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Proxies

Started by AG3 • 17 replies • 1441 views

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AG3 (Florida)
Posts: 8
Posted:
One of our HOA board members admittingly withheld about 100 proxies which would have enabled a quorum at our annual meeting. He also claimed a "family emergency" so he said he could not attend the meeting. He has been on the board for more than 6 years.
The Board did not act on his egregious disregard of his responsibility and at the next regular meeting actually voted him in as treasurer. This is Florida. By laws and CC&Rs are pretty much written for the developer. Much, much more goes on with this board and, of course, only a handful of residents care! We have over 2000 homes here so this is no small matter!
BrianB (California)
Posts: 2,820
Posted:
Thank you for sharing that story.

TimB4 (Tennessee)
Posts: 21,059
Posted:
AG3,

Do you have a question that would go with that story or are you just sharing the story?
AG3 (Florida)
Posts: 8
Posted:
I did share the story but also hoped to get some input on whether or not there are any options or legal recourse available in florida (other than hiring an attorney who probably wouldn't see any great financial benefit for anyone!
AllisonD (Florida)
Posts: 449
Posted:
If you were not able to have your annual meeting then, did you re-notice the meeting and get new proxies and have your annual meeting at all?
AG3 (Florida)
Posts: 8
Posted:
No. The board decided that it would cost too much!
AG3 (Florida)
Posts: 8
Posted:
No. The board decided that it would cost too much!
AG3 (Florida)
Posts: 8
Posted:
No. The board decided that it would cost too much!
AllisonD (Florida)
Posts: 449
Posted:
So there was no election? How many people were running for the board and for how many seats? Can you please elaborate? How did you get from not having the meeting to him being treasurer?
TimB4 (Tennessee)
Posts: 21,059
Posted:
AG,

The only options I see, outside of hiring an attorney, are:

1) Live with it.
2) Inform the membership of the issue and have the members appoint you as their proxy for the next election.
3) Inform the membership of the issue and start the process to recall the Board and hold new elections.

Not great options. However, those are the one's I see. Perhaps others will know of other options.
FrankS10 (Kansas)
Posts: 276
Posted:
Allison asks a great question. Does FL require meetings to be open? If so, there had to be another meeting???
AG3 (Florida)
Posts: 8
Posted:
No election. There are five board members all of whom have been seated for more than 6 years. One was elected two years ago at the only annual meeting which had a quorum. So at the first regular monthly board meeting after this year's annual meeting the directors shuffled their positions around with only the president maintaining his seat. Three members ran opposing the five incumbents but since there was no election the sealed ballots were apparently unopened (discarded)!
I can't come up with a single association (non profit) nor HOA Florida statute nor any association bylaw for this association which addresses this deplorable situation!
AllisonD (Florida)
Posts: 449
Posted:
All meeting in Florida must be open except for those regarding personnel and legal issues. The annual meeting must occur and be noticed at least 14 days in advance. If there were residents that indicated they wanted to run against the incumbents, then they should have had an annual meeting and vote. This year for the first time, if there are less candidates than seats available, an election does not need to occur, but that just started this year. It sounds like these board members are not following the rules.
AllisonD (Florida)
Posts: 449
Posted:
Quote:
Posted By AG3 on 01/01/2014 5:48 AM
No election. There are five board members all of whom have been seated for more than 6 years. One was elected two years ago at the only annual meeting which had a quorum. So at the first regular monthly board meeting after this year's annual meeting the directors shuffled their positions around with only the president maintaining his seat. Three members ran opposing the five incumbents but since there was no election the sealed ballots were apparently unopened (discarded)!
I can't come up with a single association (non profit) nor HOA Florida statute nor any association bylaw for this association which addresses this deplorable situation!

In this case, there were more candidates than seats so an election was mandatory, and since there was no quorum, the board was obligated to call another election meeting and try to get a quorum. The board would still be in power until a new board is elected but I think that the fiduciary duty calls for board members to diligently try to get a quorum for a legitimate vote. Skating through the year claiming they could not get a quorum for a vote is a shady deal, in my opinion (with the exception being if there were no new candidates running). If this were allowed to continue, I think the board that wants to stay in power could discourage participation and never have a quorum year after year.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Allison

While I expect you know, EG's faction is being beaten by there being no Quorum. No Quorum, no election and the existing BOD Members are retained until the next election.

A slick but legal way to keep the same BOD in power.

EG needs to find and use ways around this. As I expect you also know, there are ways to do this. As I said, learn how to outfox the fox.

AG3 (Florida)
Posts: 8
Posted:
Thank you, Allison. I realize what you are saying but just can't figure out a way out!
AG3 (Florida)
Posts: 8
Posted:
Any ideas how to outfox the fox?
AllisonD (Florida)
Posts: 449
Posted:
Quote:
Posted By AG3 on 01/01/2014 12:35 PM
Thank you, Allison. I realize what you are saying but just can't figure out a way out!

Knowing that there is probably nothing you can do to fix the situation for this past year, I would start talking to your neighbors and make them understand what is going on, and that there are 3 other people that would like to be on the board but cannot and that the current board is breaking very basic and fundamental rules regarding HOA elections and how important it is to attend the annual meeting or use a directed proxy to vote, and hope that you can break the cycle. Also, I would make sure that the current board knows you are spreading this news and that you will not tolerate this happening again. In this case, you may have to be a very squeaky wheel.

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