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ThomasC11 (California)
Posts: 210
Posted:
We just had a recall election on tuesday night. We were told that we needed 51% of the membership to vote via ballot or proxy.

We came up just 1 proxy short of quorum.

If we have 900 units the 51% is 451. Do members not in good standing (behind on their assessments) get calculated into the formula as a reduction since they do not have the ability to vote?

Or is their status irrelevant to the total?
RichardP13 (California)
Posts: 3,868
Posted:
ONLY if the Association brought them to a hearing and suspended their voting right, IF allowed under your governing documents.
ThomasC11 (California)
Posts: 210
Posted:
yes their privileges were suspended.
KerryL1 (California)
Posts: 14,550
Posted:
At our annual meetings, Thomas, we do not count members who may not vote to determine quorum. So, we need only 25% of eligible voters to establish quorum. That's how we've been advised by our MC, but I've never actually checked to see if that's accurate.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Thomas,

You need to lower the quorum requirements. Fifty percent is seldom attainable.

I just looked at the AZ statutes and it appears that ten percent is the default. It appears that any provisions in either the bylaws or articles of incorporation for a different number is permissible and, though not stated explicitly, could be less than ten percent. This came from the statutes governing non-profit corporations as the issue is not addressed in the HOA statutes.

Davis-Stirling recommends no quorum required for the election of directors.

BTW, public elections never have a quorum requirement.

KerryL1 (California)
Posts: 14,550
Posted:
Larry raises a good point, Thoms who "told" you you needed 51%? Or is it written somewhere?
ThomasC11 (California)
Posts: 210
Posted:
It is in the bylaws. We are trying to show that we met quorum by deducting the # of homeowners who are not in good standing. Currently it is about 10%
TimB4 (Tennessee)
Posts: 21,059
Posted:
Thomas,

What is the exact wording. The language will determine the answer.

For example:

900 lots, 10 had voting rights suspended

51% of the membership = 459 (900 multiplied by .51)
51% of the available votes = 454 (900 lots - 10 suspended multiplied by .51 rounded up)
ThomasC11 (California)
Posts: 210
Posted:
The announcement sent to community states

"50% of homeowners, or 450, is required for quorum"
TimB4 (Tennessee)
Posts: 21,059
Posted:
Thomas,

Based on the what you provided, then yes those who can not vote are still counted for quorum purposes.

If they showed up to the meeting, they would not receive a ballot but would still be counted for the quorum.

If they provide a proxy, the proxy representative would not receive a ballot but would still be counted toward a quorum.
ThomasC11 (California)
Posts: 210
Posted:
quorum was determined by the number of ballots and proxies turned in. The HOA attorney told the Inspector of Elections to "end it" when he saw that we were 1 short.

There were people who got into the clubhouse after this point and were told that the voting had closed.

Shouldn't making quorum be encouraged not discouraged?
FredN (California)
Posts: 87
Posted:
Section 3. Removal of Board of Directors. The entire Board may be removed from office by affirmative vote of fifty-one (51%) percent of the owners entitled to vote at any election of the Board.

This is ours, 51 percent only, no adjournment, no reduction, nothing.
FredN (California)
Posts: 87
Posted:
HOA Attorneys in CA are a joke,

The Board does not have to listen to anyone, managing agent, attorney, no one.

You do what is required,

Do your Election Rules state when the polls shall open and close????? so all the homeowners are informed???? Plus the Board can extent them.

Another scam created by lawyers, there are many
ThomasC11 (California)
Posts: 210
Posted:
So "entitled' to vote would not include any member who has had privileges suspended?
ThomasC11 (California)
Posts: 210
Posted:
The documentation states that the Inspector of Elections has the authority to close the election. There was no closing time only a starting time given.

She was pressured by the attorney.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By ThomasC11 on 04/28/2016 7:46 PM
So "entitled' to vote would not include any member who has had privileges suspended?

Correct.

Going with the 900 lot and 10 members who had voting privileges suspended and using Fred's language and your quorum requirement

Quorum = 450 (900 lots divided by 2 (50%))

Number of yea votes needed to remove = 454 (900 lots minus 10 suspended = 880 multiplied by .51 rounded up)

GlenL (Ohio)
Posts: 5,491
Posted:
From the davis-stirling website:

Suspension of Voting Rights. If voting rights are suspended, quorum numbers are adjusted. For example, if an association consists of 100 members and quorum is a majority of the voting power, quorum is 51 members. If, however, 10 members had the voting rights suspended for being delinquent, the voting power is 90 and the quorum is 46.

Studies show that 5 out of 4 people have problems with fractions
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By ThomasC11 on 04/28/2016 7:48 PM
The documentation states that the Inspector of Elections has the authority to close the election. There was no closing time only a starting time given.

She was pressured by the attorney.


The attorney, regardless of whether his advice is right or wrong, has no say in how the association does business. All decisions are lawfully in the hands of the board. The attorney should not have been invited to attend and when "the HOA attorney told the Inspector of Elections to 'end it'" the proper response should have been to escort him to the door.

RichardP13 (California)
Posts: 3,868
Posted:
Thomas

There are two parts to the process, quorum and actual votes.

The inspector of elections should have been notified PRIOR to the date of the meeting to count the ballots, what quorum should have been, this is what would be called VOTING POWER of the Association. IF you had 30 owners legally suspended and quorum is spelled out as a majority then 436 would be needed for quorum, and 444 would be 51% of the VOTING POWER. Guessing with 900 units, 30 is a fair assumption of 30 days delinquent. These hearings MUST be held prior to ballots going out.

Here is where the problem lies. I disagree with Larry, the attorney many times runs the show. There are also invited by the Board and if the Association has election rules, are allowed to be appointed as inspectors. I know this from personally experience. Why is there a recall in the first place? The group is upset with the Board, the MC and the attorney. Who loses if the Board is recalled, right, the MC and the attorney.

The meeting called to count the ballots is a Member meeting. The rules are in place in the Bylaws to adjourn to a reduced quorum of 25% generally. There is NOTHING in the Bylaws that state differently. Yet the law firm that some here use as gospel will not allow a reduced quorum for a recall. Why, because an attorney job as well as the MC is at jeopardy.
KerryL1 (California)
Posts: 14,550
Posted:
Thomas, what matters is not the "exact wording" of the "announcement,' but the exact wording of: state statutes"; and, exactly wording of your documents..

It seems like something is wrong in your recall process.
ThomasC11 (California)
Posts: 210
Posted:
thank you all, will resume tomorrow.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By GlenL on 04/28/2016 8:29 PM
From the davis-stirling website:

Suspension of Voting Rights. If voting rights are suspended, quorum numbers are adjusted. For example, if an association consists of 100 members and quorum is a majority of the voting power, quorum is 51 members. If, however, 10 members had the voting rights suspended for being delinquent, the voting power is 90 and the quorum is 46.

Glen,

I had to look and agree that that is what it says. Unfortunately, the basis for this opinion is Roberts Rules (not a statute). Therefore, it very well may actually depend on what is written in the governing documents. Thomas has not provided this. He only cited what was given to him by the Association.

It would be interesting to see the exact language for quorums and recalls in the governing documents.
PitA
Posts: 1,416
Posted:
Quote:
Posted By GlenL on 04/28/2016 8:29 PM
From the davis-stirling website:

Suspension of Voting Rights. If voting rights are suspended, quorum numbers are adjusted. For example, if an association consists of 100 members and quorum is a majority of the voting power, quorum is 51 members. If, however, 10 members had the voting rights suspended for being delinquent, the voting power is 90 and the quorum is 46.

PERFECT

CASE CLOSED
ThomasC11 (California)
Posts: 210
Posted:
Correct, the Voting Company (Accurate Voting, who I would not recommend)even said "there are jobs on the line".
ThomasC11 (California)
Posts: 210
Posted:
The Bylaws state that 50% of the membership is required for quorum.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By RichardP13 on 04/28/2016 8:57 PM
Here is where the problem lies. I disagree with Larry, the attorney many times runs the show. There are also invited by the Board and if the Association has election rules, are allowed to be appointed as inspectors.


Wrong!

Unless the attorney has been appointed as a receiver by a court, the board has the final word in all matters and the board members are liable for all actions, even when those actions are taken under the attorney's direction. There is no circumstance where the attorney should ever "run the show." Under California law, attorneys are not even permitted to attend meetings if they are not members of the association.

Appointing the attorney as an election inspector (which is a bad idea, discussed below) gives him only the same authority that any other election inspector would have. Thomas indicated that the attorney issued orders to the appointed election inspector. This would mean that the attorney was not the election inspector. The attorney, presumably hired by the board being recalled, was interfering in the election and should have been denied entrance to the meeting as he was not a member of the association.

The reason it is a bad idea to have your HOA attorney involved in any aspect of meetings or elections is that if anything ends up in court your attorney will be a witness. The rules of court in the civilized states usually prohibit a person from being both a witness and representing a party as an attorney. (God only knows what the rules are in California.)

KerryL1 (California)
Posts: 14,550
Posted:
Thomas, what is crucially important is the EXACT wording of your bylaws, not a summary.

We need the entire & exact wording for % needed to make quorum.

We need the exact wording for the % needed to pass this recall.

We need the exact bylaws wording of what happens if quorum is not reached? May the Members adjourn the meeting??

Do your bylaws say that Robert's Rules or some other system of parliamentary procedure must be used for Members meetings? Ours do.
RichardP13 (California)
Posts: 3,868
Posted:
Larry

How long have you been on this site? I said "many times attorneys run the show". I NEVER said that was the way it should be. I have somewhat more experience in this than you do. As Thomas pointed out, even the company that was hired to run the election said there were "jobs on the line". I have 5 videos from an association larger than Thomas where the attorney stopped the election. It also happened to me.

"Under California law, attorneys are not even permitted to attend meetings if they are not members of the association". Really. So the Association attorney can't attend a meeting they been invited to by the Board? What about the PM or the landscaper. An association that size will have in their election rules that they are required to have 3 inspectors appointed PRIOR to ballots being mailed. Maybe the attorney was appointed as an inspector. If noting else, the attorney will often render an opinion. If it is a contentious election, more often than not, the Board will insist that the attorney is present. 95 out of 100 Boards will follow the attorneys advise, that is just reality.

Your observation about how things are done in California may work for Arizona, but they don't here. I don't like have a bullet button on my AR-15. I don't like only having a magazine of only 10 rounds, but until the rules are changes, I have to follow them. As far as Association law, I am working with many other to make sensible changes, but it takes time.
RichardP13 (California)
Posts: 3,868
Posted:
Quote:
Posted By ThomasC11 on 04/29/2016 5:52 AM
Correct, the Voting Company (Accurate Voting, who I would not recommend)even said "there are jobs on the line".

Interesting, I went to their website and it's an Online Pharmacy!
RichardP13 (California)
Posts: 3,868
Posted:
Quote:
Posted By ThomasC11 on 04/28/2016 4:37 PM
yes their privileges were suspended.

Thomas,

IF you were in favor or the recall and the inspector wasn't given the proper information as to what quorum would consist of after the suspended owners were removed, then you have a slam dump case to contest the procedure. Fastest way would be small claims, but that will take at least two to three months. The advantage is the association can't have their attorney present in court. They can only be used on appeal if the decision goes against them. If the Board didn't follow proper procedure in suspended voting rights, it works in their favor.
KerryL1 (California)
Posts: 14,550
Posted:
Glen's find, above seems to be accurate in CA for memberships meetings

Civil Code §5000. Membership Meetings.

"(a) Meetings of the membership of the association shall be conducted in accordance with a recognized system of parliamentary procedure or any parliamentary procedures the association may adopt. [Old: Civ. Code §1363(d)]

(b) The board shall permit any member to speak at any meeting of the membership of the association. A reasonable time limit for all members to speak at a meeting of the association shall be established by the board. [Old: Civ. Code §1363.05(h)]"

I'm wondering why Thomas doesn't give us the exact wording got his bylaws....
KerryL1 (California)
Posts: 14,550
Posted:
Glen's find, above seems to be accurate in CA for memberships meetings

Civil Code §5000. Membership Meetings.

"(a) Meetings of the membership of the association shall be conducted in accordance with a recognized system of parliamentary procedure or any parliamentary procedures the association may adopt. [Old: Civ. Code §1363(d)]

(b) The board shall permit any member to speak at any meeting of the membership of the association. A reasonable time limit for all members to speak at a meeting of the association shall be established by the board. [Old: Civ. Code §1363.05(h)]"

I'm wondering why Thomas doesn't give us the exact wording from his bylaws....
RichardP13 (California)
Posts: 3,868
Posted:
By a show of hands, how many associations actually follow any form of parliamentary procedure for conducting their meetings.

Really don't need the language as it is pretty simple, based on what Thomas said, unless the Bylaws state that it's 51% of the votes cast? Or if they still have cumulative voting.

Majority is required for quorum and 51% to vote. What wasn't added is that it may be 51% affirmative votes to remove or recall, and they have 10% suspended owners. So the math.

Quorum is 406. 900 minus 90 (10%) divided by 2 and add one.

Affirmative votes is 414 or 51% of 810.

Not sure how many ballots or proxies they received. Since recalls have to be by secret ballots and a proxy is not a secret ballot, then the proxy really doesn't help.

Are the Bylaws old in that they still allow cumulative voting. If so, then it's next to impossible to recall a director(s) when cumulative voting is used.

If the parties see their jobs threatened they tend to do anything they can to stay in control.
ThomasC11 (California)
Posts: 210
Posted:
We did obtain the required amount of proxies and ballots to meet quorum (50%). Many proxies were rejected for ridiculous reasons - letter T not matching the T on Title signature from 20 years ago. It was a joke, an obvious effort on part of the Board, Management, Attorney to not meet quorum.

The votes were never counted because the Inspector of Elections, under pressure from the Attorney, closed the election when he overheard that we were 1 short of meeting quorum. This happened after counting all proxies and ballots to try and establish quorum, then it was determined that we were 1 short.

Voters who came in after this point were turned away.

You have answered my question about members not in good standing not counting, thank you all.

We are off to see an attorney this afternoon, or may go Small Claims as suggested.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
I realize most of this has been about CA but to show another side. Last year the BOD wanted to change Quorum requirements to conduct business at our Annual Meeting from 50% to 20%. We had to have a Quorum of 50% to vote on the change. We were close and only made it by disallowing those that had been notified they were behind on dues which we did after 90 days. 112, needed 56 for a 50% Quorum. We disallowed 6 so down to 106 thus 53 needed. We had 55. The change passed 35 to 20.

TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By RichardP13 on 04/29/2016 10:09 AM
Posted By ThomasC11 on 04/29/2016 5:52 AM
Correct, the Voting Company (Accurate Voting, who I would not recommend)even said "there are jobs on the line".


Interesting, I went to their website and it's an Online Pharmacy!

Richard,

I believe that the site was hacked.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By JohnC46 on 04/29/2016 3:46 PM
I realize most of this has been about CA but to show another side. Last year the BOD wanted to change Quorum requirements to conduct business at our Annual Meeting from 50% to 20%. We had to have a Quorum of 50% to vote on the change. We were close and only made it by disallowing those that had been notified they were behind on dues which we did after 90 days. 112, needed 56 for a 50% Quorum. We disallowed 6 so down to 106 thus 53 needed. We had 55. The change passed 35 to 20.

John,

If the language in your governing documents required 50% of the membership for a quorum (vs. 50% of the voting power or 50% of the eligible votes, etc.) I would have challenged the issue and I believe I would likely have won.

The devil is in the details and the details are in the language used.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By TimB4 on 04/30/2016 3:54 AM
Posted By JohnC46 on 04/29/2016 3:46 PM
I realize most of this has been about CA but to show another side. Last year the BOD wanted to change Quorum requirements to conduct business at our Annual Meeting from 50% to 20%. We had to have a Quorum of 50% to vote on the change. We were close and only made it by disallowing those that had been notified they were behind on dues which we did after 90 days. 112, needed 56 for a 50% Quorum. We disallowed 6 so down to 106 thus 53 needed. We had 55. The change passed 35 to 20.


John,

If the language in your governing documents required 50% of the membership for a quorum (vs. 50% of the voting power or 50% of the eligible votes, etc.) I would have challenged the issue and I believe I would likely have won.

The devil is in the details and the details are in the language used.


I understand what you are saying and upon review I believe our docs say 50% of the Membership meaning we might well have done it wrong by disallowing those 6. It was done in the heat of the moment upon recommendation of our MC and no one has said anything about it thus so be it.

TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By JohnC46 on 04/30/2016 5:14 AM

I understand what you are saying and upon review I believe our docs say 50% of the Membership meaning we might well have done it wrong by disallowing those 6. It was done in the heat of the moment upon recommendation of our MC and no one has said anything about it thus so be it.

I also understand it was done for the better good.

This is why I say that the Board can do as they please until challenged.
Once challenged, whether or not the Board can defend their decisions will depend on if they were complying with the governing documents and applicable statutes or not.

There may be a statute of limitations on amending governing docs.
I know there are in some states.

However, I also recall someone posting on this site about a challenge made several years later over an amendment and the challenge was upheld in court because the Board failed to follow the docs. If I recall correctly, that was in AZ.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
I am in agreement but let us not forget our change passed 35 to 20 so even if we fudged a bit on establishing the quorum (at worst, 6 out of 112) the change passed with flying colors. Also this was the largest number of owners we have ever been able to get together at one time so we felt comfortable about it. Had the margin been closer, there might have been some questions asked.

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