Recently 4 of our 7 Directors Resigned, Now What?

By November 10, 2019 Condo & HOA Law

Q:   The governing documents of my community provide that the Board shall consist of 7 directors.  Recently 4 directors resigned.  The three remaining directors are continuing to conduct business and claim that since the annual election is in January, they can let the members fill the vacancies at the upcoming election. Is this legal? 

– R.C., Estero

 

A:    No, it is not legal. The condominium and homeowner association laws provide that if less than quorum of the board exists for more than 30 days any member of the association can apply to the Court to have a receiver appointed to operate the association.  Moreover, because the three remaining directors do not constitute a quorum, they have no authority to conduct business.  The only thing the law allows is for the remaining directors even if less than a quorum to meet and appoint replacement directors. They should do this as soon as possible to avoid the cost of having a receiver take over the Association. Moreover, I would be very surprised if that between now and the January election there would be no business that would require Board action and therefore a quorum of the Board must be seated to make decisions.

 

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Richard D. DeBoest, II, Esq. is co-founder and shareholder of the Law firm Goede, Adamczyk, DeBoest & Cross, PLLC.  T o ask questions about your issues for future columns, send your inquiry to: info@gadclaw.com.  The information provided herein is for informational purposes only and should not be construed as legal advice.  The publication of this article does not create an attorney-client relationship between the reader and Goede, Adamczyk, DeBoest & Cross, PLLC or any of our attorneys.  Readers should not act or refrain from acting based upon the information contained in this article without first contacting an attorney, if you have questions about any of the issues raised herein.  The hiring of an attorney is a decision that should not be based solely on advertisements or this column.

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