When is do the duties of the Newly board start?

Started by JK7 • 9 replies • 1161 views

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JK7 (California)
Posts: 22

Posted:

When do the duties of the Newly Elected board start?

Is it right after they get elected?

Or can we set a specific date so that we can have a transition period of Old Officers finishing off unfinished business and handing off any necessary information to the newly elected board officers?

Like any business, shouldn't we have some sort of planned transition so there's not so much chaos and disruption?

SheliaH (Indiana)
Posts: 6,964

Posted:

Check your documents first - usually, it's right after the election. However, a transition period is a good idea and I don't see any reason why you can't do both at the same time. It may be as simple as scheduling an organization meeting where all of this will be discussed. The outgoing board can help the newbies prioritize the unfinished business that should be addressed right away. the newbies should also be reviewing the documents, previous board meeting minutes and perhaps have a sit down with the property manager to get better acquainted with association business.

If you're one of the board members (incoming or outgoing), now would be a time to establish some procedures as to how the transition will be handled. I'd also throw in mandatory (at least STRONGLY ENCOURAGED) training for new board members if they've never been on an HOA board before. The website of the Community Associations institute has some great education materials aimed at new board members. Use that and adapt it what your association needs. Good luck!

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

SueW6 (Michigan)
Posts: 814

Posted:

Unless your bylaws say different, the new board meets immediately after the election meeting to set the date of their first board meeting (officers may be elected at that time).

The turnover of all materials should be done by that time.

"Unfinished business" issues can be related during a new president - old president discussion.

The new board will have no unfinished business; there is only current issues to attend to.

TimB4 (Tennessee)
Posts: 21,059

Posted:

As others have said, the duties start after the tally count is announced.

Your bylaws may specify a specific time frame for the first meeting (ours specify within 10 days after the election).

At the first meeting, the Officers of the Corporation (typically the old Board members as Directors and Officers are two different positions) and the new Directors meet. At that first meeting, the new Board of Directors appoint Officers (they might even be willing to keep those who are still serving in those positions if not prohibited by the Bylaws). Arrangements are made to transfer records (some may happen that night others may be arranged between the old and new officers directly). Life goes on.

KerryL1 (California)
Posts: 14,550

Posted:

Heres' advice form the very useful website for CA HOAs, davis-stirling.com:

"Organizational Meeting. An 'organizational meeting' usually occurs immediately after the election of directors at the annual meeting and is listed on the annual meeting agenda. It gives new directors an opportunity to elect officers. An organizational meeting is an open meeting. If it is not held at the annual meeting, notice of the organizational meeting must be given to the membership in the same manner as any other open meeting."

Now, our Bylaws say the Org. Mtg. must be held as soon as possible after the annual meeting & election. What do yours say, JK?

We do hold our the same night as the election and proceed as others have suggested. As I recall from your previous posts, there are 3 new members on your board and 2 experienced ones. Typically the "vets" advise the newbies if there is no PM, which I don't think you have.

Has your new Board not elected officers yet?

I also advised, I think, that it might be worthwhile in your case to have your HOA attorney meet with your Board to guide you about the Open Mtg. Act, the Business Judgement Rule, etc. Look the latter up at the above website on their very useful Main Index.

KerryL1 (California)
Posts: 14,550

Posted:

Oh, I think I disagree with Sue: There very well may be unfinished Business on the New Board's agenda. An example might be that the old board sought proposals on x. The new board might vote to approve one of them.

PitA
Posts: 1,416

Posted:

When do the duties of the Newly Elected board start?[/q1uote]

Whenever "your" corporate bylaws state.

If bylaws are silent:

Whenever "your" state's corporate law says.

If corporate law is silent:

Whenever they can get away with it

OR

whenever the judge says.

SueW6 (Michigan)
Posts: 814

Posted:

Well, there's current business (reports), old business and new business, isn't there?

KerryL1 (California)
Posts: 14,550

Posted:

Not sure what you mean, Sue. Agendas do seem to be organized with Reports, e.g., Sec'y reports (minutes approval), treas. report committee reports, perhaps officer or mgmt. reports. Next up is Unfinished Business. If a "new Board doesn't want to deal with the Unfinished Biz items, I assume they simply vote to take no action on them or to postpone them. Next is New Business.

JanetB2 (Colorado)
Posts: 4,219

Posted:

Like any business they start immediately after elected. Most businesses I know with a change the new directors will evaluate any pending business to determine if appropriate. If is appropriate will vote yes if not will vote no. You also same as government officials need to determine if past issues is reason why you were elected? Did members elect you to pursue status quo or were you elected to possibly make a change?

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