Board Member Renegade

Hi, good afternoon, another question.
We have a board member who is the 5th board member, and he is making arrangements with homeowners and not getting approval from the board. He's just doing his own thing. Homeowners are sending in letters for payment arrangements and such, saying "as per our agreements" Do we have to honor these non-board approved arrangements? Are there any legal retributions to sending them a denial response, stating these arrangements weren't board approved?

He made arrangements for people to make payments on their yearly dues. People are sending in contracts that they said the board requested. Everyone has different arrangements they want. One couple wants to pay $50 a month for 7 months! They're saying he told them it was ok. I'm worried about maintaining order here. The board (except him. he never answers/reads email)has been talking of voting on a set 2 month extension for homeowners as long as they pay at least half of what's owed now. We can't have people sending in whatever they feel like, and everyone making different arrangements. We need the same for everyone, but I'm not sure the legalities of his arrangements. Are they binding for the board, or can I send these people a letter saying sorry, but he was acting alone and this arrangement is not what the board approved?

He was th pres from last year, and people are going to him, b/c they know him.

Krysta,

Your Board will have to draft a letter with an explaination of how dues are to be paid and that will be the only way that it can be done. Every member gets a copy of the letter. Do not bad mouth this former President because that will then cause people taking sides if this guy was liked by the residents. But do put in the letter, that the new Board was duely elected and the policy will have to get back to an orderly schedule of payments. And include that if there is anyone who is in need of a review of their payment schedule, they should contact the Board. Draft a policy of how you might feel that some variance in the payment schedule might be needded but do not have a loose policy.

As for contracts, that you will need to contact everyone who got a contract signed by this guy after he was no longer on the Board and tell them that he had NO authority to be acting as a rep. for the Board because he is not a Board member. You need to flex some Board muscles asap. He is completely out of line.

We've not had any other payment arrangement rules that I know of. I think we will need one this year. Our neighborhood is middle class $200-300k homes alot of people are getting hit hard b/c of the economy, and job market.4/5 BOD have already discussed it, and we were going to vote next week at our meeting. The responding BOD are going to vote that te dues can be split into 2 payments, and we have a set date when everything is due. The homeonwer is only eligible if they send in a request in writing. We can't have everyone with an a la carte "buy here pay here" policy where they make the rules up. In my opinion that is TROUBLE. Everyone needs the same deadline, same guidelines.
I will just write a nice letter saying orry, he acted alone, any further correspondence needs to be to the board in writing at our offical address.

I would not single him out by name, cover it by stating any other instructions except what is directed under the Boards name/

Krysta:

I would also remind the board that when 1 board member goes off on their own that the D&O insurance may not cover them in a lawsuit. Refer to your governing documents Indemnification Clause.