3 Board members and Management company resign

Started by RogerJ1 • 12 replies • 471 views

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RogerJ1 (Texas)
Posts: 550

Posted:

Who knows reason; I don't. It could be due to a host of problems. I had written here about some of the things, possibly rigged election, check writing by one board member counter to bylaws requiring those amounts to be signed by two people and be a decision by the Board not one Board member, harassing some members for nitpicking things while not pursuing same or worse violations on others. Who really knows....etc., but the resignations were flying this morning, one after another. Now the Association is down to two Board members and one month notice by the Management company at this point, same place, just two Board Members, a little over two years ago, when 3 board members suddenly resigned. Currently, if the other two resign, I assume the Association would be headed to receivership/court oversight or appointments.

MaxB4
Posts: 3,513

Posted:

I would say, "Houston, we have a problem"

KerryL1 (California)
Posts: 14,550

Posted:

Is this your HOA, Roger, or the HOA of a friend?

Anyhoo, how many members are supposed to be on the Board? 5? Do you have any sense that the remaining two will appoint new directors?

I know you often haven't even attended meetings, but is it time to join the Board, perhaps with others who share your concerns?

RogerJ1 (Texas)
Posts: 550

Posted:

Quote:

Posted By KerryL1 on 06/01/2022 2:01 PM
Is this your HOA, Roger, or the HOA of a friend?

Anyhoo, how many members are supposed to be on the Board? 5? Do you have any sense that the remaining two will appoint new directors?

Two, by-laws call for three, but as in early 2020, when 3 also quit, people on this forum stated you can make a doing-best-we-can, or some other similar phrase, legal argument that the two can conduct business until they appoint a third.

I have no idea if the other two will quit. It is possible they do not even know yet - I doubt the two main ones that quit conferred with the other Board members before quitting. If so, it is possible they quit too out of panic. Time will tell.

KerryL1 (California)
Posts: 14,550

Posted:

If your Bylaws only call for three, then it' true, two is a quorum and they can conduct business including finding a new MC. Remind us: what size is this HOA?

IS this your HOA, Roger? If so, are you ready to step up?

RogerJ1 (Texas)
Posts: 550

Posted:

The Association uses this forums host, Community123, to host and run the Association's site. I was the Association's site an hour ago, but now it is down, confirmed by many is-it-me-or-down-for-everyone domain operation search sites.

One of the board members who quit was the web master/contact person for the Association's site. Is there setting he could have changed in his administrator Community123 account to bring the Association's site down, or is it likely a coincidence?

MaxB4
Posts: 3,513

Posted:

Quote:

Posted By RogerJ1 on 06/01/2022 5:27 PM
The Association uses this forums host, Community123, to host and run the Association's site. I was the Association's site an hour ago, but now it is down, confirmed by many is-it-me-or-down-for-everyone domain operation search sites.

One of the board members who quit was the web master/contact person for the Association's site. Is there setting he could have changed in his administrator Community123 account to bring the Association's site down, or is it likely a coincidence?

You need to contact Community 123 for help, not this forum.

SheliaH (Indiana)
Posts: 6,964

Posted:

Quote:

Posted By MaxB4 on 06/01/2022 1:30 PM
I would say, "Houston, we have a problem"

That’s putting it mildly!

You need to find out for certain what the other board members will do. It’s true if you have a three-person board, two would make a quorum in order to make decisions, but what will your community do if one of THEM decides to quit?

As Kerri noted, you’ve often written about your community’s issues, but didn’t always attend meetings – well, complaining and doing nothing needs to stop RIGHT NOW and that applies to all of your neighbors. First, find out from the remaining board members what their intentions are – maybe they’ll recruit a third board member (by the way, you really should consider joining because just talking about the problem hasn’t resolved anything).
If you can get these folks to hang on at least through the end of the year, you may have enough time to find another property manager – but first, you need to talk to the current one to see if they can stick around until the end of the year so the day to day stuff gets done. This may mean both sides will have to have a serious conversation about who does what and how, so get hold of the contract and read it. You’ll also need a transition plan to forward everything to the new company. Depending on how jacked up your community is, you may be paying more for the next company, if there is one, to take you on.

If you’ve read any of the old conversations on this board about receivership, then you know you DO NOT want any parts of that because (1) your assessments will skyrocket (2) the homeowners will have absolutely no say in how the community is run because the receiver only answers to the judge and (3) property values may take a hit because no one wants to buy a sinking ship, even if it looks pretty.

After talking to the board members, suggest a special homeowners’ meeting where they can explain what should be expected for the rest of the year – and this will have to be a type of come to Jesus meeting because it would appear too much has gone on and homeowners haven’t paid attention.

Oh, and the former board member who was doing weird stuff with the association’s checking account? Better get an audit to review the finances – you may have to go after the guy if there’s any indication of fraud. You also need a handle on where the community stands financially.

Hang onto your knickers – you’re in for an interesting ride and some of it may turn your stomach. Good luck to you.

PS – stop assuming anything about your community. If you have a question, the first place to check is with the property manager (until they take off, anyway) and the board (including the former members). In fact, a lengthy chat with them is warranted in order to get a handle on what’s been happening.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

TimB4 (Tennessee)
Posts: 21,062

Posted:

Roger,

Why don't you contact the remaining board members and offer to fill a vacancy?

LaskaS (Texas)
Posts: 1,025

Posted:

the practice of having a single board member control the association website should be a practice of last resort.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Typically when a BOD falls below enough members to establish a Quorum, the remaining BOD Member(s) can draft/someone to be on the BOD. As long as there is a Quorum then business, such as finding a new PM, can be conducted. In our case with a BOD of 3, we would be at least 3 on the BOD.

Say the BOD is down to only one member then that member alone can appoint another member then the two of them would have to agree who became the 3rd member. Then 2 of the 3 need to agree who fills the 4th slot, then 3 of the 4 need to agree to fills the 5th slot and so on.

MarshallT (New York)
Posts: 414

Posted:

It may be possible for the existing board members to appoint members until permanent members are elected. It sounds like quorum cannot be reached now, so the association will need to do something to change this. A receivership is an option too, but it's costly and isn't a long-term solution.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Typically ones Bylaws will dictate how long an appointed BOD Member serves. It is usually:

1. Serve until next BOD election.

2. Serve the remainder of the term, no matter how long, of the person they are replacing. This is how our Bylaws read

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