HOA President’s Conflict of Interest and Removal

Question:

Our HOA Board president constantly is in conflict of interest. When I bring it up, she laughs. Since she has done so many favors for homeowners, she said I will never get enough votes to ge5 her off the board.

Examples:
1.she is board president and also the property manager. She voted to have her husband be the CPA and handle all the accounting and taxes. They refuse to let anyone see the bank statements. There are inconsistencies in the financial statements ts.
2. She hired a friend for the new roofs. (156K)She is also the property manager for their association. There was no contract. The contractor is not licensed, bonded or insurance.
3. She brought a new person on the board for someone moved. He is an attorney. This attorney has done many real estate and trust contracts for her personally.

Is there any legal way to get he off the board?

– Lisa

 

Answer:

Hi Lisa,

According to the South Carolina Nonprofit Corporation Act, members are entitled to inspect and copy association records, including accounting records and financial statements. Section 33-31-1602 provides certain procedures that a member must follow to request such records, such as providing a written request at least 5 business days prior to the date of inspection.

If you are unsatisfied with your HOA president, consider removing her from the board. Doing this may prove challenging, as you explained, if you don’t get enough votes. You may want to consult a lawyer to understand what other recourse you have.

 

Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.

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