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RichardD (North Carolina)
Posts: 66
Posted:
Our's is a condo association with 86 unit homes. Our documents have explicit instructions on how to elect members to the board as well as the removal of members.

I believe the normal procedure, according to most accepted standards, is the body that elects a member is the body that can remove that member. With that being said, what if a member resigns from a board and the board names a replacement to finish out the term of that member? My question of concern is, can the board remove that member or is this still a required action of the entire association? Naturally our doc's are silent on this issue.

This is actually an ongoing issue in our association. The replacement board member is an arrogant, bullying, loud mouth that challenges the other board members on all issues. He's calling the president a liar and unfit to lead the association. We have the support to do a recall, but was hopeful that just the board might be able to remove him. Your thoughts please.
GlenL (Ohio)
Posts: 5,491
Posted:
ยง 55Aโ€‘8โ€‘09. Removal of designated or appointed directors.

(a) A designated director may be removed by an amendment to the articles of incorporation or bylaws deleting or changing the provision containing the designation.

(b) Except as otherwise provided in the articles of incorporation or bylaws:

(1) An appointed director may be removed with or without cause by the person appointing the director;

(2) The person removing the director shall do so by giving written notice of the removal to the director and to the corporation; and

(3) A removal is effective when the notice is effective unless the notice specifies a future effective date.

(c) Notwithstanding any other provision of this section, the articles of incorporation or bylaws may provide that directors appointed after the effective date of such provision shall be removed automatically for missing a specified number of board meetings. (1955, c. 1230; 1973, c. 192, ss. 1, 2; 1985 (Reg. Sess., 1986), c. 801, ss. 19โ€‘21; 1993, c. 398, s. 1.)

Studies show that 5 out of 4 people have problems with fractions
JohnC46 (South Carolina)
Posts: 14,265
Posted:
It can vary from state to state.

1. If the person was elected by the owners then generally the owners are the only ones that can remove him. Some Bylaws might say other things like he could be removed by the BOD for missing 3 meetings in a row.

2. If the person was appointed to the BOD by the BOD then generally the BOD can remove him. Like 3 positions open on the BOD and only two run. Thus an empty position that the owners did not vote on filling.

2A. In some states if the BOD appointed a person to fill the vacant position of a person that the owners had elected, then only the owners can remove him. In this case, the BOD cannot remove him even though they appointed him.

Bylaws will usually cover if the person appointed to fill the vacancy of a person elected either fills out the remaining term or is appointed only until the next election time.

Hope this helps.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By RichardD on 10/17/2012 5:35 AM

I believe the normal procedure, according to most accepted standards, is the body that elects a member is the body that can remove that member. With that being said, what if a member resigns from a board and the board names a replacement to finish out the term of that member? My question of concern is, can the board remove that member or is this still a required action of the entire association? Naturally our doc's are silent on this issue.

I expect that you are incorporated as a nonprofit(as most Associations are). As a corporation, you must comply with North Carolina Nonprofit Corporation Act.

As Glen provided, ยง 55Aโ€‘8โ€‘09 would apply. That section of corporate law does defer control to the governing documents. However, since your governing documents are silent, Corporate law applies. Specifically:

An appointed director may be removed with or without cause by the person appointing the director [i.e. the Board]

So to make this long answer shorter - Yes, the law allows the Board to remove a appointed director by majority vote.

RichardD (North Carolina)
Posts: 66
Posted:
Thanks for all the great input. Seems like we're all pretty much on the same page. For further clarification, below is the wording of our Bylaws and I believe they are pretty similar to most associations:

REMOVAL OF DIRECTORS. The Unit Home Owners, by at least sixty-seven percent (67%) vote of all persons present and entitled to vote at any meeting of the Unit Owners at which a quorum is present, may remove any member of the Executive Board with or without cause, other than members appointed by the Declarant.

Now the above covers the removal under all circumstances, but as Tim points out, NC Law 55A-8-09 provides authority for the Board to remove an appointed member providing the removal is not covered in the documents. I see gray area here and still not 100% clear. More help please.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Richard,

That is how the members may remove Directors (elected or appointed).

However, if that is all there is, the document is silent on the Boards authority to remove Directors. Therefore, since the document is silent, corporate laws apply (as that is what NC law specifies). Had your document specified that Directors may only be removed by the membership, then ยง 55A-8-09 would not be applicable.

Let me try explaining it this way:

If a Director is elected by the membership - only the membership may remove them.

If a Director is appointed by the Board - that Director may be removed by either the membership (as authorized in your governing documents)or the Board (as authorized in NC law).

MaureenM1 (PA)
Posts: 344
Posted:
We have one board member that doesn't contribute ANYTHING to the board. We are in the process of transitioning and he is ALWAYS working against the board and not for the good of the community.

He told us last night at a board meeting that he doesn't want to be on the Board but he didn't resign. As the President, can I ask for his resignation and then the board can appoint a board member to take his term?

Our bylaws state the board can appoint a board member if one resigns, however, my question is can the Board member (or me the President) ask for his resignation since he is not resigning voluntarily?

Our development is in PA.
MaureenM1 (PA)
Posts: 344
Posted:
We have one board member that doesn't contribute ANYTHING to the board. We are in the process of transitioning and he is ALWAYS working against the board and not for the good of the community.

He told us last night at a board meeting that he doesn't want to be on the Board but he didn't resign. As the President, can I ask for his resignation and then the board can appoint a board member to take his term?

Our bylaws state the board can appoint a board member if one resigns, however, my question is can the Board member (or me the President) ask for his resignation since he is not resigning voluntarily?

Our development is in PA.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Maureen

You can ask for his resignation but he does not have to offer it.

You might could "bribe" him off maybe asking if he did resign is there anyone he would like to see take his place. If the BOD thinks the person suggested would be a good fit, then offer that. He resigns, the BOD will name the agreed upon person to fill out his term.

There is more then one way to skin a cat.

JM10 (California)
Posts: 503
Posted:
Quote:
Posted By MaureenM1 on 10/18/2012 5:52 AM
We have one board member that doesn't contribute ANYTHING to the board. We are in the process of transitioning and he is ALWAYS working against the board and not for the good of the community.

He told us last night at a board meeting that he doesn't want to be on the Board but he didn't resign. As the President, can I ask for his resignation and then the board can appoint a board member to take his term?

Our bylaws state the board can appoint a board member if one resigns, however, my question is can the Board member (or me the President) ask for his resignation since he is not resigning voluntarily?

Our development is in PA.

I know the problem. We had three board members and two out of three refused to meet, but also refused to resign in writing or respond to any call for a meeting. They didn't want to work with the third member. After asking over and over again and explaining that telling another person doesn't count as a resignation, he finally sent an email stating he was stepping down. It took 2-3 months.

I'm in California, but why don't you first just remind him of what he said last night and ask him to clarify by putting it in writing? That would be the easiest solution to your problem. Hopefully, it won't take as long as it did for us.

KellyM3 (North Carolina)
Posts: 2,239
Posted:
Richard,

The appointment places a new director into position to full the unexpired term. The board made a mistake in not vetting this replacement. Remove him or her at the next election if possible. You'll waste more time than it's worth trying to interpret NC corporate laws.

However, I've had experience where the new board member was a bully - full of complaints and recommendations. We redirected the complaints and demands that work be done back on this person to spearhead, w/ the expectation that the board would receive a report on the progress of any complaint fulfillment.

Poof, the "anger" calmed quickly because we were told "I don't have time for all this."

New board members are very quick to increase another person's volunteer commitments to an HOA.

CarolR11 (Colorado)
Posts: 2,563
Posted:
I agree with those who advise: Just ask him to resign. Do it at a meeting. Get other directors' support in advance and make a motion, have it seconded, requesting his written resignation. It's possible that if the majority of the Board votes to request his resignation, that he actually will resign.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Carol

Why advocatye for the BOD to make and pass a motion asking him to resign when they may not have the power to remove him. Talk about wasted, outside their realm motions.

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