💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

RobertG24 (Florida)
Posts: 2
Posted:
On September 23, 2011 the Department of State,Division of Corporations listed our association as inactive and under administrative dissolution.Florida Statue 607.1405, Article (1) states "A dissolved corporation continues its corporate existence, but may not carry on any business except that appropriate to wind up and liquidate its business and affairs." On December 13, 2011 the Board approved $41,400.00 for the construction of new handicap bathrooms. On December 20, 2011 the Board signed a contract with a builder for $75,960.00 for the construction of the handicap bathrooms and a future office space. On January 10, 2012 the Board approved paying for the contracted future office space. I should point out the amount approved does not appear in the approved written minutes for the January 10, 2012 meeting. On February 28, 2012 the Board filed the required annual reports for 2011 and 2012 and paid all fines and fees. The State then reinstated the association as an active corporation. Now the Board is claiming that even though they conducted business during the administrative dissolution period that the contracts and other business they conducted is now legal. I claim the statues reinstate the corporation to active status. but they do not make past transactions legal. Come on legal beagles and help me out. There other problems that have occurred, but they will be discussed at a later time.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Hi Robert … welcome to the forum.

We are not legal beagles and if you want one then you need to consult and hire a local attorney. Another avenue to ask your question might be the FL State's Division of Corporations.

Most homeowners associations are corporations, and all Florida corporations must comply with the reporting and fee requirements of the Department of State's Division of Corporations. If a homeowners' association fails to comply with the reporting and fee requirements, the Division of Corporations may declare it to be administratively dissolved and inactive as a corporation. This does not mean that the covenants for the subdivision have expired. Usually all that is necessary to restore the homeowners' association to active status as a corporation is to file the missing reports and pay the outstanding fees to the Division of Corporations.

What you may want to review is statutes regarding Budgets:

http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0700-0799/0720/Sections/0720.303.html

Then scroll down and start reading in this section: (6) BUDGETS.—

Because my question would be does the association have reserve accounts for capital expenditures and with proper approval needed or required?

SusanW1 (Michigan)
Posts: 5,202
Posted:
Robert - the State has let the HOA know what the guidelines were IF they had chosen to dissolve.

Instead, the HOA paid the back filing fee according to the regulations and are not dissolved. Corporations are either inactive or active, but they remain perpetual.

The board actions taken during this 'limbo" time are legitimate.

Heck, I've known non profits that have let their annual reports go for years!!

I have the feeling that there are really other issues that are bothering you.

RobertG24 (Florida)
Posts: 2
Posted:
Thanks to all who replied. I have since found a similar case in Indiana that points out the payment of fees and fines restores the corporation to a state as if the dissolution never existed. I am satisfied that business conducted during the dissolution period is legal.I still maintain that the manner in which individual board members signed a contract for more than originally approved without full board knowledge is wrong especially since Florida statue 607.0821 provides a proper way for coducting business without a board meeting. When I asked to see the required written documents I was informed there were none. Interesting also is that the proposal and contract list one Florida corporation as contractor and the building permit lists a different corporation. The same individual is listed as the main officer of both corporations. The problem is who is responsible for anything that goes wrong; the corporation listed on the proposal and contract or the corporation listed on the building permit and the actual ones doing the construction? This same board approved getting estimates for removal of debris from a drainage ditch not located on association property. Then one of the board members authorized the payment of $500.00 to remove the debris without ever consulting the other board members.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

  • ✓ Ask follow-up questions
  • ✓ Share your experience
  • ✓ Get expert advice
  • ✓ Access 350,000 discussions
Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here