Housing cooperatives should be beneficial for both members and the cooperative itself. Sometimes, though, disagreements arise. Whether these disagreements are meritorious or baseless, the board might seek to remove a disagreeable member from the coop.
According to Texas law, cooperative boards can remove or expel members from the coop. They cannot do so on a whim, however. Indeed, to comply with state law, the expulsion must follow a strict procedure.
A pre-expulsion notice requirement
Fairness dictates that coop expulsions should not come as a surprise to affected members. As a result, before any expulsion or removal can occur, the cooperative board must provide notice of an impending expulsion vote that includes the reasons for the proposed expulsion. To comply with state law, the board must give notice at least 11 days before the vote occurs.
A chance to make a case
Those who receive expulsion notices should have time at the coop board meeting to defend themselves. That is, they have an opportunity to explain why they should remain in the coop.
An up or down vote
After the affected member makes his or her case, all members of the cooperative vote on whether or not to expel him or her. This vote can occur at a regular board meeting or during a special session. Either way, the time and location of the anticipated vote should appear on the pre-vote notice.
If the vote is successful, the cooperative typically must buy out the expelled member’s holdings. Ultimately, though, if the coop makes some mistake when holding an expulsion vote, the targeted member might have grounds to take legal action.