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JackB8 (Virginia)
Posts: 141
Posted:
Our Bylaws allow proxy voting. At last years annual meeting there were 58 uninstructed proxies, 51 of which were held by current board members. 22 of these were held by a board member who routinely gathers proxies in high numbers and who has been on the board for 22 years. It is this way every year. Basically, the board decides, through the use of proxies, who is elected to the board. One other resident and I would like to see elections more indicative of selection by people who care enough to attend meetings. As it is, with an average of 30 to 4o people actually attending the meeting and the board controlling 50 to 60 additional votes, the board might as well eliminate voting and just dictate who will serve on the board. Any thoughts to help change this unfairness?
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By JackB8 on 11/10/2015 7:37 AM

Any thoughts to help change this unfairness?

OPTION A -

Take the time to contact the members and collect proxies yourself.
This way, you will be the one controlling the vote.

OPTION B -

Take the time to educate the membership what a proxy is and that the member may direct the proxy representative to cast their vote a specific way. That per VA § 13.1-847 proxies do not need to be on any specific form (although it is common that the Association provides one). Perhaps even create a directed proxy form and have members utilize that form vs. the one provided by the Association.

OPTION C -

Combination of Option A and Option B

OPTION D -

Gather support and amend your Articles of Incorporation and/or Bylaws to prohibit proxies.
As the statute defers control to those documents.
Keep in mind that eliminating proxies may prevent you from achieving a quorum. If this occurs, then those individuals would stay in office anyway. Therefore, make sure your quorum requirement is low enough that eliminating proxies would not affect the ability to conduct an election.

I used Option C in my Association. It took time (several years) but instructed proxies are now the norm within my Association.

SheliaH (Indiana)
Posts: 6,964
Posted:
It’s not so much that the board is deciding who will serve as much as the HOMEOWNERS who apparently hand out their proxy to whoever asks for it, not thinking about the implications – or, as Tim said, they simply don’t know. Since those homeowners aren’t taking the time to go to the meeting anyway, I guess they figure this is a form of absentee balloting. Which it is, but the homeowners aren’t dictating to their appointed proxy how he/she is to vote (unlike absentee voting where you choose).

(I realize some board members can be manipulative as hell, but homeowners need to understand THEY ultimately hold the power – and if they don’t use it, chaos can ensue. Put another way, it’s really difficult for a tiny group of people to blow off a hoard unless the hoard doesn’t give a rip in the first place).

Ultimately, you may need to pursue ALL of Tim’s options, starting with option A. While soliciting proxies, you may want to encourage people to actually show up at the meeting and cast a vote there. In our association, people can send in a proxy, but if they change their mind and show up, the proxy is cancelled and they can vote in person, provided their eligible (that is, current in dues).

I especially like Option B’s creation of a directed proxy. Our association allows the homeowner to either nominate him/herself or someone else to serve and the proxy must vote accordingly. I’ve seen some proxies where the homeowner can state it’s only to be used to create a quorum to hold the meeting and doesn’t cast a vote for anyone.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
JackB8 (Virginia)
Posts: 141
Posted:
Sheila. Thanks for your post. I came here for "Food for Thought" and I am not being disappointed. Ultimately I would like to see our governing documents changed to allow only instructed proxies or proxies which count for quorum only. This is going to be a hard sell because the proxy collection process is mainly being used by the board under the guise of insuring we have a meeting quorum. Been going on for at least 20 years so it will be hard to break up but I'm sure we can get it done.
KerryL1 (California)
Posts: 14,550
Posted:
Does VA permit mail-in ballots? Once they became permitted in CA in about '06, no one submitted proxies anymore. I've been on the Board nine years and have never seen a proxy at an election. There is a space on the mail-in ballot to check "For purposes of achieving quorum only," and a few check that box.

Quorum for our election of directors is only 25% of members so that's been easy. At our election a couple of weeks ago--5 candidates for 3 seats-- 104 ballots were submitted from 211 condos. About 20 attended the actual annual meeting. We have about 32% absentee owners and they comprised 45 of the 104 ballots. But it would be difficult getting proxies from them.

If you want a role in shaping the outcome, then you and others who are likeminded & do Tim's C. Then, later, work on D. An AZ poster has told us that AZ does not permit proxies at all and I'm sure that they generally achieve a quorum.
JackB8 (Virginia)
Posts: 141
Posted:
Kerry. Your reply is much appreciated. I am fairly well versed on Virginia HOA law and yet I am not sure how Virginia views mail-in ballots. Good point for me to research. I doubt though that we would get many mail ins. Thanks. Thanks also for your info on what you do in your community. Our plan (those I am in contact with on this issue) plan to convince the board things need to change.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Jack

How large is your association and how many are needed for a quorum in order to hold an election? If no quorum then typically the existing BOD stays in office.

I doubt you can control the type of proxies (General, Directed, or a combination of both) allowed.

I love proxies.

JackB8 (Virginia)
Posts: 141
Posted:
We have 750 homes and always get a quorum of 10% because 50 0r so attend and we get 40 to 60 proxies from the board and a few homeowners. In our community if we do not have 10% we reschedule the annual meeting and then 5% is required for a quorum. Of course we have never rescheduled but many years ago we went out proxy gathering and then resumed the meeting.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Jack

My advice is:

1. You only need 75 to have a quorum so work on getting more to turn out and actually vote. Even if someone holds their proxy, by turning up and voting they can override their own proxy.

2. Out proxy the proxiers. Beat them at their own game.

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