QUESTION
How can I begin process to remove two of three board who have failed in their fidicuary responsibility.?
Asked on Jun 26th, 2017 on Real Estate - California
More details to this question:
I have been on Board for 6 months. The other two will not work with me and there has been no progress to improve situations. 2%Reserves, Deferred Maintenance of major items, with no reasoning. We meet quarterly with management CO. They refuse to meet without anyone from Management Company (MC). I truly believe there has been some unlawful and unethical behavior by MC specifically prior CAR. She has been replaced and left MC. She allied with the other two board members. She advised them to elect themselves executive without my knowledge. MC is the only one with money, they have been allowed to use up almost the entire incoming assessments. There are 32 units. I have other Homeowners interest in banning together to get them out. I need a detailed How To , to remove the two and guidance with CCR's.
1 ANSWER
When is the next election of board members? A lawsuit will take a year or longer. The best way is to just elect good people at the next election. Find some candidates now, and start lobbying other members to support them, starting now.
There is a procedure to recall directors, to remove them from the board. It takes a lot of votes. Your lawyer will need to calculate the number for you. If the election is too far off, then that would be the next step.
If your board and management company have not been keeping up, then your CC&Rs are probably outdated. The legislature has enacted a lot of requirements for HOA and HOA boards, and revises them all the time. In particular, voting by members is done exclusively by written ballots mailed to the owners a month in advance and returned in double-envelopes. That's just one example.
You and some like-minded owners should get together and pay a lawyer to help you get the mess fixed.
Dana Sack
Answered on Jun 27th, 2017 at 4:50 PM