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SusanW1 (Michigan)
Posts: 5,202
Posted:
I got a call yesterday from a member of our HOA. He says an "older" group of homeowners want to replace key people at this year's elections. (probably all board members except the Treasurer)

We elect 4 officers first, then 5 general board members. (I know it's crazy, but it's been that way since 1948) A slate of willing persons has been announced and given to the members in a letter, plus, they will take nominations from the floor. Proxies are allowed. The board did not create a proxy form, only saying that all renter proxies must be signed by the homeowner.

This group has developed what they call an "proxy ballot" in which they have written names of people down who they want for specific positions i.e. Joe Blow, President. Proxies will be carried to the meeting this Sunday by one of the persons in this group.

He called me for advice. I told him I thought the proxy ballot was too specific and that if that particular person did not get elected for that position, the proxy could not be used to cast another vote to put that person in another officer position or even for a general board member.

I suggested that the proxy be just a "general" proxy form that would allow the designee to cast votes any way he/she wanted for what will really be 9 elections for 9 positions.

What say you all?
KellyM3 (North Carolina)
Posts: 2,239
Posted:
If your proxy presenters want specific people in specific positions, I don't see an issue with the proxy suggesting such. But, I think you're correct in saying such a strategy is all or nothing. Proxies are mini contracts that, in my opinion, must be followed as written and signed.

These disgruntled coup leaders do realize that, when elected, their complaint department becomes their individual bathroom mirrors? That can be most disappointing when unhappy residents take control and then realize they have to work for free.

Here's hoping the changes to your board are for the positive.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Susan,

What was presented to you was a directed proxy. My Association has been using these with great success.
I've attached a copy that you might want to use as a guide.

A Directed proxy can be as long as necessary.

Tim

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JohnC46 (South Carolina)
Posts: 14,265
Posted:
Susan

Rarely will enough actual homeowners show up for an election so in most (if not all of the ones I know of) proxies were the deciding factor.

To me:

1. It appears your faction has a slate of people they want elected. Members of your faction intend to show up and vote but you have not covered your bases If enough do not show to have a quorum.

2. The other faction seems to be working on a proxy for their slate and more then likely will win based on their work to collect proxies for their slate.

Now, what you can do?

I believe your factor can easily draw up a legal proxie and use it or obtain one from the BOD (or even a copy of theirs) and modify it (list your slate of people) for your use.

One can change their mind and submit an updated proxy which will cancel out their earlier proxy. Meaning they signed the other factions proxy but now they want to sign your proxy. This could get tricky in having a count the night of the meeting, but it can be done.

One can attend the meeting, pull their proxy, and vote in person.

Those nominated from the floor usually do not stand much of a chance especially if proxies play a role.

I believe a general proxy (no candidate names, no ballot issues, etc, on it) can be given to a person (like me to you) and you are free to vote whatever way you desire to vote my proxy. I also believe one can hold multi proxies (like several of us to you) and vote them.

Hope this helps.
LawrenceC1 (Georgia)
Posts: 480
Posted:
Quote:
Posted By TimB4 on 05/05/2012 6:11 AM
I've attached a copy that you might want to use as a guide...


Tim's example is a good template for a directed proxy.

There are two provisions I recommend adding to any proxy:

1. "This Proxy may be used to establish a quorum."

This will make sure that homeowners voting by proxy are counted when establishing a quorum, which is often a problem.

2. "This proxy is revocable at any time before it is exercised, and the undersigned reserves the right to attend the meeting and vote in person."

When asking for proxies, it is good to be able to say that the proxy is provisional, used only in case the homeowner can't attend the meeting. This is also something that may be mandated in your governing documents or state laws.

CarolR11 (Colorado)
Posts: 2,563
Posted:
Susan, will you let us know the outcome? Thanks.
JayP3 (Florida)
Posts: 154
Posted:
Very unusal to dictate a person into a specific office isn't it?

Every BoD I have been involved has the right to self-organize and decide amongst themselves.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By JayP3 on 05/06/2012 10:47 AM
Very unusal to dictate a person into a specific office isn't it?

Every BoD I have been involved has the right to self-organize and decide amongst themselves.


Jay

That is my experience also. Homeowners elect the Members of the BOD and then the Members of the BOD elect the BOD Officers from amoung themselves.
CarolR11 (Colorado)
Posts: 2,563
Posted:
The OP, the very-knowledgeable Susan, says in her 3rd sentence, "I know it's crazy," so she's aware of how unusual her HOA's procedure is, John & Jay.

SusanW1 (Michigan)
Posts: 5,202
Posted:
Just got back from the meeting. Lots of yelling and confusion.

Lasted 12 noon to 5 p.m. - with 2 hours arguing about whether or not to accept the 13 ballots turned in before the meeting with the heading on them, Absentee Ballot. The board claimed they were not the same as a proxy. There were 15 forms with the heading, Proxy, and they were accepted. The board provided no ballot form or proxy form for the residents to use.

These votes did make a difference in the outcome. It was a complete coup - every member of the board, except the Treasurer, got booted.

The board - under pressure from the 65 people there - decided to accept the signed forms, even with the heading Absentee Ballot. People felt that the spirit of the form was the same as a designated proxy.

Our bylaws were written in 1948. We will set up a bylaw committee and try to change the entire election procedure, voting in 9 people and letting them decide who the officers would be., and firm up the proxy issue.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Susan

Congratulations!

Are they in order.........LOL

Take a break, have a drink, then the work begins.

One suggestion. The Bylaws might be so old (1948) that rather then update/modify them, you consider starting with a whole new, boiler plate set (maybe even borrow a set from a local, same size, same type operation) and start reviewing/modifying them rather then try and review/modify your existing ones.

Hope this helps.

CarolR11 (Colorado)
Posts: 2,563
Posted:
Thanks for the update, Susan. What an exciting meeting, which vividly demonstrates how homeowners truly can make a huge difference if they're not satisfied with their Boards!

65 showed up; how many units are in your HOA? That would have been a supersize turnout in ours of 200+! (Written ballots in CA. count towards a quorum of Members though, without the HO needing to be physically present.)

So, your current Bylaws don't require staggered terms for directors?

Sorry I didn't grasp this: are there 5 persons involved, or nine on your Board?
SusanW1 (Michigan)
Posts: 5,202
Posted:
Board is elected annually.

4 officers elected individually; 5 more directors elected in order of number of votes.

We have 250 homes.

SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Quote:

These votes did make a difference in the outcome. It was a complete coup - every member of the board, except the Treasurer, got booted.


I wouldn't really call it a coup, I would simply call it normal voting. Many homeowners were unhappy, and wanted the current officers gone and voted for new people. If the rest of the homeowners disagreed, they would have shown up to vote. But they didn't.

This is how voting works. Not a coup.
KellyM3 (North Carolina)
Posts: 2,239
Posted:
The use of the term "coup" is interesting in that many HOA dues payers view their board of directors as mysterious at best and malicious at worst. It's difficult to change that perception because the closer one gets to his/her HOA board, the greater the risk they may be asked to volunteer for the community.

I do call the events of the 5-hour meeting as regular voting, regular election and normal course of operations. The new board can be applauded for simplifying its by-laws to allow an easy to understand election w/ the directors determining talent and commitment level from among those elected.

Good Luck!
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Susan

It appears your docs do not call for a Quorum (even as low as 51%) for an election to. Is this true?

What % of homeoweners actually voted, no matter the ballot type?

Thanks

SusanW1 (Michigan)
Posts: 5,202
Posted:
No quorum is required to conduct business at the annual meeting - including elections.

There were 65 live body votes, and the 15 and 13 proxy votes brought in.

People were disatisfied with the board, and they were replaced. End of story.

The board failed by 1) not getting notification to members by April 1
2) failure to create a proxy form for members to use
3) even considering not to accept written and signed ballots and proxy forms at the election.

One of the past board members says he's going to sue the board. Not sure what his beef it.

I'll let you know . . .
LawrenceC1 (Georgia)
Posts: 480
Posted:
Quote:
Posted By SusanW1 on 05/08/2012 5:06 AM
No quorum is required to conduct business at the annual meeting - including elections.

Susan,

It is very surprising that there isn't a quorum requirement that applies to your HOA -- either in your bylaws or the Michigan statutes. As I understand your situation, 2 homeowners could get together, call a meeting, and make policy.

Even if your governing documents are old, the concept of a quorum requirement to conduct business is even older and well established. This goes beyond just poorly drafted documents -- this is a dereliction of duty by the lawyers that established your association.
SusanW1 (Michigan)
Posts: 5,202
Posted:
Quorums at the annual meeting are only required to change the bylaws. Our bylaws state the amount of the dues in them, so that can't be changed unless there is a quourm.

BTW - our quorum requirement is only 10%!! (of the 250)

But - all motions to be considered must be noticed to the homeowners, so most don't come because they are not interested in the committee reports or who's on the board. So this allows us to get some business done.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Susan

Personally I would not feel very comfortable when a Quorum is only 10%. That puts control in very few hands. 25 out of 250. Not thanks.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Susan,

I don't know if this is legal in Michigan, but in Arizona it is illegal to vote by proxy in an HOA. This probably because the law requires that the association permit members to vote by absentee ballot or in person. If you allow mail-in ballots as well as in-person ballots, there is no need for proxies and all the confusion that goes along with them.
TimB4 (Tennessee)
Posts: 21,059
Posted:
John,

Thankfully our requirement is only 10% as well (but we must have it for all meetings with a higher percentage to change the governing documents).

We average about 15% for the meetings (and that is with proxies). As with Susan's Association, this does allow us to actually get business accomplished.

I do understand your concern on low quorums. However, it's not the low quorums that places control in only a few members. This is caused by membership apathy.

Quorums don't prevent people from attending. Quorums only establish the minimum attendance required. Boards can only inform the membership of the meetings and provide options (proxies, vote by mail, etc.) if the member can not attend. They can not force the member to attend.

Personally, I'd like to see 100% participation. I'd be happy with 50%. I'm glad when we get 10% because this allows most business to be accomplished.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Tim

I think we do agree that putting control in the hands of few can be dangerous. I think we also agree one has to be able to properly run/operate their association even when there is apathy/lack of participation.

I believe it is possible (maybe not easy) to properly run/operate an association within/or make Rules and Regulations which rarely require a quorum to do so and/or CC&R's that do not require a quorum.

I also believe one should make it easy/simple for non-attendees to vote. Be it proxy and/or absentee ballots or whatever one cares to call it. Allow those with a "case" to present it and let the people vote on it even if the voters/owners cannot attend a meeting.

I say the answer is not 10% nor either is it 90% but I think in matters of importance...the majority should/must rule.

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