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JeanB9 (South Carolina)
Posts: 26
Posted:
If your by-laws and or master deed do not include anything about write in candidates either way, and the SC state law doesn't address, does the HOA Board have the authority to not allow?
My understanding is that any changes to voting must be voted on by the owners as an amendment to the by-laws.
BruceF1 (Connecticut)
Posts: 2,535
Posted:
Quote:
Posted By JeanB9 on 04/04/2013 1:29 PM
If your by-laws and or master deed do not include anything about write in candidates either way, and the SC state law doesn't address, does the HOA Board have the authority to not allow?
My understanding is that any changes to voting must be voted on by the owners as an amendment to the by-laws.

Laws and HOA governing documents typically do not cover provisions that are usually considered to be covered by common parliamentary procedure. If a case were brought to court to be ruled on by a judge I would expect he would base his decision, in order of precedence, on the law, your governing documents, and accepted parliamentary procedure. Although, sometimes judges have been known to rule in defiance of logic.

If state law and/or your governing documents do not specifically prohibit write-in candidates, then, observing accepted parliamentary procedure, they are allowed.

Deliberative organizations (like HOAs) should follow, at least to some extent, accepted parliamentary procedure, and I think most do in some fashion. Unfortunately, there are some who prefer to make up their own rules and procedures (usually to suit themselves) even though the rules don't exist in writing anywhere. The danger in that is that the rules can change depending who is in authority. I kind of think of it as kids playing a game where they make up the rules, which can change depending on who is playing.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Jean

One of the methods BOD's use to control who gets on the BOD will center around proxies, absentee ballots, secret ballots, write-in candidates, nominating committees, nominations from the floor, etc.

Quite often it is those that know more or convince others they know more that control things. The answer is become the one that knows your Covenants/Bylaws better then anyone else. I say yours as they can vary quite a bit. Do not look to SC as SC is set up with no control over HOA's or for that matter, little control over most any SC corporation.

Our present Bylaws say all candidates must be approved by a Nominating Committee and how the committee is appointed. Nominations from the floor of the election meeting are also allowed. Personally I do not believe in nor like Nominating Committees but there has to be some control or else. Several examples:

An invitee of a member who was considering buying a home in the HOA, got so enthused that he nominated himself from the floor. That threw the Election Committee into a rush to find out if he was eligible. When asked his address to verify he was eligible, the truth came out.

A fellow mounts a write-in campaign and later was found out he was not eligible to run. He was the live in friend of the owner. Many wanted the election voided. The BOD said you wrote his name in, not us.

I have seen Mickey Mouse receive write-in votes. I once wrote Donald Duck in..LOL

Would I allow write-ins? Yes I would, but come ballot counting time the association had better be ready to rule on eligibility no matter how the name comes up, especially on write-ins and/or those nominated from the floor.

Believe it or not, it is not that difficult to accomplish most anything one wants if one knows what they are doing.

Hope this helps.

JeanB9 (South Carolina)
Posts: 26
Posted:
Thanks Bruce and John. It is wise to know your documents.

Another question are faxed copies of proxies valid?
Are they valid if faxed to the proxy holder?
Our HOA Presidents says he will only allow the proxy that was sent in the mail.

Under SC title 33 Corporations, Partnerships and Associations
SECTION 33-7-220. Proxies.

(a) A shareholder may vote his shares in person or by proxy.

(b) A shareholder or his agent or attorney in fact may appoint a proxy to vote or otherwise act for him, including giving waivers and consents, by signing an appointment form or by an electronic transmission of appointment. The electronic transmission must contain or be accompanied by sufficient information to determine that the transmission appointing the proxy is authorized. A proxy must have an effective date. If not dated by the person giving the proxy, the effective date of the proxy is the date on which it is received by the person appointed to serve as proxy, and that date must be noted by the appointee on the appointment form.

(c) An appointment of a proxy is effective when the appointment form or electronic transmission is received by the secretary or other officer or agent authorized to tabulate votes. Unless a time of expiration is otherwise specified, an appointment is valid for eleven months.

But for non profit says:
SECTION 33-31-724. Proxies.

(a) Unless the articles or bylaws prohibit or limit proxy voting, a member may appoint a proxy to vote or otherwise act for the member by signing an appointment form either personally or by an attorney-in-fact.

(b) An appointment of a proxy is effective when received by the secretary or other officer or agent authorized to tabulate votes. An appointment is valid for eleven months unless a different period is expressly provided in the appointment form. However, no proxy is valid for more than three years from its date of execution.

(c) An appointment of a proxy is revocable by the member.

(d) The death or incapacity of the member appointing a proxy does not affect the right of the corporation to accept the proxy's authority unless notice of the death or incapacity is received by the secretary or other officer or agent authorized to tabulate votes before the proxy exercises authority under the appointment.

(e) Appointment of a proxy is revoked by the person appointing the proxy:
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Jean

1. Do your docs allow for proxies? SC does, but do your docs is the question. This one of those places where SC says proxies are allowed unless your Bylaws say otherwise and your Bylaws could say proxies are not allowed.

2. If your docs allow for proxies is there any wording on the transmission of such? If allowed and no wording on the transmission then by SC Law, electronic transmission is allowed and your BOD is wrong.

Hope this helps.

JeanB9 (South Carolina)
Posts: 26
Posted:
John,
Thank you! Yes our By-Laws allow for "written proxy". Doesn't address how they are received. I did check SC Title 33 chapter 31 which doesn't say anything about a faxed proxy.
Is this where you were checking?
JeanB9 (South Carolina)
Posts: 26
Posted:
John,
In other words where can I find the SC law?
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Jean

I am not nor do I play a lawyer.

Title 33 is the SC Articles of Incorporation. It has 56 Chapters as part of it. Chapter 31 is for Non-Profit Corporations.

As I understand it, if Title 33 says something is allowed such as electronic transmission of proxies then a specific chapter would have to say electronic transmission is not allowed.

Each chapter does not contain everything Title 33 says. The chapter just clarifies specific rules/laws/whatevers applicable to that type business.

What I would do is show the BOD where Title 33 says electronic transmission is allowed then zip lip.

If challenged about a Non-profit being different then say show me where Title 33, Chapter 31 says no electronic transmission.

As I have said before. Your Bylaws could override this.

Chapter 15 is for Foreign Corporations...hardly our concern...or is it.....LOL

Hope this helps.

JeanB9 (South Carolina)
Posts: 26
Posted:
John,
Thanks again. I know you are not offering legal advice I just wanted to see if you new some other laws in SC that I didn't.
Wish us luck!
EricH8 (Virginia)
Posts: 116
Posted:
Robert's Rules of Order 11TH Edition, Page 401, Line 19:
As a compromise between the rights of the individual and the rights of the assembly, the principle that a two-thirds vote is required to adopt any motion that...
(d) closes nominations or the polls, or otherwise limits the freedom of nomination or voting
BruceF1 (Connecticut)
Posts: 2,535
Posted:
Quote:
Posted By EricH8 on 04/05/2013 3:23 PM
Robert's Rules of Order 11TH Edition, Page 401, Line 19:
As a compromise between the rights of the individual and the rights of the assembly, the principle that a two-thirds vote is required to adopt any motion that...
(d) closes nominations or the polls, or otherwise limits the freedom of nomination or voting

As I have said repeatedly, don't expect some boards to understand the basics of parliamentary procedure, let alone Roberts Rules. They make things up, usually to suit themselves, as they go along.
EricH8 (Virginia)
Posts: 116
Posted:
I agree wholeheartedly, BruceF1, and JohnC46 too.
JeanB9 (South Carolina)
Posts: 26
Posted:
At our meeting this past Sat. we were told that it is a closed meeting and that there are no write-ins as the pres had his attorney look at the by-laws (most likely a lie.) The by-laws state noting but basic information about voting. When I asked about the by-laws stating that the pres is an ex-offico for all committees and that he should not be the election chair he said he did not interpret it that way, yet an attorney (owner) in our association told me that the pres should not be the chair of any committee based on the by-law wording.
Others also said that it wasn't right based on Robert's Rules to not allow write-ins nor nominations from the floor, he again stated we don't follow Robert's rules we follow our by-laws, we even brought up SC law but he would not bend or listen it was his way only!

Thoughts and or suggestions?

JeanB9 (South Carolina)
Posts: 26
Posted:
Also,
I feel like my rights were usurped. along with all of the other owners.
MoM1 (Massachusetts)
Posts: 56
Posted:
Gather together like minded owners and do what it says in your by laws to remove this guy from office and your board.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Honestly, if the Board refuses to listen and/or verify that the procedures used were not in compliance with the governing documents and/or Federal/State laws, the only other options are:

1) Live with it (understanding the frustration factor may not allow this).

2) Recall the individual/entire Board

3) Not reelect the individual/entire Board (in this case, under the rules the Board is using)

4) Gather support and amend the governing documents.

5) Sell and move (not always a viable option, but an option none the less)

6) If available, make a complaint to the States ombudsman office (not available in all States and depending on State laws may have little or zero authority on the issue).

7) Talk to an attorney for options the courts can provide (sometimes a simple letter from an attorney can produce results without the need for litigation)

As you know the governing documents are considered a civil contract. Civil contracts only work when both sides agree and comply with the contract. If one side does not comply, either a new agreement needs to be worked out or a third party (mediator or courts) who has the authority needs to be involved to determine which side is or isn't in compliance.

I know that this isn't what you wanted to hear. However those honestly are your options. We can offer suggestions on how to gather support for your cause but for legal options you need to consult an attorney.
EricH8 (Virginia)
Posts: 116
Posted:
Quote:
Posted By JeanB9 on 04/08/2013 8:29 AM
At our meeting this past Sat. we were told that it is a closed meeting and that there are no write-ins as the pres had his attorney look at the by-laws (most likely a lie.)

Once the president has used "our attorney said we can do this", he has waved the attorney client privilege and so no longer has a justification not to reveal the full details that are the basis of the attorney's conclusion. Otherwise the president could always get his way simply by saying the attorney told him he could do this. There would no way for the homeowners to scrutinize the attorney's conclusion or even verify the attorney was consulted at all. This other thread has more about attorney client privilege: http://www.hoatalk.com/Search/ForumSearch/tabid/87/forumid/1/postid/39140/view/topic/Default.aspx
I realize that once again I have provided a fine point of law to present to an unreasonable HOA board, while MoM1 and TimB4 have provided realistic workarounds to your HOA board problem.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By EricH8 on 04/08/2013 9:51 AM

Once the president has used "our attorney said we can do this", he has waved the attorney client privilege and so no longer has a justification not to reveal the full details that are the basis of the attorney's conclusion.

Thanks for the information. I'll keep this in mind if we ever run into a similar situation.

Regardless of having waived the privilege or not, I would expect that, in this case especially, the OP would likely require a court ruling to force disclosure.

JeanB9 (South Carolina)
Posts: 26
Posted:
Thanks All for your thoughts and time in answering my issue.
As for order of how laws are applied does the state law trump the HOA by-laws?
In other words if my bylaws are vague one would then look to state law.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By JeanB9 on 04/08/2013 10:39 AM

In other words if my bylaws are vague one would then look to state law.

In general, yes.

However, be sure to fully read the law as most corporate laws defer to the Bylaws or Articles of incorporation. Therefore, if the corporate statute defers to the governing documents and the governing documents are silent, this could be interpreted as you can't do something OR that it can be done because it wasn't prohibited.

In VA, courts are starting to take the opinion that if there is no applicable law and the governing documents are silent that it is an intent to exclude and, if challenged, would likely see the silence as prohibiting something from happening (because it didn't specifically authorize it).
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By JeanB9 on 04/08/2013 10:39 AM
Thanks All for your thoughts and time in answering my issue.
As for order of how laws are applied does the state law trump the HOA by-laws?
In other words if my bylaws are vague one would then look to state law.

Jean

The heirarchy is:

Laws.
HOA Documents.
HOA Rules and Regulation.

My "basic search" says SC Laws do not mention write-in candidates at all.

If something is not specifically referenced/mentioned/controlled then it might well have been left out on purpose.

From your posts it seems they pay little attention to your concerns and are doing it their way. Even if your BOD is not following the letter of the law and you are right, a legal battle with them will be costly and lengthly.

If as you say, "many" other owners were also upset then build on this and recall/replace the BOD.

CarolR11 (Colorado)
Posts: 2,563
Posted:
Jean, where are you in the election rocess? Will there be annual meeting of the members to vote on directors? When is it scheduled?
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Jean

Carol asks an interesting question about timing thus making me think:

1. When is the election?

2. Are they using proxies for quorum and voting?

A later dated proxy can override an earlier one. I sign one on 12/01 but another on 12/02, the 12/02 overrides the one of 12/01. The election committee would have to verify but that is part of their duties.

There is a proxy called an Irrevocable Proxy. This is a proxy that cannot be overridden by a later one. If an Irrevocable Proxy is signed on say 12/01 and valid for say 90 days, one signed on 12/02 (regardless of its wording) is invalid. You cannot revoke the irrevocable....I think....LOL

If you have time before the election and people on your side, you might make a run at collecting Irrevocable Proxies to elect some new candidates. Beat the BOD at the proxy game.

Hope this helps.

JeanB9 (South Carolina)
Posts: 26
Posted:
Carol, the annual meeting was this past Saturday. As the pres stated, there is no election as there are only 4 people running for 4 spots on the BOD and it was just a consensus vote. He also stated it was a closed meeting, write-ins were not accepted, motion to nominate from the floor was rejected, he said he had an attorney look over our by-laws and that the attorney concluded write-ins were not allowed. When I questioned that the Pres was the election chair and according to our by-laws an ex-offico of all committees so he shouldn't be the election chair he said that traditionally either the Pres or VP was the election chair that's how it has been. So why then if this is how its always been writes-in were allowed until 2010 (but wasn't an issue as more people ran than spots available) but not now?

I feel like I am in a bad nightmare!
JeanB9 (South Carolina)
Posts: 26
Posted:
John,
Are they using proxies for quorum and voting? Our proxy is used for the quorum and voting. We did have some people recall their proxies before the meeting. If we were smarter we should have held out the proxies we had in hand then there wouldn't have been a quorum. Hindsight!
BruceF1 (Connecticut)
Posts: 2,535
Posted:
Quote:
Posted By JeanB9 on 04/09/2013 6:57 AM
I feel like I am in a bad nightmare!

You are.

It doesn't appear to me your board is following accepted parliamentary procedure. Generally speaking, lawyers don't know diddly about parliamentary procedure (ask any parliamentarian), but they get listened to anyway because, well, because they're lawyers. Some people can't separate the two professions.

By the way, I once asked a lawyer a question on parliamentary procedure. His response: "Don't ask me, I'm a lawyer. Ask a parliamentarian."
JeanB9 (South Carolina)
Posts: 26
Posted:
Bruce,
At another previous annual meeting the VP said we followed Roberts' Rules of order but when questioned at this one the Pres (who was Pres then too) said we don't.

I'm in a Bi-polar nightmare!!!
BruceF1 (Connecticut)
Posts: 2,535
Posted:
Quote:
Posted By JeanB9 on 04/09/2013 7:07 AM
Bruce,
At another previous annual meeting the VP said we followed Roberts' Rules of order but when questioned at this one the Pres (who was Pres then too) said we don't.

I'm in a Bi-polar nightmare!!!

As I have said before, they follow their own rules which they make up to suit themselves as they go along.

That's what children do.

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