§ 47C-3-103. Executive board members and officers.
§ 47C‑3‑103. Executive board members andofficers.
(a) Except as provided in the declaration, the bylaws, orsubsection (b) or other provisions of this chapter, the executive board may actin all instances on behalf of the association. In the performance of theirduties, the officers and members of the executive board shall be deemed tostand in a fiduciary relationship to the association and the unit owners andshall discharge their duties in good faith, and with that diligence and carewhich ordinarily prudent men would exercise under similar circumstances in likepositions.
(b) The executive board may not act on behalf of the associationto amend the declaration (G.S. 47C‑2‑117), to terminate thecondominium (G.S. 47C‑2‑118), or to elect members of the executiveboard or determine the qualifications, powers and duties, or terms of office ofexecutive board members (G.S. 47C‑3‑103(e) and (f)), but theexecutive board may fill vacancies in its membership for the unexpired portionof any term. Notwithstanding any provision of the declaration or bylaws to thecontrary, the unit owners, by at least sixty‑seven percent (67%) vote ofall persons present and entitled to vote at any meeting of the unit owners atwhich a quorum is present, may remove any member of the executive board with orwithout cause, other than members appointed by the declarant.
(c) Within 30 days after adoption of any proposed budget for thecondominium, the executive board shall provide a summary of the budget to allthe unit owners, and shall set a date for a meeting of the unit owners toconsider ratification of the budget not less than 14 nor more than 30 daysafter mailing of the summary. There shall be no requirement that a quorum bepresent at the meeting. The budget is ratified unless at that meeting amajority of all the unit owners or any larger vote specified in the declarationrejects the budget. In the event the proposed budget is rejected, the periodicbudget last ratified shall be continued until such time as the unit owners ratifya subsequent budget proposed by the executive board.
(d) Subject to subsection (e), the declaration may provide for aperiod of declarant control of the association, during which period adeclarant, or persons designated by him, may appoint and remove the officersand members of the executive board. Regardless of the period provided in thedeclaration, a period of declarant control terminates no later than the earlierof: (i) 120 days after conveyance of seventy‑five percent (75%) of theunits (including units which may be created pursuant to special declarantrights) to unit owners other than a declarant; (ii) two years after alldeclarants have ceased to offer units for sale in the ordinary course ofbusiness; or (iii) two years after any development right to add new units waslast exercised. A declarant may voluntarily surrender the right to appoint andremove officers and members of the executive board before termination of thatperiod, but in that event he may require, for the duration of the period ofdeclarant control, that specified actions of the association or executiveboard, as described in a recorded instrument executed by the declarant, beapproved by the declarant before they become effective.
(e) Not later than 60 days after conveyance of twenty‑fivepercent (25%) of the units (including units which may be created pursuant tospecial rights) to unit owners other than a declarant, at least one member andnot less than twenty‑five percent (25%) of the members of the executiveboard shall be elected by unit owners other than the declarant. Not later than60 days after conveyance of fifty percent (50%) of the units (including unitswhich may be created pursuant to special declarant rights) to unit owners otherthan a declarant, not less than thirty‑three percent (33%) of the membersof the executive board shall be elected by unit owners other than thedeclarant.
(f) Not later than the termination of any period of declarantcontrol, the unit owners shall elect an executive board of at least three members,at least a majority of whom must be unit owners. The executive board shallelect the officers. The executive board members and officers shall take officeupon election.
(g) The association shall publish the names and addresses of allofficers and board members of the association within 30 days of the election. (1985 (Reg. Sess., 1986), c. 877, s. 1; 2005‑422, ss. 12, 13.)