A service of:
Community123.com
Professional websites for HOAs & condos, since 2004
🎁 1st year FREE for HOATalk members! →
← Return to Topics List

board voted in a new director ot to an office but just to fill an open vacancy on the board of 5 members.

Started by ML8 • 30 replies • 241 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

ML8 (Illinois)
Posts: 3
Posted:
After checking public records, we wish to retract the addition to our board.
How can we do this?
ML8 (Illinois)
Posts: 3
Posted:
I should have added this is in Illinois and individual was not voted in to prior members position, but just as a director to fill a vacancy.
The nominationg committee will not nominate this individual for the next election but we'd like to remove now if possible. how do we go about this>
KerryL1 (California)
Posts: 14,550
Posted:
First, read you Bylaws and you. will see how Board may fill directors vacancies. If the Board acted accordingly, the person is IK to serve. If it says the person serves only till th next election, just wait and have your own candidates ready to run.

Hee and in your previous post I don't see that you've read your Bylaws and and don't know why you refuse to.
ElleN (Idaho)
Posts: 1,334
Posted:
Quote:
Posted By ML8 on 01/18/2025 1:37 PM
I should have added this is in Illinois and individual was not voted in to prior members position, but just as a director to fill a vacancy.
Is this a condominium or a community of single family homes on individual lots? It makes a big difference here.

Also is this association incorporated?

MichaelS56 (Minnesota)
Posts: 858
Posted:
Your governing documents may have a clause that will allow the Board to remove a member and how to do it.
ML8 (Illinois)
Posts: 3
Posted:
ElleN, Idaho
This is a condominium association and it is incorporated.
KerryL1 (California)
Posts: 14,550
Posted:
Again, what do your Bylaws say?
CathyA3 (Ohio)
Posts: 6,299
Posted:
I agree with the other comments: read your bylaws that deal with appointments.

Typically boards can't remove validly elected or appointed directors. The only ones with the authority to remove directors is the membership via regular elections or remove-and-replace actions.

If the election or appointment was invalid for some reason, that's different - eg. you discover that the person isn't actually an owner and is not eligible to serve on the board. In this case you could make an argument that the person never was a valid board member. Certainly any votes that the person participated in are questionable and probably wouldn't hold up in court if challenged.

Appointing someone to a vacancy is important. Occasionally you'll find people (directors and homeowners) who want to play games with vacancies in order to control the outcome of votes. At the very least it suggests that the board doesn't totally have a handle on things. At worst it's misconduct.
DeanJ
Posts: 1,786
Posted:
Typically a board may fill an open position, but once the board fills that position they cannot remove the person.
ElleN (Idaho)
Posts: 1,334
Posted:
Quote:
Posted By ML8 on 01/18/2025 6:35 PM
ElleN, Idaho
This is a condominium association and it is incorporated.
Then of note is that the Illinois Condo Act does not speak to removal. The Illinois Nonprofit corporation act does speak to removal. Among other things, the latter says:

A director may be removed by the affirmative vote of two-thirds of the votes present and voted [at a meeting of owners], either in person or by proxy.


The meeting has to meet the requirements for quorum.

From experience, owners need attorneys to get through the removal process. It would be far better to campaign to not re-elect him at the next annual election.

Your fellow owners might be unmoved by this guy's conviction record. If this guy is removed from the board, the owners have the right to turn around and vote the guy back in as a director at the next election.

As others said, it would be best if you quoted from your bylaws exactly what they say about removing directors; special meetings; quorum; and so on.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
I say if the BOD appointed someone to fill a vacant position, the same BOD can vote to remove that person.
KerryL1 (California)
Posts: 14,550
Posted:
It depends what THE bylaws saY, JOHNC.

Ours, restated in’22, say onlyowners may remove Board appointed directors.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By JohnC46 on 01/20/2025 2:28 AM
I say if the BOD appointed someone to fill a vacant position, the same BOD can vote to remove that person.

Expecting your Association is incorporated (most are but check to be sure), I Agree

See: 805 ILCS 105/108.35 (scroll down the page)

Per that section of statute (emphasis added):

(4) If a director is elected by a class of voting members entitled to vote, directors or other electors, that director may be removed only by the same class of members entitled to vote, directors or electors which elected the director.

Note: it will take a 2/3 vote of the board to remove.
CathyA3 (Ohio)
Posts: 6,299
Posted:
Quote:
Posted By JohnC46 on 01/20/2025 2:28 AM
I say if the BOD appointed someone to fill a vacant position, the same BOD can vote to remove that person.

In my community, appointed directors are treated the same as the elected director they replaced. They complete the term that they were appointed to, and only homeowners can remove them.

The first piece (completing the term vs. only serving until the next annual meeting) maintains the staggered terms. Forcing the person out early means that at least two persons would be elected at the next annual meeting, and according our the bylaws directors are elected to staggered, three-year terms. So we'd be violating our bylaws if we didn't allow the appointed director to complete the entire term he was appointed to.

In addition, allowing the board to remove a director further concentrates power in the hands of fewer than all directors.

It also discourages a diversity of opinion since the appointed director is more likely to rubber stamp the decisions of those that appointed him, rather than risk getting booted. This can lead to poorer decisions. You can also argue that the appointed director is less able to fulfill his fiduciary duty if he's worried about the consequences of speaking his mind.

CathyA3 (Ohio)
Posts: 6,299
Posted:
Quote:
Posted By TimB4 on 01/20/2025 5:02 AM
Posted By JohnC46 on 01/20/2025 2:28 AM
I say if the BOD appointed someone to fill a vacant position, the same BOD can vote to remove that person.


... snip ...

Per that section of statute (emphasis added):

(4) If a director is elected by a class of voting members entitled to vote, directors or other electors, that director may be removed only by the same class of members entitled to vote, directors or electors which elected the director.

Following up on my previous comment, this is another one of those things that seems neat and logical on the surface. That's until you think about the consequences.

Given how often people resign from the board, especially in condo associations, a savvy director could manipulate the letter of the law until he has the lion's share of the power. I assume this was not the lawmakers' intent. The sentence also seems to imply two classes of membership, which may not be consistent with the definition of ownership in the CC&Rs.

We could also have an interesting debate over the meaning of the word "may" in that statement in bold. "May" is often interpreted as permissive, as opposed to the word "shall". So I assume that the law is saying that the board may remove appointed directors but can defer to the homeowners if they wish. But the word "only" changes that interpretation.

But IANAL, so WDIK.
DeanJ
Posts: 1,786
Posted:
Quote:
Posted By JohnC46 on 01/20/2025 2:28 AM
I say if the BOD appointed someone to fill a vacant position, the same BOD can vote to remove that person.

You may say it, but unlikely the fact. Most CC&Rs reserve all the power of removal of board seats to the owners, if they were appointed or elected. The board is only empowered to make appoints to fill vacant positions. So they should choose wisely.

ElleN (Idaho)
Posts: 1,334
Posted:
Quote:
Posted By TimB4 on 01/20/2025 5:02 AM
Posted By JohnC46 on 01/20/2025 2:28 AM
I say if the BOD appointed someone to fill a vacant position, the same BOD can vote to remove that person.


Expecting your Association is incorporated (most are but check to be sure), I Agree

See: 805 ILCS 105/108.35 (scroll down the page)

Per that section of statute (emphasis added):

(4) If a director is elected by a class of voting members entitled to vote, directors or other electors, that director may be removed only by the same class of members entitled to vote, directors or electors which elected the director.

Note: it will take a 2/3 vote of the board to remove.
TimB4's citation corrects my earlier post.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By CathyA3 on 01/20/2025 6:54 AM

The sentence also seems to imply two classes of membership, which may not be consistent with the definition of ownership in the CC&Rs.

Typically, when the development is starting out, there are two classes of members.

Class A - The Developer
Class B - The owners
CathyA3 (Ohio)
Posts: 6,299
Posted:
Quote:
Posted By TimB4 on 01/20/2025 8:43 AM
Posted By CathyA3 on 01/20/2025 6:54 AM

The sentence also seems to imply two classes of membership, which may not be consistent with the definition of ownership in the CC&Rs.


Typically, when the development is starting out, there are two classes of members.

Class A - The Developer
Class B - The owners

Yes, I understand.

However, I was referring to the two classes of membership that was in the state statute you cited, namely directors or non-director owners (Ie., electors).

Note that this is logically problematic.

* Directors fall into both categories since they vote at the annual meeting.

* Directors won't remain directors, and electors can become directors.

So, if you want to draw a clear distinction between two groups, they have to be mutually exclusive. Yes, I'm thinking like a systems analyst. Don't hate me.

I suppose you could say that same thing about developers and owners, although that happens a lot less frequently.

I also think this statute is a problem because one of fundamental rights of ownership in an HOA is determining who is a director. The statute limits that right.

If I were trying to develop an expert system or AI to handle this, I couldn't do it because some of the specs are contradictory...
ElleN (Idaho)
Posts: 1,334
Posted:
Quote:
Posted By CathyA3 on 01/20/2025 9:51 AM

I also think this statute is a problem because one of fundamental rights of ownership in an HOA is determining who is a director. The statute limits that right.
Fundamental right according to what authority?

Many statutes and original covenants limit whom membership can select as a director. They are not being challenged.
KerryL1 (California)
Posts: 14,550
Posted:
Based on Tim's citation, imo, we now need to know if ML8's governing documents, probably the CC&Rs, define "classes" of Ownership. Our originals did and as homeowners and developer. They had different privileges. Directors only were Class A as the Board comprised no homeowners only the developer and his people.

Once turnover occurred, there were no classes of voting members. To term directors, who basically after turnover are simply part of the homeowner "class" as a distinct class seems odd to me.

From long experience, I agree with Cathy: "In addition, allowing the board to remove a director further concentrates power in the hands of fewer than all directors." Ys, because of her below:

"It also discourages a diversity of opinion since the appointed director is more likely to rubber stamp the decisions of those that appointed him, rather than risk getting booted. This can lead to poorer decisions. You can also argue that the appointed director is less able to fulfill his fiduciary duty if he's worried about the consequences of speaking his mind."

This is why our restated Bylaws do not permit the Board to remove directors they appointed unless specific violations of the Bylaws occur.

ElleN (Idaho)
Posts: 1,334
Posted:
Quote:
Posted By CathyA3 on 01/20/2025 5:33 AM

It also discourages a diversity of opinion since the appointed director is more likely to rubber stamp the decisions of those that appointed him, rather than risk getting booted. This can lead to poorer decisions. You can also argue that the appointed director is less able to fulfill his fiduciary duty if he's worried about the consequences of speaking his mind.
I think you are missing the realpolitik. Why would a typical board majority appoint someone who is going to disagree with them in the first place? They would sooner leave the board seat vacant until the next regular election. To any owner objecting, they need only say, "The HOA attorney said we do not have to appoint someone we feel is not qualified. We know of no one qualified."

Doesn't a vacant board seat lead to your less "diversity of opinion"* and poorer decisions as well?

Better to let the board appoint with the option to remove.

*Today I believe "fewer brains working for the HOA" would be the preferred descriptor.
KerryL1 (California)
Posts: 14,550
Posted:
What's also "real" in many Bylaws as in both our original & restated, is IF the Board may, but not "shall" fill vacancies, Owners may vote some one in.

Our CA HOA attorney strongly advised u to use the language we now use in our Bylaws. Think I recall the CA HOA attorneys at Davis-stirling.com also do.

It is far too easy for a rogue Board to make life hell for "reformer" to the point the latter resigns. Then the Board appoints someone who's a pushover rubber stamp. But, if that person grows a pair after learning how important the job is and starts disagreeing with the bad guys and, OMG, finds supporters in the membership. AND they can all wait a few months for a Owners election, how does it serve the corporation if the rogue Board can kick this director off the Boadr ???

CathyA3 (Ohio)
Posts: 6,299
Posted:
Quote:
Posted By ElleN on 01/20/2025 5:51 PM
Posted By CathyA3 on 01/20/2025 5:33 AM

It also discourages a diversity of opinion since the appointed director is more likely to rubber stamp the decisions of those that appointed him, rather than risk getting booted. This can lead to poorer decisions. You can also argue that the appointed director is less able to fulfill his fiduciary duty if he's worried about the consequences of speaking his mind.


I think you are missing the realpolitik. Why would a typical board majority appoint someone who is going to disagree with them in the first place? They would sooner leave the board seat vacant until the next regular election. To any owner objecting, they need only say, "The HOA attorney said we do not have to appoint someone we feel is not qualified. We know of no one qualified."

Doesn't a vacant board seat lead to your less "diversity of opinion"* and poorer decisions as well?

Better to let the board appoint with the option to remove.

*Today I believe "fewer brains working for the HOA" would be the preferred descriptor.

Why?

They didn't know the person as well as they thought they did.
The person surprises them.
Nobody else would volunteer.
They're facing receivership and have to take what they can get.
It's the only other person willing to go along with the CTA reporting requirements (currently off again, but the day is young *).

Frankly, you could make a good argument that few homeowners are truly qualified because they haven't got a clue about what the job entails. You could say the same about a large percentage of current board members as well.

This is especially true in condo communities where "qualified" often means "name on deed and able to fog a mirror".

In fact, when a board member trots out the "we can't find anyone qualified" argument, I look for shenanigans. Ditto "we want to wait until the annual meeting and let the owners decide". In a recent example in my community, this last statement was shorthand for "I don't want a third board member because it's easier to bully one person than two."

(In my experience, competent leaders usually value diversity of opinions. They know that they don't know everything, and they rely on others to tell them when they're getting it wrong.)

CathyA3 (Ohio)
Posts: 6,299
Posted:
Quote:
Posted By KerryL1 on 01/20/2025 8:35 PM
What's also "real" in many Bylaws as in both our original & restated, is IF the Board may, but not "shall" fill vacancies, Owners may vote some one in.

Our CA HOA attorney strongly advised u to use the language we now use in our Bylaws. Think I recall the CA HOA attorneys at Davis-stirling.com also do.

It is far too easy for a rogue Board to make life hell for "reformer" to the point the latter resigns. Then the Board appoints someone who's a pushover rubber stamp. But, if that person grows a pair after learning how important the job is and starts disagreeing with the bad guys and, OMG, finds supporters in the membership. AND they can all wait a few months for a Owners election, how does it serve the corporation if the rogue Board can kick this director off the Boadr ???


Amen. The same dynamic can be used and misused. People often make decisions based on the intended benefits without considering what else can happen. And sometimes the negative consequences can outweigh the benefits.

It's sort of like term limits. Yeah, they force you to kick out the bad ones. They also force you to kick out the good ones - and is that a smart idea when good ones are in short supply?
CathyA3 (Ohio)
Posts: 6,299
Posted:
Speaking of allowing boards to remove a director... I can think of one instance in which it may be appropriate.

The Corporate Transparency Act (CTA) is unclear as to whether an entire board would be subject to fines and imprisonment if one director refused to provide their personal information. (This is the opinion of one of CAI's attorneys.)

If it is true, then this would be a valid reason for allowing the board to remove the non-compliant director. In fact, I can't think of a better one.

I hope that community associations will be granted their waiver from the CTA reporting requirements so that this issue disappears.
ElleN (Idaho)
Posts: 1,334
Posted:
Quote:
Posted By CathyA3 on 01/21/2025 4:16 AM
when a board member trots out the "we can't find anyone qualified" argument, I look for shenanigans. Ditto "we want to wait until the annual meeting and let the owners decide". In a recent example in my community, this last statement was shorthand for "I don't want a third board member because it's easier to bully one person than two."
Of course. I think this happens a lot.

Then again one person's "shenanigans" is another person's recognition that they have a smooth functioning board (with a vacant seat).
Quote:
Posted By CathyA3 on 01/21/2025 4:16 AM
(In my experience, competent leaders usually value diversity of opinions. They know that they don't know everything, and they rely on others to tell them when they're getting it wrong.)
In my experience what you describe is idealized.

I think most HOA boards just want to get things done (hopefully consistent with the governing documents). I suspect most Boards do not really care if their procedural approach violates the bylaws, Declaration or state law. For unpaid, unskilled volunteers it's understandable, especially when amenities and infrastructure are extensive.
ElleN (Idaho)
Posts: 1,334
Posted:
Quote:
Posted By CathyA3 on 01/21/2025 5:45 AM

The Corporate Transparency Act (CTA) is unclear as to whether an entire board would be subject to fines and imprisonment if one director refused to provide their personal information. (This is the opinion of one of CAI's attorneys.)

If it is true, then this would be a valid reason for allowing the board to remove the non-compliant director. In fact, I can't think of a better one.
I can. E.g. Certain categories of felon, prohibited by state law (e.g. Florida).

Behind on dues, with no payment plan in place. The Bylaws might prohibit such an owner from serving on the board. California says prohibiting such a person from being on the board is lawful.

When the Board discovers these things, I would expect they are empowered to remove the director.

There are more.
KerryL1 (California)
Posts: 14,550
Posted:
I reviewed our Bylaws and had forgotten the several reasons our Board may remove directors. Some may interests readers: Our HOA attorney recommended them.

(c) Authority of Board to Remove Directors. The Board shall have the power and authority to remove a Director and declare the office vacant if the Board discovers and determines that such director did not during the course of their candidacy, or does not, while serving as a Director, meet, or continue to meet, any Candidate Qualifications. The Board shall not have the power to remove from office any Director on the basis only that such person was appointed by the Board itself to fill a vacancy on the Board. Further, before any Board member is removed from office, such Board member will be provided with an opportunity to be heard at a hearing of the Board which conforms with the requirements of Corporations Code Section 7341. In addition to any provisions contained in the Election Rules as to Candidate Qualifications, the Board, by a majority vote of the Directors who meet all of the required qualifications relating to serving directors, may declare vacant the office of any Director if the Director:

1. Fails (unless excused by the Board) to attend either (i) three (3) consecutive regularly scheduled meetings of the Board or (ii) five (5) regularly scheduled meetings of the Board within any twelve (12) consecutive month period;

2. Fails to comply with a duly approved action or direction of the Board which the Board reasonably considers should have been complied with by the Director while serving in the capacity of a Director;

3. Fails to comply with the Association’s Governing Documents, including but not limited to the payment of regular and/or special assessments or other money owed or due to the Association (apart from the payment of fines, collection charges, late charges or costs levied by a third party).

4. Receives any type of monetary gain, or other gain such as services, products, gifts or gratuities of a significant value (in the opinion of the Board) which have been provided in relation to a Director’s service on the Board, and which has not been promptly disclosed to the Board at an open meeting of the Board, sanctioned by the Board and recorded in the minutes;

5. Takes any action considered (in the reasonable opinion of the Board) to be grossly detrimental to the general safety, health and welfare of the community and its members or which the Director knew, or should have known, would or might create significant legal liability to the Association or be substantially detrimental or adverse to the Association’s financial or legal position;

6. Unless previously authorized in writing by a majority of the Board, fails to keep confidential all confidential Board information, including but not limited to discussions and information received during Executive Session Board Meetings and information which is subject to attorney-client privilege and which privilege vests in the Association.

"Candidate qualis" include must be an Owner for a year; must not be a co-owner w/another directors; must not be delinquent; must not be a convicted felpn the would keep the Assoc.formbuyng a fidelity bond.

DeanJ
Posts: 1,786
Posted:
Quote:
Posted By KerryL1 on 01/20/2025 8:35 PM
What's also "real" in many Bylaws as in both our original & restated, is IF the Board may, but not "shall" fill vacancies, Owners may vote some one in.

Our CA HOA attorney strongly advised u to use the language we now use in our Bylaws. Think I recall the CA HOA attorneys at Davis-stirling.com also do.

It is far too easy for a rogue Board to make life hell for "reformer" to the point the latter resigns. Then the Board appoints someone who's a pushover rubber stamp. But, if that person grows a pair after learning how important the job is and starts disagreeing with the bad guys and, OMG, finds supporters in the membership. AND they can all wait a few months for a Owners election, how does it serve the corporation if the rogue Board can kick this director off the Boadr ???


Reality is few owners ever want to serve on the board and the vast majority of HOAs have difficulty finding members. That is far more common than “rogue boards”. While your attorney’s advice might have been good advice for your HOA, it could be really really poor advice for others.

Also calling a special meeting to elect a board member whose seat will expire in less than a few months if a fools errand.

KerryL1 (California)
Posts: 14,550
Posted:
Which advice do you think might be "poor" for other?

Or your really think a rogue board can appoint a director to fill a f vacancy and then dump them if they do not adhere to the rogue Board whims, abusive b behavior of owners, etc.?

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

  • ✓ Ask follow-up questions
  • ✓ Share your experience
  • ✓ Get expert advice
  • ✓ Access 350,000 discussions
Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here