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DavidA7 (California)
Posts: 179
Posted:
I received our 2011 Board of Director's election material and I see it grants each unit holder 3 votes. We have 3 positions open as each member is elected annually. In reading our Bylaws I think we are only allowed one vote per unit. I queried the management company and they say the cumulative voting section grants these rights.

Who is right?

Our Bylaws

Section 8: Voting Rights: The Association shall have two classes of voting membership according to the following provisions:

Class A: Each owner of a unit other than Declarant shall be a Class A member and shall be entitled to one vote for each unit owned

Class B: Declarant shall be a Class B member. Class B membership entitles the holder to three (3) votes for each unit owned. Class B membership shall be irreversibly converted to Class A membership on the first to occur of the following:

A. The total outstanding voteheld by Class A members equal the total outstanding votes held by the Class B member;

or

B. Two (2) years from the date of the first conveyance of a condominium in the Project

WE ARE AN 7 YEAR OLD PROJECT SO WE ARE CLASS A

My management company responded with the following:

“The part you read was regarding voting owners, which it basically states that only one owner per unit can vote. Please read page 10 of your Bylaws Cumulative Voting.”

PAGE 10 of our Bylaws states the following:

Article VII – Cumulative Voting
An owner shall be entitled to cumulate his or her votes for one or more candidates for the Board of Directors if the candidate’s name or candidates’ names have been placed in nomination prior to the voting and if an owner has given notice at the meeting prior to the voting of his or her intention to cumulate votes. If any one owner has given such notice, all members may cumulate their votes for candidates in nomination. The candidates receiving the highest number of votes up to the number of Directors to be elected shall be deemed elected.

I still think one vote so I query the Management company and they say:

Definition of cumulative voting:

When It is Allowed. Cumulative voting only applies (i) to the election of directors when more than one seat is open and (ii) when provided for by an association's governing documents. Corp. Code §7615(a). Although optional under the Corporations Code, the Davis-Stirling Act makes cumulative voting mandatory if it's called for in an association's governing documents. Civil Code §1363.03(b).

How It Works. If there are 3 directors who serve 1-year terms, then all 3 come up for election each year. Under cumulative voting, members have 3 votes which may be distributed in any manner they choose (as long as no more than 3 votes are cast):

-3 votes for one candidate, or

-2 votes for one candidate and 1 for another, or

-1 vote each for 3 candidates
RichardP13 (California)
Posts: 1,767
Posted:
3 votes for one candidate, or
2 votes for one candidate and 1 for another, or
1 vote each for 3 candidates

That is cumulative voting. You can only do that if more than two positions are open. In our new Bylaws, we eliminated both proxies and cumulative voting. In California, per the Davis Stirling Act Section 1363.03, cumulative voting is only required if so stated in the Bylaws or governing documents.
MaryA1 (Arizona)
Posts: 388
Posted:
Richard,

I think you may have meant to say cumulative voting can only occur if more than ONE position is open. Also D-S states the assn shall allow for cumulative voting if allowed in the bylaws -- it does not say it is required.
RichardP13 (California)
Posts: 1,767
Posted:
Section 1363.03(b)
An association shall allow for cumulative voting using the secret ballot procedures provided in this section, if cumulative voting is provided for in the governing documents.

Our old Bylaws stated "Cumulative voting is required for all elections in which more than two (2) directors are to be elected. Cumulative voting was the way for the builder to stay in control during development.
DavidA7 (California)
Posts: 179
Posted:
so dang confusing; 1 part says one thing and another says another at least to the layman.

So I'm going on that they can cumulate vote. Not good but glad I'm aware of now.
TimB4 (Tennessee)
Posts: 21,059
Posted:
David,

Your management company is correct.
RichardP13 (California)
Posts: 1,767
Posted:
This language was in my previous Bylaws and it was never followed.

"IF an owner has given notice at the meeting prior to the voting of his or her intention to cumulate votes." A management company may put it on the ballot, BUT no owner stood up at the previous meeting and said "I want to cumulate my votes".
TimB4 (Tennessee)
Posts: 21,059
Posted:
Richard,

They might not of had to state it publicly but only inform the Secretary or the election committee of it. The flip side of it is, were people asked to declare if they were going to cumulate the votes?
RichardP13 (California)
Posts: 1,767
Posted:
Tim

In my case, we have no election committee and no inspectors of elections were contacted. In our case, I didn't like cumulative voting and proxies, so I got rid of the two.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Richard,

I agree with you in not liking cumulative voting. Fortunately VA does not allow it. Bottom line for everyone is to check their State laws (corporate and HOA/Condo) to be sure how the law applies to them.
MaryA1 (Arizona)
Posts: 388
Posted:
David,

Yes, it can be confusing. Your mgmt co is correct in saying cumulative voting can take place in your HOA.

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