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  1. #1
    Join Date
    Feb 2009
    Posts
    1

    Default Involuntarily Dissolved by Secretary of State

    My question involves real estate located in the State of: Texas

    Our HOA (non-profit corp.) was managed by 3 different companies in the 6 years before becoming self-managed.
    A periodic report required/requested by the SOS but never submitted resulted in involuntarily dissolution in Sep 1997.
    We have not had a registered agent since before then (violating both SOS mandate and our own bylaws).
    1) Would having written evidence of a responsibility such as this yet failing to act to correct it for over 12 years be grounds for a lawsuit?
    As it has now been 137 months since dissolution, during which time the HOA has continued to conduct affairs (assessments, liens, contracts, bills, etc.) the remaining questions are manifold:
    2) Have our continued operations beyond the date dissolution been unlawful, leaving the HOA or HOA Board vulnerable to lawsuit?
    3) Are we still eligible for reinstatement provided steps to reinstate are completed?
    4) If our right to conduct affairs has been forfeited does that then mean
    a) the enforceability of our bylaws and covenants was also forfeited?
    b) we need disclose this to the member homeowners and take a vote on whether to reinstate or honor the dissolution?
    6) Given the above, would it be lawful to send assessment invoices out at this time?

  2. #2
    Join Date
    Sep 2005
    Location
    California
    Posts
    65,638

    Default Re: Involuntarily Dissolved by Secretary of State

    1. Possibly. What are the damages?

    2. Potentially yes. You should try to reinstate the corporation, if possible, by making your late filings and paying any penalties.

    3. Maybe.

    4. We can't read the contracts from here. Anything provided for by contract or by deed should remain enforceable; it becomes a question of who has the power to enforce them.

    6. The HOA should retain a lawyer to help it fix this mess.

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