BernieJ (Virginia)
Posts: 31
Posts: 31
Posted:
In Chesterfield County Virginia our covenants clearly state the Developer is a Class B member. When he lost control of the development after exceeding 80% of the lots being sold, the membership attained rights to elect three Board members, the Developer will always retain one seat and be able to appoint one additional Board member. This became contentious two years ago when the first Board of Directors was voted on and the developer used his proxy powers to elect the Board he wanted. The covenants state the following under voting rights and membership:
Type "A"" The Type "A" Members shall be all owners of the Residential Lots which a member owns and shall be entitled to one (1) vote for each residential lot a member owns.
Type "B": The Type "B" Member shall be the Developer.
Under Governance it reads that the Association shall be governed by a Board of Directors consisting of five (5) Members.
Under Election of the BOD it reads, Until the 80% of the development is sold, the Developer shall have the sole absolute right to appoint all members of the BOD. It further elaborates:
1. Each type "A" Member may cast one vote for each vacancy to be filled by a Class 1 Director (cumulative voting is not allowed). The type "B" Member (developer) shall elect the Class 11 Directors. The majority of the Board shall be Class 1 Directors and elected by the Type "A" Members. The remaining directors shall be Class 11 Directors and elected by hte Type "B" members. The majority of the Board of the Directors fifty one percent (51%) of the total number of Directors shall be elected by the Type "A" Members.
(This is redundant in the covenants and is repeated in three different sections)
In 2020 we were duped out of being able to elect the Board of Directors that the community wanted and were told that the developer is a class "A" member AND a class "B" member. This entitled him to use his proxy power for each lot he still owns. Which is what he did. So, he selected the three class "A" members who were the existing appointed Board members who were up for election to be placed on the ballot, alongside 4 other Type "A" members who never served on the Board. The Developer divvied his proxies among the three buddies he appointed in prior years to basically reseat the same Board. He would not have been able to do this if he was recognized as a Type "B" member which limited him to only appointing one Board member.
The association attorney is the one who made the call that every lot owner in the development was a class "A" member including the developer. Do you agree with this? It is complete nonsense to have pages and paragraphs that go into great detail about how the Board is to be elected and balanced "AFTER" the developer exceeds 80% of lots owned to not lend any favor to the 82% of the residents who own property in the development, far more than the developer does.
Any input on this would be greatly appreciated.
Type "A"" The Type "A" Members shall be all owners of the Residential Lots which a member owns and shall be entitled to one (1) vote for each residential lot a member owns.
Type "B": The Type "B" Member shall be the Developer.
Under Governance it reads that the Association shall be governed by a Board of Directors consisting of five (5) Members.
Under Election of the BOD it reads, Until the 80% of the development is sold, the Developer shall have the sole absolute right to appoint all members of the BOD. It further elaborates:
1. Each type "A" Member may cast one vote for each vacancy to be filled by a Class 1 Director (cumulative voting is not allowed). The type "B" Member (developer) shall elect the Class 11 Directors. The majority of the Board shall be Class 1 Directors and elected by the Type "A" Members. The remaining directors shall be Class 11 Directors and elected by hte Type "B" members. The majority of the Board of the Directors fifty one percent (51%) of the total number of Directors shall be elected by the Type "A" Members.
(This is redundant in the covenants and is repeated in three different sections)
In 2020 we were duped out of being able to elect the Board of Directors that the community wanted and were told that the developer is a class "A" member AND a class "B" member. This entitled him to use his proxy power for each lot he still owns. Which is what he did. So, he selected the three class "A" members who were the existing appointed Board members who were up for election to be placed on the ballot, alongside 4 other Type "A" members who never served on the Board. The Developer divvied his proxies among the three buddies he appointed in prior years to basically reseat the same Board. He would not have been able to do this if he was recognized as a Type "B" member which limited him to only appointing one Board member.
The association attorney is the one who made the call that every lot owner in the development was a class "A" member including the developer. Do you agree with this? It is complete nonsense to have pages and paragraphs that go into great detail about how the Board is to be elected and balanced "AFTER" the developer exceeds 80% of lots owned to not lend any favor to the 82% of the residents who own property in the development, far more than the developer does.
Any input on this would be greatly appreciated.