Should Anyone Care That The Same Directors Have Been Serving Forever?

This question seems all too common. It came from two different directions:

“If all board members were elected years ago by its members and their terms all expired and elections were not held because of a lack of quorum, what is the status of that board members?”

The answer is that the board members continue to serve until successors are elected. Someone needs to be concerned about this and seeking to do something, get legal advice, something. Hanging this way for too many years will likely lead to some problems, or claims of negligence on the part of the board for letting this go for years, unless of course no one ever cares.

The problem will come up when any of the directors wants off the board or moves, there will not be any new ones in place. Someone has to light a fire under the owners to get a quorum to respond.

 

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