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FredO (California)
Posts: 198
Posted:
Here's a subject that has just arisen in our HOA. It has to do with quorum and voting, looking for your experiences and how you handle this situation.

Background, our Governing documents have been checked but this aspect is not covered.
Per governing documents we have a seven member board. The quorum to conduct business is min four board members need to be present.

Here's the sticky issue that just came up:
if majority rule out of seven is four people to vote in alignment for an issue to pass then is the min four votes the standard or is it the majority rule of whatever number shows up to the meeting?

If the minimum quorum of 4 shows up, then a vote of 2 to 2 will not pass an issue.

Some people are of the opinion that the minimum number of votes regardless of the number who show up to vote should be 4 votes in alignment to pass an issue. Per this logic, if a vote is needed and only 4 Board members are present, then all 4 need to be in alignment to pass. If it is 3-1 then the issue does not pass.

Or, in your experience, if you have a minimum quorum number, do you go with a majority rule of that quorum?? In this case, a vote of 3 to 1 would cause an issue to pass.

Seems there are lots of pro's/con's to each position. Seeking advice based on your personal experiences (not seeking a legal opinion or advice, just want to know how others handle this).

Thanks!
FredO (California)
Posts: 198
Posted:
Sorry, one afterthought of practical experience I had in the past.
I had served on a Federal Grand Jury. The number of people was 23. The minimum quorum was 16.
Regardless of the number of folks that showed up (16 to all 23), the minimum number of votes on any issue required 12 votes to be in agreement (51% of 23).

This gives rise to the OP I posted...

Thanks,
TimB4 (Tennessee)
Posts: 21,059
Posted:
Fred,

A quorum is a minimum number of representation (lots, votes, members, etc.) that is needed for business to be conducted.

As for the number of votes needed to adopt something, that is going to depend on the actual language. This is because all of the following examples could result in different numbers needed:

A majority of the membership
A majority of the members present
A majority of the members present in person or by proxy
A majority of the votes cast
A majority of the available votes
A majority of the votes available to be cast

see Davis-Stirling approval defined web page.
KerryL1 (California)
Posts: 14,550
Posted:
This question is about your board of 7, Fred, right? (It's not about your HOA membership, which I believe is how Tim interpreted your question.)

I haven't gone to davis-stirling.com yet because if your governing docs, probably your bylaws, say that a quorum of your board is four then a 3-1-a majority of quorum-- passes. There is no requirement that all four as the only ones present reach consensus to pass motions at your board meetings.

(I'm puzzled why you use the word "alignment." Is it in your bylaws?? Or??

I'm thinking this probably comes from CA corps. code, and your HOA probably is one. I don't think it's wise to compare other organizations that are not corporations to your HOA. Though you can think of pros & cons, I do think the answer is a legal one that you cannot ignore.

More later, maybe. Got my own numbers to deal with now! Hmm, think I'll ask the HOATalk!

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Typically with a BOD of 7, then 4 constitutes a majority of the BOD and those 4 can do business including voting on issues. Thus a 3-1 vote is a majority vote and 2-2 is a tie vote.
TimB4 (Tennessee)
Posts: 21,059
Posted:
From the link I provided to davis stirling's site:

Default Approval Requirement. If a quorum is present, the affirmative vote of the majority of the voting power represented at the meeting, entitled to vote, and voting on any matter shall be the act of the members unless the vote of a greater number or voting by classes is required by statute, the articles or bylaws. (Corp. Code ยง7512(a).)

.
FredO (California)
Posts: 198
Posted:
Thanks, I was just perusing through the Calif Corp Codes when your response showed up.

I thank you all for your inputs. I think this is one of those rare examples where a person or groups takes for granted the generally accepted use of the quorum and then when someone asks the question out of the blue, we search for answers. I always hate the response of: "well we've always done it this way".

This is what I thought in the back of my mind. However, it is always a good idea to double check with others.
Thanks for the pointer to the Corp Code... I apologize in I should have checked that first before posting.

Oh, and why I used the word "alignment" in my OP, no other reason than I was doing my occupation job from home and since I an engineer, I was dealing with alignment issues on a physical item relating to assembly of our product. I just had alignment on the brain when I wrote the OP.

Thanks again for your inputs. It is appreciated!

KerryL1 (California)
Posts: 14,550
Posted:
Here's a good example, Fred:

"Voting. Once a quorum of directors is present in a meeting, each director is allowed one vote. Any action approved by a majority of those directors is passed. (Corp. Code ยง7211(a)(8).) For example, if 3 directors of a 5-member board attend a meeting, a quorum has been achieved and the board may conduct business. Approval of any action is by a majority of the quorum, i.e., approval by 2 of the 3 directors."

Read more: Voting by Directors http://www.davis-stirling.com/MainIndex/VotingbyDirectors/tabid/1296/Default.aspx#ixzz3DQU1dPPg
from Davis-Stirling.com by Adams Kessler PLC.

Tim, I do think your citation refers to meetings of members vs. board meetings.

RichardP13 (California)
Posts: 1,767
Posted:
Fred

Since you have a Board of seven, if 6-7 Board members showed up, then 4 would have to vote yes and 4-5 Board members showed up then, a majority would be 3 yes votes.
FredO (California)
Posts: 198
Posted:
Thanks all who've responded. I do get and understand the concept of majority rule.
The reason I posted the question is that after our last board meeting, this issue has raced around the neighborhood regarding how many votes to pass an issue.

The reason is that we are supposed to have 7 members on the BoD. We have six currently due to a lawsuit issue on election fraud.
While that is being settled by the court, we are still trying to conduct business at board meetings.
At the recent meeting, a board member was out - that left 5. Of the five, to prevent a vote from taking place on a very contentious issue, another board member walked out.

That left four and the vote was 3-1. Had all six sitting members been there, it would have been a 3-3 tie (a very polarized board...lots of history but that's another long story).

Anyway, some of the neighbors have taken the opinion that the majority is set to four votes due to us needing 7 board members regardless if the 4 needed for a quorum show up...

Since I have never heard of this sort of challenge before, I thought I would ask here with you folks and the wealth of knowledge you bring to the table (again, I thank you all).

I have always thought that is was majority rule of the quorum. Never before gave it a second thought, until this issue came up and curiosity got the better of me and I needed to find out for sure.

Again, thank you all especially the ones pointing me towards the Corporations code - I would not have thought to look there had it not been for this forum.

Fred
RichardP13 (California)
Posts: 1,767
Posted:
Fred

We have a similar issue at my association in that we have a Board of either 5 or 7 depending on how many candidates put their name in the hat (if we have 7, then its a 7 person Board, if 6 or less, then 5 person Board). We have been running a Board with 5 members, but quorum has to be 4 until the Board is reset, which will happen this Thursday.

So, we have to have at least four for a meeting and if four show up, then they need three yes votes for approval.
NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By RichardP13 on 09/15/2014 5:11 PM
We have a similar issue at my association in that we have a Board of either 5 or 7 depending on how many candidates put their name in the hat (if we have 7, then its a 7 person Board, if 6 or less, then 5 person Board). We have been running a Board with 5 members, but quorum has to be 4 until the Board is reset, which will happen this Thursday.

So, we have to have at least four for a meeting and if four show up, then they need three yes votes for approval.

Having trouble following what you are saying Richard.

Do you have a mandatory seven member board. If yes, then I can understand the 4 person quorum.

But if seven isn't mandatory, and you are running the HOA with only 5 or 6, then why can't you reach a quorum with just 3?

Sikubali jukumu. Read all posts at your own risk.
KerryL1 (California)
Posts: 14,550
Posted:
I have the same question as NpS, Richard.
RichardP13 (California)
Posts: 1,767
Posted:
The membership originally elected 7 and the number dropped to 5 because of resignations, but for quorum purposes, the Board needs a majority of seven to conduct business until the members reduce the number to five, which will happen this Thursday. Only four are running for five positions.
RichardP13 (California)
Posts: 1,767
Posted:
This is the wording from our Bylaws

3. Determination of Number of Directors. If there are less than seven (7) candidates who are qualified and consent to nomination, the secret ballot shall state the Members shall elect five (5) directors. If there are seven (7) or more candidates who are qualified and consent to nomination, the secret ballot shall state that the Members shall elect seven (7) directors."
NpS (Pennsylvania)
Posts: 4,216
Posted:
Gotcha.

Sikubali jukumu. Read all posts at your own risk.
KerryL1 (California)
Posts: 14,550
Posted:
Thanks, Richard, I gotcha too.

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