When a buyer takes title to his Unit, he automatically becomes a member of the Association, a non-profit membership corporation which has been created under Title l5A of the New Jersey Statutes. The Developer will also have one membership in the Association for each Unit or potential Unit to which title has not been conveyed. The Association is charged with the responsibility for the maintenance, management and operation of the Common Elements. This responsibility is discharged through the Board, which is empowered by the terms of the By-Laws, to employ any person, firm or corporation to assist it in the performance of its duties. Article IV of the By-Laws of the Association sets forth the manner in which directorships will be filled.
Initially, the Board will be composed of three (3) individuals appointed by the Developer, none of whom need be a Unit Owner. As Units within the Condominium are conveyed by the Developer, the number of Directors will be expanded from three (3) to five (5) and then again to seven (7), and Unit Owners will be elected to the Board to replace Developer-appointed Directors. This "turnover of control" from the Developer to the Unit Owners is required by New Jersey law and is based upon the total number of Units contemplated by the Developer for the Condominium. Thus, until the first annual meeting of the Association, which is to take place within sixty (60) days after the Developer conveys one hundred thirty-one (131) Units to individual purchasers (25% of the total number of Units contemplated for the condominium), the Board will consist of three (3) individuals chosen by the Developer, none of whom need be a Unit Owner. At the first meeting, the Board will be reconstituted to consist of five (5) Directors, three (3) of whom will be appointed by the Developer and two (2) of whom will be elected by Unit Owners other than the Developer. When Unit Owners other than the Developer own three hundred ninety-three (393) Units (75%) of the total number of Units contemplated for the condominium), the Board will again be reconstituted to consist of seven (7) directors, and Unit Owners other than the Developer shall be entitled to elect the entire Board; except, that the Developer shall be entitled to appoint one (1) member of the Board for so long as Developer owns and holds at least one (l) Unit in the Condominium for sale in the normal course of business. Should the Developer choose not to fully develop the Condominium, the turnover of control provisions shall be based upon the actual number of Units constituting the Condominium. Elected Directors will serve for one, two or three year terms, as set forth in the By-Laws, and the appointed Directors will serve until their successors are appointed or elected.
Other details concerning the turnover of control by the Developer to Unit Owners other than the Developer are set forth in Article IV of the By-Laws of the Association which appear as Exhibit E to the Master Deed.
