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WaltH1 (North Carolina)
Posts: 104
Posted:
Board refuses to send notices of Special Meeting called by members.
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By WaltH1 on 10/11/2023 7:34 AM
Board refuses to send notices of Special Meeting called by members.
Possible reasons for this:

If the owners did not cross every t and dot every i (as required by the bylaws and state statutes) when demanding the meeting, then the board is in its rights. Your group might need to lawyer up.

If the owners demanded something be put on the agenda of the meeting that violates the law or covenants or bylaws, then the board may be in its rights.

If your group thinks it did everything right, then you can send a series of demand letters, escalating in tone, until it is threatening a lawsuit. However this can backfire in a multitude of ways, ultimately forcing your group to lawyer up.

In short, to get useful feedback, I think you need to elaborate at great length on what is going on here.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
What our Bylaws say:

Section 4. Special Meetings. The President may call special meetings. In addition, it shall be the duty of the President to call a special meeting of the Association if so directed by resolution of a majority of a quorum of the Board of Directors or upon a petition signed by Voting Members representing at least ten (10%) percent of the total votes of the Association. The notice of any special meeting shall state the date, time, and place of such meeting and the purpose thereof. No business shall be transacted at a special meeting except as stated in the notice.
WaltH1 (North Carolina)
Posts: 104
Posted:
Here you go ElleN,

I am on this Board and have witnessed many improprieties that would qualify for removal. If I read it correctly, California has a procedure, (Corporation Code 7511) for association members to bypass their Board if the Board fails to comply with the law. So far, I am unable to find anything similar in NC law. Maybe I'm looking in the wrong place. Maybe it's right in front of my face. I've found nothing, other than legal action, and that's not an option for us. On 8/30/23 this Board fired me as Treasurer and excluded me from Board activities for 6 weeks, which we all know is a removable offense, so for them to refuse to comply with NC Law is not a stretch. Below is an exact copy of the petition that our required 10% of owners, signed and was sent to the Board. So, we're back to the original question. At a Board meeting on 10/9, I was not given a chance to bring the petition up, and was deferred to the next meeting on 10/18/23. The entire Board had been sent the petition, so you can imagine I'm not very popular. I've been a homeowner advocate for 7 years, and generally speaking this Board and previous Boards don't have a clue about our governing documents nor do they even have all of them! I'm the only homeowner that found & has our Deed Restrictions. ElleN, I hope this expands the issue better for you. I didn't want to risk being too words. Thanks for your response. Now the petition.

NC HOA Board of Directors,

In compliance with The North Carolina Condominium Act, 47C-3-108. Meetings., I am joining other Holiday Beech Villas owners calling for a Special Meeting of our NC HOA owners.

We would like the Board of Directors to vote for and pass its approval to hold virtual meetings in which quorum requirements are met, and business may be conducted.

We would like the meeting scheduled for Saturday, October 28, 2023, at 10:00 AM, virtually by Zoom.

Agenda items should include but not be limited to:

Homeowner concerns regarding the Board’s handling of unnamed management, including the Board approved of maximum pay rate per visit of $18.50 an hour.

Mismanagement of owner account records.

Handle repair request through HBV, rather than horrible mang. co.

Missing and incomplete Minutes of the Homeowners Annual Meeting, July 15, 2023.

Board of Directors compliance with the North Carolina Nonprofit Corporation Act, 55A-16-1 Corporate Records, by releasing the names, addresses, and email addresses of the Board of Directors and NC HOA owners.

Any other issues of NC HOA owners concerned about the direction of NC HOA.

Begin accepting bios and other information from homeowners interested in being on the Board.

Removal of one or more Board members.

Name:
Unit number:

WaltH1 (North Carolina)
Posts: 104
Posted:
Thanks for you input, JohnC46!
ElleN (Idaho)
Posts: 4,420
Posted:
WaltH1,

I am not going to dive into the NC statutes just yet. So far I found several glaring problems with the petition that IMO would justify the board's refusal to hold the Special Meeting.

Thank you for recognizing that too much description in an initial post is problematic for readers. Too little subsequently is also problematic. I think you presented all this just right.

My specific concerns follow.

Quote:
Posted By WaltH1 on 10/11/2023 8:26 AM
I am on this Board and have witnessed many improprieties that would qualify for removal.
In North Carolina, chances are that the only thing that qualifies a director for recall is a properly done vote of the owners.
Quote:
Posted By WaltH1 on 10/11/2023 8:26 AM
If I read it correctly, California has a procedure, (Corporation Code 7511) for association members to bypass their Board if the Board fails to comply with the law.
Clarifying: California Corps Code 7511 concerns how to get a Special Meeting held.

In general if a board is not complying with the bylaws or state law for holding special meetings, one is left with threats to sue. But you all say you do not want to sue. No other magical way exists to get an uncooperative board to do what it is supposed to do, per the bylaws, covenants and statutes. The best option by far is to campaign intensively and elect new directors at the next annual election or maybe over the course of a few years at the annual elections.
div class="NTForums_Quote">Posted By WaltH1 on 10/11/2023 8:26 AM
So far, I am unable to find anything similar in NC law.
I will take a look at the statutes in a bit, but chances are you are stuck with threatening a lawsuit (which you say you all will not do) or maybe holding a town hall meeting, without support from the board, at say an owners' house. Owners could not take any legal action at such a meeting. But they could exchange their thoughts. It could be the start of a campaign to oust the current directors at the next annual election.

Quote:
Posted By WaltH1 on 10/11/2023 8:26 AM
On 8/30/23 this Board fired me as Treasurer and excluded me from Board activities for 6 weeks, which we all know is a removable offense,
The board has the right to remove an officer (such as treasurer). In general they do not have the right to exclude you from board meetings.

I do not know what you mean by "activities."

Their excluding you is not "a removable offense." Again, removal has to be done by an owners' vote. Their exclusion of you is what is called "actionable," as in one could sue in court and possibly win.
Quote:
Posted By WaltH1 on 10/11/2023 8:26 AM
Now the petition.

NC HOA Board of Directors,

In compliance with The North Carolina Condominium Act, 47C-3-108. Meetings., I am joining other Holiday Beech Villas owners calling for a Special Meeting of our NC HOA owners.

We would like the Board of Directors to vote for and pass its approval to hold virtual meetings in which quorum requirements are met, and business may be conducted.
I do not think the owners have legal standing to require the board to hold virtual board meetings or virtual owners' meetings.

Again, it's a myth that owners have the right to override board decisions that are solely in the board's domain, per the governing docs and state law. Instead the owners' recourse is to elect new directors who will do what the owners want.

Quote:
Posted By WaltH1 on 10/11/2023 8:26 AM
We would like the meeting scheduled for Saturday, October 28, 2023, at 10:00 AM, virtually by Zoom.

Agenda items should include but not be limited to:
No, this does not work.The agenda cannot be open-ended. Notice for a Special Meeting has to be proper. Proper notice requires an agenda with specific topics. Topics not on the agenda may not be discussed.
Quote:
Posted By WaltH1 on 10/11/2023 8:26 AM
Homeowner concerns regarding the Board’s handling of unnamed management, including the Board approved of maximum pay rate per visit of $18.50 an hour.
I can see the board being worried about slander of its manager here.

Also the owners cannot lawfully force the board to re-negotiate the contract with the manager. Instead, if the owners' do not like what the board is doing with ___, then once again, the owners should vote in new directors or possibly try to recall the directors (which I see you are attempting below).
Quote:
Posted By WaltH1 on 10/11/2023 8:26 AM
Mismanagement of owner account records.

Handle repair request through HBV, rather than horrible mang. co.

Missing and incomplete Minutes of the Homeowners Annual Meeting, July 15, 2023.

Board of Directors compliance with the North Carolina Nonprofit Corporation Act, 55A-16-1 Corporate Records, by releasing the names, addresses, and email addresses of the Board of Directors and NC HOA owners.

Any other issues of NC HOA owners concerned about the direction of NC HOA.

Begin accepting bios and other information from homeowners interested in being on the Board.

Removal of one or more Board members.

Name:
Unit number:

Overall, first, the owners do not have the legal standing to force the board to do most (or all?) of what you list.

Second, removal of directors mid-term has to be done exactingly. If you all will not hire an attorney, then I do not see this happening.

Third, I think the best option is to campaign to get new directors elected at the next regular election or over a few years of elections.
WaltH1 (North Carolina)
Posts: 104
Posted:
ElleN, I can’t thank you enough for the time you put in to your analysis of our situation. If Board members had half of your knowledge of many association CC&R’s we would all be so much better off. In my 7 years battling our Board & the short time I’ve been on the Board; it’s profoundly shocking the lack of knowledge they have.
In analyzing current and past Boards, I’ve come up with 2 general conclusions. 1. Uninformed Boards tend to pass down incorrect beliefs from one Board to another as correct & lawful when they are not. 2. When we have been successful in bringing on fresh, new, Board members with current HOA experience, they tend to bring with them the things that worked for them in their previous Boards. And again, paying no attention to our CC&R’s. What the previous Board left us was an assumption that what worked for a 200+ unit community would work for an 88-unit community and saddled us with a management contract that has put us in the worst fiscal shape we have been in in you years.
Our current Board has dangerous characteristics exactly like past Boards: A president that thinks he was elected Commander-in-Chief and fellow Board members that are perfectly fine with going along with whatever he says. Go along to get along. To me, and many of our homeowners this is a dangerous, unhealthy Board.
Regarding the petition, there may be some misunderstandings or disagreements between us, but it seems to me that we’re in agreeance with most issues.
Nothing in the petition suggests anyone but owners can recall a Board member.
In North Carolina, Board members can fire Board members that were appointed and Officers. Homeowners can remove board members.
7511c provided for a Board that refuses to Schedule a requested Special Meeting.
Sadly, most HOA’s in America suffer similar plights, being the least represented and most unprotected. For the most part, for all of us to settle an offense is to sue.
ElleN, I’m aware of most of your points or disagree with some, and yes, if magic is out there, I’d love to know about it.
Of our 88 units, 25 owners are already on Board with the desire for change. The Petition has greater than the 10% of owners needed to call for a Special Meeting, and the 25 owners, on paper, are only 5 members short of a quorum. So, we’re well on our way to having the votes for change. 2 years ago, our group sent me to the Annual Meeting with 14 proxies, enough to install what we thought at the time was a solid Board.
Activities are generalities I use for glaring misdeeds. Removeable is my expression for offenses serious enough to remove Board members. Factually, in North Carolina Board officers can be demoted by Board Members, Board members can be recalled by homeowners, in both instances, without cause.
The Petition asks the Board to approve virtual, remote meetings, as required by law. Nothing in the petition suggests a requirement.
Nothing in the petition suggests owners overriding Board decisions. That’s the purpose of the petition to remove them.
There’s only one phrase that’s not specific. The rest of them are. No topics that are not on the agenda have been asked to be discussed.
I don’t make allegations that do not have documentation to back them up. Slander only works if the allegations are untruthful.
One of our misunderstandings is the premise that homeowners are trying to force the Board to do anything and that’s just not the case. That’s the purpose of the recall, to remove the Board members that are not responding and acting on the needs of the homeowners, thus ignoring their fiduciary duties.
Regarding your last statements, I refer you to the above, and ultimately, we may have to hire a lawyer. We don’t have the luxury of waiting for an annual meeting. We’ll be flat broke by then.
Again, ElleN, thank you for your exhaustive critique of the petition. It forced me to do a thorough review of where we are so far, and as you alluded to Special Meeting are very different from Annual meeting with some exacting, precise things that have to be done. It will be interesting to see if you weigh in on my next question regarding management contracts.

WaltH1 (North Carolina)
Posts: 104
Posted:
ElleN, I can’t thank you enough for the time you put in to your analysis of our situation. If Board members had half of your knowledge of many association CC&R’s we would all be so much better off. In my 7 years battling our Board & the short time I’ve been on the Board; it’s profoundly shocking the lack of knowledge they have.
In analyzing current and past Boards, I’ve come up with 2 general conclusions. 1. Uninformed Boards tend to pass down incorrect beliefs from one Board to another as correct & lawful when they are not. 2. When we have been successful in bringing on fresh, new, Board members with current HOA experience, they tend to bring with them the things that worked for them in their previous Boards. And again, paying no attention to our CC&R’s. What the previous Board left us was an assumption that what worked for a 200+ unit community would work for an 88-unit community and saddled us with a management contract that has put us in the worst fiscal shape we have been in in you years.
Our current Board has dangerous characteristics exactly like past Boards: A president that thinks he was elected Commander-in-Chief and fellow Board members that are perfectly fine with going along with whatever he says. Go along to get along. To me, and many of our homeowners this is a dangerous, unhealthy Board.
Regarding the petition, there may be some misunderstandings or disagreements between us, but it seems to me that we’re in agreeance with most issues.
Nothing in the petition suggests anyone but owners can recall a Board member.
In North Carolina, Board members can fire Board members that were appointed and Officers. Homeowners can remove board members.
7511c provided for a Board that refuses to Schedule a requested Special Meeting.
Sadly, most HOA’s in America suffer similar plights, being the least represented and most unprotected. For the most part, for all of us to settle an offense is to sue.
ElleN, I’m aware of most of your points or disagree with some, and yes, if magic is out there, I’d love to know about it.
Of our 88 units, 25 owners are already on Board with the desire for change. The Petition has greater than the 10% of owners needed to call for a Special Meeting, and the 25 owners, on paper, are only 5 members short of a quorum. So, we’re well on our way to having the votes for change. 2 years ago, our group sent me to the Annual Meeting with 14 proxies, enough to install what we thought at the time was a solid Board.
Activities are generalities I use for glaring misdeeds. Removeable is my expression for offenses serious enough to remove Board members. Factually, in North Carolina Board officers can be demoted by Board Members, Board members can be recalled by homeowners, in both instances, without cause.
The Petition asks the Board to approve virtual, remote meetings, as required by law. Nothing in the petition suggests a requirement.
Nothing in the petition suggests owners overriding Board decisions. That’s the purpose of the petition to remove them.
There’s only one phrase that’s not specific. The rest of them are. No topics that are not on the agenda have been asked to be discussed.
I don’t make allegations that do not have documentation to back them up. Slander only works if the allegations are untruthful.
One of our misunderstandings is the premise that homeowners are trying to force the Board to do anything and that’s just not the case. That’s the purpose of the recall, to remove the Board members that are not responding and acting on the needs of the homeowners, thus ignoring their fiduciary duties.
Regarding your last statements, I refer you to the above, and ultimately, we may have to hire a lawyer. We don’t have the luxury of waiting for an annual meeting. We’ll be flat broke by then.
Again, ElleN, thank you for your exhaustive critique of the petition. It forced me to do a thorough review of where we are so far, and as you alluded to Special Meeting are very different from Annual meeting with some exacting, precise things that have to be done. It will be interesting to see if you weigh in on my next question regarding management contracts.

WaltH1 (North Carolina)
Posts: 104
Posted:
ElleN, I can’t thank you enough for the time you put in to your analysis of our situation. If Board members had half of your knowledge of many association CC&R’s we would all be so much better off. In my 7 years battling our Board & the short time I’ve been on the Board; it’s profoundly shocking the lack of knowledge they have.
In analyzing current and past Boards, I’ve come up with 2 general conclusions. 1. Uninformed Boards tend to pass down incorrect beliefs from one Board to another as correct & lawful when they are not. 2. When we have been successful in bringing on fresh, new, Board members with current HOA experience, they tend to bring with them the things that worked for them in their previous Boards. And again, paying no attention to our CC&R’s. What the previous Board left us was an assumption that what worked for a 200+ unit community would work for an 88-unit community and saddled us with a management contract that has put us in the worst fiscal shape we have been in in you years.
Our current Board has dangerous characteristics exactly like past Boards: A president that thinks he was elected Commander-in-Chief and fellow Board members that are perfectly fine with going along with whatever he says. Go along to get along. To me, and many of our homeowners this is a dangerous, unhealthy Board.
Regarding the petition, there may be some misunderstandings or disagreements between us, but it seems to me that we’re in agreeance with most issues.
Nothing in the petition suggests anyone but owners can recall a Board member.
In North Carolina, Board members can fire Board members that were appointed and Officers. Homeowners can remove board members.
7511c provided for a Board that refuses to Schedule a requested Special Meeting.
Sadly, most HOA’s in America suffer similar plights, being the least represented and most unprotected. For the most part, for all of us to settle an offense is to sue.
ElleN, I’m aware of most of your points or disagree with some, and yes, if magic is out there, I’d love to know about it.
Of our 88 units, 25 owners are already on Board with the desire for change. The Petition has greater than the 10% of owners needed to call for a Special Meeting, and the 25 owners, on paper, are only 5 members short of a quorum. So, we’re well on our way to having the votes for change. 2 years ago, our group sent me to the Annual Meeting with 14 proxies, enough to install what we thought at the time was a solid Board.
Activities are generalities I use for glaring misdeeds. Removeable is my expression for offenses serious enough to remove Board members. Factually, in North Carolina Board officers can be demoted by Board Members, Board members can be recalled by homeowners, in both instances, without cause.
The Petition asks the Board to approve virtual, remote meetings, as required by law. Nothing in the petition suggests a requirement.
Nothing in the petition suggests owners overriding Board decisions. That’s the purpose of the petition to remove them.
There’s only one phrase that’s not specific. The rest of them are. No topics that are not on the agenda have been asked to be discussed.
I don’t make allegations that do not have documentation to back them up. Slander only works if the allegations are untruthful.
One of our misunderstandings is the premise that homeowners are trying to force the Board to do anything and that’s just not the case. That’s the purpose of the recall, to remove the Board members that are not responding and acting on the needs of the homeowners, thus ignoring their fiduciary duties.
Regarding your last statements, I refer you to the above, and ultimately, we may have to hire a lawyer. We don’t have the luxury of waiting for an annual meeting. We’ll be flat broke by then.
Again, ElleN, thank you for your exhaustive critique of the petition. It forced me to do a thorough review of where we are so far, and as you alluded to Special Meeting are very different from Annual meeting with some exacting, precise things that have to be done. It will be interesting to see if you weigh in on my next question regarding management contracts.

ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By WaltH1 on 10/11/2023 3:48 PM

In analyzing current and past Boards, I’ve come up with 2 general conclusions. 1. Uninformed Boards tend to pass down incorrect beliefs from one Board to another as correct & lawful when they are not. 2. When we have been successful in bringing on fresh, new, Board members with current HOA experience, they tend to bring with them the things that worked for them in their previous Boards. And again, paying no attention to our CC&R’s.
This is consistent with what I have seen, except I would not characterize those who do not pay attention to the CC&Rs as having "HOA experience." They have "make it up as we go along because we think that's what a board does" experience.
Quote:
Posted By WaltH1 on 10/11/2023 3:48 PM
7511c provided for a Board that refuses to Schedule a requested Special Meeting.
Thank you for pointing this out. I read 7511(c) carefully and see what you mean.

I still have not checked to see if NC has anything like this. But I bet you have.

Best wishes going forward.
WaltH1 (North Carolina)
Posts: 104
Posted:
"make it up as we go along because we think that's what a board does," fits a lot better!

Thanks again, ElleN!

Walt
JohnC46 (South Carolina)
Posts: 14,265
Posted:
WALT

When calling for a Special Meeting its agenda must be clearly defined such as remove John Smith from the BOD and replace him with Sue White. It cannot be a general bytching session which you seem to be wanting.
WaltH1 (North Carolina)
Posts: 104
Posted:
John,

I know there has to be an agenda and it has to be fairly exact. Reading your advice, if it has to be that precise I'd like to read it somewhere, especially,if there is no Board member to replace the recalled Board member.

I know there is one very vague request without any specifics in the petition, and that's probably not going to fly. If you know where I can see that, I'd appreciate it, as I know the Special Meeting has a short list of requirements.

I'm also looking into an informal meeting. The effort is to try to find a path if the Board, although required by law, refuses to schedule the meeting? People are saying law suit, and I'm trying to find something that just may not be there. It just seems like there should be a way to avoid legal expenses when dealing with a Rogue Board.

Thanks again, John.

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