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05/24/2006 7:41 AM  
We had our “turnover meeting” and election of the first board last night and what a shocker it was! The management company had previously represented the following:
1) We would be electing a board of 5. (Our docs state a minimum of 3.)
2) The developer would not be voting his 58 votes for unsold properties because in the past he felt it was up to the community to elect their own board.
3) The developer would not be taking a seat on the board.
Here is what happened:
1) Just before voting, they (Management Company) announced it would be a 3 person board with the developer taking one seat.
2) We discovered the developer’s representative quietly casting 58 votes for 2 individuals.
3) The management company and developer went into a meeting prior to voting and were overheard plotting the election. The management company told the developer to cast 58 votes for 2 certain individuals who would be easy throughout sign off. They also named a certain individual who has years of experience (she had the majority of homeowner votes) and said to make sure she does not get on the board because she knows too much.

The majority of our homeowners are livid! Is there any recourse?
We are in the state of Florida.


05/24/2006 8:22 AM  
Mona, welcome to the world of politics. Your recourse, if you think you can garner sufficient votes to override those of the Developer 58 votes, is to call a Special Members Meeting to vote to remove the Directors and to elect Directors to complete the term for each Director who is removed; and to try to pass a motion to require a transition audit prior to turnover. In addition you can educate the two owners who are Directors. Make sure they realize their fiduciary responsibility and their legal liability so they will not be "easy throughout sign off".

The MC does not determine the number of Directors, but the existing Board may and can assign the Managing Agent to speak for the Board at the meeting. What was done probably was legal and is logical from the Developer's perspective since they want to protect their investment (remaining 58 units).
(North Carolina)


05/25/2006 8:55 AM  
Wouldn't the amount of seats and the turnover percentage at which the builder/developer pulls out altogether be stated in the bylaws? Ours are and it states the Builder developer as Class B members of the association. May want to check your bylaws and see how they read. Just curious, if someone can answer: what happens if the election took place and was not compliant with the provisions in the bylaws? Would the election become null and void?
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