or may not be right about being able to conduct an executive session for ordinary business, but it will not have much effect in any case, since all voting must be in open session.

CrystalK1 (South Carolina)
Posts: 14
Posted:
My apologies, I should have given background information. I was thinking that if I omitted the background information, it would help the discussion.

Two of the officers who are looking for ways to meet in private want to do so because of their own poor behavior and rudeness toward members. The officers don't want their misconduct to come to light.

In the last day or so, it's looking like they will try to have the board go into executive session to talk about a personnel matter. They have not yet said what the personnel matter is and it seems like a red herring.

So, I should have been more blunt:

If a dishonest, corrupt HOA President wants to hold meetings in private because he wants to deflect member complaints away from himself, and does not want members to hear his "side of the story" regarding many incidents, can he do that? What I am reading in the OMA says we can go into executive session only for a specific list of exceptions, OR a 2/3 vote of the board.

(Just my opinion, but I don't agree with the provision that 2/3 of a board can agree to go into closed session. If 2/3 of your board was corrupt, they could hold all their meetings in private!)

Thanks very much.
SusanW1 (Michigan)
Posts: 5,202
Posted:
Discipliary discussion are often held in Es.

Since this is about the president's behavior and at his request, have someone else lead that meeting. It should have a stated purpose, however.

I don't understand what kind of motion would come out of this meeting.

It sounds like you either need to remove this guy or bring in a board-builder or consultant.

In the meantime, the HOA is suffering due to lack of leadership.

LawrenceC1 (Georgia)
Posts: 480
Posted:
What does it mean when a post's author changes to "Posts:0" and the state of residence disappears? This has happened to "CrystalK1" who started this thread.

Does it mean that the person has left the group? Been thrown out? Suspended?
TimB4 (Tennessee)
Posts: 21,062
Posted:
I've seen it happen to other accounts in the past. Best I can figure is it's just a bug with the system.

Tim
LawrenceC1 (Georgia)
Posts: 480
Posted:
Quote:
Posted By TimB4 on 08/28/2011 1:43 PM
I've seen it happen to other accounts in the past. Best I can figure is it's just a bug with the system.

Tim,

I think that there may be more to this than a glitch. If past experience holds true, we will never hear from "CrystalK1" ever again.
RebeccaK1
Posts: 9
Posted:
I changed my registration name intentionally so my real first name would not be visible. The new HOA president who is looking for ways to hold closed meetings and to act independently has been searching the internet for sites like this one.

I value everyone's thoughts on hoatalk.com and have not left!
LawrenceC1 (Georgia)
Posts: 480
Posted:
So when all a person's posts change to say "Posts:0" it means that the member has closed their account.
LawrenceC1 (Georgia)
Posts: 480
Posted:
Quote:
Posted By RebeccaK1 on 08/29/2011 6:16 AM
I changed my registration name intentionally so my real first name would not be visible. The new HOA president who is looking for ways to hold closed meetings and to act independently has been searching the internet for sites like this one.

I value everyone's thoughts on hoatalk.com and have not left!

Rebecca,

(If I may call you Rebecca!)

It may be a good thing for your HOA President to find this site. It doesn't take long for someone unfamiliar with the proper operations of an HOA to get educated here.

RebeccaK1
Posts: 9
Posted:
Lawrence, thank you for your thoughts.

During my first meeting with the new President, he referred to Robert's Rules as "Robert's Rules crap" and declared that he knew what was best for our HOA.

When our HOA was going to replace an old split rail fence, I contacted our township to see if we needed a building permit or land use permit. Four trustees, including the President, were very angry with me and wrote that the $25 permit was a waste of money and that I (as Secretary) should not take initiative in this type of situation.

My other threads have to do with a closed session the President is trying to arrange so I can be disciplined.

One trustee who favors open meetings is out of town this week. The President has called a board meeting in two days, and it seems there will be the 2/3 vote required to hold a closed session for other than the stated list of exceptions.

I am discouraged to know that the OMA protects a board of dishonest trustees by allowing them/us to meet in closed session as long as they have the required 2/3 vote required to meet in closed session.

Furthermore, if I am censured (or whatever form the discipline will take) I will not be able to discuss it with other members because of confidentiality.

The new President is hostile, sexist, and a bully.

Sorry for the rant. It's been a rough couple of months.

----------

Distraught HOA secretary
LawrenceC1 (Georgia)
Posts: 480
Posted:
Quote:
Posted By RebeccaK1 on 08/29/2011 9:06 AM
Furthermore, if I am censured (or whatever form the discipline will take) I will not be able to discuss it with other members because of confidentiality.

It is a real shame that volunteers looking to help their neighbors are treated this way. Too often an HOA board is someone's idea of a power trip, rather than an opportunity to serve.

As I pointed out earlier in this thread, even if they vote to meet in closed session and talk about what they see as your bad behavior, any censure or other action must be taken after the closed session in open forum. That means it will be publicly on display. The closed session is allowed to hide the discussion but not the decision.
LawrenceC1 (Georgia)
Posts: 480
Posted:
Actually, I posted in your other thread the information about decisions not being allowed in closed session: RE: Tape record a closed session?
RebeccaK1
Posts: 9
Posted:
Thank you to my fellow forumers for all the advice about open/closed meetings and what can take place during them.

At our board meeting last week, I tried unsuccessfully to prevent going into closed session. During the closed session, the HOA president alleged misconduct on my part for three and a half hours. No specific act of misconduct was stated, but there were several vague references to not "knowing my place" and a "pattern" of "interfering".

The HOA president resigned last night.
WillR (Michigan)
Posts: 68
Posted:
Before you even consider "removing " the President please read the Michigan Non-profit corporation act if you are incorporated. The summer resort act is "totally different". If you wish to remove the President and you are incorporated; then legally according to the act all the board can do is "suspend" the Presidents authority if he was elected to the position by the membership. If he was appointed to the position by the board then the board can remove. Again the summer resort act maybe different. But then you may fall under the Michigan Business act and it to covers removal of an officer. My opinion for the "two cents it's worth" , "Keep it open & Honest". Good luck.
RebeccaK1
Posts: 9
Posted:
The HOA President tendered his resignation on his own. No member or trustee (that I know of) asked for the resignation. The President sent the board an e-mail yesterday and, citing personal reasons, wrote that he was resigning effective immediately.
WillR (Michigan)
Posts: 68
Posted:
I hope with is resignation that your association will be able to move forward. Its looks like you know your place and are working for the members. Keep up the good work.

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