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PatsyH (Tennessee)
Posts: 2
Posted:
Our board of directors has been trying to amend our by-laws. They can not get enough votes to pass it.

Now,the board of directors states that the "general corporations law for not-for-profit now allows the board of directors to amend or repeal the corporation's by-laws unless the Charter or certain chapter of the Code reserved this power exclusively to members, in whole or in part,or the members in amending or repealing a particular by-law expressly provide that the board of directors may not amend or repeal the bylaws" They state that our association does not fall under any of the prohibitive categories. Based on this interpretation, the board has the authority to change the by-laws under statute, which effectively supersedes Article VI.

In our bylaws under Article VI states,"These by-laws may be amended at any regular or special meeting of the association by a two thirds vote of the total number of Member(not lots), provided notice of the amendment was given to all members at least 15 day in advance, and only if an amendment
of the by-laws is placed on the agenda of that meeting by a petition signed by 10% of the members entitled to vote or by a majority of the board.

When I asked exactly what section of the law states that, the reply was read the Tennessee Corporations Act.
The document is 39 pages and very difficult to interpret.They have given the membership 21 days for feedback.
I would like advice on how to proceed,with this situation.

PatsyH
TimB4 (Tennessee)
Posts: 21,059
Posted:
Patsy,

The TN statutes are provided by lexis-nexis and are available from this link:

http://www.tn.gov/environment/permits/tcalink.shtml

I expect that your Association is incorporated as a non-profit (as most Associations are). However, you should check to be sure. Incorporated as a nonprofit makes Title 48, Chapters 51-100 as the applicable TN corporate statutes (once in lexis-nexis, click on the plus sign (+) next to the sections to find what specific statute you want to read).

Per TN 48-60-202 (Title 48, Chapter 60, Part 2):

48-60-202. Amendment of bylaws by board of directors or members.

(a) A corporation's board of directors may amend or repeal the corporation's bylaws unless:

(1) The charter or chapters 51-68 of this title reserve this power exclusively to the members in whole or in part; or

(2) The members in amending or repealing a particular bylaw provide expressly that the board of directors may not amend or repeal that bylaw.

(b) A corporation's members may amend or repeal the corporation's bylaws even though the bylaws may also be amended or repealed by its board of directors. An amendment to the bylaws shall be approved by members by two thirds (2/3) of the votes cast or a majority of the voting power, whichever is less. An amendment to the bylaws which relates solely to the dues required for membership and which establishes or changes a specific amount for dues shall be approved by a majority of the members present and voting unless the charter or bylaws specify a higher voting percentage.

PatsyH (Tennessee)
Posts: 2
Posted:
Thanks, Tim
Can I interpret section 48-60-202 (B) as the board can not amend our by laws with out 2/3 vote?
FredS7 (Arizona)
Posts: 927
Posted:
> Our board of directors has been trying to amend our by-laws.

IF the amendments are non-controversial then your problem is most likely apathy/ procrastination/ etc. Difficulty in passing even the least controversial amendments is common.

IF the amendments are non-controversial it is best to mount a serious educational campaign explaining WHY this should be done and taking the time to made individual contacts with owners if necessary.

If the amendments ARE controversial then doing an end run around the usual procedure (even if strictly legal) is likely to cause trouble in the long run.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
We were able to get our votes to change our CC&R's and By-laws by being able to go door to door or at meetings. The lawyer drafted a paper for members to "give up" their right to give their vote at a special meeting. By agreeing to NOT have to have a special meeting meant that freed us up to take the vote door to door or at any meetings until we got our vote. Basically members had to sign 2 pieces of paper. One for accepting/rejecting the changes and one for giving up their right to only do it at a "special meeting" setting.

You all want to do your CC&R's over your by-laws. CC&R's do require to be filed and go with the property deeds. By-laws typically are considered "in-house" documents and NOT required to be filed with the court. Which means that the board may be able to modify the by-laws amongst themselves. However, the CC&R's always trump the by-laws if in conflict.

Former HOA President

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