More to the STR issue in Michigan

Started by CatF • 12 replies • 741 views

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CatF (Michigan)
Posts: 55

Posted:

First off, here is the history of what's been happening with our HOA and the BOD.
http://www.hoatalk.com/Forum/tabid/55/forumid/1/tpage/2/view/Topic/postid/256451/Default.aspx

Since then, there has been more nastiness via email between members and the President quit.
Subsequently, I quit my position and so did another member (one who was kind of the main guy supporting JJ the STR guy). There are at least two other people ready to step in and volunteer for positions on the board.

So, JJ (the guy who's basically in violation of the bylaws by renting his home out) emails everyone today and tries to take over and schedule a meeting at his house. The VP jumps in and says he's not available on that date and suggests two other dates, to which JJ says he's not available.
Then we get another email from JJ suggesting we cancel our March meeting and move up the annual homeowner meeting from August to June so that votes can be made for new members of the board.
It is apparent he is trying to get more of his own supporters on the board and trying to take over. Kinda funny that he is on the board in the first place and allowed to sit in on the STR discussion and create bylaws ensuring he is 1) grandfathered in and 2) able to ensure he has no competition!!

I am not even sure where we, as homeowners, should do at this point since it is so far off the rails.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

CAT

How many are left on the BOD? The BOD should be able to appoint people to fill any vacancies.

CatF (Michigan)
Posts: 55

Posted:

There are five people on the board now, out of a total seven.

CatF (Michigan)
Posts: 55

Posted:

The bylaws don't say anything about the BOD's ability to appoint anyone.

KerryL1 (California)
Posts: 14,550

Posted:

What about your state's corporation code (if you're a corporation)?

What do your bylaws say about annual meetings & elections? Ours, for instance, say something like annually within a month of the previous election.

CatF (Michigan)
Posts: 55

Posted:

The bylaws say that it is to be held the second Saturday in August.
We are a nonprofit corporation.

CatF (Michigan)
Posts: 55

Posted:

I am also wondering...are "condo bylaws" the same as "association bylaws" in Michigan? Our document refers to both separately.

AugustinD
Posts: 5,144

Posted:

As Kerry and John suggested, per the Michigan Nonprofit Corporation statute, your condo's board may appoint directors. From Michigan's Nonprofit Corporation Act:

Sec. 450.515a. (1) Unless otherwise limited in the articles of incorporation or bylaws, if a vacancy, including a
vacancy resulting from an increase in the number of directors, occurs on a board, the corporation may fill the vacancy in any of the following manners:
(a) The shareholders of a corporation that is organized on a stock basis or the members of a corporation that is organized on a membership basis may fill the vacancy.
(b) The board may fill the vacancy.
(c) If the directors remaining in office constitute fewer than a quorum of the board, they may fill the vacancy by the affirmative vote of a majority of all the directors remaining in office.
...

More at https://www.legislature.mi.gov/documents/mcl/pdf/mcl-Act-162-of-1982.pdf .

JohnC46 (South Carolina)
Posts: 14,265

Posted:

CAT

With 5 on the BOD and them being able to fill vacancies it could come down to them voting of those selected and it would take a 3 to 2 vote to appoint someone.

Time for you to quote MI law about filling the vacancies.

KerryL1 (California)
Posts: 14,550

Posted:

The thing is: it doesn't appear that the Board MUST or shall fill vacancies. We had that situation in my Board last March when a director moved away and the rest of the board refused to fill the vacancy--election not until Oct. they wanted to keep those they had top such through a very expensive project.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

I reread the MI and it does say MAY not MUST nor SHALL so filling the vacancies is optional. My BOD of 5 has gone as low as 3 and sometimes we filled vacancies, sometimes we did not especially when close to election time.

GeorgeS21 (Florida)
Posts: 3,808

Posted:

Smiling ...

On another post, there was the discussions n about shall meaning may ... 🙂

RoyalP
Posts: 1,104

Posted:

It is, in fact, a brave new world ........................................

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