Board of Directors terms

Started by SandyC • 5 replies • 1556 views

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SandyC (West Virginia)
Posts: 18

Posted:

What is the rule on terms when ONLY in the Bylaws does it state HOA has 3 Board of Director positions - 2 positions for a 2 year term and one position a 1 year term. But does not state which positions for which terms.

RobertR1 (South Carolina)
Posts: 5,164

Posted:

Sandy,
Maybe that is your initial Board. As far as what positions with the Board, say President, secretary and treasuer, let the Board decide who gets what. That will be their first official action, and sure as shootin, some one will object. In the long run, it makes no difference. The board always elects their own officers.

RogerB (Colorado)
Posts: 5,067

Posted:

Quote:

Posted By SandyC on 08/24/2007 6:11 PM
What is the rule on terms when ONLY in the Bylaws does it state HOA has 3 Board of Director positions - 2 positions for a 2 year term and one position a 1 year term. But does not state which positions for which terms.

In such a case this is determined during the election of the Directors. One method would be: when there are 4 candidates for three postions. It can be established that the 2 getting the highest number of votes are for 2 year terms and the third highest vote getter is elected for the 1 year term. The next year there would be 1 opening for only 1 year. And the third year the procedure could be the same as the first year. And so on ...

I prefer 3 year terms and when there are 3 Board members have 1 elected each year.

PaulM (Pennsylvania)
Posts: 1,347

Posted:

SandyC:

Normally, the candidates receiving the greater amount of votes take the longer-year term and the one receiving the least votes takes the shortest term of 1 year. However, it is usually the Board members who decide who will assume what position (Pres.,V.P.,Secy/Treas.?). It is the members who decide by vote who will have a 'seat' on the Board, but not the offices/positions on the Board.

There is a problem, however, with having a bylaw which states 2 positions for 2-years, and 1 position for 1 year, AT THE FIRST ELECTION.
If you hold the first election as you have said your bylaws state, after year 1 you hold an election for the 1 term vacated and the other 2 remain for one more year; at the end of the second year, you must hold an election for the 3 terms vacated all at once, and you then are left with no VETERANS remaining on the Board and starting the third year with all new people. This is not an ideal situation.

It is far better for the FIRST election only, to institute terms of 3 years, 2 years and 1 year. It would mean your bylaw would have to be changed according to the process dictated in them; but read to learn if it states anything different regarding election at turnover....
If you change the first election for 3 seats to terms of 3, 2, 1-years, you can then follow up with terms of 2, 1-years, and always have a veteran 'on Board'.

It sounds confusing, but try to create a chart for yourself using the 2 scenarios of term length of office to see how it could work, or not.

It would be interesting to learn of other associations who have gone through this situation.

It is important to have a VETERAN board member in a 'seat' on the Board at all times, to assist the 'newbies' in Board business which has transpired. This cannot always be reality due to resignations or otherwise, but it is the ideal.

SandyC (West Virginia)
Posts: 18

Posted:

The Builder turned over HOA to residents (12 houses). The management company handling the HOA for the builder turned it over to the residents and told to elect a President, Secretary and Treasurer. No other persons elected for anything. Voting was equal. No other members. The Bylaws do not state who would have the 2 year and who would have the 1 year

RobertR1 (South Carolina)
Posts: 5,164

Posted:

Sandy,
I suppose you have resolved this by now. Comment: The management company that turned the regime over to the owners have no say in what you do. Follow the By-laws and do what you want. If the by laws say you should have a president, secretary and treasuer, the three elected members get their first crack at making logical solutions.

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