"You don't achieve harmony by everyone singing the same note" - Doug Loyd

Saturday, February 4, 2012

Proof HOA Board Members Don't Read Governing Documents!

Here is a perfect example why board members should be fined for violating the governing documents and any policies and procedures adopted by the board.  

Some associations make board candidates to sign a short form that says they have read the governing documents and promise not to take any action to violate them.  At least mine does.  Yet those same people who signed the oath put forth an amendment to the governing documents that clearly violates the Arizona Constitution.  It only says in the Articles of Incorporation that the provision was written in accordance with the AZ Constitution.  More specifically, this board is putting to a vote to amend the governing documents regarding how votes are cast. Currently, we get one vote for every seat on the board.  If we vote to have 9 board members then we get 9 votes.  We can give all 9 to one person or spread them out.  Without having the right to cast 9 votes then we only get to vote for one person.  Worse yet is that since we can write in names of people it is possible for every owner to get one vote.  By putting something like this up for a vote without telling us it will take away a right given to us by the AZ Constitution, takes away our right to make an informed decision.  In putting something like this up for a vote clearly causes the board to breach it's duty of care.   If this doesn't prove that the current board members need to be ousted for breaching the oath they took.  I don't know what does.  So, why bother having them sign an oath that has no teeth?

To drive it all home they want to amend the documents to only allow 7 seats on the board with each seat serving three year terms.  Currently, its 3 to 11 and the membership sets the number of seats with each serving one year.  The annual meeting is really only for reviewing the financials and voting for board members.  Other than that there really isn't any other business the owners get to conduct at the annual meeting.  Having board members serve three year terms makes an annual meeting a waste.  May as well just have meetings of the members every three years.  If they are performing like crap your stuck with them for 2 more years.  The proposed amendment violates non-profit laws. 

How could the board put something like this up for a board vote without taking the time to review the governing documents and laws first?  I don't think they know what "duty of care" or "informed decisions" mean preventing them from practicing it.  For intelligent people they are sure proving to be just the opposite.

This is why board members should be able to be fined for any acts that violate the governing documents, State and US Constitutions, and state laws.  It's clear all they care about is spend spend spend.

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