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TedH (Virginia)
Posts: 7
Posted:
The Board/management posted a notice indicating that there will be a special Executive Session meeting to discuss "LEGAL ISSUES" and no homeowners will be allowed.
I can understand if the board is going to discuss a legal issue concerning a particular owner(s), then I don't need to be in that meeting. However, if the board is going to discuss a legal matter that may affect the HOA as a whole, then it's different and owners must be allowed in that meeting. Your thoughts?
Thanks!
CfD (Virginia)
Posts: 265
Posted:
Believe your board should be in a properly noticed open board meeting first, then a recorded motion to enter executive session for this purpose should be made.

https://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+55-510.1
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By TedH on 02/25/2015 9:46 AM [emphasis added]

However, if the board is going to discuss a legal matter that may affect the HOA as a whole, then it's different and owners must be allowed in that meeting. Your thoughts?
Thanks!

Ted,

I understand your thinking. However, VA statutes do not support that thinking.
In fact, the only reason the membership even received notice about the meeting is because executive sessions are to be entered from and return to a normal Board meeting. Even though you may now be thinking that you have a right to attend the normal board meetings (which you do in VA), the process will likely go as follows:

1) Meeting Called to Order
2) Certification of quorum is present
3) Meeting is recessed so the Board may convene in executive session to discuss a legal matter (all members are required to leave the room or the Board leaves the room - depending on where the meeting is being held)
4) Meeting is reconvened - Board returns from executive session.
5) Notations of any decisions made pursuant to the executive session.
6) Meeting adjourned

See:

VA ยง 55-510.1. Meetings of the board of directors see paragraph C

VA ยง 55-79.75 applicable if in a condominium. Again, see paragraph C

Fairfax County Community Association Manual, specifically Chapter 2 Executive Sessions and Privileged Information
Not a statute nor a regulation. Simply a manual Fairfax County VA put together to explain how Associations in VA should be ran. Note: This is good for all Associations anywhere, but it's based on VA statutes, therefore, always see what your State Statutes say.

Again, I understand your thinking. However, the Board also has a fiduciary duty to protect the privacy of any individual involved in potential legal action until legal action is taken and is made public (darn privacy laws). These are the type of decisions some Boards must make and why they were elected to that position.

I you would like to change this practice, then the quickest option is to gather support and get yourself and others who think similarly elected to the Board.

RogerB (Colorado)
Posts: 5,067
Posted:
Quote:
Posted By TedH on 02/25/2015 9:46 AM
The Board/management posted a notice indicating that there will be a special Executive Session meeting to discuss "LEGAL ISSUES" and no homeowners will be allowed.
I can understand if the board is going to discuss a legal issue concerning a particular owner(s), then I don't need to be in that meeting. However, if the board is going to discuss a legal matter that may affect the HOA as a whole, then it's different and owners must be allowed in that meeting. Your thoughts?
Thanks!

My thoughts: You are mistaken. If the Board decides after a special session to take an action which will affect all homeowners that must be disclosed. Any motion and followup action may not be taken in the special session; that may only be done afterward in an open meeting.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By RogerB on 02/25/2015 2:12 PM
Posted By TedH on 02/25/2015 9:46 AM
The Board/management posted a notice indicating that there will be a special Executive Session meeting to discuss "LEGAL ISSUES" and no homeowners will be allowed.
I can understand if the board is going to discuss a legal issue concerning a particular owner(s), then I don't need to be in that meeting. However, if the board is going to discuss a legal matter that may affect the HOA as a whole, then it's different and owners must be allowed in that meeting. Your thoughts?
Thanks!


My thoughts: You are mistaken. If the Board decides after a special session to take an action which will affect all homeowners that must be disclosed. Any motion and followup action may not be taken in the special session; that may only be done afterward in an open meeting.

Ted

I agree with Roger. The BOD was elected to represent all thus no need to always look over their shoulder concerning each and every decision. Not that you (or anybody for that matter, myself included) will always always agree but if elected then we de facto gave them their authority. If they get out of hand then "pull" that authority back via recall, elections, etc. rather then pi$$ and moan at each of their decisions.

KerryL1 (California)
Posts: 14,550
Posted:
Ted wrote that the ES is for "legal issues." It could very well be that the information is confidential and/or privileged and should not be divulged to H/Os at this time so as not to jeopardize a possible HOA legal case.
CfD (Virginia)
Posts: 265
Posted:
Board should state clearly in a motion in an open meeting specifically what they want to enter executive session for. It has to be recorded in the minutes of a properly noticed board meeting, and all members have the right to attend, hear the motion, and speak at all open board meetings. If the board is simply saying they want to go into executive session to discuss "legal issues" they are not meeting the requirement outlined in Va state code in my opinion. If they want to enter executive session to meet with "legal counsel" about a certain topic allowed in paragraph C of 55-510.1, then that would be different. They would need to make the motion in respect to this.

KerryL1 (California)
Posts: 14,550
Posted:
VA 55-510.1, C, also says, Cfd, that the board may meet in ES to "discuss pending or probable litigation." In that phrase, there is no mention of a requirement for an attorney to be present. A key word is "probable."

It might be the Board has heard a rumor that an H/O is thinking about suing and the board wants to discuss It. It might be the Board is considering legal acton against an HOA vendor. It might be the Board wants to discuss "probable" construction defect action against the developer.

In CA, and I think we're similar to VA here, the word is "potential" litigation and no attorney is required to attend such an ES in CA either.

RichardP13 (California)
Posts: 163
Posted:
Our HOA Board meets in ES BEFORE the general session. There are five topics that are allowed to be discussed in ES. On the agenda, there is time allocated for the Board or manager to put into the minutes what was "GENERALLY" discussed in ES. There will be no specifics, no names or companies. If there is a contract to be approved from meeting with three vendors, that has it own time slot, as with the lien or collection process, using either account numbers or APN numbers.
KerryL1 (California)
Posts: 14,550
Posted:
That is (just) one distinction between us in CA and Boards in VA. Apparently, in VA they must convene an open meeting and then adjourn to go into ES.

In CA, as you point out, Richard, boards can call an ES meeting whenever they like. We tend to hold ours, too, before our monthly open meeting. We in CA are, as you know, required to post a notice and (vague) agenda 48 hours in advance of ES.
CfD (Virginia)
Posts: 265
Posted:
I hear you Kerry. If the board is meeting in executive session to address "pending or probable litigation" they need to simply reference that in the motion and not say "legal issues". Va. code allows several reasons to discuss topics away from members, but the members need to know specifically which reason the board wants to go into executive session for. It is part of board transparency.

To meet with legal counsel is just one of the permitted reasons. I never said an attorney is required to be there?

Members don't need to speculate on what "might" be the reason for entering executive session. The Board is required to tell the members the specific reason in a motion.

As you probably know, I strongly advocate complete board openness. I don't even like executive sessions. Every one I've been part of is abused in some way with board members discussing improper topics in private and away from members.

Also can't stand the constant use of board email, which is essentially unnoticed executive session.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
If I correctly recall CfD's overall tone/belief is that a BOD can do nothing without 100% owner (especially his) approval.

Do I have that right?

KerryL1 (California)
Posts: 14,550
Posted:
You'll be happy to know that our HOA never talks about improper subjects in ES. Too many of us can recall a previous Board that did!

I'm sure that many directors on the forum follow their state laws. I'm sorry that you were unable to persuade the illegal board in on the ES's that you've been a part of to follow the laws.

CfD (Virginia)
Posts: 265
Posted:
And if I have this right John, you believe that since a board is elected they are always right and should never be questioned, ever. What the board says goes. Do I have that right?
JohnC46 (South Carolina)
Posts: 14,265
Posted:
CfD

I believe the BOD has the right/obligation to do what they were elected to do and this includes using their authorized power.

I believe when major issues arise a smart BOD will ask for owner input as a guideline, but the BOD has the ultimate authority.

As an example. Our BOD interviewed 3 Management Companies and we decided which of the 3 to select. We are presently interviewing 3 landscaping companies and we will make a choice. We felt no need for owner input on any of these "major" decisions. We are authorized to make them.

More then likely later this year we will be raising the dues by 10% (we do have the authority). This comes after the dues have not been raised in 6 years. We will document it, spread sheet it, talk it up, justify it, etc. We will be holding a General Owner Meeting and allow owners to speak for and against but we fairly well know if owners had a vote, it would get turned down. There will be owners screaming for a vote on it. I know some will gather petitions against it. Once all is said and done, I expect we will implement it. If enough owners do not like it, then recall us.

With command, comes responsibility.

CfD (Virginia)
Posts: 265
Posted:
"Command"? Really? We're commanding the homeowners now?? I'd never go that far, but I do agree that sitting on a board comes with responsibility. Honesty and transparency are two of those responsibilities.

I have no problem with any board making any decision within the authority granted to them in their governing documents and within the confines of the state laws where they reside, and I've never suggested otherwise, despite your insinuation.

What I've seen out of you and a few others on this site is when you can't argue with a poster's logic, you attack the poster. It is both unnecessary and childish.

I'm not sure, but I believe you live in a state where open board meetings may not be a requirement. Again, I'm not sure, but perhaps that is where the crux of our differences originates. In Va, board openness and transparency are required by law, period. When entering executive session the law here requires that a board be very transparent about the reasons for going into executive session to keep the discussion out of hearing range of the members. That transparency must be conveyed in an open board meeting first by way of a proper motion.

The OP in this thread lives in Virginia.
TimB4 (Tennessee)
Posts: 21,059
Posted:
As I'm reading this thread, I believe that what CF is trying to say is that the Board needs to be a little more specific in identifying the reason for use of the executive session.

Using the issue within this thread, examples would be:

Do not say: Entering Executive Session for "LEGAL ISSUES" (using the OP's statement of what their Board said)

Do say: Entering Executive Session to discuss pending legal action for delinquent account

OR Entering Executive Session to discuss legal opinion on xyz

OR Entering Executive Session to discuss legal action brought by member

I do believe that their is a way to keep confidentiality where privacy concerns or legal strategy is required to be kept confidential yet provide enough specifics to let the membership be aware of what may be occurring which can affect them.
CfD (Virginia)
Posts: 265
Posted:
Exactly Tim.

Executive session is never a requirement, even to discuss those things permitted to be discussed in executive session. While some board members may think a particular legal matter should be discussed in secrecy, a majority of the board may not, and therefore no executive session happens and the discussion about the issue should take place out in the open. This is why Virginia emphasizes the use of motions in an open board meeting to enter executive session, and requires the motion be recorded in the minutes.

TedH (Virginia)
Posts: 7
Posted:
Unfortunately, our board members and management, with the support of our HOA attorney, believe they are above the law.

Thank you CfD and Tim for your time to make it this subject matter CLEAR. I also thank all the members who replied to my OP.

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