EileenS5 (California)
Posts: 9
Posts: 9
Posted:
I'm in California. Was wondering what the law is for board members who are 3 months behind on their dues. Are they still allowed to attend the meetings?
Thank you
Eileen
Thank you
Eileen
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Board Members that Haven't paid dues
Started by EileenS5 • 13 replies • 457 views
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SheliaH (Indiana)
Posts: 6,964
Posts: 6,964
Posted:
Read your documents for that answer. As a practical matter, do YOU want someone on the board making decisions about your community when they're not even paying their fair of expenses as required by the documents??
If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
Probably. At least I found nothing in the statutes that prevented it.
You will need to check your governing documents specify that directors be in good standing or are simply silent.
If silent, then they still serve as a director and officer.
Treat them like any other member who is delinquent in their payments.
We would start legal action after 3 months.
You will need to check your governing documents specify that directors be in good standing or are simply silent.
If silent, then they still serve as a director and officer.
Treat them like any other member who is delinquent in their payments.
We would start legal action after 3 months.
KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
What if anything do your Bylaws say? Assume you're on the Board?
JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
Our Bylaws say:
Any director elected by the Voting Members who has three (3) consecutive unexcused absences from Board meetings or who is delinquent in the payment of any assessment or other charge due the Association for more than thirty (30) days may be removed by a majority of the directors present at a regular or special meeting at which a quorum is present, and a successor may be appointed by the Board to fill the vacancy for the remainder of the term.
In addition, any person appointed to the BOD by the BOD (typical to fill a vacancy) can be removed by the BOD.
Any director elected by the Voting Members who has three (3) consecutive unexcused absences from Board meetings or who is delinquent in the payment of any assessment or other charge due the Association for more than thirty (30) days may be removed by a majority of the directors present at a regular or special meeting at which a quorum is present, and a successor may be appointed by the Board to fill the vacancy for the remainder of the term.
In addition, any person appointed to the BOD by the BOD (typical to fill a vacancy) can be removed by the BOD.
AugustinD
Posts: 1,027
Posts: 1,027
Posted:
I agree with the folks above saying you need to check your bylaws. In particular: California statutes permit disqualification from board service for being delinquent in the payment of assessments ifthe bylaws say thusly.
This could be a helpful reading for the OP: https://www.davis-stirling.com/HOME/C/Candidate-Qualifications-in-HOA-Elections
This could be a helpful reading for the OP: https://www.davis-stirling.com/HOME/C/Candidate-Qualifications-in-HOA-Elections
KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
See Augustin's good citation. Eileen's Board can remove this director from the Board, but should hold a hearing first to give th director a chance to fix the problem, the director also must have a chance to go through IDR. See Cov. Cod 5105(c)(1) nd Corporations Code 7221(a)
Meanwhile the director may attend board meetings, vote, etc. When, of course, the Boar discussed possible action against this director, the person must leave the room and may not vote on the topic.
Meanwhile the director may attend board meetings, vote, etc. When, of course, the Boar discussed possible action against this director, the person must leave the room and may not vote on the topic.
AugustinD
Posts: 1,027
Posts: 1,027
Posted:
Quote:
Posted By KerryL1 on 08/27/2022 2:35 PM
Eileen's Board can remove this director from the Board, but should hold a hearing first to give th director a chance to fix the problem, the director also must have a chance to go through IDR. See [California Civil Code Code] 5105(c)(1) and [California Corporations Code] 7221(a)
Eileen's Board can remove this director from the Board, but should hold a hearing first to give th director a chance to fix the problem, the director also must have a chance to go through IDR. See [California Civil Code Code] 5105(c)(1) and [California Corporations Code] 7221(a)
I believe KerryL1 has posted here that she authored, or was a principal contributor to, the "election rules" for her condo, state statute now requiring said election rules. Said election rules have to meet certain statutory requirements, IIRC.
More at:
https://www.davis-stirling.com/HOME/Statutes/Civil-Code-5105
https://www.davis-stirling.com/HOME/Statutes/Corp-Code-7221
TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
The quals, as I read them, were for candidates not those who are already serving.
Additionally, if the board requires 5 and they are down to 3, if they remove this individual then they no longer have a quorum and that will present new issues.
Additionally, if the board requires 5 and they are down to 3, if they remove this individual then they no longer have a quorum and that will present new issues.
KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
My apologies. I said above, as did everyone else, to check the Bylaws, but didn't add it again to my recent post.
The removal, per CA Corp. Codes per 7221(a) for delinquency needs to be in the Bylaws or the Election Rules at the time this person was elected or appointed.
Do you have Election Rules, Eileen? I can't tell if Eileen's bylaws are silent on this topic unless in her other post?
The removal, per CA Corp. Codes per 7221(a) for delinquency needs to be in the Bylaws or the Election Rules at the time this person was elected or appointed.
Do you have Election Rules, Eileen? I can't tell if Eileen's bylaws are silent on this topic unless in her other post?
AugustinD
Posts: 1,027
Posts: 1,027
Posted:
Quote:
Posted By TimB4 on 08/27/2022 2:57 PM
Additionally, if the board requires 5 and they are down to 3, if they remove this individual then they no longer have a quorum and that will present new issues.
Additionally, if the board requires 5 and they are down to 3, if they remove this individual then they no longer have a quorum and that will present new issues.
More here for California COAs/HOAs:
https://www.davis-stirling.com/HOME/Q/Quorum-of-board
JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
Quote:
Posted By TimB4 on 08/27/2022 2:57 PM
The quals, as I read them, were for candidates not those who are already serving.
Additionally, if the board requires 5 and they are down to 3, if they remove this individual then they no longer have a quorum and that will present new issues.
The quals, as I read them, were for candidates not those who are already serving.
Additionally, if the board requires 5 and they are down to 3, if they remove this individual then they no longer have a quorum and that will present new issues.
I agree. It did not answer the OP's original question.
BillH10 (Texas)
Posts: 1,217
Posts: 1,217
Posted:
I don't know the answer to the OP's question but I have one of my own:
Is the delinquent account of the board member being treated exactly like every other account which is past due, in other words, is it working its way through the delinquent account/collection process? I hope he or she is not being given a pass since they are on the Board.
Is the delinquent account of the board member being treated exactly like every other account which is past due, in other words, is it working its way through the delinquent account/collection process? I hope he or she is not being given a pass since they are on the Board.
KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
Augustin' citation does answer the question if we read the entire citation.
Delinquent directors can be removed by the board, If in the Bylaws or Election Rules when the director was elected.
In Calif: "Delinquent Director. A director's seat can be declared vacant if the director becomes delinquent in the payment of regular and special assessments, and does not enter into a payment plan to bring assessments current. (Civ. Code § 5105(c)(1).)
Bill makes a very good point that the legal protocols for dealing with delinquencies, we hope, have been followed for this director.
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