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Subject: Inactive board of directors...what to do?
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JeremyM3
(North Carolina)

Posts:122


01/09/2019 5:58 PM  
North Carolina HOA Laws: https://www.ncleg.net/enactedlegislation/statutes/html/bychapter/chapter_47f.html

Our HOA is inactive I believe.

Our bylaws require 1 meeting every year in the 3rd quarter. We had 0 meetings in 2018.
The 2019 budget was never done by the board.
Dues are due on January 1st, but invoices were never mailed out. None of the 49 houses received an invoice. (Although our management company charged the HOA $147 for postage/mailing in November 2018 for this.

The bylaws say a petition signed by 10% of lots can call a special meeting.
We submitted the petition to the management company.
Management company contacted board President to ask him to set date/time.
President has not responded in 20 days since petition was submitted.

What do we do now...?
JeremyM3
(North Carolina)

Posts:122


01/09/2019 5:59 PM  
The special meeting we are requesting is to have a vote on recalling board members.

The President and Vice President's terms actually expired in November 2018, they would be up for re-election at the annual meeting, but the meeting never happened.
RoyalP
(South Carolina)

Posts:692


01/09/2019 9:09 PM  
Now y'all find a good contract attorney who is versed in HOA issues.

KerryL1
(California)

Posts:6350


01/10/2019 1:39 PM  
With RoyalP, I think you need an HOA attorney's advice too. Maybe you can get several other owners to chip in to pay for the attorney's time & expertise.
JeremyM3
(North Carolina)

Posts:122


01/14/2019 4:15 PM  
Anyone else have advice? I doubt the residents want to use their own $ to hire a lawyer
MarkM19
(Texas)

Posts:297


01/14/2019 4:23 PM  
Jeremy,
It won't fix itself. If the HOA gets back in control and hires an HOA attorney everyone will pay the expenses. You either need to help make it happen or be prepared for more of the same.
JeremyM3
(North Carolina)

Posts:122


01/14/2019 4:30 PM  
Our President + VP terms expired several months ago. We only have 1 board member now the Treasurer.

Our management company is still reaching out to the President and requesting he give them a date to schedule the community meeting for. But he's not responding to any emails.
He's not even our President anymore since his term expired.... ugh I hate this.
RoyalP
(South Carolina)

Posts:692


01/14/2019 5:08 PM  
He IS still your/the president of the HOA, Inc. until either:

He is replaced via an election

or

He resigns.



Read it and weep!
LetA
(Nevada)

Posts:674


01/14/2019 5:46 PM  
Posted By JeremyM3 on 01/14/2019 4:30 PM
Our President + VP terms expired several months ago. We only have 1 board member now the Treasurer.

Our management company is still reaching out to the President and requesting he give them a date to schedule the community meeting for. But he's not responding to any emails.
He's not even our President anymore since his term expired.... ugh I hate this.





I would call the Secretary of State for North Carolina. Typically the SOS has records of filings for board of directors for HOA's ask the SOS office since the president and VP term expired last year and no election was held, the only remaining BOD is the Treasurer. It is possible that the SOS will recognize the sole BOD as someone that can A.) call a meeting, B) recognize there is no quorum to hold the meeting and C) call for volunteers to be appointed to the board D) conduct business starting with terminating the HOA managing company.


YOU REALLY NEED AN ATTORNEY. Does your HOA have D&O Insurance? Worst case scenario you won't recoup any money in attorneys fees. BEST case scenario, you hire an attorney. Your attorney hits your BOD & Property Management company with some Bluebacks You get a court order to can the 2 absent directors and management company AND your attorney hits the D&O insurance for his fee plus your expenses. You NEED to talk to an attorney FIRST.
JeremyM3
(North Carolina)

Posts:122


01/14/2019 6:26 PM  
LetA awesome advice thank you.

Yes we do have D&O insurance.

Would the attorney be paid from the HOA funds, or from my own private funds?
I'm not a board member currently.
LetA
(Nevada)

Posts:674


01/15/2019 5:20 AM  
You need to hire your own private attorney to go after the Board, but remember; suing the HOA you are suing yourself too. You will be using your own funds up fornt. You may find an attorney that takes your case on a contingency basis or you will have to cough up some cash up front.
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