Owners may remove condo board members when a director abuses authority, neglects important duties, or acts against the association’s best interests. Yet, it is important to understand the removal process as dictated by state laws and the association’s governing documents. Failure to adhere to the procedures and requirements can render the removal void.
Can Owners Remove Condo Board Members?
Owners can generally remove an elected director from the board. That said, the process for the removal of condo board member positions differs between condominiums and HOAs.
For Illinois condominiums, the Condominium Property Act requires the association’s bylaws to state the method for removing board members. Because of this, unit owners must review the bylaws to determine the required vote, petition process, and meeting procedures.
Condo owners holding 20 percent of the association’s votes may call a special membership meeting. Alternatively, the president or board of managers may call one. Notice must be provided no fewer than 10 and no more than 30 days before the meeting. The notice must also clearly state the purpose (removal).
For common interest communities, the rules are more direct. Under the Illinois Common Interest Community Association Act (765 ILCS 160/1-35), two-thirds of the membership may remove a director at a properly called and noticed special meeting. The same requirements for special meetings and notices must be followed.
Can Fellow Directors Remove a Condo Board Member?
Generally, fellow directors can’t remove an elected board member from the board itself. Since the owners elected the director, the owners usually have the power to remove them.
That said, it’s important to distinguish a board position from an officer position. A person may serve as both a director and an officer, such as president, secretary, or treasurer. These are separate roles.
Fellow board members may have the authority to remove someone as an officer. For instance, the board may vote to remove the president from office. But that person may remain a regular director until the owners remove them or their term expires.
Common Reasons to Remove Condo Board Members
Owners tend to call for a board recall when there is a reason. Here are the most common grounds for removal of HOA officers and directors.
1. HOA Board Member Abuse of Power
If a director abuses their authority, such as by making decisions without a proper vote or using the association’s resources for personal gain, owners may call for their removal. This also happens when a board member acts outside the scope of their power or uses their position to threaten a resident.
2. Financial Mismanagement
Failure to manage the association’s finances responsibly can be grounds for removal. Examples include failing to follow the budget, approving unnecessary expenses, or neglecting the collection of dues. It may also involve poor recordkeeping or allowing one person to control all financial transactions.
3. Neglect of Duties
A director who regularly misses meetings or refuses to participate can make it difficult for the board to function. Repeated absences can even prevent the board from reaching a quorum. If a board member continuously disregards their responsibilities, they may be removed.
4. Selective Enforcement
Selective enforcement happens when the board penalizes certain owners while ignoring similar violations by others. For example, the board may fine one owner for an unapproved fence while allowing a friend’s identical fence to remain. This unequal treatment can lead to disputes and board removal.
5. Breach of Fiduciary Duties
Board members must fulfill certain fiduciary duties to the association. A breach may occur when a director uses their position for personal gain or knowingly makes decisions that harm the community. Other examples include misconduct, bad-faith decisions, and self-dealing.
6. Leak of Confidential Information
Board members often have access to sensitive information. If they share this information with unauthorized people, it may be considered an invasion of privacy. In addition to being removed from the board, they may also face serious legal liability.
7. Unethical Behavior
Unethical HOA board members are often removed from their roles. Examples include accepting kickbacks, hiding conflicts of interest, falsifying records, committing fraud, or intimidating/retaliating against owners.
How to Remove Condo Board Members
The process for removal can differ from one community to another, depending on the governing documents. That said, here are the general steps for removing HOA board members.
1. Review State Laws and the Governing Documents
First, owners must check their state laws and governing documents for guidance. These will outline the requirements, voting thresholds, and procedures for removing a director.
2. Gather Supporting Information
Before pursuing removal, owners should gather evidence demonstrating cause for removal. This may include meeting minutes, financial reports, emails, contracts, violation notices, and witness statements. While owners can remove without cause, justification can help gain support from the rest of the membership.
3. Submit a Petition
If a special meeting is necessary, owners may need to submit a written petition. In both Illinois HOAs and condos, owners with 20 percent of the votes may call a special membership meeting.
This petition must:
- State the specific purpose of the meeting,
- Identify the director/s subject to removal, and
- Request the meeting for the vote.
It must also contain valid signatures from owners.
4. Give Proper Notice
Associations must provide written notice to all owners and board members. In general, this notice must come no less than 10 and no more than 30 days before the meeting. It must also state the time, place, and purpose of the meeting.
5. Hold the Special Meeting
At the special meeting, the association must first establish a quorum. Without a quorum, the owners can’t proceed with the vote. From there, the chair must explain the purpose of the meeting and allow the director facing removal to speak.
6. Conduct the Vote
Using the prescribed method under the governing documents, the membership must then vote to remove the director. Keep in mind that HOAs require two-thirds approval to remove a director, while condo associations must turn to their bylaws for the voting threshold.
7. Record the Results
After counting the votes, the meeting minutes must record the motion, vote, and final result. A simple summary of official actions should be sufficient.
8. Fill the Vacancy
If the vote passes, the association must fill the open position. For condominiums, a two-thirds board vote may appoint someone to the role until the next annual meeting. That said, owners with 20 percent voting power may petition for a meeting to fill the vacancy before the next election.
Homeowners associations follow a similar process.
A Serious Decision
Owners may remove condo board members by following a set of procedures and requirements, but it shouldn’t be the first instinct. Board members are only volunteers, so they can make mistakes. Removing a board member is an extreme measure and must not be used simply because a director is unpopular.
First Community Management provides expert HOA, condo, and co-op management services to communities in Chicago. Call us today at (312) 829 8900 or contact us online to learn more!
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