Our boards expenditure

[Guest Kiwi]

Our board is spending money without a vote of the POA.

The Covenant says for the BOD to obtain 2/3 majority vote to buy asset but have purchased a new tractor & ATV to the tune of $30,000. What can the POA members do?

[Guest Zev]

(POA: Property Owner's Association)

Did they in fact have a two-thirds vote to make these purchases?

Does this POA have a higher-governing body that can countermand the board's actions?

[Atul Kapur]

5 hours ago, Guest Kiwi said:

Covenant says for the BOD to obtain 2/3 majority vote to buy asset

That doesn't necessarily mean that they need a vote of the entire association, as you seem to believe. It depends on the exact wording, but what you've written here says that the Board can purchase an asset if approved by a 2/3 vote of the Board.

As Guest Zev states, the association  may have authority to countermand, or Rescind, the motion.

[Kiwi]

15 hours ago, Guest Zev said:

(POA: Property Owner's Association)

Did they in fact have a two-thirds vote to make these purchases?

Does this POA have a higher-governing body that can countermand the board's actions?

There has been no votes for any of the expenditure.

The board is our higher level of power.

Our Covenant states very clearly that a vote is needed to purchase asset.

[Guest Who's Coming to Dinner]

5 minutes ago, Kiwi said:

Our Covenant states very clearly that a vote is needed to purchase asset.

A vote by whom?

[Kiwi]

10 hours ago, Atul Kapur said:

That doesn't necessarily mean that they need a vote of the entire association, as you seem to believe. It depends on the exact wording, but what you've written here says that the Board can purchase an asset if approved by a 2/3 vote of the Board.

As Guest Zev states, the association  may have authority to countermand, or Rescind, the motion.

This is directly from our Covenant.

the Association must obtain prior approval by two-thirds (2/3) of the votes cast by those members entitled to vote with twenty-five percent (25%) of the members required for a quorum in order to exercise the following powers: borrow money, encumber Association property or assets,

[Guest Zev]

1 hour ago, Kiwi said:

There has been no votes for any of the expenditure.

I'm having a little bit of trouble understanding just exactly how the board arrived at a decision to make a purchase without actually taking a vote. Perhaps an explanation is in order.

 

1 hour ago, Kiwi said:

The board is our higher level of power.

Also, if this board is the highest authority in this organization and there is no other authority to countermand its actions then I am at a loss of how to reverse this action.

 

1 hour ago, Kiwi said:

Our Covenant states very clearly that a vote is needed to purchase asset.

If you are absolutely sure that something in this document has been violated by the board's actions, and there is no higher power to reverse it, then it appears to me as though this issue is probably a legal matter, but this is only a guess. You would need to consult an attorney that is familiar with this so-called Covenant and any legal restrictions or requirements.

[Richard Brown]

I think we need more information from the bylaws and Covenants in order to properly weigh in on this. I don't think we have enough information about just what Authority the board has and when action of the Property Owners is required.

Edited to add: for example, guest kiwi has given us a quote  from the covenants, but we don't know what the bylaws say. Does this organization also have bylaws? What do they say on this subject?

Edited September 18, 2018 at 11:17 PM by Richard Brown
Added last paragraph

[Atul Kapur]

6 hours ago, Kiwi said:

n order to exercise the following powers: borrow money, encumber Association property or assets,

This (partial) quote does not say what you told us it did in your first post:

21 hours ago, Guest Kiwi said:

The Covenant says for the BOD to obtain 2/3 majority vote to buy asset

I believe that the phrase "encumber Association propeety or assets" refers to using the assets as collateral for a loan or mortgaging a property. I am not a lawyer and this forum doesn't provide legal advice, but I still haven't read anything to suggest that the Board has overstepped its authority.

[Richard Brown]

I agree with Atul Kapur's comments immediately above. Buying an asset does not necessarily require borrowing money or encumbering association property or assets. They are different issues.