JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
Curious if anyone has any experience with a court ordering such.
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Court Ordered Covenants/Bylaws Reformation
Started by JohnC46 • 5 replies • 1340 views
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JohnB26 (South Carolina)
Posts: 1,569
Posts: 1,569
Posted:
only if the corporation goes into receivership, then maaaaaaybe
MatthewW4 (Arizona)
Posts: 500
Posts: 500
Posted:
I seem to remember a long ago post by someone who said their association had done just that.
Reformation would seem to be a viable option when despite the best intentions of all parties the CC&R's contain language that is impossible to operate under.
As an example, there is currently another thread where the CC&R's require that after the board approves a budget then 60% of the members must vote to approve it, also. The OP in that thread said they are lucky to get 15% of the owners to show up at the meeting. As a practical matter, getting 60% approval for a budget is impossible.
I know of nothing that ties reformation of a contract to seeking receivership.
Reformation would seem to be a viable option when despite the best intentions of all parties the CC&R's contain language that is impossible to operate under.
As an example, there is currently another thread where the CC&R's require that after the board approves a budget then 60% of the members must vote to approve it, also. The OP in that thread said they are lucky to get 15% of the owners to show up at the meeting. As a practical matter, getting 60% approval for a budget is impossible.
I know of nothing that ties reformation of a contract to seeking receivership.
MelissaP1 (Alabama)
Posts: 13,836
Posts: 13,836
Posted:
There is a way around the meeting requirement for votes. The member has to sign away their rights to attend a "special meeting". If the member signs away to take their vote at a meeting, they can then cast their vote outside of that meeting.
This is what we had to do so we could go door to door to get our by-laws/CC&R's/Articles of Incorporation changed. We had two documents to sign. One giving away the right to attend a special meeting for the vote and the other for the actual vote.
It was drafted up by a lawyer and completely legal. It's just one of those "loopholes" you can get around when wanting to change the rules and not enough people willing or available to make it to the meetings.
This is what we had to do so we could go door to door to get our by-laws/CC&R's/Articles of Incorporation changed. We had two documents to sign. One giving away the right to attend a special meeting for the vote and the other for the actual vote.
It was drafted up by a lawyer and completely legal. It's just one of those "loopholes" you can get around when wanting to change the rules and not enough people willing or available to make it to the meetings.
Former HOA President
BruceF1 (Connecticut)
Posts: 2,535
Posts: 2,535
Posted:
Quote:
Posted By MelissaP1 on 06/07/2013 4:49 PM
There is a way around the meeting requirement for votes. The member has to sign away their rights to attend a "special meeting". If the member signs away to take their vote at a meeting, they can then cast their vote outside of that meeting.
This is what we had to do so we could go door to door to get our by-laws/CC&R's/Articles of Incorporation changed. We had two documents to sign. One giving away the right to attend a special meeting for the vote and the other for the actual vote.
It was drafted up by a lawyer and completely legal. It's just one of those "loopholes" you can get around when wanting to change the rules and not enough people willing or available to make it to the meetings.
There is a way around the meeting requirement for votes. The member has to sign away their rights to attend a "special meeting". If the member signs away to take their vote at a meeting, they can then cast their vote outside of that meeting.
This is what we had to do so we could go door to door to get our by-laws/CC&R's/Articles of Incorporation changed. We had two documents to sign. One giving away the right to attend a special meeting for the vote and the other for the actual vote.
It was drafted up by a lawyer and completely legal. It's just one of those "loopholes" you can get around when wanting to change the rules and not enough people willing or available to make it to the meetings.
That sounds to me like a designated proxy.
CarolR11 (Colorado)
Posts: 2,563
Posts: 2,563
Posted:
Without looking up the details, John46, CA HOAs may, after showing evidence to a judge trying really hard to get enough votes to restate or amend their docs, the court will grant the revision, amendments or restatement. A neighboring high rise revised their CC&Rs that way shortly after control went to them from the developer. I recall they sent the revisions to owners twice and needed 67% approval.
Like my HOA, the 200+ unit building has a substantial number of tenants and vacation homes so going door-to-door get out the vote or to collect proxies are not effective.
Like my HOA, the 200+ unit building has a substantial number of tenants and vacation homes so going door-to-door get out the vote or to collect proxies are not effective.
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