Q&A: Removing the Board Treasurer

“We live in a condominium development of 130 units. One investor own 48 of these units. He’s taken two seats on the board since 1986. No one votes for him, I suspect he always votes for himself and gets on the board. Can this be possible? He is the treasurer and in control of the board. How can we get him out?

                                    —Out of Control

“Your question raises more questions,” says attorney Fran McGovern, principal of McGovern Legal Services, LLC with offices in New Brunswick and throughout New Jersey.

“How many seats are on the board? If the board is a three-seat board, control of two seats amounts to actual control but control of two seats on a five-seat board does not amount to actual control.  This sounds obvious but, especially on older boards, longstanding members are often perceived to have control.  If it is a five seat board, the other three board members can out-vote the investor and even remove him from his officer position (although typically not from the board altogether).    

“Does the investor claim to personally fill two seats?  If the investor claims to personally hold two board seats, his claim is improper and the second seat should be filled by another person.  Even keeping in mind that not everyone in an association votes, 82 other votes could be cast against the investor.    

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Comments

  • Start with talking to others in your HOA if they feel the same way as you do as the cause to remove that director of the board. That will be the first step. If you find support get them to join you in asking to remove that director through a petition. Most HOAs permit removal of a director with a 30% votes. If you have most owners living in your HOA that will be a piece of cake if others are not happy too. However if you have many renter units it will be difficult to get their addresses as the HOA will not give those to you. If the director who you want to remove has no other interests in most cases he or she will leave as it is a voluntary position. If he or she does not you have to start asking yourself the question 'why'. Be careful before accusing though. Answer Provided by Westwood International HOA and Condo Law creators