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SusanG6 (South Carolina)
Posts: 3
Posted:
Our HOA was turned over from the developer 7 years ago. In that time only one election was held and the Board dissolved. When it did, one resident was appointed by the remaining Board member. He served 7 years and then appointed a new board within 2 months of when we should have elections. This new appointed board has served a year. No elections are planned and people are appointed on or off the Board as it sees fit. Our By-laws state we are to have elections every year. Is this Board legal? What can be done about it?
TimB4 (Tennessee)
Posts: 21,059
Posted:
Hi Susan.

Is the Board legal? Probably. Although the Association has failed to hold elections the outgoing board appointed the incoming board and the South Carolina Nonprofit Corporation Act of 1994, specifically section 33-31-805, specifies that "Despite the expiration of a director's term, the director continues to serve until the director's successor is elected, designated or appointed, and qualifies, or until there is a decrease in the number of directors. "

What can be done?

Contact the Board and ask when the next annual meeting will be held and if they will be holding an election at that meeting as specified in SC 33-31-804. Then offer to assist in arranging the meeting.

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

SECTION 33-31-804. Election, designation, and appointment of directors.

(a) If the corporation has members entitled to vote for directors, all the directors, except the initial directors, must be elected at the first annual meeting of members, and at each annual meeting thereafter, unless the articles or bylaws provide some other time or method of election, or provide that some of the directors are appointed by some other person or designated.

(b) If the corporation does not have members entitled to vote for directors, all the directors, except the initial directors, must be elected, appointed, or designated as provided in the articles or bylaws. If no method of designation or appointment is set forth in the articles or bylaws, the directors, other than the initial directors, must be elected by the board.

SC Rules and Regulations are rife with the bold wording above which drops it back to the associations docs. If the associations docs (Covenants and/or Bylaws) are silent, then the SC R&R's will apply.

SusanG6 (South Carolina)
Posts: 3
Posted:
New news on this ...the first Board elected after the developer turned it over was made up mostly of Renters thereby making it invalid. Question...if that Board was null and void...when the sucessive Boards be "illegal" as well?
TimB4 (Tennessee)
Posts: 21,059
Posted:
I'm going to be realistic here.

Lets say it does. Now what?

To prove they are illegal, you need to take the issue to court.
This will cost both you and the Association money, time and energy.

Lets say you win. Now what?
If the membership is so apathetic to allow this to happen what do you think will change if you win?

Lets say you lose. Now what?
You spent a lot of time, money and energy and nothing changed.

My advice, get out there and start gathering support from your neighbors. Get enough interest from the membership to call a special membership meeting to recall the Board and elect a new Board. If you can't get enough interest from the membership to do a recall and replace those serving, you might as well save your money taking the issue to court.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Susan

Time said:

My advice, get out there and start gathering support from your neighbors. Get enough interest from the membership to call a special membership meeting to recall the Board and elect a new Board. If you can't get enough interest from the membership to do a recall and replace those serving, you might as well save your money taking the issue to court.

I agree with the advice.

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