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ShelleyD (Florida)
Posts: 42
Posted:
I have heard everyone's thoughts about directors not being compensated but I haven't heard too many touch the subject of what to do when they are reducing there dues without approval from membership. Our board retaliated against us for bringing up the subject and now is taking over my responsibilities as Maintenance Director and doing projects that have not gone through me. Not that I care I say knock yourself out because this gives me more time to investigate their sneaky business practices. I need to know where do we go next with this? What is the process for recalling a board? Can we use proxy vote to get a quorum or do people have to show up to vote? Can we have these votes sent to HOA attorney for collection? Can we have the HOA attorney draft the letter to send to the residence? Anything you can add to send me in the right direction would be helpful. I have people that will step up to the plate and fill in. Our next election is May 15th and waiting until next election is not an option.
GlenL (Ohio)
Posts: 5,491
Posted:
Shelly the answers to your questions should be found in your CC&R's. They should spell out how to hold a recall and whether or not proxies can be used; as a general rule if proxies are allowed by your documents then you can use proxies for a recall.

Studies show that 5 out of 4 people have problems with fractions
ShelleyD (Florida)
Posts: 42
Posted:
What are CC&R's? Sorry for sounding stupid but I only have Deed Restrictions and By-Laws. Thank you for your reply.
BrianB (California)
Posts: 2,820
Posted:
Codes, covenants and Rules (or restrictions). CC&R's may be equal to your deed restrictions. Either they, or your bylaws,should spell out exactly how a recall must be done.

MaryA1 (Arizona)
Posts: 7,043
Posted:
Shelly,

My bylaws do have an artitle titled "Removal of Directors"; however some bylaws may be silent on this. If yours are silent, IMO, the procedure would be to call a special meeting of the members. Your bylaws should outline this procedure. In many instances a certain % of members can petition the board for a special meeting. But, b/4 you do this, you must get the members together and find out how many agree to a recall. You could circulate a petition to find out how many would vote for a recall. Also, you will want to line up members who are willing to run for a position on the board. After these steps have been taken, then send the request, along with a copy of the petition, to the board and ask that they call a special meeting for the purpose of recalling X number of board members. You may also want to check out state law to see if this is addressed. If not, just follow the procedure for a special meeting. The quorum requirements for the meeting and whether or not proxies are allowed for voting will also be found in your bylaws. The vote required is usually a majority of the members who are entitled to vote.
ShelleyD (Florida)
Posts: 42
Posted:
Hi Mary,
Thank you for your reply. My by-laws..Removal. Any officer elected or appointed by the BOD may be removed by the BOD whenever in its judgment the best interests of the corporation would be served thereby, but such removal shall be without prejudice to the contract rights, if any, of the officer so removed.

Special Meetings...Special meetings of the members may be called by the President, the BOD, or not less that one-tenth of the members having voting rights, as shown by Article 1 Section 2 hereof bla bla each member should have one vote.

We cannot bring this issue in front of the board because I am the only board member in good standing that is not being recalled. I don't think they will call a meeting for me to recall all of there positions. The board wouldn't even call a meeting for me when I caught the Landscaper not doing his job and sending bills for work that was never done. President even said it was never done and the treasurer paid it anyway. I wanted to fire him because it wasn't his first time. I am ready to make it easy for all of us and turn them in to the IRS.
SusanW1 (Michigan)
Posts: 5,202
Posted:
You need to read more of your bylaws.

Find the sections on "Recalling Members of the Board" and also any info on special meetings and how soon the meeting must be called when the petition is complete.

Your bylaws say you can call a special meeting if you have 10% of the Members requesting it.

So do that. Get up a petition and gather signatures requesting a special meeting. Be sure to state the reason for the meeting on the petition when getting signatures for the meeting. (EACH person must have his/her own vote in the recall, so state each person's name in the petition)

Present the petition (request for the meeting) to the Board. The president then will set the date for the meeting. This is NOT the same as a board meeting or an annual meeting, so the board has no power there. Only the presiding officer will run the meeting. There will have to be another Notice of Meeting to EACH homeowner/member annouciing the meeting AND its purpose.

The meeting will be called to order and right away, make the motion to recall EACH person, one at a time. There will be a debate time, so be prepared for rebuttal from EACH person who is being recalled. Hold the vote for the recall one at a time - you must know the vote requirement (majority or 2/3's.) Be sure to have a trusted person as the Teller (vote counter)

This will be messy and out of control quickly if you don't have your ducks in a row.

Good luck. You are about to enter the lion's den!
MaryA1 (Arizona)
Posts: 7,043
Posted:
Shelley,

The article you posted deals with removal of an appointed director. You need to find the article that deals with removing an elected director.

The petition for a special meeting is outlined in the bylaws so the board must accept it and act on it. If they don't, then get the required % of the members together and call the meeting yourselves. Make certain you following the special meeting procedure exactly as outlined in the bylaws. In the meeting notice make certain you list the recall and elections (if the recall is a success) on the agenda and include a ballot. Have the candidates lined up and hold elections at the same meeting.
KirkW1 (Texas)
Posts: 1,665
Posted:
Quote:
... I am ready to make it easy for all of us and turn them in to the IRS.

You should save yourself the effort as the IRS only cares about one thing:

Did the association pay its proper share of taxes?

They really don't care about the internal workings of your organization. They don't care about your profit or non-profit status. Such status is a state concept only.

If you can't find anything regarding a recall of directors your best bet is to bring this to light at the next annual meeting.

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