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LouV1 (Pennsylvania)
Posts: 6
Posted:
If a Director was appointed by the former Board of Directors to fulfill a vacancy on the Board. Can the new Board of Directors vote to remove the appointed director from the board? According to the bylaws a director can only be removed if they were arrested and convicted of a felony or missed (4) board meetings within a year.
NancyG1 (North Carolina)
Posts: 119
Posted:
Why do you want to remove him? My message is based on a lot of unknowns. How long is the term of the vacancy the Director filled? When he is up for election this would be the time for the homeowners to vote him out. If he is voted back in, there is nothing you can do. With that said, if this is what your bylaws state there is nothing you can do to remove him. Unless, you ask him to resign and give him the reason. If he does that would great, but I doubt he will. You could read your PA Nonprofit Corporation Act. There may be more informtion there. You didn't say why you wanted to remove him. If it is because he is working against the Board and their plans, he is only 1 vote. If you have 5 Officers and vote on a project and he votes against it, guess what 4 for - 1 against. The plan passes.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Lou

If that is whty your Bylaws says then so be it.

The person appointed is usually appointed until the end of term they are filling or until the next election. Read the Bylaws closer on appointed term length. They are not there forever.

Hope this helps.

LouV1 (Pennsylvania)
Posts: 6
Posted:
It is a long story, but the director is me, the new board wants to replace me for the director that I replaced because he stated that he will drop the litigation if he is placed back on the board. He was removed by the old board for a violation. but old board was replaced by new board and he was appointed chairman of new board. Our bylaws allow an officer to be appointed w/o being a board member. So now he wants to be a board member, but in order to do that they will have to remove me. I believe that they can't. but I wanted some feedback.
LouV1 (Pennsylvania)
Posts: 6
Posted:
The appointment is till next year, but I don't want the new board to get away with this. I am part of the old board but we lost control.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Lou

If the old BOD lost the election this is the people saying we did not like the way you all ran the place and we wanted you all out. As such if I were part of the old regime (them all....LOL), I might just take my medicine and resign also.

Let them appoint who they want. Afterall, the people did elect them.
NancyG3 (North Carolina)
Posts: 342
Posted:
I would say no they can not remove him until his term is up. Then the homeowners vote to remove him or keep him. If you have not violated a reason for removal I can't see how they can remove you.
KellyM3 (North Carolina)
Posts: 2,239
Posted:
Lou,

Given the board turnover to a "new regime" & the fact the previous board member has an obviously legitimate legal claim to losing his board seat, I might would step aside and run at the next election. After all, you were just filling in a hole in the board created by the old board action and this ex-director was duly elected, but not necessarily removed in legitimate fashion.

It's nothing about you. In fact, you're nice to step forward.

NancyG3 (North Carolina)
Posts: 342
Posted:
New twist. What litigation? Is the litigation because he was removed for a violation? If he drops the litigation does he still qualify to be an Officer. You have confused me. Was the person you replaced voted back in? How can an officer be appointed w/o being a board member. Normally, the homeowners elect the Directors (Board) and then the Directors appoint the officers from the Directors that were elected. Anyway, in your prior posting you gave the reasons an Officer can be removed, if you have not violated these reasons I see no reason they can remove you. Stand your ground you still have 1 year. Make sure you get everything in writing. Good luck.
CarolR11 (Colorado)
Posts: 2,563
Posted:
Like Nancy, I'm confused too, Lou.

Are you saying that your Bylaws state there must be a "chairman," and that the chairman doesn't need to be a board member? Is the "chairman" also the president?

(Our bylaws also state that we directors may appoint officers that aren't directors, except for the President.)

You say that the old director was removed by the old board, but that directors only can be removed for being convicted of a felony or missing 4 meetings in a year. Which of those caused his removal?

Did all old board members get voted against when they sought reelection, or did some choose not to run for reelection?

What is the "litigation"?

What size is the board? Your HOA?

I don't think you should resign unless you have absolutely NO support from the new board OR from your friends/neighbors in your HOA. If you have the support of the latter, encourage them to attend the next open meeting of the board and express their support for you.

LouV1 (Pennsylvania)
Posts: 6
Posted:
OK, great discussion I have going on here, let me explain. My HOA has 15 member board. Each year (5) directors are up for reelection. Directors serve a 3 year term. I have been involved with the HOA for about 12-15 years. I have been part of what is now the old regime. LOL. We were doing the right thing for the HOA. A couple of years ago we had new folks move in to the community. Mostly retired folks with alot of time on their hands. Well the battle begins. At this time they start their BS, and little by little they start to replace the board with their people. They took over this month. So now the board is 10-5, they control it. Back to me. I was not an elected board member. I lost the last elections last year. But because my regime controlled the board at the time, I was appointed the treasurer. (Remember according to the by-laws the officers EX. Chairman, Executive director, Secy. and treasurer don't need to be members of the board to be appointed). Well here comes the appointment part. During the board meeting in April 2012 it was learned that (1) of the directors had what the board believed violated the fiduciary responsibly. The director even admitted to this violation. he admitted in front of the board and the board attorney. So with that in mind, the attorney stated that the board had a problem. So remember what I stated earlier the bylaws state the a director can only be removed for conviction of a felony or missing 4 meeting. nothing about fiduciary responsibly. Gets better. But the attorney, being an attorney stated that there is case law regrading the fiduciary responsibly, and the the board needed to sanction this director. Now sanction could had been a slap on the wrist, a suspension or removal. The board (my regime) decided to remove him. but the vote was unanimously. Which included the (4) directors that were in place from the new regime. So you know what happens next. I being the treasurer get appointed to finish his term. At that time we still control the board. Now the removed director files litigation in county court to fight the removal. In June 2012 the board again address the removal after relieving the civil papers. And they all stuck to their guns and refused to address the issue to reverse the removal. So I still on the board. court case pending.
Now comes the good part. the new regime takes over the board they control it 10-5, with me being in the minority. so now during the reorganization of the new board, the director that was removed is elected to be the Chairman of the board by the new board members. (Power play , I love it.) At this point it is brought up in the meeting, by the new Executive director, that he was approached by the removed director. The he was willing to drop the litigation if the board puts him back on the board and pay his legal fees. But I am saying hey wait a minute. In order to consider that, they are going to had to remove me without cause, which I believe will violate my rights. And then they will have me file litigation. if you have any more question, just ask.
BruceF1 (Connecticut)
Posts: 2,535
Posted:
A 15-member board? Sounds like overkill. How big is your HOA community?
KevinK7 (Florida)
Posts: 1,343
Posted:
I don't see any reason why the BOD would pay this guys legal fees. Also, what are the requirements to be an officer? Doea tHis individual fit those requirements?
NancyG3 (North Carolina)
Posts: 342
Posted:
Lou - Has the Board actually said you will be removed? Why do you say you will be the one to be removed? Once you find out this is their plan, in your talks with the Board why not suggest since they know you will file litigation if they remove you maybe someone on the Board (the new executive director) would be willing to resign for this other person to take his spot and you will stop your litigation. (LOL - Offer them a bribe.)

Since the Board has received court papers what does the Assn Attorney now advise? What exactly is this person suing for? Does the Attorney and you think this removed director will win in court? When this goes to court it will be the original Board (your regime) that will testify in court not the new Board. Either way the Assoc is going to pay. At this point it has cost the Assn in Attorney fees and how much more will it cost to go to court.

Unfortunately since you are in the minority and the Board decides to bow to this mans bribe you may not have a choice as far as the Board is concerned. How could this Assn or Board ever trust this person again? Do the people in the Assn know what he did? Anyway, the next question is how important is this to you? You have served well for your community by working for them 12-15 years.

I know it is difficult to give up and walk away. It is now your decision and how much money you are willing to spend. Hope some of my thoughts will help.

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

I understand you not liking the way they are treating you. Yet you did lose in one election and were appointed by the old regime. You are part of the old regime when people voted in a new regime. This this is costing you time and it could cost you money.

I say resign. Walk out with your head held high. If you want to stay involved, then run for election next election cycle. If elected, come back to haunt them. If not eleccted then nothing personal but accept taht your methods and beliefs (regardless of how altruistic) no longer fit what the majority of owners want.

The times they are a changing.

KevinK7 (Florida)
Posts: 1,343
Posted:
I would disagree. Do not resign. Despite the fact that this new batch of board members control the majority interest, there still needs to be a voice for the minority. Maybe you could sway a couple board members to see things your way or help move projects a little closer to the middle so more people would be satisfied.
CarolynL2 (Florida)
Posts: 73
Posted:
I would agree with Kelly and Nancy that without specific authority to remove an elected director for violation of his fiduciary responsibility the removal action was beyond the scope of the Boards' authority. The Board should have brought this issue to the attention of the members at a special meeting of members and had the members vote to remove or retain him. It is not to late to proceed with this action to have the members affirm the Boards' removal action.

LouV1 (Pennsylvania)
Posts: 6
Posted:
Answer to a few questions: The community has about 830 lots, with about 370 homes. About 50$% are full time residents. Like I stated before, I have been active on the board for about 12-15 years. I was excutive director for about 2 yrs. 2000-2002 and last year I was the treasurer. When recently replaced, the old regime left a little over $200,000 in the bank. My biggest concern is that the new regime is going to be a wasteful bunch of people that will bankrupte this community. We have enjoyed paying the lowest dues in the region, for this size of HOA. The sad part is the old regime lost control by about less the 10 votes. But life goes on. I for one like new ideas, new faces to get invovle in the community. What I don't like is the lies that were passed around. I always believed in fighting for my rights, in doing the right thing. If I do nothing then I have failed. If I fight and lose, then I will move on knowing that I gave it a shot. Being an unpaid member of the Board is a pain in the rear, but I have gained alot of experince. I just can't throw in the towel and give up. I want people to do the right thing. If the new regime is as smart as they claim to be , they will do the right thing. if not I will see then in court.
CarolR11 (Colorado)
Posts: 2,563
Posted:
I'm with Kevin. Stay on to keep an eye on the financials. Maybe you can form a Finance Committee, which the board must approve.

Line up some knowledgeable volunteers and write a clear proposal to the Board seeking approval of the committee at an open meeting. It seems to me that the board would appear to be very unreasonable if they turn done formation of the committee.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Lou,

As I understand it you were not on the board when they voted to remove a member for reasons not set forth in your bylaws. It is not your fault in any way that he was removed. At least four of the people still on the board did vote to remove the director you replaced. The honorable thing would be for one of those who voted to remove the former director to resign and pay the legal fees for the ousted director. In fact, if they had any honor at all those four members should resign. You might want to suggest that those who caused the problem take responsibility for the consequences of their actions. This failure to accept responsibility for their acts may give you a hint as to why the "old regime" is being voted out.

BTW, a 15-member board is overkill in the extreme. My association has a nine-member board for 1600 lots and that is double what we need. The whole damn county is run by only five supervisors and they have a lot more responsibility than our association.

LouV1 (Pennsylvania)
Posts: 6
Posted:
Thanks everyone for the advised. but the fact is that the old regime which I am part of was trying to protect the association from being RAPED, that's right folks, RAPE. Just imagine this. the new regime that just took over control of the board is involved in about (7) separate litigation against the community and the old regime. Mostly dealing with different issues but with (1) thing in mine. That is to fix a community lake that can't be fixed. So now how does a community defend themselves in court when the plaintiffs to the law suits against the community are now in control of the board that needs to defend the community. How do I defend myself being a defendant in the law suit when the plaintiffs are now in control. Talking about a nightmare. Fiduciary responsibly is something these folks know nothing of. Just went to the mail room tonight and saw a special meeting notice for this Sunday to discuss the (7) pending litigations. It only gets worse. I have never heard of board suiting it's self. This is what is happening folks. In the last (5) the community has spend over $120,000 in legal fees, defending the BS litigations. This money could have been spent in other things. What do you think about that?

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