HB2607, which amends A.R.S. Section 33-1813 of the Planned Communities Act and A.R.S. Section 33-1243 of the Condominium Act was signed by the Governor on 05/01/2023. This new law strictly penalizes a board of directors for failing to comply with timely noticing a board removal meeting.
A.R.S. Section 33-1813 of the Planned Communities Act and A.R.S. Section 33-1243 of the Condominium Act provide a mechanism for the members of a community to remove a member or members of the board of directors. Under the previous statute, the board of directors, upon receipt of a removal petition that complies with the statutory requirements, was required to call, notice and hold a special removal meeting within 30 days of receipt of the petition. However, under the previous statute, there were no express consequences for failing to timely call, notice and hold the removal meeting.
HB2607 now provides that if a board of directors receives a removal petition that satisfies the requirements of A.R.S. Section 33-1813 of the Planned Communities Act and A.R.S. Section 33-1243, and if the board fails to timely call, notice and hold the removal meeting within the required 30 days, all members of the board of directors are removed from office effective on the 31st from receipt of the signed petition. Upon removal of the entire board in this circumstance, a special meeting is to be called, noticed and held within 30 days to elect an entirely new board of directors.
It is important to note that, even if a particular director or directors are not subject to removal under the submitted petition, failure to timely call, notice and hold the removal meeting results in all members of the board of directors being removed. As such, if your community association receives a removal petition, it is important to immediately contact your community association attorney to verify the petition and determine next steps. Please contact Mulcahy Law Firm, P.C. for assistance regarding any board removal related issues.
