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Ask the Experts: Community Association Insights

Answered by CATS Faculty

October 2009

 

This Month's Expert
David Hellmuth

 

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CATS is pleased to send you our monthly newsletter with real questions posed at our Bi-Annual Seminars. We hope that you find this information useful and will share it with others.

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This month's questions are answered by David Hellmuth of Hellmuth & Johnson, PLLC. Click here to learn more about Hellmuth & Johnson, PLLC

 

Question 1
The Association cannot hold a meeting without achieving quorum and no official business can take place without a quorum being present at the meeting.  Since Bylaws generally require that directors be elected by the members, the Board cannot be appointed.  Appointments are generally limited to open board seats made vacant by resignation, or otherwise, during an existing term of office.  The start of a meeting can be delayed until a quorum is present.  If the Association never obtains a quorum, then the Association must re-notice the meeting and hold a new meeting.  Some association's Bylaws allow for lesser quorums at second reconvened meetings. Check your Bylaws for this language.

 

 

Q: What are the options for an annual meeting to be held without a quorum?

Question 2 A: An annual meeting cannot be held without quorum.  If the Association is concerned that it will not be able to achieve quorum, I strongly recommend that the board members actively solicit and collect proxies for owners who are unable to attend.

 

 

Q: If you have only one board position to be filled at the annual meeting, do you have to elect the only 1 person nominated?

 

A: Yes

 

 

Q: Must the Board provide proxies to the owners?

Question 4 A: No.  There is generally no requirement that a board provide proxies to owners.  However, owners generally can use any standard form of proxy to nominate someone else to attend on their behalf. Mail ballots and electronic voting are options in some voting events. Check your Bylaws.

 

Q: We would like to use the Mail Ballot provision in our bylaws. What does the Board have to do to allow that to happen?

Question 5 A: The Board must follow the statutory mail ballot procedures. These procedures include mailed notice, a notice of vote, statutory time for allowing ballots to be returned, etc.  If your Bylaws authorize mail ballots, I strongly recommend that you have an attorney determine the correct mail ballot procedure for your organization.

 

The comments and answers above are general in nature. Specific interpretations should be confirmed with the existing legal counsel.  

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