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NatalieF1 (Virginia)
Posts: 40
Posted:
Our hoa president and treasure had an altercation in the street regarding a No trespassing sign approved by a majority vote at a board meeting then placed in the back of our neighborhood. The treasurer did not like the sign and went down and removed it. There were inappropriate words exchanged in front of another non board member and another neighbor asked to the two to break it up. The treasurer did return the sign back to its original spot. To make a long story short, the treasure was asked to resign and given 24 hrs to do so. He did not resign but emailed the Board with his side of the story and then the President was also asked to resign. As today the other three remaining board members were the ones who resigned. We had a five person Board that is now down to two members who's conduct has been less than stellar! As a concerned community member what is the best way to move forward and get the two that should of resigned off the Board? They have to have at least three members to conduct business.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Usually the remaining board members may appoint new members to the board to fill vacancies, but it takes a majority vote. With only two members, a majority is two and since they are now at odds it is not likely that they will fill any of the empty seats. This means the board cannot conduct business due to the lack of a quorum. That may not be such bad news.

Depending on when the next election is, you might want to organize a recall of the two remaining board members as it sounds like neither is fit to serve.

MelissaP1 (Alabama)
Posts: 13,836
Posted:
May I point out something about the no trespassing sign? It may be good intention thing but not enforceable. It may be time for a few people to educate themselves on the state law on no trspassing signs powers. You may be surprised that posting a property private or no trespassing does little or no effect on any legal liability. The very thing people think a sign helps by posting.

Each state is different so can not say what your laws are. However, one may find what these signs mean or application is not what you assume. Plus if your HOA has rules on signage, this may add to the issue. We only allow for sale or rent signs. This sign could not be posted.

This situation is a POLICE matter besides a HOA one. A HOA position or membership does not protect one following laws.

Former HOA President
GlenL (Ohio)
Posts: 5,491
Posted:
As Larry stated the remaining Board usually has the power to appoint replacements to the Board. You as a homeowner also have the right to gather signatures (check your documents and any state law for requirements) to call for a Special Meeting for a specific purpose i.e. a special election to reconstitute the Board. This of course can be rendered moot if the two remaining directors fill the positions.

If you manage to hold an election, the new Board members can then remove the two children from their offices but not the Board, to do that you would then need to recall them.

Studies show that 5 out of 4 people have problems with fractions
KerryL1 (California)
Posts: 14,550
Posted:
Our bylaws actually give HOA members the right to vote to fill vacant board seats if the Board fails to do that. Do yours by any chance, Natalie?
TimB4 (Tennessee)
Posts: 21,062
Posted:
Natalie,

Two things:

1st. With a 5 member board, per VA § 13.1-868, a quorum is 3. Therefore, no business may be conducted except the appointing, or calling a meeting to elect, individuals to fill those vacancies. Current contracts are still in force and paying invoices for approved work can (and should) be done. No new contracts, policies, etc. can be done until a quorum exists.

2nd. As Kerry pointed out, it is possible for the membership to fill those positions. This is supported in § 13.1-862. Vacancy on board of directors.

However, a petition for a special meeting would need to be obtained first.

NatalieF1 (Virginia)
Posts: 40
Posted:
Thank you all for your comments. A Recall of the two remaining is a possibility with a petition for a special meeting and then a election for a whole new Board. I don't see the two agreeing on much even to appoint replacements.
Our Bylaws state the following regarding Replacement of a director "Any Director may be removed from the Board in accordance with Section 13.1-860 of the Act, with or without cause, by a majority vote of the members in accordance with Virginia law. In the event of death, resignation or removal of a director,that directors successor shall be selected by the remaining members of the Board and shall serve for the unexpired term of the predecessor."
Would the two remaining directors have a choice as to appointing 3 new replacement or allowing the membership to vote on the three vacant director positions?
TimB4 (Tennessee)
Posts: 21,062
Posted:
Quote:
Posted By NatalieF1 on 06/21/2014 7:45 AM

In the event of death, resignation or removal of a director,that directors successor shall be selected by the remaining members of the Board and shall serve for the unexpired term of the predecessor."

Well, now it becomes interesting, with the use of the one word bolded above, it appears that your documents prevent the members from filling vacancies unless the entire Board is removed. However, the law specifies, under paragraph B, that the members are to fill the vacancy by vote.

Quote:
Posted By NatalieF1 on 06/21/2014 7:45 AM

Would the two remaining directors have a choice as to appointing 3 new replacement or allowing the membership to vote on the three vacant director positions?

I broke this section out to better explain the interesting portion in my answer above.

The law previously cited, specifies that unless the Articles of Incorporation specifies, the members are to be the ones who elect the replacement. However, it would be common for any Board to refer to the Bylaws and say the intent is for the Board to appoint.

This gets into the issue of technicalities and the order of precedence. The technicality is that your governing documents specify how the vacancies are to be filled but it was written in the wrong document, as the law (which has a higher precedence) only defers control to the Articles of Incorporation.

Now, another little twist to the technicality is if you live in a condominium. Typically, with condominiums, the order of precedence for governing documents may change and place the bylaws ahead of the Articles of Incorporation. This is because the Bylaws are recorded as part of the deed and an attachment to the CC&Rs. This can easily muddy the waters on which documents procedure is to be complied with.

My suggestion is to approach the Board and see if they are willing to allow the members to fill the vacancies. If a Board is unwilling to seek a compromise, then you have a few choices:

a) recall the entire board

b) file a complaint with the VA Ombudsman but you must follow internal procedures first. It's all outlined on the on their website.

c) file a complaint directly with the CIC Board which, I found out at a recent seminar, can be done by any member without the need to go through the Ombudsamans office. The ombudsmans process is a review and they can refer it directly to the CIC Board but that doesn't preclude a member from directly asking the CIC Board to take a look at the issue.

d) Courts.

NatalieF1 (Virginia)
Posts: 40
Posted:
Wow Tim, this could get complicated. We are single family homes. A resigned board member position has been appointed once before by the board of directors. I see your points and appreciate your comments.
TimB4 (Tennessee)
Posts: 21,062
Posted:
One thing to note is that you need to read your Articles of incorporation.

Our Articles defers control to the Bylaws for filling of vacancies. If yours does the same, then there is no conflict as the law defers to the the Articles which defers to the Bylaws. This would place the Bylaws in control (and the one that must be complied with).

Again, I'm not an attorney and do not work in the legal profession. This is my layperson's opinion based on my experience in researching many government regulations.
AnnH5 (Florida)
Posts: 304
Posted:
My question is what do the Association's documents stipulate as far as a minimum or maximum number of Board members? As Tim has pointed out, the VA state statutes refer to 3 out of 5 members for a quorum.

My Association documents (in a different state of course), refer to the Board positions (5) and stipulate that two of those positions may be held by a single Board member.

It sounds like the best thing that could happen to the OP would be a new election and all new Board members. Something tells me that your current Board has bigger problems than a No-Trespassing sign and the sign was simply something that caused a simmering pot to finally boil over.

TimB4 (Tennessee)
Posts: 21,062
Posted:
Quote:
Posted By AnnH5 on 06/21/2014 10:06 AM

My Association documents (in a different state of course), refer to the Board positions (5) and stipulate that two of those positions may be held by a single Board member.

Ann,

Board Positions, i.e. Officers, are different than Directors.
NatalieF1 (Virginia)
Posts: 40
Posted:
Our bylaws state "the initial number of directors shall be three, which may be increased to 5 by a majority vote of the Directors so long as there is a Class B membership, or after the termination of the Class B membership(declarant) may be changed in accordance with the Act." Our Association started with three and the Board voted to increase it to five within the first year of the homeowner board.

Tim, I do not see the same reference about the bylaws as you have in your documents. There is a section on conflict that states" In the case of any conflict between the Declaration and these articles, the Declaration shall control and in the case of any conflict between the by-laws and these articles, these articles shall control."

The only other section in the articles of incorp. I am not sure about is the following under purpose and powers of the Association-" to exercise all of the powers,rights and privileges and to perform all of the duties and obligations of the Association as set forth in the Declaration of Covenants, Conditions and Restrictions for the Association, recorded or to be recorded in the office of the clerk of the circuit court of xxx county , Virginia, and as the same may be amended from time to time (the Declaration), and as set forth in the By-laws of the Association, said Declaration and By-laws being incorporated herein by reference;"
TimB4 (Tennessee)
Posts: 21,062
Posted:
Natalie,

The Association is created by the Declaration.

A Corporation, known as HOA, Inc, is created by the Articles of Incorporation and is a separate entity (which is why when the corporation known as HOA, Inc. is dissolved, the Association still exists).

That section you cite simply states that the Corporation, HOA, Inc., has the same authority as the Association (HOA).

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