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MichaelJ8 (Illinois)
Posts: 113
Posted:
As soon as everyone became aware that if they were to be on the board they would also be an officer, they backed out from running. My question is, "At next weeks meeting where we vote for a board so that we can have a turnover, if no one runs for the board but myself what will or can happen?

PetunkaM (Florida)
Posts: 1,009
Posted:
Quote:
Posted By MichaelJ8 on 08/25/2011 4:18 PM
As soon as everyone became aware that if they were to be on the board they would also be an officer, they backed out from running. My question is, "At next weeks meeting where we vote for a board so that we can have a turnover, if no one runs for the board but myself what will or can happen?


My dear Michael, this is becoming too confusing for those who do not follow your tread(s).. You have actually started three threads on the same issue. I am not fussing, but it is just difficult to follow you. You still did not say how many board of directors you have to vote for. That was the question everyone asked. As we said ‘you MUST have the Board.‘
Please tell what is really going on:-))
JohnB26 (South Carolina)
Posts: 1,569
Posted:
if incorporated: receivership

get legal advice NOW
TimB4 (Tennessee)
Posts: 21,059
Posted:
Michael,

Typically, when there are vacant seats on the board, the remaining board members may appoint qualified (if there are any qualifications within the documents or State law) individuals to fill those seats. Those appointed will serve the until the next election is scheduled for that seat.

Expecting that this authority to appoint individuals to vacant seats applies to your Association, if you are the only one elected - you may appoint individuals to fill those vacant seats.

Please verify that this is the method for filling vacancies by looking at your governing documents, State hoa law and State corporate law (if your association is incorporated).

Tim
PetunkaM (Florida)
Posts: 1,009
Posted:
Tim.

again, this is not the case..
TimB4 (Tennessee)
Posts: 21,059
Posted:
Petunka,

I disagree.

Based on the governing documents and State laws I've seen, I do believe that it is typical that a board of directors may appoint individuals to fill vacancies on the Board.

However, depending on IL State laws and the language within the governing documents, this may or may not be the case for Michaels Association. Since I did not review IL laws or his Associations governing documents. Therefore, I advised him that the Associations governing documents and State law be reviewed to verify that this is in fact the case.

Members of this forum can only offer advise based on the information contained within the posting, their own experiences, their knowledge of things related to the question asked and their interpretation of any Research they might have done.

I know you have good intentions but if someone is giving improper advice, there are certainly better ways to express it then disagreeing without explanation. By providing an explanation others may learn and, hopefully, not repeat the mistake.

If you have more information or took more time to research the issue then I did to prepare my advice to Michael, please share why this would not be the case in this situation.

TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By TimB4 on 08/25/2011 6:13 PM

Members of this forum can only offer advise based on the information contained within the posting,

Oops, intended to type advice vs. advise. Sorry about that Glen.
PetunkaM (Florida)
Posts: 1,009
Posted:
Tim, I am just saying that this is not the case. It is about turnover.. not vacancies. Not your fault you did not realize that, I suppose.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Per IL Common Interest Community Association Act specifically 765 ILCS 160/1‑25:

"(e) If there is a vacancy on the board, the remaining members of the board may fill the vacancy by a two‑thirds vote of the remaining board members until the next annual meeting of unit owners or until unit owners holding 20% of the votes of the association request a meeting of the unit owners to fill the vacancy for the balance of the term."

TimB4 (Tennessee)
Posts: 21,059
Posted:
P -

Looks like we are posting at the same time.

The issue might be concerning a turnover but the question was specific about elections. I was answering the question.

This actually helps to demonstrate why some issues need to be kept in the same thread (as you previously posted).

If the Association is already incorporated (and the membership is just assuming control of the corporation vs. starting a new one and transferring control from one corp (the developer) to another (the HOA), then per 805 ILCS 105/108.05, IL General Not For Profit Corporation Act of 1986 [emphasis added]:

"(d) Despite the expiration of a director's term, he or she continues to serve until the next meeting of members or directors entitled to vote on directors at which directors are elected. An amendment to the bylaws decreasing the number of directors or eliminating the position of a director elected or appointed by persons or entities other than the members may shorten the terms of incumbent directors; provided, however, such amendment has been approved by the party with the authority to elect or appoint such directors."

Therefore, if only one member is elected to the Board, some of the current members of the existing Board might technically still be a Director until they resign.

MichaelJ8 (Illinois)
Posts: 113
Posted:
The lawyer said today that we must have only 3 for the board of directors. He confirmed what all of you said yesterday which was that the 3 people elected for the board , 1 would be the president, 1 would be the treasure and the remaining 1 would be the secretary. No vice prsident. This election is for a turnover from the developer. I was only wondering what would happen if we could not get three. I am sorry if my explanation is not clear.
SusanW1 (Michigan)
Posts: 5,202
Posted:
Michael-
What is the size of your HOA?

Why is it so difficult to find 3 people interested in their own property values?

PS - I know we are going around and around on this, but the 3 you have listed are officers - AND they are also the directors. Three seems like a very low number for an entire board. Sometimes there are 5 directors and 3 of them are eleted within as the officers.

SusanW1 (Michigan)
Posts: 5,202
Posted:
Michael-
What is the size of your HOA?

Why is it so difficult to find 3 people interested in their own property values?

PS - I know we are going around and around on this, but the 3 you have listed are officers - AND they are also the directors. Three seems like a very low number for an entire board. Sometimes there are 5 directors and 3 of them are eleted within as the officers.

SusanW1 (Michigan)
Posts: 5,202
Posted:
Michael-
What is the size of your HOA?

Why is it so difficult to find 3 people interested in their own property values?

PS - I know we are going around and around on this, but the 3 you have listed are officers - AND they are also the directors. Three seems like a very low number for an entire board. Sometimes there are 5 directors and 3 of them are eleted within as the officers.

MichaelJ8 (Illinois)
Posts: 113
Posted:
There are 14 condo owners. Some have health issues, some are gone 6 months at a time and some refused. There are only to be 3 bod. The lawyer said this can be changed later on, maybe to 5.
I was just asking that if we cannot get the 3 for the turnover what happens. I will have the lawyer tells what could happen. Thanks for any insight you might have.
SusanW1 (Michigan)
Posts: 5,202
Posted:
If board members DON'T have to be Members (homeowners) then an outside person could be elected or appointed (like someone with a business, construction or financial background, maybe even the lawyer himself)

If you have that that much apathy with this 14, perhaps hiring a manager to handle the day to day affairs of the HOA, with the board meeting quarterly, would do.

MichaelJ8 (Illinois)
Posts: 113
Posted:
You are correct Susan, we may have to go the manager route. The people who purchase a condo here do not seem to know what an association is and what it entails. The developer may or may not give them a copy of the cc or by-laws (I call them the condo rules). I know that i have been told to move if i did not like it and that option may turn out to be the one i take. Thank you all for your time in answering my questions in the past.
PetunkaM (Florida)
Posts: 1,009
Posted:
UNTIL the date of the first annual meeting of the members as hereinabove provided, the number of directors shall be three, who shall be the directors named in the Articles of Incorporation. ..

Section 1. Officers, The officers of the Association shall be a President. one or more Vice Presidents (the number thereof to bedetermined by the Board), a Treasurer, and a Secretary. ..[By-laws]

Question is If the board elects the president and the secretary,(they are married.) can this be a problem down the road? ..At the moment, 4 quades, 1 duplex. That is 18 units, 15 is sold, 3 belongs to developer. [Michael]

Michael,

Your By-laws state you have to have four officers elected annually by the BOD elected from among the members of the BOD. These are: President, VP, Treasurer, Secretary. You can have more than one VP, must you must have at least one VP. At the first meeting, one director is elected for one year and two directors for a period of two years.
How many directors do you vote for? Your attorney says three directors. That was certainly true UNTIL the first the annual meeting. But is it true now? I think it should be in the Articles. Does your Board look like this?

Michael- President/Treasurer
Someone’s wife-Secretary (?)
Developer - ?

Does the association attorney also represent the Developer? If true, that may not be a good idea.

PS: As a side note. There are 15 units sold plus 3 owned by the developer. The developer has three votes and must pay assessments for three units. All owners must have a set of Articles, By-laws and Declaration of covenants and Rules, if any. And, all deeds must be subject to those restrictions.
MichaelJ8 (Illinois)
Posts: 113
Posted:
After tuesday meeting, if enough people wll run, the Bod will look like this:
Someone--President
Michael-treasure
Developer-Secretary

The lawyer said we do not need a vice president. This question will have to be addressed at the meeting on tuesday. Illinois condo Act seem to indicate the same but it takes lawyer to read it. The lawyer does represent the devoloperbut said that he could handle the turnover. He did say if any action was to be taken against the developer we would have to get another attorney. I will just have to wait and see what happens. As you can tell i am not too sharp on these matters but no one else gives a crap.
BrianB (California)
Posts: 2,820
Posted:
1) You cannot have a manager without a board, so that "easy out" won't work. Your owners need to understand that.
2) If you don't get a board, then nothing gets done. Dues are not collected, property is not maintained, insurance is not bought, common areas are not available.

without a board, at some point, one or more of the following will happen:

some bill won't be paid (electricity, etc.) and it will be either shut off, or a lien placed on some property the HOA owns (or worse). A mechanic's lien may be placed. A judgement may be granted, and the HOA forced to pay that, court costs, etc. If there is no HOA 'fund', then the judgement will be assessed equally among all homeowners within the HOA.

some essential item will break, and nothing will be done about it. A flood will occur, a wall will crack, a roof will leak, a gas line will hiss, etc. No HOA, no monies for repair, so...

An accident will happen in a common area. With no insurance, the victim will simply sue every member of the HOA for damages. Without insurance, those costs will come out of personal checking accounts. People may lose their homes to the courts, if the injury is serious enough, and the judge/jury ruled that the behavior of the owners was beyond negligent, and instead, willful. Which it sounds like wouldn't be a hard stretch.

It won't happen tomorrow, or next month, but at some point, if you don't have an HOA board, everyone will be placing their homes and savings on the line for someone with a lawsuit to get. Luckily for everyone in the HOA, America is not a very litigious society, and there are not lawyers lined up looking for people to sue, and Americans in general are not typically the type who trip and fall and then look to blame someone else with deep pockets for their injuries.

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