Egret Run HOA History Part 2

In one of the first posts on Egret Run Voice titled Egret Run History 1, the post stated two (2) major problems with the manner in which the ER BOD has continued to use information from the failed attempt to change the by-laws and the subsequent, but suspicious way the board has used an erroneous interpretation of the original by-laws to justify being elected to the board over and over and over, etc.  The two major problems are outlined below.  Problem 2 will be addressed in a separate post:  

1                  PROBLEM: In order for the FERRIS family to stay on the ER BOARD, they needed to change the by-laws. The original law firm that constructed the ER By-laws correctly stated the wishes and will of the developers.   Even before the South Carolina Homeowners Association Act was enacted in 2018, they advised the developers that non-consecutive term limits would lead to fair government of Egret Run.   Good governance is a plus value-add to any HOA-governed community. 

The ER bylaws state in Article III Section 6 – “Directors, as may be elected shall not serve any consecutive terms.”  Ferris and the Board sought and received a sympathetic opinion from an attorney which gave the FERRIS family and the board cover by misinterpreting the original attorney’s intentions.

The sympathetic attorney drafted A resolution, alleging that the original by-laws are in conflict with, and therefore nullified by the SC Non-Profit Corporation Act.

Please understand, the SOUTH CAROLINA NONPROFIT CORPORATION ACT (Section 33-31-805) DOES NOT state that directors may be elected for “consecutive terms.” The SC Non-Profit Corporation Act uses the term “successive”, not “consecutive”, therefore Attorney Beverly (deceased 2015), the attorney who forged the opinion and resulting resolution, not being a math or computer engineering major, made an error.  According to the South Carolina Non-Profit Corporation Act, Board members MAY serve SUCCESSIVE terms, which is Not in conflict with the original and currently existing Egret Run Bylaws, which states that “directors as may be elected may not serve CONSECUTIVE terms”.

The erroneous interpretation by Attorney Beverly has been used by Anna Marie Ferris in particular and ER boards in general, to elect a FERRIS for most of the past 12 or so years. Although there is no actual proof, there is evidence that the management company has aided and encouraged Ferris for the purpose of easy renewal of the annual contract.    

 

Major Problem number two (2) will be outlined in the next installment: Egret Run HOA History 3. 

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