§ 34-41-3.17 - Recall of manager by owners.
SECTION 34-41-3.17
§ 34-41-3.17 Recall of manager by owners.– (a) The owners may discharge the manager with or without cause in the mannerprovided by this section in addition to any manner permitted by other law or bythe project instrument.
(b) Any owner may prepare a ballot affording the opportunityto indicate a preference between retaining the present manager and discharginghim or her in favor of a new manager. A copy of the ballot and of any letterthat is to be mailed with the ballots must be delivered to the manager. Notless than ten (10) or more than thirty (30) days thereafter, a ballot and acopy of any letter to be mailed, together with a copy of any written replyreceived from the manager containing no more pages than the letter, must bemailed to each owner by the owner who prepared the ballot.
(c) On the date specified pursuant to §34-41-3.14(c)(2), the person who receives the ballots shall examine those thathave been returned, tabulate the vote accordingly, and notify the manager ofthe result. If at least sixty-six and two-thirds percent (66 2/3%) of the vote,representing at least thirty-three and one-third percent (33 1/3%) of the votesallocated to all owners, favors discharging the manager, the developer alsomust be notified of the result, the ballots or photocopies thereof must begiven to the manager, and the developer shall diligently attempt to procureoffers for management contracts from prospective managers. Any owner also mayattempt to procure such offers. If the developer or any owner obtains such anoffer within sixty (60) days after the date the vote was tabulated, he or sheshall notify the developer and the owner who was responsible for tabulating thevote. If no offer is obtained from a prospective manager other than the currentmanager within those sixty (60) days, that period must be extended forsuccessive intervals of thirty (30) days each until such an offer is obtained.At the end of the period, the owner who prepared the ballot, or the developerif that owner so directs in a writing delivered to the developer, shall prepareand mail to each owner a second ballot stating at least the term andcompensation provided by each offer that has been received and affording anopportunity to indicate a preference for any one of the offers or for retainingthe current manager. A letter recommending that a particular offer be acceptedor that the current manager be retained may accompany the ballot, and if thedeveloper prepared the ballot he or she shall enclose a copy of any such lettersubmitted to him or her by the owner who was responsible for tabulating thevote. The developer has no obligation under this subsection, and nothing needbe delivered to him or her, if he or she owned no estate or interest in anyunit on the date the first ballot was delivered to the manager and neither thedeveloper nor his or her affiliates or appointees caused the manager to behired.
(d) On the date specified pursuant to §34-41-3.14(c)(2), the person who receives the ballots prepared pursuant tosubsection (c) shall examine those that have been returned, tabulate the voteaccordingly, notify the manager of the result, and hold the ballots availablefor inspection by the manager and any proposed manager for at least thirty (30)days. If more votes favor accepting a particular offer than retaining themanager, the manager is discharged ninety (90) days after he or she is notifiedof the result, but, if the ballot prepared pursuant to subsection (b) wasdelivered to the manager before the current term of the manager began, themanager is discharged immediately upon being notified of the result. The personwho received the ballots prepared pursuant to subsection (c) shall accept onbehalf of the owners the offer that received the largest number of votes. Theexpenses thereunder are thereafter part of the common expenses.
(e) A manager discharged pursuant to this section is notentitled by reason of his or her discharge to any penalty or other chargepayable directly or indirectly in whole or in part by any owner other than thedeveloper.
(f) The reasonable expenses incurred by any owner inobtaining offers and preparing and mailing ballots pursuant to this section,including reasonable attorney's fees, must be promptly collected by themanaging entity from all owners as a common expense and paid to that owner if asimple majority of the vote tabulated pursuant to subsection (c) favors thedischarge of the manager. Similar expenses incurred by the developer also mustbe so collected and promptly paid to the developer.