
Q. A majority of unit owners want our entire corrupt condo board replaced, and five of us are prepared to run and serve on the new board. Problem: The current board refuses to schedule an election, which our management company is responsible for administering. Is there any procedure available by which a majority of unit owners can bypass the board and request that our management company post a first notice and conduct an election?
—Fed Up but Stymied
A. “The replacement of a condominium board, unless it occurs at a routinely-scheduled election, is actually a two-part process,” says Gary M. Daddario, partner at Marcus, Errico, Emmer & Brooks, a law firm with offices in Braintree, Massachusetts, and Merrimack, New Hampshire.
“First, existing board members need to be removed in order to create the open positions. Then, replacements are elected. In some states, the necessary removal procedure and the required voting threshold are set forth in the state’s condominium statute. In such states, the statutory process must be used, as it takes precedence over any contrary language in the association’s governing documents.
“If your state does not set forth the removal process in your condominium statute, then the process and required vote will be as set forth in your association’s governing documents. If removal is successful, then the vacancies created are filled according to the process in the state statute or your governing documents, whichever is applicable in your state.
“Removal and election votes typically need to be taken at meetings of the community. Special meetings for such purposes must be scheduled by the existing board if the proper request is made. These requests are typically required to be in writing and supported by a certain percentage of the association’s beneficial interest (a particular amount of unit owners). Again, depending on your state, the particulars will either be in your state statute or your own governing documents. If the requirements for the calling of a special meeting are met, and the board fails to comply, the community or a subset thereof could file a derivative action alleging to the court that the board is breaching its fiduciary duties by failing to comply with the law and/or the association’s governing documents.”
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