Quote:
Posted By CathyA3 on 05/09/2021 7:35 AM
Posted By AugustinD on 05/09/2021 7:10 AM
Posted By PatJ1 on 05/09/2021 6:56 AM
If there is only one Board member, there is no quorum and there is no Board.
How do you know this?
Here is what the Georgia Condo Act says on the point: "Unless the condominium instruments or bylaws specify a larger percentage,
the presence of persons entitled to cast one-half of the votes of the board of directors shall constitute a quorum for the transaction of any business at any meeting of the board." As interested, see https://law.justia.com/codes/georgia/2019/title-44/chapter-3/article-3/section-44-3-103/
If the condo instruments/bylaws do not specify a larger percentage for quorum, and since AnyaR by herself represents the presence of persons entitled to cast one-half of the votes of the board of directors, then a quorum is achieved.
The Georgia Nonprofit Corporation act (1) permits a board to have only one director and (2) does not require AnyaR to appoint another director. Though in my experience, any competent condo attorney would tell her it is in her best interests to fill all vacancies on the board.
I think this will hinge on how you read the section I bolded. Does it mean one-half of the votes of the board of directors *as it currently exists* (ie. 1 person) or *as it is defined in the bylaws* (a minimum of 2 persons in a 3-person board)?
I hear you. The phrase "the presence of persons entitled" is what got my attention (maybe yours too). Who are the 'persons entitled to cast votes of the board of directors'? To me, this means only the directors currently on the board. At present, this is exactly one person.
Still, I understand your own takeaway.
I do not remember seeing (appeals court) case law on the point. Maybe because appealing a court's order appointing a receiver does make sense. After the receiver is appointed and the increase in assessments hits the membership's bank accounts, the membership should straighten things out enough pronto to ask the court to get rid of the receiver. Or the receiver will make the application to the judge.
As well, a little "Come to Jesus" talk with a HOA attorney, telling the membership 'to step up, suck it up, and serve on the board, or you and your neighbors will pay a fortune' could lead to a new board sooner rather than later.
Quote:
Posted By CathyA3 on 05/09/2021 7:35 AM
I've always heard it interpreted as the latter, and a single director cannot legally transact business. On the other hand, this interpretation doesn't leave an association that's down to one board member a legal pathway forward other than receivership - seems unlikely that this was the intention of lawmakers.
I am going to stick with the counsel from my favorite HOA attorney where I am: If even one reasonably competent person is willing to run the place as a volunteer, a judge will not appoint a receiver. My take: If one competent person is willing to run the HOA/condo per the covenants (including seeking additional directors), then seeking a receiver ties up the courts unnecessarily; costs taxpayers for court time; and burdens a HOA/condo greatly with the costs of the receiver.
On the other hand, it seems like I have read of courts ordering the appointment of receivers in other states without giving the order much thought at all.