§ 47F-3-103. Executive board members and officers.
§ 47F‑3‑103. Executive board members and officers.
(a) Except as providedin the declaration, in the bylaws, in subsection (b) of this section, or inother provisions of this Chapter, the executive board may act in all instanceson behalf of the association. In the performance of their duties, officers andmembers of the executive board shall discharge their duties in good faith.Officers shall act according to the standards for officers of a nonprofitcorporation set forth in G.S. 55A‑8‑42, and members shall actaccording to the standards for directors of a nonprofit corporation set forthin G.S. 55A‑8‑30.
(b) The executive boardmay not act unilaterally on behalf of the association to amend the declaration(G.S. 47F‑2‑117), to terminate the planned community (G.S. 47F‑2‑118),or to elect members of the executive board or determine the qualifications,powers and duties, or terms of office of executive board members (G.S. 47F‑3‑103(e)),but the executive board may unilaterally fill vacancies in its membership forthe unexpired portion of any term. Notwithstanding any provision of thedeclaration or bylaws to the contrary, the lot owners, by a majority vote ofall persons present and entitled to vote at any meeting of the lot owners atwhich a quorum is present, may remove any member of the executive board with orwithout cause, other than a member appointed by the declarant.
(c) Within 30 daysafter adoption of any proposed budget for the planned community, the executiveboard shall provide to all the lot owners a summary of the budget and a noticeof the meeting to consider ratification of the budget, including a statementthat the budget may be ratified without a quorum. The executive board shall seta date for a meeting of the lot owners to consider ratification of the budget,such meeting to be held not less than 10 nor more than 60 days after mailing ofthe summary and notice. There shall be no requirement that a quorum be presentat the meeting. The budget is ratified unless at that meeting a majority of allthe lot owners in the association or any larger vote specified in thedeclaration rejects the budget. In the event the proposed budget is rejected,the periodic budget last ratified by the lot owners shall be continued untilsuch time as the lot owners ratify a subsequent budget proposed by theexecutive board.
(d) The declaration mayprovide for a period of declarant control of the association, during whichperiod a declarant, or persons designated by the declarant, may appoint andremove the officers and members of the executive board.
(e) Not later than thetermination of any period of declarant control, the lot owners shall elect anexecutive board of at least three members, at least a majority of whom shall belot owners. The executive board shall elect the officers. The executive boardmembers and officers shall take office upon election.
(f) The associationshall publish the names and addresses of all officers and board members of theassociation within 30 days of their election. (1998‑199, s. 1; 2005‑422, ss. 2, 3.)