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SusanS9 (California)
Posts: 56
Posted:
Confused by Davis Stirling rgarding removal of directors:

APPROVING THE RECALL. As provided for in Corp. Code §7222(a) any or all directors may be removed without cause if:

In a corporation with 50 or more members, the removal is approved by the affirmative vote of a majority of the votes represented and voting at a duly held meeting at which a quorum is present, with the affirmative votes also constituting a majority of the required quorum.

If an association has 100 members, does it take 51% of 100 (membership)= 51 to approve removal or 51% of 51 (quorum) = 26?

Also, if recall is successful and election to replace directors is 30 days later, who runs the association during the time between the recall and new election?

SusanW1 (Michigan)
Posts: 5,202
Posted:
"In a corporation with 50 or more members, the removal is approved by the affirmative vote of a majority of the votes represented and voting at a duly held meeting at which a quorum is present, with the affirmative votes also constituting a majority of the required quorum."

The meaning hinges on HOW your members can vote.
If an association has 100 members, the motion passes with at least 51% of the votes (whether that is live in-person votes, absentee ballots, written ballots, or proxies) AND it also must pass by a majority vote of the live bodies there that constitutes a quorum.

(I'd be interested in how others read this.)

BrianB (California)
Posts: 2,820
Posted:
Quote:
Posted By SusanS9 on 11/20/2009 9:46 AM

In a corporation with 50 or more members, the removal is approved by the affirmative vote of a majority of the votes represented and voting at a duly held meeting at which a quorum is present, with the affirmative votes also constituting a majority of the required quorum.

If an association has 100 members, does it take 51% of 100 (membership)= 51 to approve removal or 51% of 51 (quorum) = 26?

Also, if recall is successful and election to replace directors is 30 days later, who runs the association during the time between the recall and new election?


Start at the bottom of the statute first; You must have a properly noticed meeting with the appropriate quorum (whatever that number is for your community).

Then, 50.000000000000000001% of the members PRESENT AT THAT MEETING must vote to remove the board. The wording is "odd" to allow for abstentions, for example. (100 members, 51 is the quorum. 52 show up, and 25 vote to remove the board, 10 abstain, and 17 vote to continue the board. 25 is more than the "majority" of votes cast (42 votes cast), but not a majority of the required quorum (25.5).

as for the "interim", i would properly create the motion to include removal of the current board AND replacement with an interim board of X, Y and Z for 30 days, with limited powers to do XX, until the election is held on XXXX date. Then, you remove the old board and install an interim one in the same fell swoop.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Brian,

One other point regarding the requirements for the election. The statute states: "votes represented and voting at a duly held meeting". IMO, that would include proxies and mail-in ballots received. Therefore, if 60 members are present, plus 10 proxies and 10 mail-in ballots then 51% of 80 members, or 41 votes would be required to recall a board member. Now if the quorum requirement is a majority of the members of the HOA, with 100 members the quorum would be 51. The statute also states that a majority of the required quorum must vote to remove; therefore at least 26 members must vote to remove.

Now, why elect an interim board? That only creates the requirement to hold another meeting and have another election at an additional cost to the HOA. IMO, the notice for the special meeting should state the purpose is to recall the current board (or just board member X) and elect new board member(s) if the recall is successful. The ballot would have the entries for the recall (each board member's name listed with a "yes" or no") then a separate section listing the candidates to replace them. When the meeting adjourns, the new board convenes for the purpose of electing officers and they're on their way.

SusanS9 (California)
Posts: 56
Posted:
Thanks to all. Just found Davis Stirling on post recall leadership:

Problem with Early Nominations. Taking nominations in advance of a recall does not necessarily produce a complete list of nominees since many will not nominate themselves without first knowing the outcome of the recall. They fear that putting their names into nomination would have the appearance of endorsing the recall. That is not the case in annual elections where open seats are known in advance of the meeting.

If Recall is Successful. Because of the secret balloting system, nominations and votes on the same day following a successful recall can no longer occur. Now, nominees which are solicited after a successful recall must go on secret ballots distributed to the membership for a period of 30 days before they can be counted. As a result, following a successful recall, a second date must be set for the election of directors. The date should be approximately 45 days from the date of the recall. This gives the association time to solicit nominees, prepare ballots and mail them to the membership.

Caretaker Board. Unless the articles or bylaws otherwise provide, directors hold office until a successor has been elected. Corp. Code §7220(b) Although they continue to have all the powers of a regular board, recalled boards should avoid entering into any contracts or take any actions other than routine matters until the new board is elected.
SteveP6 (Arizona)
Posts: 1
Posted:
I live in Arizona. Our board was just recalled yesterday and the HOA attorney was designated as Trustee. Can anyone tell me what Arizona law coveres what this Trustee can do and how much he can be paid.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Steve,

There are no AZ HOA statutes applying to a trustee (receiver?) unless your HOA has been judically dissolved. In that case the court may appoint a receiver to administer the affairs of the corp.

So, has your assn been dissolved or only the BOD recalled? Who appointed the attorney as trustee? Why wasn't there an election to elect new board members?

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