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MargaretF (South Carolina)
Posts: 15
Posted:
We have a board member in arrears who has been working with an attorney. We've heard 2nd hand that he has not lived up to the agreement. We have another board member who would like a request be made that he resign. This is 9 days before an election.

There is one spot open on the board and two candidates running. One an incumbent and one (without going into details) who may be detrimental to the Board and Association as a whole. If the board member who is in arrears steps down at this juncture, both the imcumbent and the one 'detrimental' will be elected

Ironically, the board member who would like the request made for the member in arrears 'step down' has encouraged the one who may be 'detrimental' to run. What a can of worms! Any advice?
MicheleD (Kentucky)
Posts: 4,491
Posted:
Quote:
Posted By MargaretF on 04/14/2010 11:20 AM
What a can of worms! Any advice?

Work with some concerned and involved residents and prepare a stronger slate for next year's election.

Don't wait till one month, or 9 days, before the election. Start now.
JonD1
Posts: 2,350
Posted:
Do your by-laws require Board members to be current in their obligations to hold office?

If NOT then on what basis do you ask them to resign?

You can ask but if not required under the by-laws this member certainly doesn't need to do so.

Hardly, the perfect method to prevent some "difficult" individual from joining the Board.

The decision is who offered the most pros and who would provide the most cons.

If your facts are accurate I would work to keep this wantabe off the Board and work to remove the Board member asking for the resignation when possible.

MargaretF (South Carolina)
Posts: 15
Posted:
Thank you for your reply..... there will be a stronger slate next year and very likely some other changes that will need to be mandated. Like I said.... it's a can of worms!
MargaretF (South Carolina)
Posts: 15
Posted:
Thanks for your reply. Always good to get info from a source outside those directly related to the 'situation'.

No, our by-laws do not require Board Members to be current. The BOD is treated as any owner would be - no exceptions. From notification through foreclosure if it goes that route.

The member who strongly feels the 'in arrears' individual should step down thinks it's an embarassment to have him continue to serve and supposedly that is his basis for the request.

Yes, I know the individual in arrears can be asked and I also know he is not required to step down.

Definitly not a perfect method to prevent some 'difficult' individual from joining the BOD but if the member in arrears steps down.... the 'difficult' individual will, in all likelyhood be elected. Although I could be mistaken, I feel the member who strongly believes the in arrears individual should step down, is doing so because that will open 2 seats on the Board which in turn will get the owner elected he has encouraged to run for the seat.

The decision is a no-brainer for me. Although in arrears and not as active a member as we would like, he is in arrears because of the economic times we are now in. Prior to that, he was always on time and paid in full. This individual has 90% of the PRO's in my opinion. The other, unfortunately (and in my opinion from 'past experiences') carries a risk. He is highly prejudice and outspoken and therein lies my objection. And... this 'difficult' individual was previously on the BOD and resigned prior to his term expiration.

Like I said... a can of worms! Thanks again for your input.

RobertR1 (South Carolina)
Posts: 5,164
Posted:
Margaret,
What documents exactly are you citing when you say the Director qualifications are silient on any restrictions on conduct of the Board individual members.

I would search the state statute if you are a condo, also the SC code of laws something like section I think it is 27 and also 34 I think. Also if you are non profit, look up qualifications of non profit boards. I alsop don't understand this workiong with an attorney, whol is...for what purpose.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Margaret,
The below url may be a good place to start. If you know all this so much the better.

http://www.hoa-sc.com/StateLaws.aspx
JonD1
Posts: 2,350
Posted:


The member who strongly feels the 'in arrears' individual should step down thinks it's an embarassment to have him continue to serve and supposedly that is his basis for the request.

Margaret:

How would the fact ANY owner is currently in arrears be common knowledge? Is that infomation you as a Board provide to the unit owners? We do not.

As you suggested many folks today find themselves in difficult situations which they would rather not have to deal with. The fact this person had a good record of payments in the past might suggest just how bad things are for them. If the is not common knowledge then who would be embarassed? More than likely just the individual who have fallen on hard times. We as a Board try to work as much as we can with the folks having tough times.

Sounds to me as you suggest your helpful Board member sees this as an opportunity to fill this seat with a "friend". I would consider discussing this befroehand with the gentleman in arrears and point out that in case he is in fact asked to resign he has no legal obligation to do so.

The other gentleman will have to learn to live with "his" embarassment. Hopefully, he is up to the task.

Sounds to me like this "can of worms" is all about politics. Best advice think ahead, have a plan and finally do what's best for the property. In my mind real simple.

Good luck.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Margaret,

I don't get the impression you are a board member, so I must ask, how do you know who is in arrears? And, what do you mean by saying the board member in arrears, ". . .has been working with an attorney"?

When you cast your vote, you don't have to vote for someone you don't feel is qualifed to be a board member. Same goes for all the other members of your assn. IF the person who is viewed as being "detrimental to the Board and Assn" gets elected then, IMO, the membership doesn't share your views. If he proves to be "detrimental", well the members got what they asked for!

It does no good to listen to gossip and that seems to be what you've posted here. Make your decision based upon what you "know" to be true about each candidate on the slate.

With regard to a board member continuing to serve while in arrears, this may be addressed in your bylaws. Mine state: "No member shall continue to serve as director if more than 30 days delinquent in the payment of any assessments and such delinquency shall automatically constitute a resignation by such delinquent director on the 31st day of the delinquency." Note the key word is "shall", meaning this director is automaticaly removed from his position regardless of the circumstances of his delinquency. If the bylaws say "may" be removed then the BOD has the authority to make the determination as to whether or not they will ask for his resignation.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Certainly the issue about who is in arrears, all things being equal, is Board privileged information, no doubt of that. Jon's association apparently allows the Board more latitude to resolve the issue of arrears than Mary's. I doubt we can reconcile the differences........so be it.

But, in Margaret's defense, if she needs one, life in a condo is not without it's rumor mills. Some true.......some not. I am not saying the Board has to act on rumor and there seems to be now evidence of this. But a owner that is way behind in paying assessments will not be hidden long. For one this, there has to be some notation made on the financials about assessments imbalances.

Not that I approve of posting questions based on rumors, but I doubt I can control that.

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