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Subject: asking for a resignation
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LouH1
(Michigan)

Posts:57


08/29/2020 7:27 PM  
Is there an easy way to get a board president to resign before the next election (1 month away) to avoid a big battle with all sorts of things being said and coming out that would be better off if she just resigned and saved the community all the angst? She has violated bylaws, has a definite conflicts of interest where she is being paid by the Association for services which she has personally made decisions about instead of the board....so she would be paid. (opened the pool without approval from board, and is being paid for pool maintenance which no one seems to want to address openly. What do you suggest? All, excepting me, has been on the board for 5-20 years.
TimB4
(Virginia)

Posts:16953


08/29/2020 7:36 PM  
No.

Keep in mind that Officers and Directors are two different positions, even if held by the same individual (it's like having two jobs).
Directors are elected by the membership.
Officers are appointed by the Board.

If there is support, the Board can remove the individual from the Office of President (but can not remove them from the board).
The board then appoints someone else to serve as President.

GeorgeS21
(Florida)

Posts:3105


08/29/2020 8:10 PM  
Why did the board allow these things to occur?
SheliaH
(Indiana)

Posts:3456


08/29/2020 8:19 PM  
See my response to your previous post. You are trying to speak truth to power and to quote Frederick Douglas, power concedes nothing without demand, so if you think making a change will be easy, think again. And buckle up - this may be a rough ride.

The homeowners are going to have to decide how pissed off they are about the president - if she's done the things you state, they'll either raise enough of a stink to compel her to resign or they'll have to call a special meeting and do a recall.

And even then, George's question is still relevant - if the board knew this was happening, they're just as responsible (maybe not you because you're new). The homeowners may have to consider if they want these guys and gals to continue running things.
KerryL1
(California)

Posts:7496


08/29/2020 8:39 PM  
As noted above, your Board an "fire" her form bing prez, but not as a director. Do you have that support?

Is she running for director again? When is the election?
LouH1
(Michigan)

Posts:57


08/29/2020 11:17 PM  
So Sheila, I do no think this is an easy task, just the opposite. The board does not want any transparency and does not want the community to know anything about anything the board does. I am concerned. Do you have any suggestions on how we can communicate with the community. The board says I cannot email to the community as my concerns and questions about what the board is really doing mounts. There is nowhere, I mean nowhere where I can find how things are done. Like the protocol for paying venders. It looks like the budget is set (it was set last year without any vote or involvement from me....I wondered about that and read in the bylaws that the budget is set with the Board of Directors. I am a Director. If it is on the budget, it is sometimes just automatically paid for and other times we have to vote by email to approve payment. Other times I have been told it has to be seconded at a board meeting and voted on. I am very concerned with the lack of procedures and no one seems to know where any of this is written down. How do I make sure an Audit is done this year, an Audit by an independent CPA? I am ignored and basically told to shut up. What actions can I take?
LouH1
(Michigan)

Posts:57


08/30/2020 12:36 AM  
George, this entrenched board has members who have been there for 6-25 years. I am the newest member of 1 year. They just do what they please without concern of anything and slowly things are falling apart. Suddenly, 10 complaints, conflict of interest with board member being ignored, the way things are voted on and paid for is different all the time. They have stopped newsletters and mailing out financial monthly records for years, turned off the sprinkler system years ago, our manager is leaving, we ignore homeowner complaints, our websites was left 4 years ago. and I could go on. They do nothing, and even set a time limit on how long a meeting can be. I need to be able to tell people and I have some, but how can I get the word out to the rest? What are your suggestions? I am at a loss, but do have some supporters. What can we do?
LouH1
(Michigan)

Posts:57


08/30/2020 12:45 AM  
Tim B4, We are all Directors, no officers. But since they are entrenched, been there forever, do nothing. Do not respect the homeowners, have let irrigation, entrance, website all go for years. No longer sending newsletters, financial accounts. Do not talk to the homeowners at all, zero transparency. Hate having meetings. No one knows where any procedural records are. Numerous homeowner violation complaints about one director, as well as a serious conflict of interest with another. I have some support. Can we recall the whole bunch? How is that done? I know nothing is easy...
MikeH28
(Tennessee)

Posts:1


08/30/2020 6:03 AM  
Seems obvious that this boards effective shelf life has expired, time for a reboot. Can you get enough qualified volunteers to agree to a 2 year commitment? With only a month before a changing of the guard is possible it seems that recruiting will be your best use of time.
GeorgeS21
(Florida)

Posts:3105


08/30/2020 6:11 AM  
So, a recall of the entire board us appropriate.

This obviously only works with overwhelming support from the owners. Do you have this level of support? If so, start the recall process. Lots of hard work.

If there is not enough support for a recall, your other option is legal action, but if there is no support for this with contributions from others, are you willing to fund it yourself?
GenoS
(Florida)

Posts:4062


08/30/2020 2:27 PM  
Posted By LouH1 on 08/30/2020 12:45 AM
We are all Directors, no officers.

Really? Is the association incorporated? Is that legal to have a corporation without officers?
KerryL1
(California)

Posts:7496


08/30/2020 3:57 PM  
Say, Lou, you stated that there is a president. a president is an officer s are the vice president, treasurer and secretary. These are typical officers and they all probably are directors. your HOA, assuming it is a corporation, has "Bylaws" that state what officers are required on your board of directors. Have you seen or read these Bylaws, Lou?

So, without this basic understanding of your HOA's board, I'm thinking you need to spend time with someone really knowledgeable about HOAs. I don't feel you're ready to try something as complicated as a recall election on your own.
JohnC46
(South Carolina)

Posts:9870


08/30/2020 4:36 PM  
Posted By KerryL1 on 08/30/2020 3:57 PM
Say, Lou, you stated that there is a president. a president is an officer s are the vice president, treasurer and secretary. These are typical officers and they all probably are directors. your HOA, assuming it is a corporation, has "Bylaws" that state what officers are required on your board of directors. Have you seen or read these Bylaws, Lou?

So, without this basic understanding of your HOA's board, I'm thinking you need to spend time with someone really knowledgeable about HOAs. I don't feel you're ready to try something as complicated as a recall election on your own.



I agree.
LouH1
(Michigan)

Posts:57


08/30/2020 4:39 PM  
So Genos...we are officers. PRES. VP. SECRETARY. TREASURER....BUT DO ECTED BY VOMMUNITY...DO DIRECTORS TOO
LouH1
(Michigan)

Posts:57


08/30/2020 4:45 PM  
john c 46. I am very familiar with our baws. Master deed and with what we are "supposed" to be doing. Nothing is followed according to the documents we ha e been Elected to support and follow. They all laugh and ignore me when I say..."the by-laws say we should be doing this....do you get the picture? What are my options?
SamE2
(New Jersey)

Posts:297


08/30/2020 4:45 PM  
Why do a recall with a month to go until elections? Get volunteers to run against the old members and get a new board. It isn't easy but is has to be easier than doing a recall. If the homeowners are happy with the current board and reelect them then there isn't much you can do short of suing the HOA.
LouH1
(Michigan)

Posts:57


08/30/2020 4:51 PM  
I have read the bylaws many times as well as the Master Deed. I think none of the other board members have ever read it! So what can I do? The entire board needs to be recalled....so how do I do that?
LouH1
(Michigan)

Posts:57


08/30/2020 4:53 PM  
Sam E.... only 2 are up for re-election....
GenoS
(Florida)

Posts:4062


08/30/2020 7:03 PM  
Posted By LouH1 on 08/30/2020 4:39 PM
So Genos...we are officers. PRES. VP. SECRETARY. TREASURER....BUT DO ECTED BY VOMMUNITY...DO DIRECTORS TOO

So you DO have officers, OK. Would be helpful if the whole comment was intelligible.
LouH1
(Michigan)

Posts:57


08/31/2020 6:17 AM  
GenoS, sorry. It was 4AM. I
AugustinD


Posts:3889


08/31/2020 7:20 AM  
Posted By LouH1 on 08/29/2020 11:17 PM
How do I make sure an Audit is done this year, an Audit by an independent CPA?
In your other recent thread, you stated that this is a Michigan condominium. This means your condominium is subject to the Michigan Condominium Act. See http://www.legislature.mi.gov/documents/mcl/pdf/mcl-Act-59-of-1978.pdf . The latter statute requires an annual audit or review (they are different) by a CPA as follows:

=== start Michigan Condo Act Excerpt ===
559.157 Books, records, contracts, and financial statements; examination; audit or review;
opt-out of requirements of subsection (2).
Sec. 57. (1) The books, records, contracts, and financial statements concerning the administration and operation of the condominium project shall be available for examination by any of the co-owners and their mortgagees at convenient times.
(2) Except as provided in subsection (3), an association of co-owners with annual revenues greater than $20,000.00 shall on an annual basis have its books, records, and financial statements independently audited or reviewed by a certified public accountant, as defined in section 720 of the occupational code, 1980 PA 299, MCL 339.720. The audit or review shall be performed in accordance with the statements on auditing standards or the statements on standards for accounting and review services, respectively, of the American institute of certified public accountants.
(3) An association of co-owners may opt out of the requirements of subsection (2) on an annual basis by an affirmative vote of a majority of its members by any means permitted under the association's bylaws.
===End Excerpt ===

LouH1, I would start by requesting that the subject of the Michigan Condo Act's requirement for a CPA review/audit be placed on the next board meeting agenda. Once you are successful in getting this on the agenda, post back for more instructions on how to present this at the meeting.

If the board refuses to put this on the agenda, post back, and I will draft a short demand letter (which has some legal meaning) that you can use to get tough.

Even better, try to get this on the agenda for the upcoming annual meeting of the membership.

From experience as a director; massive reading here; and plain ol' common sense, a board majority does not like to be ordered to do anything. A board majority will usually respond to a director, asking the board to follow the law, reflexively with retaliation. You have to be ready for this board to start sending out mass mailings that essentially defame you. You have to be ready for this board to use the condo attorney to do the same. The condo attorney has a lot of leeway to flat-out lie about your efforts and get away with it.

An annual audit/review (for a condo's books et cetera) is Thee Law in Michigan. For the Board to disregard this statutory requirement is extremely serious. Also someone may be stealing, and an audit/review will help stop this. You have legal standing to demand this audit/review, but first, start with a soft touch.
SueW6
(Michigan)

Posts:750


08/31/2020 8:31 AM  
If there are two open seats, and you are the 3rd, then you can begin to make changes on the board. But pull back on the drive to have a “ coup” and instead, campaign privately in the background for these two openings. But you can NOT use the resident email list to do this.

Minutes of the meeting are important and anyone who does an audit will look for motions to support any questionable expenditures. But remember, board member CAN be paid for services IF they possess unique qualifications for the job. Our HOA paid a board member to oversee the water dept because she was the only state certified Water inspector in the area.

Sounds like paying someone to clean the pool is the least of your worries. But don’t use a sledge hammer when gentle movement is what you need.



AugustinD


Posts:3889


08/31/2020 8:51 AM  
Posted By SueW6 on 08/31/2020 8:31 AM
campaign privately in the background for these two openings. But you can NOT use the resident email list to do this.
What is your citation for your claim that, in Michigan, LouH1 cannot use the resident email list to campaign? I find no support for your claim in Michigan statutes.
KerryL1
(California)

Posts:7496


08/31/2020 9:12 AM  
With Augie, I'm wondering too. In CA, the list certainly can be used for campaigning by any owner.
SueW6
(Michigan)

Posts:750


08/31/2020 10:04 AM  
Board members cannot use email addresses for personal use. ( and his campaigning IS personal, as would be for him to advertise a carpet cleaning service)

We are talking ethics here.





AugustinD


Posts:3889


08/31/2020 10:09 AM  
Posted By SueW6 on 08/31/2020 10:04 AM
Board members cannot use email addresses for personal use.
Being a director does not mean that one gives up one's rights as an owner. One of these owner's rights is to obtain contact information and contact other owners in a campaign to elect new directors.

Posted By SueW6 on 08/31/2020 10:04 AM
We are talking ethics here.
You bet we are. It is unethical to decree that a director gives up her or his owner's rights to campaign, using the resources available to all owners, merely because she or he is a director.
SueW6
(Michigan)

Posts:750


08/31/2020 10:39 AM  
There are some 2018 changes to the Mi Condo Act.

They talk about “ consent” needed from the owner in order to share email address with others

And

Revenue must be over $20,000 to require an audit or audit review.

I will try to find these relatively new amendments to the condo act.
AugustinD


Posts:3889


08/31/2020 12:03 PM  
Posted By SueW6 on 08/31/2020 10:39 AM
There are some 2018 changes to the Mi Condo Act.
What I linked above appears to show the latest version of the Michigan Condo Act. The changes to the Condo Act of which you speak appear to have been only proposals by Michigan legislature committees that never went anywhere. See https://micondolaw.com/2018/03/26/sb-914-proposed-amendment-to-the-michigan-condominium-act/ and https://legiscan.com/MI/bill/SB0914/2017.

The Michigan Nonprofit Corporation Act was amended in the last dozen years or so to allow corporations to communicate yada with members/owners via electronic transmission if the member/owner so consented. But even this is a different issue from one owner being allowed to communicate with another owner using records of the condominium.

In short, I continue to find zero support for the contention that a condo owner may not email all other condo owners.



JohnC46
(South Carolina)

Posts:9870


08/31/2020 12:44 PM  
There is nothing that would nor could prevent me from Emailing a fellow owner. Think about it. What is next? Requiring permission to Email someone?

As to an owner list not being used to solicit votes, recommend how to vote, etc. I would doubt such a restriction by the BOD would stand up in court. Even if one violates it, what is the BOD going to do? Slap your wrist with a wet noodle?
FrankS14
(Virginia)

Posts:4


08/31/2020 6:59 PM  
Posted By TimB4 on 08/29/2020 7:36 PM
No.

Keep in mind that Officers and Directors are two different positions, even if held by the same individual (it's like having two jobs).
Directors are elected by the membership.
Officers are appointed by the Board.

If there is support, the Board can remove the individual from the Office of President (but can not remove them from the board).
The board then appoints someone else to serve as President.





No? Did you research Michigan law? How about specific HOA governing documents? A blanket negative response adds no benefit to the overall discussion thread. Similarly, "Officers are appointed" by the Board may not necessarily apply to Lou's HOA. Curious.


Lou - try using the conflict of interest concern to negotiate with hte President. Perhaps approach the President and present the facts of the conflict and indicate that disclosing these facts to the members may result in her removal - assuming that the governing documents provide for that result. Sounds troubling... good luck
TimB4
(Virginia)

Posts:16953


08/31/2020 9:34 PM  
Posted By LouH1 on 08/30/2020 12:45 AM

Tim B4, We are all Directors, no officers.




You don't have a President, VP, Secretary or Treasurer?
Those would be the Officers and some are typically required under corporate law and an Assocaitions Bylaws.



Posted By LouH1 on 08/30/2020 12:45 AM

Can we recall the whole bunch? How is that done? I know nothing is easy...




You can organize a recall.
It starts with a petition for a special meeting of the general membership for the purpose of recalling the board and, if successful, electing new directors.

The number of signatures needed to get a meeting would be in your governing documents.
The number of votes needed to recall may be in your governing documents or applicable state statutes.

It is likely easier to gather support and simply not reelect those individuals at the next election.






LouH1
(Michigan)

Posts:57


09/01/2020 4:16 AM  
Thank you TimB4 for the information. I think you are correct in everything you say.
LouH1
(Michigan)

Posts:57


09/01/2020 4:41 AM  
So AugustinD, thank you again for all your help in these matters. You have helped me deal with being yelled and told by 4 board members that I cannot email the community. I email the community on behalf of myself, have used a disclaimer even, saying I am not speaking for the board, but as a community member. They say I can't use this list. And it seems< I learn, they are wrong. I am adjusting the list accordingly and will ask when I do email if anyone does not want to receive my emails, to please let me know and I will no longer send them any. I have only sent out emails 2 times. I am not being vindictive, saying emotional personal things, I am just telling them what is happening from my perspective. And you have reassured me. I knew the board was unhappy that I was "talking" to the neighborhood at all. They have said and done nothing for 10 years. You are a gift, thank you again. I am stressed to the max, but want to inform and do what the community wants done.......not what the board wants done...which is nothing!
LouH1
(Michigan)

Posts:57


09/01/2020 6:13 AM  
AugustinD.....one more question you might be able to answer. Our by-laws are old and do not designate how many proxies an owner can gather and use at the annual meeting. Has there been any new legislation limiting the number allowed or does the bylaw determine? Thank you.......again.
AugustinD


Posts:3889


09/01/2020 6:41 AM  
Posted By LouH1 on 09/01/2020 6:13 AM
AugustinD.....one more question you might be able to answer. Our by-laws are old and do not designate how many proxies an owner can gather and use at the annual meeting. Has there been any new legislation limiting the number allowed or does the bylaw determine?


The Michigan's Nonprofit Corporation statute trumps the by-laws on this point. From the statute: "If the articles of incorporation or bylaws authorize use of proxies, an individual may not vote more than 5 proxies at any meeting."

A proxy form will typically designate (1) the person assigning the proxy (with his/her name, address, the date, and a signature); and (2) the person to whom the proxy is assigned. Per the statute, the person to whom the proxy is assigned can have only five such assignments (from five condo units' owners).

If you can afford a condominium-law-specialized attorney, then I agree with JohnC46 that hiring one to review your steps would be wise. Unfortunately I think this will cost at least a thousand dollars. The attorney has to review all the condo's governing documents to give informed advice.

Plenty succeed in throwing out a corrupt board without an attorney, though. Nationwide condo/hoa owners often band together; have a few meetings where they come up with a step-by-step plan; mail or email flyers stating their concerns; and then start a door-to-door campaign to gather proxies.

Can you retain several others to help gather proxies and be the proxy assignee, such that each person in your group has no more than five proxies assigned to him or her?

How many units does your condominium have?
LouH1
(Michigan)

Posts:57


09/03/2020 12:54 PM  
Augustin D. Sorry, but I must consult with you again as I have tried to find where you found The Michigan Nonprofit Corporation statute the trumps the by-laws on the number of proxies each individual vote can use. Where can I find this and when was it enacted? Thanks again for all your assistance.

On my other big topic of being able to email co-owners with campaign stuff. Maybe I can't do this as a Director (I would understand that), but I can as a co-owner? I found somewhere that I would have to get the co-owner's permission in writing to email them. I am confused. Another place it says, that even if the HOA does not allow lists to be used without the permission of the owner, it does say, the HOA has to provide ways in which campaigns can have contacts with the homeowners. I think that most of this is not law, as you have argued and one could interpret differently. I am not trying to defame anyone, I am trying to inform the community of what is happening re: conflicts of interest, ignoring certain "chronic complainers" complaints as well as addressing other ones. I realize I would have to be factual, not list names, etc.

One co-owner wants to start a petition....and I don't know what to do with that.

You have always been the most helpful to me and I know your are a busy person......again, my sincere appreciation for your generous willingness to help me out.
LouH1
(Michigan)

Posts:57


09/03/2020 12:58 PM  
Oh, and I have gotten permission to email the co-owners I have talked with, written the date of conversation on phone.
AugustinD


Posts:3889


09/03/2020 1:16 PM  
Posted By LouH1 on 09/03/2020 12:54 PM
Augustin D. Sorry, but I must consult with you again as I have tried to find where you found The Michigan Nonprofit Corporation statute the trumps the by-laws on the number of proxies each individual vote can use. Where can I find this and when was it enacted?
https://www.legislature.mi.gov/documents/mcl/pdf/mcl-Act-162-of-1982.pdf . It was enacted in 1982 but does have some amendments from subsequent years. The link appears to include all amendments. E.g. if you word search the document that I linked for "2015," you will see a number of amendments enacted in 2015.

You are welcome. I will respond as long as I am not traveling.

Posted By LouH1 on 09/03/2020 12:54 PM
On my other big topic of being able to email co-owners with campaign stuff. Maybe I can't do this as a Director (I would understand that), but I can as a co-owner?You are lawfully allowed to email other co-owners as long as the co-owners do not tell you to stop emailing them.

Posted By LouH1 on 09/03/2020 12:54 PM

I found somewhere that I would have to get the co-owner's permission in writing to email them.
Show me where it says this and we can talk more.

Posted By LouH1 on 09/03/2020 12:54 PM

I am confused. Another place it says, that even if the HOA does not allow lists to be used without the permission of the owner, it does say, the HOA has to provide ways in which campaigns can have contacts with the homeowners. I think that most of this is not law, as you have argued and one could interpret differently.
It is all law. I am not writing casually on these subjects. For example, the courts are clear that, where a condo's/HOA's governing documents are silent, a board cannot just make up new rules or new covenants.

Posted By LouH1 on 09/03/2020 12:54 PM

I am not trying to defame anyone, I am trying to inform the community of what is happening re: conflicts of interest, ignoring certain "chronic complainers" complaints as well as addressing other ones.
Understood. And this is why the law on owners being allowed to contact other owners exist. You have a court-supported right to campaign for a new board.

Posted By LouH1 on 09/03/2020 12:54 PM
One co-owner wants to start a petition....and I don't know what to do with that.
A petition for what? The petition needs to have support in either the HOA's Condo's declaration or bylaws or state law to have any legal meaning or legal strength.

Posted By LouH1 on 09/03/2020 12:54 PM

You have always been the most helpful to me and I know your are a busy person......again, my sincere appreciation for your generous willingness to help me out.
I am passing along some of the help I received over the years. I have been in your shoes, one way or another, with the HOA drill from time to time. I have lived in three HOAs/condos and on the boards of two. One was pretty good. The second was okay. The third was a nightmare; has been for a decade; and I expect will be for some years to come. The first two only became better via campaigns like the one some here are advising you to undertake.

As time allows, maybe read other threads at this forum. They might help you feel less alone and relieve some of the cognitive dissonance that happens when one is a director on a corrupt board.
SueW6
(Michigan)

Posts:750


09/03/2020 1:43 PM  
Lou
What Michigan county are you in?

The Meiser Law Group specializes in HOA and condo law
They are in Bingham Farms, Oakland County., Mi. You can Google their website. They answer questions, too.

I am the secretary for our HOA . No way would I give anyone our email address list because 1) I do not have a release from the homeowner to do that and 2) people can do their own campaigning by buying address lists from companies who do mailing services as their business.
AugustinD


Posts:3889


09/03/2020 1:59 PM  
Posted By SueW6 on 09/03/2020 1:43 PM

I am the secretary for our HOA . No way would I give anyone our email address list because 1) I do not have a release from the homeowner to do that and 2) people can do their own campaigning by buying address lists from companies who do mailing services as their business.


-- If SueW6's Michigan HOA/condo is denying owners their lawful right to review the names and addresses of all owners, then it is in violation of:

Michigan Nonprofit Corporation Act
Section 450.2485 Books, records, and minutes
Section 450.2487 "... inspection during regular business hours... ".

If a condo, Michigan Condo Act
section 559.157 "Books, records, contracts, and financial statements; examination; audit or review... "

-- If the email addresses are in the records of the HOA, then per the above statute sections, an owner has a right to inspect and copy them.

LouH1
(Michigan)

Posts:57


09/03/2020 2:57 PM  
SueW6 Thanks for your response. There is much controversy about using email addresses, I can see. I think there is actually no MI statute which denies one using them for electing directors or informing in a positive, not vindictive or emotional way. Although I understand your personal as well as confidential (from a board member's stance) reasons for not using, I am inclined to side on actual statutes passed and the legalities of the action. Mr. AugustinD seems to have a better understanding of those things. I have read a Summary of changes to Michigan Nonprofit Corporation Act that Affect Nonprofit Corporations which says "A corporation that limits inspection of lists of its shareholders and members, as provided (ie: Allowing inspection of certain records would impair the rights or privacy of the shareholders or members)SHALL provide a reasonable way for shareholders or members to communicate with ALL other shareholders or members concerning the election directors and other affairs of the corporation." So, if you are not allowing lists to be used, how are you assisting your members (reasonably, without cost or inconvenience) to your members? Please let me know your remedy for this situation? Thanks again, I do appreciate your contribution and information provided.
LouH1
(Michigan)

Posts:57


09/03/2020 3:09 PM  
Ok AugustinD, so I think I need your "demand letter" because I sense they are going to opt our of an CPA audit because of a variety of possible reasons. The next meeting is our Annual meeting and there are no meetings in between to get it on the agenda. I can try to get it on the annual meeting agenda, but I think it will be too late as it is usually, if done at all, before the meeting. please help me out with what I can say etc. Thanks again and again and again......
LouH1
(Michigan)

Posts:57


09/03/2020 3:23 PM  
thank you SueW6 It looks like legally you are not obligated to protect that list. Do you provide address and phone numbers of the community to the community? There certainly is no reason why you should not do that. Many HOAs do that. I appreciate your willingness to oblige an owner's wishes regarding confidentiality.....but sounds like if someone asked you for those lists, legally you are obligated to give it to them. Unfortunately, you have not provided legal statutes supporting your personal decisions, I really think, eventually there will be some, laws, that is, but currently, nothing is out there now for Michigan. Thank you again.
AugustinD


Posts:3889


09/03/2020 3:25 PM  
LouH1, send this as an email to the directors:

================
Subject: Required Annual CPA Audit/Review of Association's Books

Dear Directors,

The Michigan Condominium Act at section 559.157 requires that, "an association of co-owners with annual revenues greater than $20,000.00 shall on an annual basis have its books, records, and financial statements independently audited or reviewed by a certified public accountant, as defined in section 720 of the occupational code, 1980 PA 299, MCL 339.720. The audit or review shall be performed in accordance with the statements on auditing standards or the statements on standards for accounting and review services, respectively, of the American institute of certified public accountants." Respectfully, I am not aware of the membership ever voting to opt out of this. Would you please place the topic "Michigan Condo Act Requiring Independent Audit/Review" on the agendas for (1) the next board meeting and (2) the Annual Meeting? Alternatively, would you please let me know when a CPA has been hired to perform this statutorily-required review/audit?

Thank you,

name
address
phone
email addie
=============

If you are ignored, post back, and I will provide an increasing escalation in legal tone to subsequent requests.

Check back here for edits of the above by others. Nearly every time someone here edits one of my drafts, I have felt the edit was an improvement.
AugustinD


Posts:3889


09/03/2020 3:27 PM  
LouH1, I suggest you get a three-ring binder and document all exchanges with the HOA manager and the Board. Save all emails on the server (printouts of emails are not sufficient in court, in general). This documentation is in case things get legal.
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