💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

JonathanR1 (Georgia)
Posts: 54
Posted:
Hi all,

So, full disclosure, this question is not actually about my HOA; rather, it is about another organization, also a non-profit, and I assume that the concepts would be the same as an HOA. Hopefully it's not super against the rules to ask a question about a non-HOA thing. Anyhow, briefly, I go to a dance that is hosted by an organization. The organization is falling apart and sees bankruptcy a year off. The organization is a non-profit organization in the state of GA, and I don't know of any reason why it wouldn't be governed by the exact same laws as my HOA (also a non-profit organization in the state of GA), minus the section of GA Code that specifically relates to HOAs but would not be applicable to this organization in question. My HOA and this organization both have bylaws, articles of incorporation, etc. The only real difference is that the organization has no membership in the way that an HOA does, only a board of directors and committees. The board is open to everyone voluntarily walking away and letting new leadership take over. Would it be possible for the board to, as a last act, change bylaws by unanimous vote to remove any obstacles from new leadership being simply assigned to their new positions? Essentially, a willing BOD facilitating a handover to a new board. Again, the only difference seems to be that in this situation, we have no "membership" that needs to be okay with it.

Thanks, and my apologies if this is against forum rules!
SheliaH (Indiana)
Posts: 6,964
Posted:
An HOA isn't exactly the same as a non-profit, although they have boards and Bylaws, so you're better off going to a private attorney for this one.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
TimB4 (Tennessee)
Posts: 21,059
Posted:
I would expect that the Board would have to comply with the terms of the Bylaws in amending them.

Personally, if I was on the board leaving, I'd let the new board take care of amending the bylaws if they saw a need.
JonathanR1 (Georgia)
Posts: 54
Posted:
Quote:
Posted By TimB4 on 10/08/2017 1:10 PM
I would expect that the Board would have to comply with the terms of the Bylaws in amending them.

Personally, if I was on the board leaving, I'd let the new board take care of amending the bylaws if they saw a need.

Well, I only mentioned this in case the bylaws didn't have a mechanism for just letting the board dissolve and have new people take their place. I suppose this could be something codified in GA law though?
TimB4 (Tennessee)
Posts: 21,059
Posted:
Without looking at the statute, I expect it allows the remaining board member to appoint others to fill vacancies.

Hence the procedure would be for the existing board to appoint someone to a vacancy and then the rest resign and let that individual appoint the remainder of the group to the board.

Basically, this is simple notations within the minutes.

Take a look at the applicable corporate statute.
JonathanR1 (Georgia)
Posts: 54
Posted:
Quote:
Posted By TimB4 on 10/08/2017 1:14 PM
Without looking at the statute, I expect it allows the remaining board member to appoint others to fill vacancies.

Hence the procedure would be for the existing board to appoint someone to a vacancy and then the rest resign and let that individual appoint the remainder of the group to the board.

Basically, this is simple notations within the minutes.

Take a look at the applicable corporate statute.

Yeah, that actually makes sense. Sounds easy enough, but I'll check out GA code again on it. Thanks!

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

  • ✓ Ask follow-up questions
  • ✓ Share your experience
  • ✓ Get expert advice
  • ✓ Access 350,000 discussions
Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here