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SuzieE (California)
Posts: 20
Posted:
Some of the backstory to my situation is that I am on the Board along with my spouse. Our Assoc is a small, less than 10 unit property in CA with 3 board members. Participation is very low. This year is the first year I was elected to the Board. The other board member, besides my spouse was the previous Pres. She hired the MC that we currently have. Previous Board did not follow the responsibilities of the positions they were elected to. The MC did what they wanted to & ignored what they didn't want to do. The previous board never questioned the MC. I believe the previous Pres may be alson getting a reduction is the monthly assessement that she pays....The books/accounting of her assesments look "off". At the last Board meeting, the board voted to execute a contract for a new MC effective Jan 1st. Today the MC sent the Board a recall petition that the other board member had circulated for a petition to call a special meeting of the members for the purposes of removing all the directors and electing their successors.
Has anyone had experience with this process? Who is responsible for setting time & date of a special meeting?
RichardP13 (California)
Posts: 3,868
Posted:
Suzie,

First I would look at the exact wording of the petition, especially since you suggested that the other Board member circulated the petition.

Second, once the petition has been received by the Board, they have 20 days in which to set a meeting date. That date then can be as far out as 90 days. So, you could set the date 110 days from today, if the petition was received today, for example.

Most likely, you have cumulative voting in your Bylaws, which means, it is almost literately impossible to recall someone because of the formula used.

If you signed a new contract for a PM starting Jan 1st, then the old PM should be out of the picture by the time any meeting is held.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Suzie,

How many units are in your association? You only say less than 10.

My first question is how does the MC get into the recall picture? Why was the petition delivered to the management company and not directly to the board? Is it even legal for the MC to be the middleman in this process? Davis-Stirling indicates that unless there are other provisions in your bylaws that a petition is supposed to be personally delivered to the board, an officer, or a director. No mention of MC involvement on D-S. The board may want to consider rejecting the petition on procedural grounds.

My understanding is that only 5% of the members must sign the petition, and in your case that is merely one member. Aside from the president, did anyone else sign? Who is the target of the recall?

If I were in your situation I would circulate another recall position to remove the president. I would make it known that she was in cahoots with the MC, that under her watch the books are suspicious, that you suspect she has not been paying her full assessments, and you believe that this reduction in assessment is a kickback for steering business to the MC. You need not be afraid of a defamation lawsuit as you are all political figures.

RichardP13 (California)
Posts: 3,868
Posted:
Quote:
Posted By LarryB13 on 11/30/2015 2:27 PM
Suzie,

How many units are in your association? You only say less than 10.

My first question is how does the MC get into the recall picture? Why was the petition delivered to the management company and not directly to the board? Is it even legal for the MC to be the middleman in this process? Davis-Stirling indicates that unless there are other provisions in your bylaws that a petition is supposed to be personally delivered to the board, an officer, or a director. No mention of MC involvement on D-S. The board may want to consider rejecting the petition on procedural grounds.

My understanding is that only 5% of the members must sign the petition, and in your case that is merely one member. Aside from the president, did anyone else sign? Who is the target of the recall?

If I were in your situation I would circulate another recall position to remove the president. I would make it known that she was in cahoots with the MC, that under her watch the books are suspicious, that you suspect she has not been paying her full assessments, and you believe that this reduction in assessment is a kickback for steering business to the MC. You need not be afraid of a defamation lawsuit as you are all political figures.

Larry

The person was the former president.

As a management company, we are generally listed as the agent with the Secretary of State and that is where the mail goes, part of our Annual Disclosures Statement.

As far as conducting an election, the managing agent can't get involved in the election process UNLESS the association has election rules giving a management company the authority to do so. Because of the size, I am guessing they don't.

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