RECALL OF BOARD
Q.
What are the most common reasons that boards of Directors of homeowner associations are recalled?
A.
The most common reasons for recalls are:
(1) The board violates or has violated the law;
(2) The board has failed to operate within the business judgment rule (See Corp. Code Section 7231);
(3) They fail to plan ahead, resulting in large special assessments;
(4) board members act in an autocratic, arrogant, and secretive manner;
(5) Deferred maintenance has been allowed, resulting in lower property values and the potential for special assessments;
(6) They refuse to enforce the CC&Rs and/or Rules;
(7) The board refuses to permit members of the association to adequately address issues at board meetings;
(8) They fail to treat all members equally;
(9) The board misuses "executive session"; and
(10) The board's collection policy is either too harsh or too lenient.
PROCEDURE FOR RECALL
Q.
The majority of homeowners in our association are outraged by the conduct of our board of directors. The next election won't be held for another eight months. Our bylaws are silent on the subject of recalling the board. What can we do?
A.
The California Corporations Code sets forth the procedure for recalling a board of directors. It involves calling for a special meeting, sending out proxies and then voting. An association attorney can assist you with the details.
RECALL OF BOARD
Q.
The board of directors of our association refuses to hire a professional management company and seems to violate every known rule. Can the board be recalled?
A.
Yes. Special meetings of members for any lawful purpose may be called by the board, the chairman of the board, the president, or such other persons, if any, as are specified in the bylaws. In addition, special meetings of members for any lawful purpose may be called by five percent or more of the members.
You should consult with an association lawyer in order to make absolutely certain that the Notice to Members and Proxy are correctly drafted and that all requirements of the Corporations Code and your governing documents are met.
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