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BarbaraP2 (Wisconsin)
Posts: 5
Posted:
Recently homeowners in our association in Wisconsin called a special meeting in accordance with our Bylaws to discuss our budget, dues assessment and a potential lawsuit with our developer. No one wants to enter into a lawsuit and homeowners are very upset. Things did get a little out of hand.
At the meeting a homeowner motioned to increase the number of board members to 7 until the Annual Meeting, this passed and 4 new members were nominated and elected.
The problem is that our president is not recognizing these new members and is challenging the "legality" of the entire meeting. He resigned rather than working with them but is now continuing to object to the meeting, has been contacting vendors to hault new negotiations that benefit the subdivision, and has been sending invoices for various spending he has been doing to the association.
Has anyone ever dealt with a power-hungry president before!? Any advice on how to handle this? We hate to go the route of legal action as this would cause increased cost to the home owners.
Thanks!
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Barbara,
Have you given any thought about the President being right?

Let's see.
1. Did the president chair the meeting?
2. Do your documents give you the right to override the Present Board?
3. Do your documents describe how call a special meeting of the members should proceed once they begin that special meeting?
4. Was the meeting opened, minutes kept, and adjourned?
5. This is one of those "What a fine mess you have got us into, Ollie."
6. Are you sure, "things got a little out of hand" is an acturate description.
7. Did you have a quorum?

First, in all probability, nothing in the meeting was legal. For all kinds of reason, the primary one, a special meeting must have a purpose, and that is all that can be discussed at that meeting. And I am not sure we should pass any judgement or point any fingers.

Why not try again and start with what and how you got developer problems? I am guessing that may be the root of all this.

Keep in mind that there are procedures to re-call the Board, and/or any specific members. There most likely are procedures to change the # of Boar members. There are specific rules for calling a special meeting and what can be address at this special meeting.

I suspect the Board and the President have a big share in this and they should be the ones resolving these disputes. Someone will have to.

I understand your concern about legal costs and it looks like the situation could deteriorate into Homeowners as a group suing their own organization, individual homeowners suing their association and maybe other people personally, etc, etc.

This is not the road to Paradise.

As far as Power Hunngry Boards and Presidents, check the search featureon the Topic discussion page. Search Boards or Board Presidents or special meetings, all kinds of stuff there.

Get back to us, and don't forget to read all your Documents, your state statutes, the corporation laws for non profit corporations in your state and any local legislative members that could guide and direct getting this cleaned up. Your county offices may be of help.

If you are not shed of the developer, most of what I said don't apply and that becomes the first order of business for the Association. You can not act as an association until you have the turnover complete.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Read DJ's Post, Titled: 7 Reasons, etc.
PaulM (Pennsylvania)
Posts: 1,347
Posted:
BarbaraP2: RobertR is correct! You must do things according to the documents since they give you the power to do it. Otherwise, what you do means nothing.

You do not state if turnover from the developer to resident control has occurred. That is when Developer Board-control ceases and you continue with a membership-elected Board to run your association. IF your documents state there are to be x amount of Board members, then that is what you are to have, UNLESS and UNTIL an amendment to the documents is voted upon to change the dictates you are to abide by.

Before you decide the now-president is power hungry, he may be correct in this situation. Be sure that all is being done according to the dictates of the legal documents you are to follow.

Pertaining to a Special Meeting, it must be called according to the process the Bylaws dictate. If the process was not followed, it could very well be null and void.

Your concerns over the developer might warrant a new Posting with that as your subject.

DonnaS (Tennessee)
Posts: 5,671
Posted:

Hi Barbara,

I am a native Wisconsinite until I retired in 2000 and left for Sunny Florida.

You are required as a not for profit corporation to operate according to
Wisconsin Chapter 181, Non Stock Corpoation.

Go to Google and key in "Wis.Chapter 181" and it will come up .
Then go to "Subchapter V11, Member and Meetigs" I looked at it for a while and everything that your association needs to operate is in there. It is a HUGE document so I am not going to do the work but you certainly can find your answer in there.

Yes, we have all had to deal with an officer or Director once in a while who outsteps his limits of power. Let him challenge all that he wants. Copy from your Statutes and show him the proper/legal way to function. Good Luck to you.

BarbaraP2 (Wisconsin)
Posts: 5
Posted:
Thanks all for your advice. To clarify some things, we did follow our Bylaws in organizing the special meeting with the exception that the homeowners working to call the meeting provided the notice to the subdivision b/c the president wasn't trusted to actually schedule the meeting. However, according to Wisconsin statutes, it seems that since the president attended and did call the meeting, he waives any right to dispute notice. Yes, he did preside and minutes were kept.
As far as saying that things got out of hand, they truly got downright nasty. The president refused to listen to homeowners or call for votes on proper motions and homeowners got increasingly angry throughout the meeting. Bad behavior shouldn't invalidate a meeting though, right?
Our Bylaws state that the Board must have "at least 3" so having 7 should not be a violation. We are working to formally amend the Bylaws to state "at least 7" and hope to get that approved at the annual meeting in two months. For now, the entire previous Board recognizes the new members, it is just the president that is disputing.
An agenda was provided to discuss the budget, dues assessment and potential lawsuit. We also included a statement that said "other items as approved by 4/5 of the members present" b/c this is what is required by our Bylaws to amend the agenda. The only real matter that came up was this motion.
Thanks again! I appreciate any thoughts as homeowners are angry and tensions continue to rise in our formerly happy subdivision!
BarbaraP2 (Wisconsin)
Posts: 5
Posted:
Oh - and yes, the Association was turned over to the subdivision but the developer does still own 2 lots. Developer has actually encouraged President to work with new board.
DJ1 (Ontario)
Posts: 798
Posted:
Isn't the President usually voted by the Board. If so, and the Board recognizes the new board members then the BOD should remove the President from his position as President. Then he is just a board member like the rest.
PaulM (Pennsylvania)
Posts: 1,347
Posted:
BarbaraP2: You have not posted that the current person who holds the office of President is an elected-by-membership officer. Is he?

BarbaraP2 (Wisconsin)
Posts: 5
Posted:
Yes, he was elected at last year's annual meeting and his term was to run for 2 years. It is my understanding that there are some issues with the validity of the election - that there was not a quorom and that votes were removed from the premisis to be counted - however, it wasn't really an issue that the majority of the neighbors wanted to take up since it opens another big can of worms. Although it sounds as though looking further into that issue could help us in the long run?
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Barbara,
I think Brian is dead center. The Board should elect a new president at called meeting and most of your problem disappears. The Board can assign him any job they want or none at all. Make him a special ADVISOR to the President and direct his reports to go to the President.

It would appear that the suspect election may well be moot, in that the Board has conducted business under the President for some time. Again, Brians advice stands.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Mistake,
I meant to say DJ and said Brian.

But it could have been either one as they are both very perceptive.
MicheleD (Kentucky)
Posts: 4,491
Posted:
Quote:
Posted By BarbaraP2 on 02/10/2008 7:14 AM

Our Bylaws state that the Board must have "at least 3" so having 7 should not be a violation. We are working to formally amend the Bylaws to state "at least 7" and hope to get that approved at the annual meeting in two months. For now, the entire previous Board recognizes the new members, it is just the president that is disputing.
An agenda was provided to discuss the budget, dues assessment and potential lawsuit. We also included a statement that said "other items as approved by 4/5 of the members present" b/c this is what is required by our Bylaws to amend the agenda. The only real matter that came up was this motion.
Thanks again! I appreciate any thoughts as homeowners are angry and tensions continue to rise in our formerly happy subdivision!

I would also contest the new board members voted in at that meeting if I were the President.

You do not indicate what your by-laws require as to HOW board members are to be nominated/elected and when.

In our HOA, the association members can only vote on members that have been nominated in January. The votes then take place BY MAIL ONLY in February.

We could no more vote new members in at a special meeting than we could decide to pay ourselves (also against our governing documents). Members are not allowed to nominate during the annual meeting. Nor are write-in votes allowed during the annual meeting, since the only votes that count are the ones that were mailed in and post marked by a certain date, and then open, verified for eligibility, and counted at the annual meeting.

And it really wouldn't matter if all of the board decided to recognize the members voted in that way, if the documents don't allow for board members to be nominated and elected in that format, then their *agreeing to it* is moot.

I would review very closely what the by-laws or CC&Rs specify is the proper procedure and/or timeline for board member elections and worry less about the absolute number allowed.

Oh, also, as to the meeting getting out of hand and the president refusing to allow people to speak or make comment or motions, well, I thought as the one to run the meeting, that is his call as to whom he gives the floor to make motions? He does have the right to attempt to bring order to his meeting.

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