Director, don’t apply to her. And,
in doing so, she has now created
a situation that the rest of your
Board must absolutely deal with.
In fact, it’s not untrue to say that
unless it’s dealt with, both swiftly
and with great care, your entire
HOA’s financial future could be
at serious risk. At this point, the
question becomes “now what”, in
trying to resolve the situation.
First and foremost, your
Board needs to make sure that
you document every act taken in
attempting to correct the situation.
This creates an invaluable paper-
trail that illustrates your desire to
rein-in the rogue Director.
Next, and as dreadful as the
situation may sound, there are
several options for correcting it,
ranging from simple in executing
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with minimal consequences, to having to, in extreme cases, invoke
the “nuclear option”. In most cases however, the former is the one
that more often than not actually works. That option is sitting down
with the rogue Director, and (suggested) with the HOA’s legal counsel
in attendance, and explaining thoroughly why what she’s done is,
in fact, “unlawful”, according to State statutes, and your governing
documents. If it’s just a case of her truly not understanding the
governing documents, in many cases your action of being willing to
“educate” her on them will allow her to hopefully see the error of her
ways, and her rogue actions will cease.
The next option would be to public censure her at an upcoming
Board meeting, and attended by members. The censure is a formal
and public rebuke of her rogue actions, and is entered into the
Minutes for the association’s records. The Board could, in addition,
ask for her resignation at that point, even though she’s not bound
to honor the request. But asking for it adds to the paper-trail that
shows you tried to mediate the situation.
The next option is to consider a recall election. Based on how your
governing documents are written, this could be a challenging route
to take. Some governing documents require that the entire Board be
recalled, in order to remove just the offending Director, while others