Quote:
Posted By BH5 on 09/03/2020 1:23 PM
[The group that wants to amend the Bylaws would] have to do it without help from our management company who takes direction only from the Board. If the Board chooses not to participate, does this group of members still have standing?
Once your group meets the requirements for asking for a Special Meeting, the Nonstock Corporation statute requires the corporation (association, board, yada) to participate. This means management, the board et cetera must support the holding of the Special Meeting in concrete ways. Furthermore this statute has a specific provision about a court ordering the board to cooperate in holding the Special Meeting (if the board is not cooperating). Below are just some of the relevant sections. Do consider doing a keyphrase search for "special meeting" of the nonstock corporation statute at https://law.lis.virginia.gov/vacodepopularnames/virginia-nonstock-corporation-act/
ยง 13.1-839. Special meeting.
A. A corporation shall hold a special meeting of members:
1. On call of the chairman of the board of directors, the president, the board of directors, or the person or persons authorized to do so by the articles of incorporation or bylaws; or
2. In the absence of a provision in the articles of incorporation or bylaws stating who may call a special meeting of members, a special meeting of members may be called by members having one-twentieth of the votes entitled to be cast at such meeting.
B. Unless otherwise provided in the articles of incorporation, a written demand for a special meeting may be revoked by a writing, including an electronic transmission, to that effect received by the corporation prior to the receipt by the corporation of demands sufficient in number to require the holding of a special meeting.
C. If not otherwise fixed under ยง 13.1-840 or 13.1-844, the record date for determining members entitled to demand a special meeting is the date the first member signs the demand.
D. Except as otherwise determined by the board of directors acting pursuant to subsection C of ยง 13.1-844.2, members' meetings may be held at such place in or out of the Commonwealth as may be provided in the bylaws or, where not inconsistent with the bylaws, in the notice of the meeting.
E. Only business within the purpose or purposes described in the meeting notice required by subsection C of ยง 13.1-842 may be conducted at a special members' meeting.
Code 1950, ยง 13.1-213; 1956, c. 428; 1975, c. 500; 1985, c. 522; 2007, c. 925; 2012, c. 706; 2018, c. 265.
ยง 13.1-840. Court-ordered meeting.
A. The circuit court of the city or county where a corporation's principal office is located, or, if none in the Commonwealth, where its registered office is located, may, after notice to the corporation, order a meeting of members to be held:
1. On petition of any member of the corporation entitled to participate in an annual meeting if an annual meeting was not held within 15 months after its last annual meeting or, if there has been no annual meeting, the date of its incorporation; or
2. On petition of a member who signed a demand for a special meeting that satisfies the requirements of ยง 13.1-839 if:
a. Notice of the special meeting was not given within 30 days after the date the demand was delivered to the corporation's secretary; or
b. The special meeting was not held in accordance with the notice.
B. The court may fix the time and place of the meeting, determine the members entitled to participate in the meeting, specify a record date for determining members entitled to notice of and to vote at the meeting, prescribe the form and content of the meeting notice, and enter other orders necessary to accomplish the purpose or purposes of the meeting.
ยง 13.1-842. Notice of meeting.
A. 1. A corporation shall notify members of the date, time, and place, if any, of each annual and special members' meeting. Such notice shall be given no less than 10 nor more than 60 days before...