PETITION TO RECALL DIRECTORS

Petition Percentage. Members may request a special meeting of the membership for the purpose of removing individual directors or the entire board by presenting a petition to the board signed by 5% or more of the membership. Corp. Code §7510(e) The right to call a meeting by 5% of the membership cannot be changed or eliminated by contrary provisions in the bylaws.

Delivery of Petition. Delivery of the petition to the board is generally addressed in the bylaws. If not, personal delivery to any officer, director or managing agent is sufficient to put the board on notice and start the clock running on the board's duty to set a date for the meeting. The petition may also be sent by certified mail to any officer, director or managing agent.

Stock Cooperatives. For stock cooperatives, the petition requirement is 10%. Corp. Code §600(d)

Proper Signatures. Only members may sign a petition. Spouses not on title and tenants may not sign petitions.

Setting Meeting Date. Once a proper petition has been submitted to the board, the board sets the date for the meeting and sends notice to the membership along with ballots.

Meeting Agenda. By statute, the only business that may be conducted at the special meeting is the business contained in the notice, i.e., that which was requested in the petition. Notice of meetings shall specify those matters the board intends to present for action by the membership. Civil Code §1363.3(e) Business at the meeting is limited to noticed items only; no other business may be transacted. Corp. Code §7511(a)

Updated by ADAMS KESSLER 10/3/2008