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HannahS (North Carolina)
Posts: 4
Posted:
Hello,

My HOA has a President and Vice President who do not do their jobs whatsoever. Infact, they apparently don't want an HOA at all, despite the overwhelming majority of the community wanting an HOA.
I was on the board as the Treasurer but stepped down due to money being missing and lack of initiative to audit the neighborhoods finances. As a landowner, I have called for a special meeting to remove the President and Vice President and have over 15% percent signatures on a petition for the Special Meeting (ByLaws calls for 10%). I also sent out letters to include the time and place of the meeting, including a 10 day notice for all members and a 10 day notice for their removal initiative.

However, the Vice President said that the meeting is null because per the VERY OPEN-ENDED ByLaws, it states that all meetings are to be held by the President. Obviously, neither the Vice President nor the President want this meeting to take place, so they won't attend. What does this mean for us homeowners who want this meeting to replace their very positions. Do they have to be present given NC law? I am guaranteed to fulfill the voting requirements to have them removed. The neighborhood is fed up.

Please help, these ByLaws are horrible and so open-ended that they don't clarify what happens if the members are voted to be removed don't show up. I need clarity.

- Hannah
HannahS (North Carolina)
Posts: 4
Posted:
ALSO, This is for North Carolina.
TimB4 (Tennessee)
Posts: 21,059
Posted:
This means that you might have to file legal action.

Hopefully, you have things in writing and not just verbal.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
A Special Meeting can be called by the membership. Read your documents on what is involved for having a "special meeting". You ask if they have to be there? Well they are still HOA members. Their officer capacity may not be in play but they are still a HOA member. Plus you may need to see how officers are removed. Is it by special meeting or is it by the fellow board?

Former HOA President
AugustinD
Posts: 3,698
Posted:
HannahH, first, nationwide, the Bylaws and/or statute) typically state that the President and VP are appointed by the Board of Directors (not by an election by the owners). The President and VP may be removed by the Board.

How many director seats are there on your Board? Why don't the other directors replace the President and VP?

Directors are different from officers. Directors are normally elected by the owners annually. Then the directors decide, by a Board vote, who will be the officers.
MichaelS56 (Minnesota)
Posts: 858
Posted:
It sure is frustrating to once again read how one or two people on the Board can completely disrupt a community. It shows how important it is to have very good governing documents.
PatJ1 (North Carolina)
Posts: 568
Posted:
We are in North Carolina and are over 40 years old with no updates to our original documents.

Our GD state that that 10% of the membership can call for a Special Meeting. Upon presentation to the Board, the Board is required to schedule and advertise the Special Meeting to the owner membership. I understand that the meeting called is a member meeting called by the Board, not a Board meeting. If there is a member quorum present then the reason for the "Special Meeting" is voted on by the members.

If the Board has been presented with the call for a valid "Special Meeting" and the Board does not schedule the meeting, then the member's only recourse is to hire an attorney or wait for the next Annual Meeting and let the member's vote in a new board.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Keep one thing in mind. A Special Meeting must have a specific Agenda such as replace M. Smith with H. Jones, etc. It cannot be a bytching session nor can things be voted on that are not on the agenda.
PatJ1 (North Carolina)
Posts: 568
Posted:
Quote:
Posted By JohnC46 on 12/30/2021 8:57 AM
Keep one thing in mind. A Special Meeting must have a specific Agenda such as replace M. Smith with H. Jones, etc. It cannot be a bytching session nor can things be voted on that are not on the agenda.

YES! What John said.
KerryL1 (California)
Posts: 14,550
Posted:
Pat of NC gives a good reply, Hannah.

I think most bylaws state that the president presides. If the prez is absent, you may, of course still have the meeting As a special meeting of the owners (members) the members who attend can vote on a presider/meeting chair.

The VP is mistaken to claim the president must be present as ONLY the prez can preside/chair the meeting. That's ridiculous. What if the prez is ill or on vacation and cannot attend. Most bylaws and your state's corporation laws will say something like all that needed for a BOARD meeting to be held is a quorum of directors. They or state code may also say something like the Board would choose a presider/chair if both prez & VP are absent.

And for a meeting of the members, I'd think there's no requirement for the president to be present at all, but there might be a quorum requirement. I have a feeling, that there's more for you to learn about your own Bylaws & state code, Hannah. For example, it's possible that your bylaws or state law says the "board" must send out notice for this special meeting of the members (the time/place) xx days in advance.. Maybe Kelly of NC will check in and can offer good help.

CathyA3 (Ohio)
Posts: 6,299
Posted:
Quote:
Posted By PatJ1 on 12/30/2021 9:00 AM
Posted By JohnC46 on 12/30/2021 8:57 AM
Keep one thing in mind. A Special Meeting must have a specific Agenda such as replace M. Smith with H. Jones, etc. It cannot be a bytching session nor can things be voted on that are not on the agenda.


YES! What John said.

Agree! There are typically a number of requirements for special meetings - miss one of them and your meeting is invalid and any actions taken at the meeting are invalid.

I will also note that many efforts to remove unpopular board members fail because there are no volunteers willing to replace them. So the meeting agenda would need to say something like "Remove Joe Schmoe from the board and replace him with Sally Sweetums. Remove Adela Awful from the board and replace her with Fred Friendly." So your first job is to find Sally Sweetums and Fred Friendly.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Hanna

As I understand it, the President must call for the Special Meeting. If he does not, I think a letter from an attorney is about the only way to force it.

Also the Pres. and VP do not have to be there. The meeting could be run by any homeowner if those in attendance so decide. Migh also be wise to have an attorney run the meeting.

Get your allies together and kick in a few dollars for legal expenses.

All that said, a recall is very tricky and can legally drag on. The best way to make changes is to put up a slate of people and work toward getting them elected to the BOD at the Annual Meeting. You cannot wish it. You have t work to make it happen.
HannahS (North Carolina)
Posts: 4
Posted:
Hello,

The Special Meeting is what I have called into action regarding the removal of their positions. The ByLaws state that a member can petition for a meeting, submit to Secretary and have it validated. It was validated. The President and Vice President are elected by homeowners, not other members of the Executive Board. We have to have 52% of homeowners who want them gone and we do. They are both saying they will not attend, therefor the meeting is invalid, and they will consult a lawyer. There is nothing in the ByLaws that states they have to be there. It says they must be notified via hand-delivered mail 10 days prior. They must be notified so they have a right to be heard. Again, one said he cannot make the meeting and the Vice President said she is just not going.
AugustinD
Posts: 3,698
Posted:
Quote:
Posted By HannahS on 12/30/2021 7:41 PM
The President and Vice President are elected by homeowners, not other members of the Executive Board.
What you say above is unusual.

Can you quote verbatim the section of the Bylaws that says this?

AugustinD
Posts: 3,698
Posted:
From the North Carolina Nonprofit Corporation Statute, ยง 55A-8-43. Resignation and removal of officers:

(b) A board of directors may remove any officer at any time with or without cause.
KerryL1 (California)
Posts: 14,550
Posted:
So, Hannah, does the petition say to remove them as prez & VP? Or to removed them as directors??

As. noted it's very unusual for Owners to elect officers like prez & VP. Owners usually elect directors per your bylaws, and the the directors, "the board" elects offices. This needs to be absolutely correct in your petition.
CathyA3 (Ohio)
Posts: 6,299
Posted:
I think Hannah probably means that they want to remove directors who happen to hold officer positions of President and Vice President.

This raises a question: does this precise language matter? In other words, if a homeowner submitted a petition to remove officers, is it invalid if the intent is to remove directors and the bylaws are consistent with the norm (ie, homeowners elect directors and directors choose the officers)?
HannahS (North Carolina)
Posts: 4
Posted:
Cathy,
You are correct. Thank you for your better verbiage. The NC Statute also states that directors/officers who are elected by certain class such as members or board members must be removed that way as well
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Hannah

To be sure you understand. Officers elected by the BOD can be removed from those positions by the BOD does not mean they are removed from the BOD. They are still Members of the BOD even if removed from Officer positions. I expect your intent is to remove two people from the BOD entirely, regardless of their positions. Thus clarify who, by name not Position, you want removed from the BOD.
KerryL1 (California)
Posts: 14,550
Posted:
I've heard that petitions to recall directors must be exactly correct. This is partly because the existing board wants to keep power. AND, the board has access to the HOA attorney for advice and to review the petition really carefully.

I wouldn't chance that "intent" to remove directors from the board, if accidentally misstated as officer positions, would be a very solid argument.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By KerryL1 on 12/31/2021 12:38 PM
I've heard that petitions to recall directors must be exactly correct. This is partly because the existing board wants to keep power. AND, the board has access to the HOA attorney for advice and to review the petition really carefully.

I wouldn't chance that "intent" to remove directors from the board, if accidentally misstated as officer positions, would be a very solid argument.

Recalls are fraught with legal issues and can easily get tied up in legal maneuvers for years especially by those being recalled. Do not attempt a recall with out an attorney backing you.

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