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CathleenH (Wisconsin)
Posts: 22
Posted:
As the new Secretary, I sent out our Annual Meeting notices yesterday. We're really pushing for transparency rather than secretive information sharing (something the prior board lacked). We're also pushing for a quorum.

The notice/letter states the board is recommending a due increase with supporting documentation on why it's necessary. Well, I received my first proxy today (yay!), and the owner has "Board Members" listed instead of an individual name to be their proxy. Owners can check Elections, Budget, Other HOA Business, All HOA Business, or list specifics on the proxy form. He checked them all. The form also states it will be for quorum purposes.

Is is still a valid proxy? Budget will be the big topic of the evening and I believe the owner is stating he agrees with the Board's approved budget, which includes increasing the dues. However, I worry about assuming something we shouldn't.

Do I leave it as is, valid or not, or ask them (my neighor) to list an individual?

Thank you in advance to anyone who answers. This site has been so helpful!!
MatthewW4 (Arizona)
Posts: 500
Posted:
I know little about HOA proxies as my state does not permit them. (Remind me to hug my legislator.)

But in the corporate world, proxies are often given to the Board or to Management. I would interpret this member's intent to allow the Board, as a whole, to cast his vote for him. I would guess that the member is expressing his full confidence in the current board.
CathleenH (Wisconsin)
Posts: 22
Posted:
It was my thought also that the owner is in agreement with the board's decisions. I just wasn't sure if they had list an individual owners name on the proxy. Thanks for replying!
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Cathleen

If you are talking about a vote that requires owner voting then what the BOD thinks is of little concern. Meaning they are simply owners who will have to vote as an owner. Assigning a proxy to one person is not the same as assigning it to "The BOD".

I say that a proxy made out to "The BOD" should be disqualified. Were I on the losing end of a vote that had proxies assigned to "The BOD" (versus one person), I would see legal grounds to try and overturn the vote.

I love proxies, but they can be easily misunderstood and misused.

CathleenH (Wisconsin)
Posts: 22
Posted:
John,

Is it appropriate to inform them it's filled out incorrectly? We need all the people present and proxies to count. It would stink to have one voided by a simple owner error. It wouldn't be hard to ask, they are my neighbor. I want to do everything correctly and on the up and up. Our ex-President is not taking their removal well and will be looking for this board to make errors.

Thanks,
Cathleen
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By CathleenH on 09/05/2013 12:40 PM
John,

Is it appropriate to inform them it's filled out incorrectly? We need all the people present and proxies to count. It would stink to have one voided by a simple owner error. It wouldn't be hard to ask, they are my neighbor. I want to do everything correctly and on the up and up. Our ex-President is not taking their removal well and will be looking for this board to make errors.

Thanks,
Cathleen

Cathleen

I am not nor do I play a lawyer.

While things can vary, especially in CA & FL, I say yes a new proxy could be done.

A proxy can be overridden by a later dated one. I sign/give one 01/01/13. On 01/02/13 I sign/give another. The one dated 01/02/13 is the latest and valid one. It negates the one given on 01/01/13.

A proxy can be withdrawn by the proxy giver showing up at the meeting, withdrawing their proxy and voting in person.

Most state corporation laws state how long a proxy is valid for. Sometimes it could be valid for only one meeting, one day. Sometimes it is valid for one year. Often a well written (not a tricky one) will have an expiration date.

While on proxies, there are two basic types and they can be intermixed in one.

Directed Proxy. Telling the Proxy Holder how to vote. Such as you will vote yes on a particular subject. You will vote for Cathleen for the BOD.

General Proxy. Allowing the Proxy Holder to vote as they see fit to vote.

A mixed one could say you will vote for Cathleen for the BOD. You may not vote for John to the BOD (the Directed parts). You can vote any other way on all other votes (the General part).

These variations/changes are some of the reasons many do not like proxies. Proxies can keep an election committee on its toes.

While I like proxies, I am the first to admit many are manipulated with the person giving it not understanding what they are given. Is that the fault of the writer or the giver?

Hope this helps

FredS7 (Arizona)
Posts: 927
Posted:
> Is it appropriate to inform them it's filled out incorrectly?

My understanding is that a new proxy would replace the previous one.

Seems to me the proxy form needs to be revised.
TimB4 (Tennessee)
Posts: 21,062
Posted:
Cathleen,

To be honest, the easiest thing would be for the neighbor to fill out new paperwork. However, that doesn't really address the issue if someone else does it.

Often proxies will always be assigned to the Board. Therefore, the Board should address this issue in a Board meeting by deciding how general proxies will be cast (preferably prior to even sending out a proxy form). Note: the need for this can be minimized but not eliminated by using directed proxies vs. a general proxy.

Proxies are typically address in a State's corporate laws. Expecting that your Association is incorporated as a non-profit (most are, but check to be sure) the applicable law would be
WI Chapter 181 - Nonstock Corporations.

Section 181.0724 and section 181.0727 addresses proxies. Per those sections:

The corporation is entitled to reject a vote, consent, waiver, or proxy appointment if the secretary or other officer or agent authorized to tabulate votes, acting in good faith, has reasonable basis for doubt about the validity of the signature on it or about the signatory's authority to sign for the member.

Therefore, per WI law, I don't see how the Association could reject the proxy simply because it named the Board as the proxy holder vs. naming an individual. Technically, since an incorporated Association is seen as a legal entity, and the decisions are made by the Board, the member simply gave his proxy to the Association.

My suggestion, call a special meeting of the Board to determine (by majority vote) how those proxies will be cast. When it comes to elections, our Board will simply vote to cast them for the first 5 (as there are 5 seats) named candidates.

Hope this helps,

Tim

Note: I am not an attorney and I do not work in the legal profession. I do have a lot of experience dealing with proxies as that was one of the issues within my Association in the past.

CathleenH (Wisconsin)
Posts: 22
Posted:
I talked to my neighbor today and they are going to fill out a new proxy.

Thanks everyone!

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