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MaureenM1 (PA)
Posts: 344
Posted:
Has any board member ever called a special meeting of the Association so directed by the resolution of the Executive Board?

We have some issues we want to discuss with our builder/developer (who is the President of our Associaton who has been avoiding us) and want to call such a meeting. Our declaration states we can call such a meeting with a petition signed by 25 perent ofthe votes in the Association.. The notice has to state the time, palce and purpose therof. No business shall be transacted at a special meetint except as stated in the notice.

I am new to the board as is my neighbor who is also on the board. Does this mean we can petition 25 % of the owners and call a special meeting and force the President of the Assocation (who also is the builder and a property owner) to attend our meeting?

Any advice would be appreciated.
RogerB (Colorado)
Posts: 5,067
Posted:
Maureen, based on what you posted it appears and that you may be able to do so. Remember that the Developer may have sereral votes per unit compared to 1 vote per unit of the purchasers. Also, if incorporated your state's corporation laws may rule. They probably require the petition to be presented to the Board and if valid and sufficient votes obtained the Secretary usually is required to send notice of the special meeting. One other thing I would suggest is to have a date and location of the meeting in the petition, otherwise the Board may drag out when and where to have the meeting. Would you want the Board call it to be held during working hours or 100 miles away?
SusanW1 (Michigan)
Posts: 5,202
Posted:
Maureen - check your bylaws to see if the Board can call its own Special Meeting.

Usually, Members need to get up the petition if they want one, but I've never heard of the Board having to go back to the Members to call its own Special Meeting.

MaureenM1 (PA)
Posts: 344
Posted:
Thanks,

Our declaration states Unit Owners entitled to case at least 25% of the votes in the association. The builder owns 9 of 28. The remainder are lots that are owned by the declarant but have no units built on them. Would those lots count?

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

As Susan has stated, usually the bylaws state the Pres, a majority of the board members or a certain % of the members may call for a special meeting of the members.

You mentioned the number of lots owned by the builder then stated the declarant owns the remainder. Aren't they one and the same? Usually the declarant has a certain number of votes per unsold lot; oftentimes it's more than one vote per unsold lot which ensures him the majority of votes while still in control of the assn. Normally the members of the assn, excluding the declarant are called Class A members and they have only 1 vote per lot owned. The declarant is called a Class B member and oftentimes has more than one vote per unsold lot. After transition the Class B member (the declarant) becomes a Class A member and reverts back to only having 1 vote per unsold lot. The Class A and b memberships should be outlined in your CCRs.
MaureenM1 (PA)
Posts: 344
Posted:
The declarant is the builder & sons, Inc. the one son owns 7 privately (other than the declarant). it doesn't specify in our CCR's about class A or class B members. Just states under voting in the CCRs "if the Declarant onws or hold title to one or more Units, the Declarant shall have the right at any meeting of the Association to cast the votes to which such Unit or Units are entitled. No votes allocated to the Unit owned by the Association may be case. It is not specific. How would I be able to find out this information.

When finished it will be a 40 unit development.

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

The answers to all your questions SHOULD be found in your bylaws and CCRs. You posted the following info "if the Declarant onws or hold title to one or more Units, the Declarant shall have the right at any meeting of the Association to cast the votes to which such Unit or Units are entitled," now you need to find out about "the votes to which such unit or units are entitled". However, even if the declarant only gets 1 vote per unsold lot it appears he has the majority vote between what he owns and what his son owns. Have you double-checked your bylaws to see if a majority of the board members may ask for a special meeting of the members? Are there more than 2 h/o's on the board or does the declarant have the majority vote there too?
MaureenM1 (PA)
Posts: 344
Posted:
The CCRs state that the President (which in our case is the son of the declarant) can call a special meeting OR Unit owners entitled to case 25% of the votes in the Association can call for a special meeting. If I can petition the 19 owners (and I can) we can call for a special meeting. Even if the President cases all his votes and the declarant has 3 votes per unsold lot the most votes he would have is 50. 25% is 12.5 and we have 19 owners in the development that would sign a petition to hold a special meeting.

Am I correct in my thinking??? Please advise.

JohnK3 (Pennsylvania)
Posts: 967
Posted:
>>>We have some issues we want to discuss with our builder/developer (who is the President of our Associaton who has been avoiding us) and want to call such a meeting.<<<

What makes you think he'll show up?
MaureenM1 (PA)
Posts: 344
Posted:
The question isn't whether or not I think he will show up. It's can the Owners who have 25% of votes in the Association call a Special Meeting.

JohnK3 (Pennsylvania)
Posts: 967
Posted:
Quote:
Posted By MaureenM1 on 02/15/2009 10:15 AM
The question isn't whether or not I think he will show up. It's can the Owners who have 25% of votes in the Association call a Special Meeting.


You said your CCRs state 25% can call for a special meeting, yes? So that's the answer, I think.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Maureen,

As John said, if it's clearly stated that 25% of the members can petition the board Pres. to call a special meeting, then they can do that. However, that doesn't mean the meeting will take place. The board may have the power to reject such a petition if the subject of the meeting is a topic that the members do not have the authority to vote on. You haven't stated why the members want this meeting with the Pres and what they want to vote on. Also, I'm sure the declarant (the Board Pres) has the majority vote of the assn since he is still in charge, so it may be a wasted effort to hold this meeting.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Maureen,
I expect MaryA pretty much sums it up as far as special meeting are concerned.

You are in a tough spot and about all you can do, as I see it, and you can't work it our with the developer, is to call a Town Hall Meeting and have the owners discuss it. I would first get a little organization so you can run the meeting orderly, then see where the rest of the owners fall.

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