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LawrenceC1 (Georgia)
Posts: 480
Posted:
Our Bylaws state that to be elected to the HOA Board of Directors a person must (1) be a member of the Association, and (2) be a resident of the Community. One of our Directors recently moved from the subdivision, but remains on the board. We thought that the position was vacant and should be refilled as soon as the person left, but the board member consulted our attorney before resigning. The Attorney said that since our Bylaws have no specific provision for removing a Director short of a vote by the membership, he or she is not automatically removed when they no longer qualify. The lawyer said that he or she can remain on the board until their term expires.

To me this is ridiculous. Provision or no provision if a Director no longer meets qualifications they should be removed. I think that if I sought another legal opinion I might get a different answer.

Has anyone else faced this issue?
GlenL (Ohio)
Posts: 5,491
Posted:
Our Bylaws state that to be elected to the HOA Board of Directors a person must (1) be a member of the Association, and (2) be a resident of the Community.

Given the qualifications YOU posted, he is entitled to remain on the Board. To prevent this from happening in the future you should amend the by-laws to show what will disqualify a member from remaining on the Board. I'm assuming that he still owns the property in your HOA since most qualifications for serving on the Board start with "Must be a member in good standing".

You can marginalize his presence on the Board by removing any officer position he might hold and making him a "Member at Large", or if his term still has a long time to run, you can start to recall him.

Studies show that 5 out of 4 people have problems with fractions
LawrenceC1 (Georgia)
Posts: 480
Posted:
Quote:
Posted By GlenL on 04/09/2012 2:48 PM
Given the qualifications YOU posted, he is entitled to remain on the Board. To prevent this from happening in the future you should amend the by-laws to show what will disqualify a member from remaining on the Board.


That's good advice about amending the Bylaws. We have a bunch of other amendments for the Covenants and Bylaws queued up but haven't been able to find the money to make the changes. This issue may bring about a tipping point and we finally get things amended.

Quote:
I'm assuming that he still owns the property in your HOA since most qualifications for serving on the Board start with "Must be a member in good standing".


That's the crazy thing. Yes our Covenants have "member in good standing" as a qualification, but the lawyer says that absent a specific clause that allows a board member to be removed for not meeting qualifications, they stay on the board until their term is over regardless of owning property or living in the Community. As the lawyer reads our Bylaws, qualifications only apply at the time a director is elected.
BruceF1 (Connecticut)
Posts: 2,535
Posted:
Lawrence,

I would agree with Glen. The qualifications you quoted are the qualifications for being elected as a director; not the qualifications required to remain a director.

This one goes in the "oops" category. Sometimes when people write laws, bylaws, rules, regulations, etc., they fail to think things through thoroughly and fail to write exactly what they intended. These are called loopholes and are exploited by lawyers all the time.
GlenL (Ohio)
Posts: 5,491
Posted:
Lawrence one more place to check is the AIC (Articles of Incorporation) which may have qualifications not in the by-laws. What do the covenants say about serving on the Board? Ours for instance requires a Board member be a member in good standing. While your post specified the by-laws remember the by-laws are the how but the covenants are the what and supersede the by-laws.

Studies show that 5 out of 4 people have problems with fractions
CarolR11 (Colorado)
Posts: 2,563
Posted:
We're in the same boat as you are, Lawrence. Our bylaws say only the qualifications, but not that directors must maintain them. (All other docs are silent.) Now, there is a directors who's no longer "in good standing." In fact, we just liened his condo.

We're in the process of amending our bylaws (11 years old), so we're specifying qualifications to continue serving on the board.
LawrenceC1 (Georgia)
Posts: 480
Posted:
Glen,

I checked our AIC, and they say that "The business and affairs of the Association shall be governed by a board of directors, the number, qualification, and method of election of which shall be as set forth in the Bylaws." So that doesn't help.

The Covenants say nothing about the composition or qualifications of the Board, and only talks about duties and obligations. So that doesn't help either.

I seem to remember reading that Covenants and Bylaws are in essence contracts between the membership and the Association. If that is true, contract law may apply. In contract law, when there is a gap or contradiction the intent of the document's author governs, if it can be determined.

I'm hoping that maybe some precedent or example on point will undermine the Attorney's opinion, and put pressure on the Board member to step down voluntarily.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Lawrence

You say the person moved but does he still own the unit?
MichaelG18 (Washington)
Posts: 9
Posted:
I would not count on any legal pressure to get the board member to step down. Unfortunately there are many gaps in the governing documents usually, and this is a common one. Also be aware that unless "member in good standing" is actually clearly defined somewhere in your governing documents, that may not be much help. Unless your bylaws have a specific section covering removal of a director, you may have to ride out the remainder of his/her term. Even in the case where removal by a vote of board members, or by a vote of homeowners in a special meeting called for such purpose, is covered as a way to do it, the wording may only include provisions for remaining current on dues, but not remaining a homeowner actually living within the community.
TimB4 (Tennessee)
Posts: 21,062
Posted:
Quote:
Posted By LawrenceC1 on 04/09/2012 5:26 PM

In contract law, when there is a gap or contradiction the intent of the document's author governs, if it can be determined.

Lawrence,

Based on what you posted, the language of that section you cited makes the intent very clear. To be elected to the board you must 1) be a member and 2) be a resident.

Because the language chosen specifies elected vs. served, one could argue that the intend is to limit the number of nominees but does not prohibit an elected member to continue serving if they no longer meet the obligations of 1 or 2. Based on the language chosen, one could even argue that an individual appointed to fill a vacancy wouldn't even have meet either of those qualifications.

In my opinion, if you really want to address this issue, I not try to change what you are concerned with but correct the one item that caused that interpretaion of the Bylaws to be rendered. Specifically, the language used to make the qualifications.

This would be done by soliciting signatures to call a special meeting for the sole purpose of amending the Bylaws to remove the words "to be elected to" and replace it with the words "to serve as a Director on".

This language will show clear intend of the passage and minimizes any gray area. It would prevent this issue from being an issue in the future and, since O.C.G.A. § 14-3-808 defers to the bylaws, if you add that the Board shall have the power to remove and must remove anyone who does not meet the qualifications, then if this is adopted while the individual is still serving, they would be automatically removed from the board.

NOTE: Officers (President, VP, etc.) and Directors are different positions. The section you cited only address directors. My advice on how to address the issue would only address directors. Unless similar language is adopted as a qualification for officers, then anyone, including me, could serve as an Officer on your Board.

It never seems to be simple does it?

Tim
LawrenceC1 (Georgia)
Posts: 480
Posted:
Quote:
Posted By JohnC46 on 04/09/2012 5:39 PM
Lawrence

You say the person moved but does he still own the unit?

John,

He does still own the unit. Does that make a difference?
LawrenceC1 (Georgia)
Posts: 480
Posted:
Quote:
Posted By TimB4 on 04/09/2012 5:51 PM
Because the language chosen specifies elected vs. served, one could argue that the intent is to limit the number of nominees but does not prohibit an elected member to continue serving if they no longer meet the obligations of 1 or 2. Based on the language chosen, one could even argue that an individual appointed to fill a vacancy wouldn't even have meet either of those qualifications.


I was paraphrasing in my initial post. The actual text reads, "The affairs of the Association shall be governed by a Board of Directors. The directors must reside in the Community and shall be members or spouses of such members; provided, however, no Person and his or her spouse may serve on the Board at the same time." This makes the lawyer's interpretation that it applies only to elections all the more crazy. Even now it says specifically, "The directors must reside..."

Quote:
This would be done by soliciting signatures to call a special meeting for the sole purpose of amending the Bylaws…[to] add that the Board shall have the power to remove and must remove anyone who does not meet the qualifications…


I think this is what will have to be done, despite how much time, effort, and money it will cost.

Quote:
NOTE: Officers (President, VP, etc.) and Directors are different positions. The section you cited only address directors. My advice on how to address the issue would only address directors. Unless similar language is adopted as a qualification for officers, then anyone, including me, could serve as an Officer on your Board.


We do have a section on officers in the Bylaws. For the most part they must be a Director first.

Quote:
It never seems to be simple does it?


Amen to that!
TimB4 (Tennessee)
Posts: 21,062
Posted:
Lawrence,

This thread is an example of what I have posted in the past. If the information changes, then the advice may change.

Expecting that the language you cited is the complete passage, then the Individual is no longer eligible to serve as a Director.

That said, what authority do the governing documents provide for enforcing this requirement (i.e. does the board have the authority to remove the director if they don't resign)?

Based on this new information, and the impression that the board has already been notified of the qualification issue, I would suggest a recall campaign be started basing the recall on the fact that the individual is no longer qualified, under the bylaws, to serve.

To perform a recall, you will need to solicit signatures to call a special meeting for the purpose of recalling abc director and to elect a new director to serve the remainder of the term.

It's highly possible that once you have collected enough signatures and presented the petition to the Board, that the individual will resign. If not, then you can go through the recall process.

You might still need to amend the bylaws to address how a Director is removed if they no longer meet the qualifications to serve.

LawrenceC1 (Georgia)
Posts: 480
Posted:
Quote:
Posted By TimB4 on 04/09/2012 6:40 PM
Lawrence, This thread is an example of what I have posted in the past. If the information changes, then the advice may change.

I’m sorry my first post wasn’t complete. Thanks for a second opinion based on better data.
Quote:
Expecting that the language you cited is the complete passage, then the Individual is no longer eligible to serve as a Director.

That said, what authority do the governing documents provide for enforcing this requirement (i.e. does the board have the authority to remove the director if they don't resign)?

That’s the rub. The authority to remove a director is granted only in the cases of being 30 days late on dues or missing 3 meetings in a row. Because it doesn’t say the board can act to remove a director who no longer meets qualifications, we’re in this bind.
Quote:
Based on this new information, and the impression that the board has already been notified of the qualification issue, I would suggest a recall campaign be started basing the recall on the fact that the individual is no longer qualified, under the bylaws, to serve.

A recall campaign may be a little less trouble than amending the bylaws, but it will still be a lot of effort.

Thank you again for your advice
KellyM3 (North Carolina)
Posts: 2,239
Posted:
Lawrence,

Unless the newly-departed board member is disruptive to board business, I'd trust the attorney's advice and focus on the property needs. The energy expenditure required to clear director removal standards is very high and purposely frustrating.
LawrenceC1 (Georgia)
Posts: 480
Posted:
Quote:
Posted By KellyM3 on 04/10/2012 7:21 AM
Lawrence,

Unless the newly-departed board member is disruptive to board business, I'd trust the attorney's advice and focus on the property needs. The energy expenditure required to clear director removal standards is very high and purposely frustrating.

Kelly,

Sometimes in my zeal to make things right, I forget why I volunteered. Your post arrived just as I was starting to expend energy on all this. I think I may take a deep breath, and just move on. Thanks for your advice.

But I will make sure this loophole gets fixed in our bylaws so it doesn't happen again.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By LawrenceC1 on 04/10/2012 2:15 PM
Posted By KellyM3 on 04/10/2012 7:21 AM
Lawrence,

Unless the newly-departed board member is disruptive to board business, I'd trust the attorney's advice and focus on the property needs. The energy expenditure required to clear director removal standards is very high and purposely frustrating.

Kelly,

Sometimes in my zeal to make things right, I forget why I volunteered. Your post arrived just as I was starting to expend energy on all this. I think I may take a deep breath, and just move on. Thanks for your advice.

But I will make sure this loophole gets fixed in our bylaws so it doesn't happen again.

A wise move.

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