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NC Nonprofit Corporation Act and Community Associations

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Board Resources / North Carolina HOA Laws / Nonprofit Corporation Act

Updated for 2026

This page is part of AMG’s Guide to North Carolina HOA laws. Most North Carolina community associations are organized as nonprofit corporations, and for those associations Chapter 55A usually applies alongside the Planned Community Act or the applicable condominium statute.

Important Information

Association Management Group (AMG) prepared this guide for general informational purposes. AMG is a community association management firm, not a law firm, and this guide does not constitute legal advice. Statutes, and the court decisions interpreting them, change over time. Legal questions, and the final interpretation of any statute or of the governing documents, should be confirmed with qualified legal counsel.

In this guide, the term governing documents refers collectively to the association’s plat, articles of incorporation, bylaws, declaration, rules and regulations, and all policies adopted by the board or the membership.

How this statute fits

Chapter 55A, the North Carolina Nonprofit Corporation Act, is a general corporate statute that governs many kinds of North Carolina nonprofit corporations, including incorporated community associations. It operates in addition to Chapters 47F, 47C, and 47A and tends to answer mechanical questions of corporate procedure that those chapters leave open.

This page addresses only the provisions that community associations are most likely to use and does not survey the entire chapter. Where a community-specific statute and Chapter 55A both address the same point, the community-specific statute typically controls, and the resolution of any such conflict is a legal question.

Where Chapter 55A applies, the more practical inquiry for a board is whether a particular issue is governed by the community statute (the Planned Community Act, the Condominium Act, or the Unit Ownership Act), by the corporate statute, or by the association’s governing documents. For planned communities created before January 1, 1999, that have not elected coverage under the full Planned Community Act, and for condominiums created on or before October 1, 1986, the quorum and voting-and-proxy provisions of the community statute do not apply; for those associations, if incorporated, Chapter 55A (for example, §§ 55A-7-22 and 55A-7-24) and the governing documents supply those rules.

What Chapter 55A tends to cover for associations

The table below lists the Chapter 55A provisions that incorporated HOAs and condominium associations most often consult. These provisions frequently apply, although not in every case and not in the same way in every community. Unincorporated associations, unusual governing documents, and conflicts with a community statute can change the result.

Chapter 55A at a glance for community associations

TopicSectionMost useful when
Member action without a meeting§ 55A-7-04Action between meetings by written consent is being considered
Action by written ballot or electronic voting§ 55A-7-08A vote would be conducted by ballot rather than in a room
Remote participation in meetings§ 55A-7-09The community wants to hold or permit virtual or hybrid meetings
Member proxies§ 55A-7-24An owner wants someone else to vote
Election and appointment of directors§ 55A-8-04An election is approaching, or a seat needs to be filled
Removal of directors by members§ 55A-8-08Members are asking how a director can be removed
Board action without a meeting§ 55A-8-21The board needs to act between meetings by written consent
General standards for directors§ 55A-8-30A director wants the statutory description of the duty of care
Director conflicts of interest§ 55A-8-31A decision involves a transaction in which a director has a personal interest
Corporate records§ 55A-16-01The board is confirming what records the corporation must keep
Inspection of records by members§ 55A-16-02An owner has requested documents
Annual report§ 55A-16-22.1The first annual report, due November 15, 2027, is approaching, or corporate standing is in question

Download a printable version of this reference for the board packet.

Remote meetings and electronic voting

Boards considering virtual meetings or ballot votes often find the first relevant statutory language in Chapter 55A rather than in the community statute. Whether a particular community may use those tools still depends on the governing documents and the community statute read together. Governing documents drafted before electronic voting became common may be silent on the subject or may use language that no longer reflects how the board conducts its business. Further discussion appears in North Carolina HOA meeting rules and North Carolina HOA voting and election rules.

Any new meeting or voting method is best adopted well in advance of the annual meeting. AMG can assist the board in organizing the annual meeting and in preparing election materials, such as ballots and proxy forms, for the board’s approval. Applying the adopted procedure consistently from year to year helps avoid disputes over procedural differences.

Director removal and records requests

Members generally have some ability to remove directors they elected. Because the required vote, the authority to call the meeting, and the necessary notice are all specific, the board benefits from reviewing that process before any removal effort arises.

Records requests are addressed in both Chapter 55A and the community statute. Which source governs a particular request, what may be withheld, and how quickly a response is due are legal questions. AMG can receive records requests from owners and forward them to the board, and can provide documents to owners where the board has given written instructions to do so.

How AMG supports the board

An early administrative priority is confirming that the association is incorporated and in good standing with the Secretary of State, and obtaining counsel’s view of which corporate provisions reach the board. Many boards find it useful to record that information, together with the applicable community statute, in a one-page legal-structure summary prepared with counsel and kept with the association’s records. Under S.L. 2026-52, which enacts new § 55A-16-22.1 effective January 1, 2027, North Carolina nonprofit corporations generally must file an annual report with the Secretary of State by November 15 of each year, beginning November 15, 2027. For the associations it manages, AMG can help the board gather the corporate information the report requires and can help the association arrange for an attorney or other party to serve as its registered agent. Responsibility for the filing remains with the association.

Actions taken by written consent, by ballot, or by email should follow the procedures that Chapter 55A and the governing documents establish. An exchange of emails among directors is not automatically treated as a meeting or as a valid written consent.

When to involve legal counsel

Matters that commonly warrant the involvement of the association’s attorney include, but are not limited to, electronic voting or remote meetings, director removal, conflicts of interest, records requests, filling a board vacancy, and any point at which Chapter 55A and the community statute appear to conflict. Whether and when to involve counsel is the board’s decision. At the board’s direction, AMG can help coordinate communications with the association’s attorney and assist in gathering the information counsel requests.

Frequently Asked Questions

Does the Nonprofit Corporation Act apply to an HOA?

If the association is incorporated as a North Carolina nonprofit corporation, Chapter 55A generally applies alongside the applicable community statute.

Can a board act by email?

Chapter 55A and the governing documents of many associations address certain corporate actions taken between meetings, and what is valid for a particular board depends on those sources read together. An email exchange should not be presumed to constitute a board meeting or a valid written consent.

Who may inspect association records?

Both the community statutes and Chapter 55A address the inspection of records, and the conditions and exceptions they establish are specific. AMG can receive these requests and forward them to the board, which decides how each is handled.

Related Resources

  • Guide to North Carolina HOA laws
  • NC Planned Community Act
  • NC Condominium Act
  • NC Unit Ownership Act
  • North Carolina HOA voting and election rules

Have questions about your own community?

Boards of AMG-managed communities are encouraged to begin with their community manager, who can help the board locate the relevant governing documents and other available information and, at the board’s direction, liaise with the association’s attorney when a legal question arises. Associations that are not currently AMG clients may contact AMG’s client services team for information about AMG’s management services or for referrals to qualified professionals.

AMG provides administrative management services to associations and is not a law firm. AMG acts on behalf of the associations it manages rather than individual owners, and an owner involved in a dispute with an association may wish to consult independent counsel.

About AMG

This guide was prepared by Association Management Group (AMG) community managers, including managers who hold the PCAM®, AMS®, and CMCA® credentials. AMG is an AAMC®-accredited firm serving more than 30,000 property owners across the Carolinas. The information is intended to assist community association members and leaders in understanding the statutory framework in which their associations operate.

Learn more at www.amgworld.com. Additional governance discussion appears in the Lessons from the Neighborhood series at www.LessonsFromTheNeighborhood.com.

On This Page
How this statute fitsWhat Chapter 55A tends to cover for associationsHow AMG supports the boardWhen to involve legal counselFrequently Asked QuestionsRelated ResourcesHave questions about your own community?About AMG
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