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ElizabethA3 (North Carolina)
Posts: 2
Posted:
I'm in North Carolina and am a member of my HOA's Board. Several times over the past year, the Board has approved business or actions coming before the Board without notifying all Board members of such actions (they only notify a few Board members to get the majority vote). Does this make their "approved" actions legal or enforceable?
TimB4 (Tennessee)
Posts: 21,062
Posted:
Elizabeth,

If your talking about implementing a decision without holding a meeting this type of action is allowed. It is called an "action without a meeting." However, there are laws that need to be complied with for such actions.

Associations are typically also incorporated as a nonprofit corporation. When they become incorporated, in addition to any HOA/COA laws, the Association must also comply with applicable Corporate law. If your Association is incorporated as a non-profit, the applicable law would be the North Carolina Nonprofit Corporation Act.

Section § 55A‑8‑21 of that act governs actions without a meeting and requires unanimous consent. However, it also defers control to your governing documents. Therefore, if your governing documents are silent about actions without a meeting, this section would apply. If your governing documents address Board actions without a meeting, then the Board would need to comply with what your governing documents say.

ElizabethA3 (North Carolina)
Posts: 2
Posted:
Thanks for the info. Our By Laws indicate that voting can be done electronically, but says nothing that all Board members have to be notified of any action coming before the Board for approval. Yes, we are a nonprofit and I am familiar with the Statutes you refer to....they do indicate that all Board members need to be notified, but are silent, I believe on, if all Board members are not notified....what the ramifications are on the legality of the action that has been taken. That's my real question. NC statutes not followed....but...so what ?
JonD1
Posts: 2,350
Posted:
Quote:
Posted By ElizabethA3 on 06/08/2013 4:58 AM
I'm in North Carolina and am a member of my HOA's Board. Several times over the past year, the Board has approved business or actions coming before the Board without notifying all Board members of such actions (they only notify a few Board members to get the majority vote). Does this make their "approved" actions legal or enforceable?

So Elizabeth are you one of the Board members not contacted?

I have to wonder WHY a majority of the Board would deem it necessary or prudent not to include all the members??? And as you state a majority seem to feel this behavior is both needed and acceptable.

Can you explain to us WHY this might be happening?? What are the dynamics between those who are voting and those not notified? Is it an effort by some to work "around" others?

I would also be interested in knowing what types of actions have ben approved??? Did those not notified agree with the taken votes???

As in many cases my guess there is more history to this than a simple not being included for some unknown reason.

And yes even without the support of state laws or when in violation of the property's documents in many cases there simply is no enforcement in place to control those violating these guidelines. If in fact they are violating anything.

Understanding that I would work on why it happened and how to prevent it in the future.

EllieD (Vermont)
Posts: 446
Posted:
Elizabeth,

How many Board Members are there? Are you self managed, or is there a management company?

Are the actions taken (voted on), that you are concerned with, then reported on, at the next scheduled Board Meeting, and then “read into” the Minutes of that Meeting so as to document?

Do your Bylaws say anything about “emergency” meetings of the Board, or about “special” meetings of the Board?

What do your Bylaws say about how (phone, email, in writing) Board Members are to be notified, and about how many days in advance?

For example, for "special" Board Meetings - I believe 3 days in advance is a typical requirement, and which would also include the reason for the Special Board Meeting.
BonnieG1 (Nebraska)
Posts: 1,186
Posted:
We can make a decision without an official meeting, but ALL board members must agree to it and sign off on it. This is then placed in the minutes of the next meeting. We do have a form we use for decisions made without a meeting.

Some of you already know shortly after I became a Board member the President and Vice President at the time interviewed and hired a bookkeeper without informing any of the other board members. Without going into detail again I will just say the results were "interesting". Fortunately this bookkeeper decided not to work for us.
TimB4 (Tennessee)
Posts: 21,062
Posted:
Quote:
Posted By ElizabethA3 on 06/08/2013 5:53 AM

what the ramifications are on the legality of the action that has been taken. That's my real question. NC statutes not followed....but...so what ?

I suspect that the worst case for the Association would be a legal challenge to the decision or action. Now, if this were to occur, there would be nothing preventing the Board (and I think that a smart attorney would suggest) to call a special meeting of the Board to revisit and vote on those actions. Notate in the minutes that the Board became aware of an issue where a past decision/s was improperly done. Therefore, that action is again being brought to a vote at this meeting. I suspect that a majority of the board would support the previous action.

Even if the Board refused to revisit the issue or if the issue itself prevented it being revisited, a judge might simply see it as a bad business decision and tell the Board to follow proper procedures in the future. End result, the board may be yelled at, legal expenses are incurred and perhaps things will be done properly in the future (no guarantee on that).

In reality, because the issue is a civil issue (not criminal), the consequence for civil issues are internal. The people who do the checks and balances is supposed to be the membership. If individuals are not complying with the statutes, the membership should recall or simply not reelect those individuals.

This is why Jon suggested finding out the reasons why everyone wasn't being notified. Perhaps, the e-mail address is wrong or was improperly entered. Perhaps the internal procedures need to be changed. Perhaps more frequent meetings are needed.

CarolR11 (Colorado)
Posts: 2,563
Posted:
How many are on your Board, Elizabeth? Assuming it's you, are you the only director singled out for exclusion?

I do wonder why your Board is taking so many actions without a meeting--at least it sounds like a lot. Do you think the reason is to exclude you and/or others?

As with Jon, I feel like something is missing here.
JM10 (California)
Posts: 503
Posted:
Quote:
Posted By CarolR11 on 06/08/2013 2:01 PM
How many are on your Board, Elizabeth? Assuming it's you, are you the only director singled out for exclusion?

I do wonder why your Board is taking so many actions without a meeting--at least it sounds like a lot. Do you think the reason is to exclude you and/or others?

As with Jon, I feel like something is missing here.

I agree with Jon and Carol. I think this is something that should be brought up at a board meeting and discussed. I also feel that you should be sure that such actions are recorded in the meeting minutes to show who voted for what and specifically indicate who was excluded from the vote and how the votes were collected. Press for a written record. That might make the board stop and think about their actions.
KayO2 (Colorado)
Posts: 22
Posted:
If a Board is doing this and the Association attorney is told of the illegal meetings, not including all BOD members on votes/meetings and is not suggesting to the Board to do what is legal what do you do????

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