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MarilynS7 (Pennsylvania)
Posts: 3
Posted:

After a particularly contentious HOA executive meeting, one of the board members resigned in an email the next day. He's since had a change of heart and wants to rescind his resignation. There is nothing in our by-laws that addresses the rescinding of a resignation. Other board members are divided as to whether to allow him to be on the board. What's next?
AugustinD
Posts: 5,144
Posted:
My former HOA had this happen in two instances with two different board members. In the first instance, the board just let him back on the board without fanfare. The guy who had resigned was valued but got a little hot when he was criticized. (Who doesn't?) In the second instance, the director who resigned was so loathed and had been doing things so questionable that the Board consulted an attorney. The attorney said once a director resigned the resignation could not be undone. The former director would have to re-apply and be formally appointed to the Board or elected via election, all per the governing documents. The board chose not to re-appoint the former director.

A momentary resignation is like being a little pregnant. One is either on the board or not on the board.
PaaN
Posts: 219
Posted:
Check PA corporate law for 'director' resignation.

'Most' corporate law requires resignations to be submitted in writing and SIGNED.

95% sure PA law will require a signed letter of resignation.

http://www.legis.state.pa.us/WU01/LI/LI/CT/HTM/15/15.HTM

1724. Term of office of directors.
(a) General rule.--Each director of a business corporation shall hold office until the expiration of the term for which he was selected and until his successor has been selected and qualified or until his earlier death, resignation or removal. Any director may resign at any time upon written notice to the corporation. The resignation shall be effective upon receipt thereof by the corporation or at such subsequent time as shall be specified in the notice of resignation. Each director shall be selected for the term of office provided in the bylaws, which shall be one year and until his successor has been selected and qualified or until his earlier death, resignation or removal, unless the board is classified as provided by subsection (b). A decrease in the number of directors shall not have the effect of shortening the term of any incumbent director.

5724. Term of office of directors.
(a) General rule.--Each director of a nonprofit corporation shall hold office until the expiration of the term for which the director was selected and until a successor has been selected and qualified or until the director's earlier death, resignation or removal. Directors, other than those selected by virtue of their office or former office in the corporation or in any other entity or organization, shall be selected for the term of office provided in the bylaws. In the absence of a provision fixing the term, it shall be one year.
(b) Resignations.--Any director may resign at any time upon notice in record form to the corporation. The resignation shall be effective upon its receipt by the corporation or at a subsequent time specified in the notice of resignation.

What does your Corporate Attorney say ?

Not getting a DEFINATIVE answer for a legal question from a legal professional would, IMO, constitute nonfeasance.

CathyA3 (Ohio)
Posts: 6,299
Posted:
A similar thing happened recently at my community. The (former) board member was rather put out when the association attorney confirmed that her email was a valid resignation and that the remaining board members would have to appoint her to the now-vacant position, if they chose to do so. They were also free to appoint someone else.

Folks need to learn to avoid email when they're hot under the collar.
SueW6 (Michigan)
Posts: 814
Posted:
We had a board member who shouted out his resignation at a meeting.

A motion was made to accept his resignation, and thus, he was out.

Say what you mean and mean what you say - or not.

JenniferG11 (Texas)
Posts: 667
Posted:
Quote:


Folks need to learn to avoid email when they're hot under the collar.

Yes. 99.9% of the time I leave an email or a text in *draft form* until I have passed being angry/upset/whatever, and I refine it beyond that regardless before sending, or decide not to send it at all. The times I don't do that, I often regret it.

PaaN
Posts: 219
Posted:
Quote:
Posted By SueW6 on 08/30/2018 6:32 PM
We had a board member who shouted out his resignation at a meeting.

A motion was made to accept his resignation, and thus, he was out.

Say what you mean and mean what you say - or not.


? NO VOTE ?
PaaN
Posts: 219
Posted:
Quote:
Posted By JenniferG11 on 08/31/2018 2:57 AM


Folks need to learn to avoid email when they're hot under the collar.


Yes. 99.9% of the time I leave an email or a text in *draft form* until I have passed being angry/upset/whatever, and I refine it beyond that regardless before sending, or decide not to send it at all. The times I don't do that, I often regret it.


If it is an important issue I actually write a 'word' document and print it BEFORE E or S mailing.
MarilynS7 (Pennsylvania)
Posts: 3
Posted:
I certainly agree with the comments regarding not resigning in heat of the moment. However, the resignation was prompted by the president's accusation that two current and one former board members were engaged in a cover-up as to a legal opinion that the former board received. That opinion prompted the former to rescind their vote. The minutes reflected the change of vote, but not the legal opinion. The property manager who writes and sends out the minutes did not include it. No one on the board thought to include this. HOA note takers are told to keep the minutes straight and to-the-point and to definitely not do a he-said, she-said story. Our minutes have always been succinct, no matter what board was running the HOA. However, the president wanted a vote to go his way so he threatened two board members to smear our names to the community if we didn't give him his vote.
SheliaH (Indiana)
Posts: 6,964
Posted:
Doesn’t matter what prompted the resignation – things were already heated, so it’s too bad someone didn’t speak up and say something like “ok, things are getting a little out of hand, so everyone calm down before someone says and/or does something he/she may regret” – before the board member quit in a huff. Personally, I might hold the board member to that resignation, but cover myself by making a formal resolution to vote on whether to accept it or not. Since that didn’t happen, perhaps you need an executive session to sort all this out.

At that meeting, I suggest starting with a few reprimands. First, the former board member should be reminded to think before he speaks and the proper way to resign. If you didn’t get a formal letter of resignation and your documents require it, I suppose he’s back on.

As for your president, he also needs a reprimand for (1) doing a crappy job of letting things escalate to this point and (2) threatening people because he wanted the vote to go a certain way. Given this behavior, maybe the board should consider if he should keep that spot because mature behavior might not be his strong suit. I do hope you’re on the board so you can facilitate some of this.

Then address this cover up business (what, pray, was THAT about???) and the rescinded vote – which doesn’t sound like proper parliamentary procedure anyway - check Robert’s Rules of Order (there’s a website) to see how that should be addressed.

One more thing – it’s nice that your property manager has written decent minutes, but that isn’t his/her job. Board meeting minutes are legal documents of the association, therefore, the board is ultimately responsible to ensure they’re written and are accurate. Minutes aren’t a blow by blow of who said what, but a reflection on the actions the board took during the meeting. Your board secretary or a designee needs to start doing his/her job. There’s all sorts of conversations on this website and around the Internet explaining how this is done if he/she doesn’t know how.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
JeffT2 (Iowa)
Posts: 875
Posted:
According to the law posted by PaaN:

"The resignation shall be effective upon receipt thereof by the corporation..."

There is similar language in the nonprofit law in many (most?) states.

This means that any vote by a board on accepting, rejecting, or rescinding a resignation is not valid. (True in most states.)

Once the resignation is received it is effective and cannot be rescinded by either the board or the director who resigned. Augustin and Cathy posted attorney opinions to this effect.

When a resignation creates a vacancy, the board may choose to appoint an individual to the board, or not, as provided in the docs or law.

The only issue is whether an email satisfies a written notice. In most states it does, although I did not have time to look it up for PA.
PaaN
Posts: 219
Posted:
from PA not-for-profit corporate law:

Any director may resign at any time upon notice in record form to the corporation.


the crux of the issue:

IN PA, what constitutes "notice in record form" ??!!??

IMO (not a legal opinion) any notice actually SIGNED would suffice.
GeorgeS21 (Florida)
Posts: 3,808
Posted:
Sounds like most everyone believes this director has resigned. So let it be. Save the email for proof. If you want him/her back, then tear jt up. If you don't want them back, don't discuss is further. Replace the board member who resigned.

Move on.
PaaN
Posts: 219
Posted:
AGREE (again)

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