ChrisE8
Posts: 454
Posts: 454
Posted:
Is this appropriate?
The bylaws of the HOA contain very few requirements about board eligibility:
1. There is an annual meeting and which board elections occur.
2. The president appoints two inspectors of election who are not directors.
3. When a board member ceases to be an owner of a home in the HOA (unless s/he is married to an owner), s/he ceases to be a board member.
4. A majority of the board must be residents in the HOA.
5. The original developer can continue to fill 3 seats on the board (which is a minority of 7 directors), even though the HOA is no longer under developer control.
That's it.
The board announced that:
A. All directors and director candidates are requested to sign a conflict of interest statement (which is standard and has been approved by the board; it prohibits a director from having an interest in any transaction with the HOA, or an interest in any company that does business with the HOA). At the annual meeting, the board will announce which directors and which director candidates have not signed the conflict of interest statement.
B. All directors and director candidates are requested to be current on their HOA dues and other charges. The board did not say if any delinquent candidates will be announced or not; I do not think that they will be.
C. Any director who is not an owner of record of a home in the HOA will not be eligible to serve as a director (other than the 3 developer directors), based on item 3 above.
Do you think that these actions are appropriate?
One board candidate, who is a relative of the CEO of the developer, and who lives in the HOA but whose home is owned by the developer's company, objects. The developer's company is late on dues on her home (and other homes in the HOA that the company owns). The candidate apparently is a partial owner of the developer's company and so the candidate states that the candidate is an owner, through an interest in the developer company.
To me the board's actions seem reasonable, but items A and B are not in the bylaws; they were just approved by the board. I think that the board has a very strong basis for item C, although the bylaws could be clearer about what counts as an owner.
If the board candidate gets on the board, then the developer's company will control the board (and both the CEO of the developer's company and his relative will both be on the board).
Thanks.
The bylaws of the HOA contain very few requirements about board eligibility:
1. There is an annual meeting and which board elections occur.
2. The president appoints two inspectors of election who are not directors.
3. When a board member ceases to be an owner of a home in the HOA (unless s/he is married to an owner), s/he ceases to be a board member.
4. A majority of the board must be residents in the HOA.
5. The original developer can continue to fill 3 seats on the board (which is a minority of 7 directors), even though the HOA is no longer under developer control.
That's it.
The board announced that:
A. All directors and director candidates are requested to sign a conflict of interest statement (which is standard and has been approved by the board; it prohibits a director from having an interest in any transaction with the HOA, or an interest in any company that does business with the HOA). At the annual meeting, the board will announce which directors and which director candidates have not signed the conflict of interest statement.
B. All directors and director candidates are requested to be current on their HOA dues and other charges. The board did not say if any delinquent candidates will be announced or not; I do not think that they will be.
C. Any director who is not an owner of record of a home in the HOA will not be eligible to serve as a director (other than the 3 developer directors), based on item 3 above.
Do you think that these actions are appropriate?
One board candidate, who is a relative of the CEO of the developer, and who lives in the HOA but whose home is owned by the developer's company, objects. The developer's company is late on dues on her home (and other homes in the HOA that the company owns). The candidate apparently is a partial owner of the developer's company and so the candidate states that the candidate is an owner, through an interest in the developer company.
To me the board's actions seem reasonable, but items A and B are not in the bylaws; they were just approved by the board. I think that the board has a very strong basis for item C, although the bylaws could be clearer about what counts as an owner.
If the board candidate gets on the board, then the developer's company will control the board (and both the CEO of the developer's company and his relative will both be on the board).
Thanks.