A solid Board of Directors with high ethical standards is in the best interest of the entire community. Guidelines for establishing the Board will be in the HOA’s governing documents. The guidelines should include Board member eligibility, the number of directors to serve, and the terms of office. It is essential to refer to state laws to ensure that folks running for an HOA director position meet the legal qualifications before serving.
Eligibility
While Texas law doesn’t have specific eligibility requirements to serve on the Board of Directors, many HOA governing documents do. Your Board must comply with the following three eligibility restrictions that are listed in the Texas Property Code:
- Family Members: Two members on the Board of an association that consists of 10 or more lots cannot live together while serving on the Board.
- Members vs. Non-members: HOA Bylaws can require one or more Board members to live in the community, but they cannot require all Board members to live there.
- Personal History: Someone who has been convicted of a felony involving “moral turpitude“ within the past 20 years can be prevented from serving on the Board, immediately relieved of their position, and banned from serving on the Board in the future.
Every state has different eligibility requirements and restrictions. If you are not in Texas, it’s imperative to check with your state laws to ensure that your governing documents are current and in compliance.
Number of Directors
The HOA governing documents should specify the minimum number of directors required to conduct business. Texas law states that there be no less than three directors on the Board at one time. Or as many as the initial number of directors listed in the original Articles of Incorporation of the association.
The number of directors can be increased if the Board is struggling to accomplish its workload. An increase in the size of the Board should be an amendment to the governing documents and passed with a majority vote. The size of the Board can also be decreased to no less than three directors by the same process.
Terms of Office
The Texas Business Organizations Code states that “directors shall serve until the next annual election of directors and until a successor is elected, appointed, or designated and qualified.” Subsequent directors are elected, appointed, or designated based on the guidelines defined in the Association Bylaws:
- Removal of a Director: A director can be removed from office, with or without cause, by those who elected, designated, or appointed them to that position.
- Resignation of a Director: A director may resign at any time with written notice.
The success of an HOA depends on the effectiveness of its Board of Directors. Our blogs on Diversity and Inclusion and Encouraging Member Involvement are excellent resources when selecting new board members.
Having the right management company in place will help you with these guidelines and more. Contact Prism Realty HOA Management if you need a management company that will make your job easier! (512) 676-5842 or Info@PrismRP.com.