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RobO (New Hampshire)
Posts: 1
Posted:
I am a board member for our HOA. Bylaws call for 5 members. We are currently running with 3 members and I will be stepping down in a few months. After serving on the board for 4 years I am looking for a break. We have been contacting homeowners over the past 2 years asking for volunteers … crickets.

Running with just 2 members is not functional.
What are our options?
Noone will volunteer.
Has anyone else gone through this?
Perhaps we go into receivership!?

Fyi, we have a management company so the work load is pretty light for the board.
TimB4 (Tennessee)
Posts: 21,113
Posted:
With 5 Directors, you need 3 for a quorum.
You need a quorum to conduct business.

I ran into a similar situation in my previous Association.
The options are limited, but here they are:

1) To buy additional time, prior to you leaving, the Board should vote to allow the following:
Director/Officer x has the authority to renew existing contract for abc
Director/Officer x has the authority to pay all bills for contracts already entered into.
Director/Officer x has the authority to etc, etc, etc.

This way, things were done properly with Board approval.
This can not go on forever, but it can buy additional time to find someone.

2) Not a great option, and I didn't have to use it, but I was willing to appoint my wife and adult daughter to the Board to not have to use the worst option.

3) Inform the membership what receivership is and how it would affect them in the pocketbook.
mention that if nobody volunteers, there is no quorum and why you legally need a quorum on the Board.
mention that a receiver, likely a management company, appointed by the court only answers to the courts
mention that Assessments will increase to pay for the receiver
mention that regardless what your governing documents require, if the receiver sees a need they can ask the court for a special assessment and members would have no say in the process.

Sometimes, this can motivate someone to step up and volunteer.

4) Worst Option - Petition the Court for a Receiver

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