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DeliaK
Posts: 20
Posted:
Can a resident in a complex run for the board as the residents name, get elected
then serve as the LLC name?
For example, run for the board seat as John Smith, win the election
but now serve as John Smith Properties LLC.
Thank you!

TimB4 (Tennessee)
Posts: 21,062
Posted:
Providing that the individual elected is the one serving, it doesn't matter what they call themselves.

Note: I expect that you are not under declarant control.
LetA (Nevada)
Posts: 2,679
Posted:
That is a question for your PMC. Quite honestly if you are the trustee of the LLC you should be able
to run as your given name not the name of the trust.
DeliaK
Posts: 20
Posted:
We are not under builder control. How would one know if that LLC is not a employee
of management? or any vendor hired by the community?
that would be a conflict of interest.
IMO if you run as a name then you are that name while serving and
don't have the ability to change that.
So you are saying if I run as John Smith I can then serve as Jane Doe?
and that would be legal?
DeliaK
Posts: 20
Posted:
They are running as their name John Smith then once elected they serve
the community as Smith Enterprises LLC
Our PMC won't respond.
TimB4 (Tennessee)
Posts: 21,062
Posted:
Who owns the unit/property?

The individual, a trust or an LLC?
ElleN (Idaho)
Posts: 4,420
Posted:
I presume this is a condo, subject to the NV CIOA and possibly NV's condo statute.

Observations (double check my findings, please):

-- Nevada statutes do not require that directors be "natural persons."

-- The Nevada NFP statute requires officers to be natural persons.

-- The NV NFP statute says that committee members must be natural persons, unless the bylaws or AoI say otherwise.

Quote:
Posted By DeliaK on 01/17/2024 7:40 AM
They are running as their name John Smith then once elected they serve the community as Smith Enterprises LLC
Please answer TimB4's question(s).

Please quote all your bylaws say about who can be a member.

Please quote all your bylaws say about who can be a director.

This sort of question has come up before. I believe the answer will tend to be state dependent.

If some kind of fraud is your concern, I would let the latter go. Instead my answer depends on your responses to the above queries.

I applaud the PMC for refusing (so far) to respond. This question is outside their bailiwick.
DeanJ
Posts: 1,786
Posted:
Quote:
Posted By DeliaK on 01/16/2024 9:44 PM
Can a resident in a complex run for the board as the residents name, get elected
then serve as the LLC name?
For example, run for the board seat as John Smith, win the election
but now serve as John Smith Properties LLC.
Thank you!


My house is titled to Dean and Susan. I run for the board and want Dean and Susan shown as the Board member. So can either Dean or Susan show up to vote? A partnership, LLC, is no different. The person who was elected is the board member, not the LLC.
TimB4 (Tennessee)
Posts: 21,062
Posted:
If the property owner is an entity (an LLC), then the corporation can assign whom they wish to represent them.

Quote:
Posted By DeliaK on 01/17/2024 7:37 AM

So you are saying if I run as John Smith I can then serve as Jane Doe?
and that would be legal?

In my opinion, the individual who ran should be the individual who serves regardless of what name they serve by.
The membership voted for an individual, not a corporation.

Otherwise, Who cares what you call yourself. Any legal document would have to be signed using one's legal name and not what they choose to be called.

Regarding the conflict:

I don't believe it would be considered a conflict of interest (just as it wouldn't be a conflict of interest for any member) unless the Board was voting about a request of the LLC or to bring legal action against the LLC (or any elected member).

Yes, I agree that they should have been more clear about it prior to the ballots being cast.
However, that fact alone wouldn't (in my opinion) create a conflict of interest - just a scummy thing to have done.
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By DeanJ on 01/17/2024 8:22 AM

My house is titled to Dean and Susan. I run for the board and want Dean and Susan shown as the Board member.
At the annual meeting, the two of you are allowed to cast a total of one vote between the two of you (assuming one vote per house), right? But also the two of you are both members and are both legally entitled to run for and serve on the board in your individual capacity as members.

Quote:
Posted By DeanJ on 01/17/2024 8:22 AM
​So can either Dean or Susan show up to vote?
No.

Quote:
Posted By DeanJ on 01/17/2024 8:22 AM

A partnership, LLC, is no different. The person who was elected is the board member, not the LLC.
It is different, and it is state dependent. IIRC some states laws and some bylaws say the LLC can have its designated representative represent the LLC at board meetings, elections, et cetera.

Granted if Nevada and/or the bylaws say the above, then John Smith should have been clear that he was representing the LLC when he ran for the board. One reason I am not inclined to make an issue of it is because who owns the unit (be it John Smith or an LLC) is public record. (I admit the possibility that I could be talked out of this.)
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Not to play lawyer but an LLC protects ones assets. It could be he did it because being n the BOD he felt he was maybe more liable. More liable for whatever I do not know what, but I expect he feels this is one way to protect himself.
DeliaK
Posts: 20
Posted:
He owns about 10 in the complex, the one he listed on his board application is under the LLC name.
TimB4 (Tennessee)
Posts: 21,062
Posted:
Quote:
Posted By DeliaK on 01/17/2024 10:47 AM
He owns about 10 in the complex, the one he listed on his board application is under the LLC name.

Likely why the MC changed the name to the LLC
DeliaK
Posts: 20
Posted:
Understandable but then run as your LLC not your name.
Perhaps people won't want to vote for an LLC
(or they will) but whatever you run as should be who you are when you are
serving. No matter what the reason.

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