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NancyG1 (North Carolina)
Posts: 119
Posted:
For the last couple of years our Board of Directors has held their montly meeting and it has been open to 5 homeowners. Now all of a sudden they are now having closed meetings. No homeowners allowed. My question is is this legal to cut the homeowners out. Our by-laws have 3 meetings, regular, special and annual. Nothing in our by-laws states they can have closed meetings. I couln't locate anything in our State laws. Can someone help me to understand. Thank you.
BrianB (California)
Posts: 2,820
Posted:
typically, closed meetings are properly defined as Executive Sessions, and are usually only allowed to occur to cover certain issues: discipline, pending legal issues, etc.. You cannot do "normal" board business in those sessions, only business related to the listed items (see your state laws, or by-laws). Typically, they still have announcement requirements, require minutes, agendas, etc..

without knowing more, I can't guess if these sessions are proper or not, but experience indicates they may not be.
TimB4 (Tennessee)
Posts: 21,062
Posted:
Nancy,

Both the North Carolina Planned Community Act and the North Carolina Condominium Act
(same language in both laws) specify [emphasis added]:

"Meetings of the executive board shall be held as provided in the bylaws. At regular intervals, the executive board meeting shall provide unit owners an opportunity to attend a portion of an executive board meeting and to speak to the executive board about their issues and concerns. The executive board may place reasonable restrictions on the number of persons who speak on each side of an issue and may place reasonable time restrictions on persons who speak."

Therefore, although it may be different from what happened in the past (and therefore causes perception issues of the board's actions), it appears that the current board is within the law. If you desire to attend a session (or portion) of the meeting tell the board that you would like to attend and what why (I'd even cite this law). If they say no, then there's an issue. Until you ask, the issue is only a perceived issue that may or may not exist.

Tim

NancyG1 (North Carolina)
Posts: 119
Posted:
Thanks to both of you for your information. I did look it up in our Covenants and By-Laws and the NC Planned Community Act along with the NC Nonprofit Corp Act.
CarolR11 (Colorado)
Posts: 2,563
Posted:
Generally, Nancy, "regular meetings' are open to homeowners. but you'r saying your bylaws use the word "regular Meeting, but there's no definition and no requirement that regular meetings be held a certain number of times per year?
NancyG1 (North Carolina)
Posts: 119
Posted:
Carol - Our By-Laws under Board of Directors states "Regular meetings of the Board of Directors shall be held at such regular intervals, without notice, at such place and hour as may be determined from time to time by resolutions of the Board of Directors. Should said meeting fall upon a legal holiday, then that meeting shall be held at the same time on the next day which is not a legal holiday.". However, from day one when the HOA was turned over to the homeowners the BOD has had a monthly meeting and it was open to the homeowners. Then the BOD started putting a sign out every month stating when the meeting was being held and to contact the Secretary if attending. Then this month no sign, so one of the homeowners (not me) called the secretary and was told they held a closed meeting and next month it will also be a closed meeting. (My guess is next month they are probably preparing for the annual meeting in August)(No notice given or posted to the community). I was a board member and the homeowner called me and asked me if this procedure was proper. I was curious as to what the difference in the 2 types of meetings. My inquiry was answered. The information was passed on to the homeowner that contacted me and now we both know. This subject is now closed. Thank you for your input.

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