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RobertaS2 (Michigan)
Posts: 81
Posted:
Another question here for this fine group:

We have a Board with seven members. One is permanent. (Appointed to represent multi-family units), and six others who are supposed to run for election every two years on alternating years.

Our last month election was the first in years to have a quorum of members, so, as I understand it, they are now correctly elected Board Members.

The other three Board members have been sitting for some time, but were never at any time elected by a required quorum before.

Technically, the bylaws state that, lacking a quorum in an election, the Board should just adjourn and try again later. So they just continued to sit. They are also not "appointed" (appointments are allowed by elected Board members in our bylaws in the case of empty seats) by officially elected Board members to serve out positions until the next election rotation they are appointed to serve.

In the past, the Association lawyer said, well just continue as if you were legal until you get legal (i.e., have enough votes to be legally elected).

Now that we have three legal Directors/Board Members, how should the other ones be addressed?

Should the Board call another election until they are legal? Can they just be excused by the legally elected Board Members who can then legally appoint them back or appoint others?

Thanks!
SheliaH (Indiana)
Posts: 6,964
Posted:
You didn't say how often the board tried to get a quorum to hold a proper election, but it seems to me if last month was the first time you finally got one, it would have been easier to hold elections for all of them - why didn't you?

If you're on the board, have you discussed this with your colleagues and perhaps the association attorney? Since this issue has to do with compliance with your Bylaws regarding Board elections, you should do so to be safe (and protect the association in case someone makes a protest).

It might be best for the remaining three to step down and let the recently elected board members either reappoint them -
and require them to run next year to restart their terms, or they can bring in new people. That being said, remember experience is a factor - if the three board members have a lot of experience and history the newbies can learn from, I'd say let them stay for now, but have them run next year. From there, restart the clock for everyone with staggered elections (2 one year, 2 the next, and three the year after that).

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
RobertaS2 (Michigan)
Posts: 81
Posted:


I think the board tried to get a quorum for over ten years. I would have loved to have a complete election - there were six running for three slots. However, the three not up for re-election were dead-set against that.

I like your idea:
"It might be best for the remaining three to step down and let the recently elected board members either reappoint them -
and require them to run next year to restart their terms, or they can bring in new people."

But can that be enforced? If so, by who? The new Board members that were just finally properly elected?

What if the nonlegally elected BODs won't quit?
RobertaS2 (Michigan)
Posts: 81
Posted:
And, oh yeah, the Association Attorney here seems to represent the illegally sitting BOD members personally rather than the Association.

So... how do I get an HOA Attorney to help me/us/the members? Where would I find one?

And how much might that cost if the situation remains static and so no Association funds come to rescue me/us from having to pay out of pocket for their services?
JanetB2 (Colorado)
Posts: 4,219
Posted:
You need to look at your state laws. Most states if there is not a quorum allow the current members to serve again until the next election for their position or the annual meeting is rescheduled for a later date to see is quorum is achieved and election can take place. If the membership does not like them I guess they should have showed up to replace them at the annual membership meeting ... LOL. Potentially your only other alternative if you do not want to wait is to recall those members; however, you need to be sure to have individuals willing to step up to the plate prior to taking such action.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By RobertaS2 on 09/26/2017 8:59 AM

Technically, the bylaws state that, lacking a quorum in an election, the Board should just adjourn and try again later.

Should and must are two different things (one being an option and the other a requirement).

I suspect that the board has the option not a requirement to try again later.

Quote:
Posted By RobertaS2 on 09/26/2017 8:59 AM

Now that we have three legal Directors/Board Members, how should the other ones be addressed?

They are Directors and should be addressed as such.

Quote:
Posted By RobertaS2 on 09/26/2017 8:59 AM

Should the Board call another election until they are legal?

Again should they? perhaps. However, the question is must they?

Quote:
Posted By RobertaS2 on 09/26/2017 8:59 AM

Can they just be excused by the legally elected Board Members who can then legally appoint them back or appoint others?

As Janet pointed out you need to look at applicable statutes.

Expecting that your Association is incorporated as a nonprofit (most are, but check to be sure),
then the Michigan NONPROFIT CORPORATION ACT would apply.

Per Sec. 505 of that act [emphasis added]:

(4) A director shall hold office for the term for which he or she is elected or appointed and until his or her successor is elected or appointed and qualified, or until his or her resignation or removal. A director may resign by written notice to the corporation. A resignation of a director is effective when it is received by the corporation or at a later time if a later time is stated in the notice of resignation.

Hence, in my opinion, it appears that they are legally seated.

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