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JeffB14 (California)
Posts: 9
Posted:
Recently we presented a petition for a special meeting for the purpose of removing the board of directors, the board responded within the 20 days saying they considered the petition invalid.
PETITION FOR SPECIAL MEETING
The undersigned members representing 5% or more of the,our HOA name was here, hereby petition that the board of directors set the earliest reasonable date, time and place for a special membership meeting for the purpose of, removing the board of directors of the our HOA name was here, and that notice and ballots be sent by the board to the membership as provided for in Corporations Code 7511 and Civil Code 5115. The petition was signed and names printed by 5% of the membership.
I do not believe the petition to be invalid and do not know how to enforce our due process.
Thanks
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Jeff

Far be it from me to know how CA does it but in other places, the BOD does not call the Special Meeting. Those desiring it plan it, organize it, set an agenda, name those running it, and call it.

A Special Meeting must have a specific purpose. If recalling BOD Members those being recalled must be named and then voted on. Those standing for election to replace those recalled must be named and voted on.

It is not up to the BOD to call a Special Meeting. A Special Meeting is not a well we do not like things bytching session. You will have to work to obtain such.

That all said, CA could be different.

KerryL1 (California)
Posts: 14,550
Posted:
What reason, Jeff, did the Board give you in writing for terming your petition invalid and refusing to call a special mtg.?

Below is from davis-stirling.com, which is compiled by attorney at a CA HOA law firm. Does your petition exactly follow this format? If so, enforcing your rights can be done by a bunch of your member getting together, writing a letter to the Board protesting their decision that you all think is incorrect.

Otherwise you'd have to hire an HOA attorney to hep you. what size is your HOA? Do you have a property manager?

"Recalls
Petition Percentage. Members may request a special meeting of the membership for the purpose of removing the entire board or individual directors and the election of new directors in the event the recall is successful. The petition must be signed by 5% or more of the membership (Corp. Code §7510(e)), meaning persons who are on title. The low percentage can lead to abusive recall petitions which associations can take steps to limit.

Delivery of Petition. Delivery of the properly signed petition to the board is generally addressed in the bylaws. If not, personal delivery to any officer, director or managing agent is sufficient to put the board on notice and start the clock running on the board's duty to set a date for the meeting. The petition may also be sent by certified mail to any officer, director or managing agent.

Setting Meeting Date. Once a proper petition has been submitted to the board, the board must set a date for the meeting and send notice to the membership. The board must also prepare and send ballots as provided for in Civil Code §5115(a)."

For more information, see Recall Menu, Davis-stirling.com,
KerryL1 (California)
Posts: 14,550
Posted:
You're right, JohnC, CA is different. But it's also true I have no experience in recalls.
DonA2 (Arizona)
Posts: 170
Posted:
Once the recall petition is submitted, it should be given to the property management company or the attorney for the HOA. It's not up to the Board at that point to determine whether or not the petition is valid. I third party must get involved.
JeffB14 (California)
Posts: 9
Posted:
Thanks all for the input.
California law is different than other states, I imagine all states have their own versions of how HOA are run.
Our board did not give a reason for considering the petition invalid. we just received a letter from the Management company stating that the petition was considered invalid and no further action would be taken wither by the board or the management company. We researched the format of the petition and used the davis-stirling site for much info and guidelines, which by the way for all California HOA members is the place to search for any questions you may have about the legal aspects of your HOA. This board is such that they will do all they can to hold on to their voluntary position, we just fear they will bankrupt us before they are done.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Jeff

Be it CA or not, recalls and Special Meetings are filled with fraught. You all requested one. The BOD threw it back in your lap saying not valid. Time for you recallers to put your money where your mouth is and lawyer up.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By JeffB14 on 11/16/2015 2:07 PM
Thanks all for the input.
California law is different than other states, I imagine all states have their own versions of how HOA are run.
Our board did not give a reason for considering the petition invalid. we just received a letter from the Management company stating that the petition was considered invalid and no further action would be taken wither by the board or the management company. We researched the format of the petition and used the davis-stirling site for much info and guidelines, which by the way for all California HOA members is the place to search for any questions you may have about the legal aspects of your HOA. This board is such that they will do all they can to hold on to their voluntary position, we just fear they will bankrupt us before they are done.

Jeff

Please clarify your statement "voluntary position".
JeffB14 (California)
Posts: 9
Posted:
JohnC by voluntary position I mean they are not paid to be on the board. We are trying to avoid the cost of lawyers but if that is what must be done then so be it.
KerryL1 (California)
Posts: 14,550
Posted:
Ah, a prop. mgr. A group of you should go visit her/him and ask why the Board considered the pet ion invalid.

In addition, review the PM's contract. Some contain a clause that says the Mgt. Co/PM should not conflict with the HOA's documents or state law. If the PM is disobeying statute, you can put pressure on her/him because you can report the company to the Better Business Bureau, etc
BonnieG1 (Nebraska)
Posts: 1,186
Posted:
My question is if a special meeting is called and the entire Board is removed are there people willing to take the place of the removed Board Members.

Unlike your documents our documents require that someone is willing to take the place of removed Board Member(s) removed by a special called meeting of the members.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Jeff,

I'd suggest two things.

1) Verify that your petition is as suggested in petition example on the davis-stirling site.

2) Verify that those who signed the petition were actual members of the Association and that you have more than 5% of the membership. Some typical issues with signatures can be: spouse signs but isn't listed on the deed; signature is that of a renter vs. a member.

If 1 & 2 prove to be accurate, then you may want an attorney to write a letter on your behalf to the Association and see if that can't kick start the election. Cost may be $300 to $500 for that to occur.

If 1 & 2 indicate issues, correct those issues and resubmit the petition via certified mail to the registered agent with a copy to each board member.
RichardP13 (California)
Posts: 3,868
Posted:
Jeff

Based on what you wrote the petition is VALID, as long as the required 5% of members signed the petition. If they consider it invalid, you have the ability to set the meeting date and run the election. Just follow the rules carefully for recalls.

DonA2 (Arizona)
Posts: 170
Posted:
The biggest problem we ran into was that we found a lot of signatures invalid. Our rules state that members must be in good standing in order to be a valid signature. So even if they are a valid home owner, if they are behind on dues, the signature is considered invalid. That is also why we had a third party (the Associations attorney) verify signatures.

Find out why the petition was considered invalid. If it was because of not enough valid signatures, continue gathering signatures. If it was because of a different issue, correct it and move forward.
RichardP13 (California)
Posts: 3,868
Posted:
Jeff

Some have suggested the petition might be considered invalid IF the member was not in "good standing". California Corporation Code §7341 requires that due process be followed prior to suspending one's right to vote OR sign a petition.
JeffB14 (California)
Posts: 9
Posted:
Thanks to all for the input.
RichardP according to what I have read about the special meetings we can set the date but only the board can send out the ballots our HOA is less than 50 eligible votes so it has to be conducted by secret ballot according to davis-stirling, since only the board can authorize the ballots being mailed, it would do us no good to set the date. Maybe I am misunderstanding the statute but if we could send out the ballots we certainly would do so and have an independent party conduct the vote tabulation.
JeffB14 (California)
Posts: 9
Posted:
KerryL1
I asked the Property mgmt. why the petition was considered invalid and was told they did not have to tell me, it seems that the mgmt. company in for some reason only acting as this board lap dog and not acting in the best interests of our HOA imo. I know that if we succeed in removing this board the new board will certainly revisit the contract with the mgmt. co and not renew it.
RichardP13 (California)
Posts: 3,868
Posted:
Jeff

Take both the Management Company and the Association to Small Claims Court for $5000. I bet they change their tune quickly.
JeffB14 (California)
Posts: 9
Posted:
BonnieG
if the board is removed then the mgmt. company would send out the paperwork to have nominations, and then the ballots to vote for new board members, the new board would then serve out the remaining term.
KerryL1 (California)
Posts: 14,550
Posted:
Since there needs to be a reason for recalling the board, as shown on the sample that Tim provided, what reason did you write? And was it written where it's supposed to be?
RichardP13 (California)
Posts: 3,868
Posted:
Jeff

According to Corporation Code §7222(a) Directors may be with or without cause. The reason for removal on the sample petition is for courtesy purposes ONLY.

Second, unless your association has printed Election Rules specifically for your association, they cannot act or conduct an election. Too many management companies skirt the statues when it comes to elections.

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