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MarianM (Colorado)
Posts: 3
Posted:
Board member contacted on his own without approval or informing the rest of the Board members of his intentions to meet & discuss with a developer about reopening negotiations on an issue which was being handled with the Board's atty. After the meeting, the Board member disclosed to the Board & residents what he had done. He admitted that he had made no agreements....However, the Board sent the developer a disclaimer letter notifying the developer that he should not rely on any oral statements or agreements from any Board member or resident & that all agreements needed to be approved by the Board & be in writing. Question...is this Board members unilateral action grounds for removal from the Board???
SusanW1 (Michigan)
Posts: 5,202
Posted:
Boilerplate bylaws or Rules should have something in them about no member acting as an agent for the association without permission

and

not lending any of its assets to any officer or director or guarantee to any person any payment of a loan by an officer or director.

He was inappropriate, for sure, but since he made no promises or deals, the president can simply pick up the phone and explain if this becomes a problem.

Was there a reason he thought he could talk directly to this vendor?
KirkW1 (Texas)
Posts: 1,665
Posted:
First, I think the developer is well aware that the single board member can not make a decision by his/herself. The developer probably drafted your documents and knows them as well as or better then yourself.

As for removal from office, I seriously doubt it. Your documents (generally consisting of the covenants, articles of incorporation, and by-laws) will specify what a Board member may be removed for.

to me the biggest thing is that your attorney should know if you are directly negotiating with the developer (or anyone else). But I would not want to pay an attorney for negotiations unless it was getting close to finalization. In this area attorneys charge more then $300 an hour and bill by the minute.

It would be much cheaper to have initial conversations take place between a couple of Board members and the developer. Between conversations with the developer the Board should meet and discuss where things are going. This will be much cheaper then paying someone $300 for a conversation and another $300 to discuss the conversation.

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