2011 Vermont Code
Title 27A Uniform Common Interest Ownership Act (1994)
Chapter 3 Management of the Common Interest Commu=-nity
§ 103 Executive board members and officers [ 3-103 effective until January 1, 2012; see also section 3-103 effective January 1, 2012 set out below.]

[ 3-103 effective until January 1, 2012; see also section 3-103 effective January 1, 2012 set out below.]

§ 3-103. Executive board members and officers

(a) Except as otherwise provided in the declaration, bylaws or other provisions of this title, the executive board may act on behalf of the association. In the performance of their duties, officers and members of the executive board appointed by the declarant shall exercise the degree of care and loyalty required of a trustee. Officers and members of the executive board not appointed by the declarant shall exercise the degree of care and loyalty required of an officer or director of a corporation organized under Title 11B.

(b) The executive board shall not amend the declaration, terminate the common interest community, elect members of the executive board or determine the qualifications, powers, duties or terms of office of executive board members. The members of the executive board shall serve until their successors are duly elected and qualified. The board may fill vacancies for the unexpired portion of any term.

(c) Within 30 days after adoption of any proposed budget for the common interest community, the executive board shall provide a summary of the budget to all the unit owners. The board shall set a date, not less than 14 or more than 30 days after the date the budget summary is sent to the unit owners, for a meeting of the unit owners to ratify the budget. The budget shall be ratified, unless a majority of all the unit owners or a larger vote specified in the declaration rejects the budget, whether or not a quorum is present. If the budget is rejected, the budget last ratified by the unit owners shall be in effect until the unit owners ratify a budget proposed by the executive board.

(d)(1) Subject to subsection (e) of this section, the declaration may provide for a period of declarant control of the association during which a declarant or the declarant's designee may appoint and remove the officers and members of the executive board. Except as provided in subsection 2-123(g) of this title, a period of declarant control shall terminate on the earliest of the following dates:

(A) 60 days after 75 percent of the created units is conveyed to unit owners other than a declarant;

(B) two years after all declarants have ceased to offer units for sale in the ordinary course of business;

(C) two years after any development right to add new units is last exercised; or

(D) the day the declarant, after giving written notice to unit owners, records an instrument voluntarily surrendering all rights to control activities of the association.

(2) A declarant may voluntarily surrender the right to appoint and remove officers and members of the executive board before termination of that period but in that event the declarant may require, for the duration of the period of declarant control, that specified actions of the association or executive board as described in a recorded instrument executed by the declarant be approved by the declarant before they become effective.

(e) At least 25 percent of the members of the executive board shall be elected by unit owners who are not declarants within 60 days after 25 percent of the created units is conveyed to owners other than a declarant. At least 33-1/3 percent of the executive board shall be elected by unit owners who are not declarants within 60 days after 50 percent of the created units is conveyed to unit owners other than declarants.

(f) Except in elections pursuant to subsection 2-120(e) of this title, before the termination of declarant control, the unit owners shall elect an executive board of at least three members, of which a majority shall be unit owners. The executive board shall elect its officers who shall take office upon election.

(g) Notwithstanding any provision of the declaration or bylaws, the unit owners may remove a member of the executive board, except a member appointed by a declarant, with or without cause by a two-thirds vote of all persons present and entitled to vote at a unit owners' meeting at which a quorum is present. (Added 1997, No. 104 (Adj. Sess.), § 3, eff. Jan. 1, 1999.)