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MichelleA8 (North Carolina)
Posts: 2
Posted:
Our board has only had 2 members for the past few years. One of them boasts that she has served 20 of the 22 years it has been in existence and she's the reason no one will volunteer. She rage quit last week which created a 4th vacancy

4 of us recently decided it was time to do something and we submitted requests to be appointed, with the intention of removing the last member. They have stalled us for over a week now and we learned earlier this week that he reappointed the lady who quit. They are scrambling to find 3 friends to appoint to the open positions.

On Wednesday we submitted this petition signed by over 10% of owners: "The undersigned members hereby petition the XXXXX HOA to set the earliest reasonable date, time and place for a special membership meeting for the purpose of electing new board members. Scheduling, notice and ballots shall be sent to the membership as provided for in the North Carolina Nonprofit Corporation Act (NC Gen Stat ยง 55A-7-02(a)(2)), which overrides our governing documents."

The response we got is that the board is reviewing nominations and will be making appointments soon.

Can they just ignore the petition for a special meeting? If they appoint 3 members now does it render our request invalid because there are no vacancies?

LaskaS (Texas)
Posts: 1,025
Posted:
Im not positive on this, others will chime in. But i believe if they fill the seats, your petition is moot.

However, you can still get a petition to recall the current board members and elect a new board.

One thing you could bring up, check if the board is allowed to appoint board members outside of a meeting and without notifying of the upcoming meeting.

If they just appointed the lady back without a duly called meeting, you can submit the portions of your governing documents and statute that prevent this from being done and use this to gather more support for the recall .
AugustinD
Posts: 3,698
Posted:
To elaborate a bit on what LaskaS posted, at least from where I am sitting:

I expect there is no provision in this HOA's governing documents for calling for a special election to fill board seats. Without such a provision, I think the Board has the right and duty to ignore the petition.

I agree the Board has the legal right and duty to appoint new directors.

The Board (even if it has only one director at present) does not have to appoint just anyone who applies to serve. If this one director thinks the best interests of the corporation will not be served by appointing so-and-so, then the director could be said to have a duty not to appoint so-and-so.

I think what your group is suffering is the consequence of years of apathy.

I suggest getting your ducks lined up for the next, regularly scheduled election or possibly a recall (via a special meeting). I believe it's easier to replace the board via the regularly scheduled election.
MichelleA8 (North Carolina)
Posts: 2
Posted:
Thank you for the feedback!
We decided to start a new petition on Monday that includes removing the current board and holding an election to install new members.

Our state law governing HOAs says we only need 10%, but our governing documents say 25% so the board says our rules trump state law because "they were written specifically for our community" ๐Ÿ˜ฌ

I guess we are going to have to get 25% just to get this done
CathyA3 (Ohio)
Posts: 6,299
Posted:
The board appoints people to fill vacancies, period. I assume they'd be interested to hear about people who are willing to do the job - often they have to twist arms to get volunteers - but they can appoint whomever they choose, they don't need to appoint any of the volunteers.

You don't want to drag this out. If you're down to one board member, the board can't lawfully do business since there is no quorum. They need to get on with it. (There was no quorum prior to the rage-quit, either, but that's another story.)
AugustinD
Posts: 3,698
Posted:
Quote:
Posted By MichelleA8 on 04/02/2022 8:12 AM
Thank you for the feedback!
We decided to start a new petition on Monday that includes removing the current board and holding an election to install new members.

Our state law governing HOAs says we only need 10%, but our governing documents say 25% so the board says our rules trump state law because "they were written specifically for our community" ๐Ÿ˜ฌ
The Board is wrong. From the NC Planned Community Statute:

Special meetings of the association may be called by the president, a majority of the executive board, or by lot owners having ten percent (10%), or any lower percentage specified in the bylaws, of the votes in the association.

If your HOA's Bylaws say 25% is required, then this is a bona fide conflict. When there is a conflict, the statute controls.

If you do not understand this, then I doubt you will understand how to perform a recall such that it is legally binding. You folks may want to hire an attorney.

Do start reading this to begin to understand removal of a director:

https://www.ncleg.gov/EnactedLegislation/Statutes/PDF/BySection/Chapter_47F/GS_47F-3-103.pdf

The NC Planned Community Act in its entirety:
https://www.ncleg.gov/Laws/GeneralStatuteSections/Chapter47F

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