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RobertC34 (North Carolina)
Posts: 5
Posted:
I am on the BOD for a condo HOA in NC. Our community is at the coast and comprised of mostly absentee owners, who use the property as a vacation rental.

In the past, we have had trouble reaching a quorum for BOD or other votes. The annual meeting rarely has a quorum present and we send proxies/ ballots via US Mail.

Is there an option for official votes to be cast or proxies assigned via email? Our by-laws do not address this issue.

Any input is greatly appreciated.
SheliaH (Indiana)
Posts: 6,964
Posted:
You said you're already sending proxies and ballots by mail, but the real problem here is apathy - if the absentee owners don't bother to return them, I don't know if electronic voting will change things.

It may be time to send a "come to Jesus" type letter, explaining the holdups in official business because there aren't enough people to hold a meeting or elect a board. the board oversees the operation of the HOA and if there aren't enough people to do it, your HOA risks requiring a receiver to run things. That would mean a lot more in assessments because you'd have to pay the receiver, the court costs and attorneys fees to get a judge to appoint one - on top of paying routine expenses and funding reserves! If that doesn't get anyone's attention, you may have no choice but to pursue receivership - tell homeowners once that happens it may take a while to reverse it. All because people were too lazy to fill out a proxy and send it back!

Some HOAs are beginning to use electronic voting, so you may want to research the issue to see what the pros and cons are. Your association attorney may also need to review the documents to see if there's anything right now that permits alternative ways of casting a vote - if not, you'll probably need to change the bylaws to allow electronic voting. Which will require a certain percentage of homeowners to approve it - and you already see how hard that will be because people don't even bother to vote right now.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
TimB4 (Tennessee)
Posts: 21,059
Posted:
If your Association is incorporated as a nonprofit, most are but check to be sure, then the
North Carolina Nonprofit Corporation Act would apply.

Per ยง 55A-7-08 (of that act) [emphasis added]:

(a) Unless prohibited or limited by the articles of incorporation or bylaws and without regard to the requirements of G.S. 55A-7-04, any action that may be taken at any annual, regular, or special meeting of members may be taken without a meeting if the corporation delivers a written ballot to every member entitled to vote on the matter. Any requirement that any vote of the members be made by written ballot may be satisfied by a ballot submitted by electronic transmission, including electronic mail, provided that such electronic transmission shall either set forth or be submitted with information from which it can be determined that the electronic transmission was authorized by the member or the member's proxy.

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