JohnL26 (Florida)
Posts: 89
Posts: 89
Posted:
By virtue of a Special Meeting of members our Association (Florida non-profit) had its first election since 2006 in June of this year. All 5 seats were filled.
Our documents specify 3 year terms and some people are calling for an election at the upcoming AGM in December because they have had legal advice that the election in June was simply to replace holdover directors and that there is a 3 year cycle based on the 2006 election (I'm not sure if it's relevant but this was the first election after formation in 2005 and this was also at a Special Meeting in I think July).
We don't have anything in our Governing Documents to suggest there are staggered terms and I've seen an Arbitration Case where this 3 year cycle has been enforced (http://www.myfloridalicense.com/dbpr/lsc/arbitration/allorders/2010022497.pdf) but this was based on the fact that FS 617.0806 applies when staggered terms are in operation, with the tribunal concluding "Holdover directors are not automatically appointed to the remaining portion of the term, they only serve a portion of the term until a replacement can be elected."
Not all 5 seats were in existence in 2006, 2 more were added in 2010. Does this mean we do have staggered terms with two of the seats having a different cycle?
If so, we have a problem because the directors elected in June do not know which seats they occupy.
FS 617.0809 states "Any directorship to be filled by reason of an increase in the number of directors may be filled by the board of directors, but only for a term of office continuing until the next election of directors by the members"
For the two seats we don't know the occupants of, would this mean the cycle is based on 2010? Or does it mean that the election in June started a new cycle and those 2 seats need not be voted on until 2018? Or something else?
Can anybody help?
Our documents specify 3 year terms and some people are calling for an election at the upcoming AGM in December because they have had legal advice that the election in June was simply to replace holdover directors and that there is a 3 year cycle based on the 2006 election (I'm not sure if it's relevant but this was the first election after formation in 2005 and this was also at a Special Meeting in I think July).
We don't have anything in our Governing Documents to suggest there are staggered terms and I've seen an Arbitration Case where this 3 year cycle has been enforced (http://www.myfloridalicense.com/dbpr/lsc/arbitration/allorders/2010022497.pdf) but this was based on the fact that FS 617.0806 applies when staggered terms are in operation, with the tribunal concluding "Holdover directors are not automatically appointed to the remaining portion of the term, they only serve a portion of the term until a replacement can be elected."
Not all 5 seats were in existence in 2006, 2 more were added in 2010. Does this mean we do have staggered terms with two of the seats having a different cycle?
If so, we have a problem because the directors elected in June do not know which seats they occupy.
FS 617.0809 states "Any directorship to be filled by reason of an increase in the number of directors may be filled by the board of directors, but only for a term of office continuing until the next election of directors by the members"
For the two seats we don't know the occupants of, would this mean the cycle is based on 2010? Or does it mean that the election in June started a new cycle and those 2 seats need not be voted on until 2018? Or something else?
Can anybody help?