KRS § 381.787 Establishment and organization of planned community -- Board of directors -- Declaration or bylaws -- Removal of board member.
AI-assisted research summary: A declarant must create an association when the first lot is sold for fair market value, and the association must be set up as a nonprofit entity with a board of directors.
381.787 Establishment and organization of planned community -- Board of directors -- Declaration or bylaws -- Removal of board member. (1) A declarant shall establish an association no later than the date upon which the first lot in the planned community is conveyed to a purchaser for fair market value. The association shall be organized as a nonprofit corporation pursuant to KRS Chapter 273 or as an unincorporated nonprofit association pursuant to KRS Chapter 273A. (2) The association shall consist of members who own a lot or lots in the planned community. The association shall be administered by a board of directors elected from among the owners. The owners shall elect a board with at least three (3) directors who shall take office upon election no later than the termination of any declarant control period. (3) Unless otherwise provided in the governing documents, the board of directors shall be authorized to carry out the provisions of KRS 381.785 to 381.801. If an owner is not a natural person, a principal member of a limited liability company, partner, director, officer, trustee, or employee of the owner may be elected to the board of directors. (4) The initial board of directors shall promulgate the initial bylaws of the association. (5) Subject to other provisions of KRS 381.785 to 381.801, the declaration or bylaws for an incorporated or unincorporated association shall provide for the following: (a) The number of persons constituting the board; (b) The election method and terms of the board; (c) The powers and duties of the board; (d) The method of removal of directors from the board; (e) The method of amending the declaration and bylaws; (f) The frequency, time, and place for holding board meetings and the manner of and authority for calling, giving notice of, and conducting board meetings; and (g) Any other matters the declarant or the association deems necessary and appropriate. (6) Unless a higher percentage of votes is required under the declaration or bylaws, the owners may remove any member of the board with or without cause, except a director appointed by the declarant, by a majority vote of all persons present in person or by proxy and entitled to vote at any meeting of the association at which a quorum is present. Effective: June 29, 2023 History: Created 2023 Ky. Acts ch. 23, sec. 3, effective June 29, 2023.