Adams Stirling PLC


QUESTION: Less than sixty days before our annual meeting a group of homeowners submitted a petition to recall the existing board. As required by statute, the board gave notice of a special meeting. It will take place a month after the annual meeting. Under the circumstances, what is the effect of the petition?

ANSWER: In my opinion, the petition is voided by the intervening election.

Pre-Election. Recall petitions submitted close to an annual meeting are ill-conceived. If a recall is held prior to the annual meeting and is successful, the new directors only fill the remaining terms of the directors they replace. That means the new directors may be up for reelection within thirty days of the recall election--a significant source of confusion for the membership and a waste of money.

Post-Election. If the recall is scheduled to follow the annual meeting, the petition is no longer valid. The board for which the petition was submitted no longer exists. Even if the same directors are elected, it is a new board with new terms in office. If the petitioners wish to recall the newly elected board, they need to submit a new petition (and then explain to the membership why they should recall the board they just elected).

Appointments. The outcome is different if the board appoints new directors in an attempt to evade a recall.

RECOMMENDATION: To avoid wasted time and money, associations should amend their election rules to put reasonable limits on recall petitions. Associations needing legal assistance can contact us. To stay current with issues affecting community associations, subscribe to the Davis-Stirling Newsletter.

Adams Stirling PLC