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BrentS5 (North Carolina)
Posts: 41
Posted:
Team,

My HOA has only ever had three roles President, VP, And Secretary. All of which have resigned. No successors.

We must now instate a board of directors. Who will then elect the three officers above.

How do we accomplish this? How do we move forward?
GeorgeS21 (Florida)
Posts: 3,808
Posted:
Do you have copies of and understand all your docs? CCRs? Bylaws? Articles? Do the CCRs tie everyone together via deeds? Do the Bylaws provide how there membership calls meetings, how many directors, etc?

Your Bylaws should tell you how to call a special meeting for removing ... or replacing ... or something related to major action. Meet the requirements for the meeting to be called, fire the old team, hold an election for the new Directors, have a Board of Directors meeting and elect the new Officers.

Lots of work, but worth it for the community - assuming the WANT this to occur.
PaaN
Posts: 219
Posted:
ps.

unless they resigned IN WRITING they are still directors - to WHOM did the 'last man standing' present said resignation ?

remind them of the meaning of 'Fiduciary Duty' for which they VOLUNTEERED

submit your petition for the special membership meeting to 'the last man standing'
BrentS5 (North Carolina)
Posts: 41
Posted:
Yessir. I appreciate that. It does say what to do for special meetings.

I will tell the neighborhood no business will be conducted in today’s meeting. I will explain the process of voting in a board and we will schedule the next meeting. That is all.
BrentS5 (North Carolina)
Posts: 41
Posted:
I resigned via Facebook post. The VP resigned via email to the neighborhood.
PaaN
Posts: 219
Posted:
Y'all need to resign in writing (addressed to the Registered Agent).

Until y'all do so, y'all are STILL directors.

Check NC not-for-profit corporate law
JenniferG11 (Texas)
Posts: 667
Posted:
Quote:
Posted By PaaN on 08/18/2018 8:40 AM
Y'all need to resign in writing (addressed to the Registered Agent).

Until y'all do so, y'all are STILL directors.

Check NC not-for-profit corporate law

This is great news, Bent. you are still the President. There is still time to sway votes.
KerryL1 (California)
Posts: 14,550
Posted:
Back to your OP, Brent. Once you have a board of directors of three, if that's what your bylaws say you need, the three of you will vote for officers. Voting for oneself is fine.
RichardP13 (California)
Posts: 3,868
Posted:
Quote:
Posted By PaaN on 08/18/2018 8:40 AM
Y'all need to resign in writing (addressed to the Registered Agent).

Until y'all do so, y'all are STILL directors.

Check NC not-for-profit corporate law

Really, so if you resigned in person in front of the whole community, LEGALLY that would not cut it?

Can you cite evidence for that?
SueW6 (Michigan)
Posts: 814
Posted:
The next meeting of board, your resignation would be accepted and entered into the minutes. That's the legal record.

But your shout-out was good enough so that your can feel that your "job" has ended and you are no longer a spokesperson for the Board.

Refer anything to the new board - when it gets established.

A special meeting should be called - by the Members - and a Board elected then.

PaaN
Posts: 219
Posted:
Quote:
Posted By RichardP13 on 08/18/2018 12:42 PM
Posted By PaaN on 08/18/2018 8:40 AM
Y'all need to resign in writing (addressed to the Registered Agent).

Until y'all do so, y'all are STILL directors.

Check NC not-for-profit corporate law


Really, so if you resigned in person in front of the whole community, LEGALLY that would not cut it?

Can you cite evidence for that?

https://simmondsstewart.com/templates/letter-of-resignation-as-a-director/

Under the Companies Act 1993, a director may resign as a director of a company by signing a written notice of resignation and delivering it to the address for service of the company. The notice is effective when it is received at that address, or at a later time specified in the notice.


RichardP13 (California)
Posts: 3,868
Posted:
Quote:
Posted By PaaN on 08/18/2018 1:08 PM
Posted By RichardP13 on 08/18/2018 12:42 PM
Posted By PaaN on 08/18/2018 8:40 AM
Y'all need to resign in writing (addressed to the Registered Agent).

Until y'all do so, y'all are STILL directors.

Check NC not-for-profit corporate law


Really, so if you resigned in person in front of the whole community, LEGALLY that would not cut it?

Can you cite evidence for that?


https://simmondsstewart.com/templates/letter-of-resignation-as-a-director/

Under the Companies Act 1993, a director may resign as a director of a company by signing a written notice of resignation and delivering it to the address for service of the company. The notice is effective when it is received at that address, or at a later time specified in the notice.



And you think no one would call BS on you. The link you cited has offices in New Zealand and Singapore.
PaaN
Posts: 219
Posted:
Quote:
Posted By RichardP13 on 08/18/2018 1:14 PM
Posted By PaaN on 08/18/2018 1:08 PM
Posted By RichardP13 on 08/18/2018 12:42 PM
Posted By PaaN on 08/18/2018 8:40 AM
Y'all need to resign in writing (addressed to the Registered Agent).

Until y'all do so, y'all are STILL directors.

Check NC not-for-profit corporate law


Really, so if you resigned in person in front of the whole community, LEGALLY that would not cut it?

Can you cite evidence for that?


https://simmondsstewart.com/templates/letter-of-resignation-as-a-director/

Under the Companies Act 1993, a director may resign as a director of a company by signing a written notice of resignation and delivering it to the address for service of the company. The notice is effective when it is received at that address, or at a later time specified in the notice.




And you think no one would call BS on you. The link you cited has offices in New Zealand and Singapore.

OOPS
Did not do my 'legwork', simply posted the 'quote' w/o checking

Let's try again:

https://bizfluent.com/how-7556729-resign-nonprofit-board-directors.html
"Check the nonprofit's bylaws for guidelines on board resignation. Most will simply ask for a written letter with the resignation's effective date ....."

South Carolina Corporate Law:
ARTICLE 8.

DIRECTORS AND OFFICERS

SUBARTICLE A.

BOARD OF DIRECTORS

SECTION 33 31 807. Resignation of directors.

(a) A director may resign at any time by delivering written notice to the board of directors, its presiding officer, or to the president or secretary.
(b) A resignation is effective when the notice is effective unless the notice specifies a later effective date. If a resignation is made effective at a later date, the board may fill the pending vacancy before the effective date if the board provides that the successor does not take office until the effective date.

I do NOT invent this stuff as I bumble along.

The fact that a HOA Manager is unaware of proper procedure .................. ?

PaaN
Posts: 219
Posted:
A (Florida) Court Ruling:

http://www.kbrlegal.com/court-rules-on-manner-of-director-resignations/


In an oddly reasoned opinion, the Florida First District Court of Appeal has issued a ruling that director resignations should be in writing in order to be valid and enforceable. In the case of Pain Reduction Concepts, Inc. v. Frisbie and Paint Science Solutions, Inc., Case No 1D11-3928, April 24, 2013, the Court reviewed the resignations requirements under Chapter 607 of Florida Statutes (the Florida Corporations Act). Although community associations in Florida are subject to Chapter 617 F.S. (the Florida Not-For-Profit Corporations Act), the provisions on resignations are substantially the same in both statutes. As such, if this decision is not further appealed or there is no other appellate court ruling to the contrary, the holding of this case will have application to community associations in Florida.

The Court reviewed the statutory provision that states: β€œ[a] director may resign at any time by delivering written notice to the board of directors or its chair or to the corporation. . .β€œ and reached the conclusion that a resignation must be in writing, noting that the word β€œmay” is applied to the act of resigning, as opposed to the method of delivery of the resignation. While this decision is contrary to that reached in other jurisdictions considering substantially similar statutory language (notably Delaware), there is no other reported decision on the topic in Florida. As such, until such time as there is another appellate decision or a change in the legislation, the ruling of this case is the law in Florida.

Many associations have reported over the years that, in the heat of the moment at a board meeting, a board member verbally resigned and left the meeting, only to later claim that he or she changed his or her mind on the issue, attempting to rescind the resignation. In other instances, the resigning individual verbally quits and refuses to further participate in the operation of the community. So as to avoid potential confusion and discord on such issue in the future, should a member of the board verbally resign during a meeting or otherwise, it is recommended to obtain a written statement of the resignation from that individual. Of course, the possibility exists that a resigning individual may refuse to provide a written resignation. However, if such individual also refuses to attend meetings or otherwise participate actively as a director, significant problems for the association can exist in operating the association. Consequently, in order to best avoid the possibility of the problems that can occur, the association should consider adopting an amendment to the bylaws of the association to allow for verbal notifications, which is expressly authorized in Section 617.0141 F.S. {sic, the amendment, not the 'verbal'}

RichardP13 (California)
Posts: 3,868
Posted:
MAY
PaaN
Posts: 219
Posted:
ps.

the 'foreign':

Under the Companies Act 1993, a director may resign as a director of a company by signing a written notice of resignation and delivering it to the address for service of the company. The notice is effective when it is received at that address, or at a later time specified in the notice.

is merely SLIGHTLY different from the South Carolina :

(a) A director may resign at any time by delivering written notice to the board of directors, its presiding officer, or to the president or secretary.
(b) A resignation is effective when the notice is effective unless the notice specifies a later effective date. If a resignation is made effective at a later date, the board may fill the pending vacancy before the effective date if the board provides that the successor does not take office until the effective date.

It would seem that WRITTEN resignations are STANDARD and internally required

Evidently:

a corporation is a corporation

a trustee/director is a trustee/director

law is law
PaaN
Posts: 219
Posted:
..... β€œ and reached the conclusion that a resignation must be in writing, noting that the word β€œmay” is applied to the act of resigning, as opposed to the method of delivery of the resignation.


The director 'may' resign (slavery has been abolished), but, MUST do so in writing.

PaaN
Posts: 219
Posted:
..... It would seem that WRITTEN resignations are STANDARD and internally required. .....


INTERNATIONALLY

GenoS (Florida)
Posts: 4,276
Posted:
Quote:
Posted By PaaN on 08/18/2018 3:22 PM
Of course, the possibility exists that a resigning individual may refuse to provide a written resignation. However, if such individual also refuses to attend meetings or otherwise participate actively as a director, significant problems for the association can exist in operating the association.

This happened in my HOA a few years ago. A director got very upset over something (it was some off-the-wall accusation of kickbacks to the president that took place 8 years prior) and when the board refused to consider taking action on the matter he resigned and went into radio silence. He verbally resigned and for 4 months didn't attend any meetings. When various board members pleaded with him to send a written resignation the guy demanded that all communication with him go through his lawyer. It was very bizarre. He finally did send the letter. Whether he paid his attorney for that advice or not is something we still chuckle about.
GeorgeS21 (Florida)
Posts: 3,808
Posted:
I’m thinking that if this silliness over how a director of an HOA resigned went to court, the judge would sigh ...and, accept any common form of resignation, including verbal at a meeting, written on tp, announced via email, etc, etc.

Time to move on :-)
PaaN
Posts: 219
Posted:
No, the judge in Florida would NOT sigh, he would merely enforce the EXISTING case law.
(or probably be overturned upon appeal)

..... In an oddly reasoned opinion, the Florida First District Court of Appeal has issued a ruling that director resignations should be in writing in order to be valid and enforceable. .....


begin rant

y'all need to actually read a post before replying

end rant
GeorgeS21 (Florida)
Posts: 3,808
Posted:
Sheesh.
KerryL1 (California)
Posts: 14,550
Posted:
We've had a couple of outraged, on-th-spot- "resignations, and I've always emailed the PM right afterward to get it in writing with an effective date. Why risk trouble from someone who changes their mind??
PaaN
Posts: 219
Posted:
legal 'rule-o-thumb':

if it ain' in writing it don' exist

sheeesh sheeesh
GeorgeS21 (Florida)
Posts: 3,808
Posted:
PaaN,

Is there a point where you think about whether you are being helpful - or just satisfying an urge to comment?

Not trying to start a fight, but we do need to remember the purpose of this mechanism.
PaaN
Posts: 219
Posted:
point acknowledged

JenniferG11 (Texas)
Posts: 667
Posted:
How long are this guy's proxies good for? Were they just for the vote on buses and such, or all voting rights for X amount of time>
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Brent

You missed an opportunity to replace BOD Members. Let them resign except you and as the only one left you could appoint another person. then the two of you appoint another, then the 3 of you appoint another, etc.

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