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ReneeP3 (South Carolina)
Posts: 42
Posted:
Our bylaws address Quorum as follows:

At all meetings, regular or special, a quorum shall consist of the presence in person or by proxy, of members holding at least fifty-one percent (51%) of the total vote of the Association.

The Association shall have one class of voting membership which shall consist of all Owners of lots in the subdivision. The total number of votes of all members of the Association shall be one vote for every undivided lot as set forth on the recorded subdivision plats. (there are 94 lots).

Quorum has been calculated as "eligible to vote" (dues are paid). I read our bylaws as quorum is always 94. Which read in your estimation is a better interpretation?

Also, if voting privileges have been suspended for failure to pay annual assessment, is a member who's privileges have been suspended counted towards quorum if they show up to a meeting or they assign a proxy to attend the meeting. I do understand that they cannot vote, but do they count towards quorum anyway?
ND (PA)
Posts: 792
Posted:
Quorum at a Members Meeting is typically defined as the in-person or by-proxy presence of a percentage of Members entitled to vote.

"Members entitled to vote" = "Members in good standing" which should be defined somewhere in your bylaws but typically means that their accounts are paid in full by a certain time prior to the vote.

I think your bylaws are saying the same thing with the "members holding at least fifty-one percent (51%) of the total vote" portion. Those "holding at least 51% of the total vote" = 51% of members entitled to vote = 51% of members in good standing.

So if you have 94 lots:
- And all 94 are members in good standing . . . 94 x 51% = 47.94 = 48 members to achieve quorum.
- But if only 90 are members in good standing . . . 90 x 51% = 45.9 = 46 members to achieve quorum.

Members who are not in good standing would usually be welcomed to attend the meeting, but do not count toward calculating quorum at the meeting.

However, if that same member who is not in good standing is a designated proxy for another member, they would be entitled to vote in accordance with the proxy (assuming the member who designated them as their proxy is a member in good standing).
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Renee

I believe the general consensus of this chat is that most Bylaws say those not in good standing can be counted toward establishing a Quorum but they cannot vote. This is what our Bylaws say.

If I read your post correctly, your Bylaws are the same as ours in that all owners (including those not in good standing) can count toward establishing a Quorum but they cannot vote. This would account for your Quorum always being a fixed number. I believe you said 94.
ReneeP3 (South Carolina)
Posts: 42
Posted:
Well shoot John, I don't know if your asking for clarification or you've stated your position is that by the wording of our bylaws that quorum is based upon total votes regardless as to whether they are in good standing or not.

It certainly would have been easier had they put in "total votes" of members in good standing. Our we reaching too far by adding in a logic that it should be "in good standing" or should we be locking down a position that we have 94 lots, each lot get's one vote, quorum is based upon 51% of the total vote of the association, we have 94 lots, quorum is fixed at 48 for all meetings.
ReneeP3 (South Carolina)
Posts: 42
Posted:
ND, this is the logic that has been used, we're just not certain that based upon the wording that we're not adding in a logic that's not supposed to be added in.

ND (PA)
Posts: 792
Posted:
I'm not doing thorough research, but I came across this by doing a Google search for "SC corporate code quorum". It at least provides a frame of reference for how your docs could be interpreted . . .

Title 33 - Corporations, Partnerships and Associations

CHAPTER 31 - South Carolina Nonprofit Corporation Act

ARTICLE 7 - Members Meetings and Voting

SECTION 33-31-722. Quorum requirements.

(a) Unless this chapter, the articles, or bylaws provide for a higher or lower quorum, ten percent of the votes entitled to be cast on a matter must be represented at a meeting of members to constitute a quorum on that matter.

(b) A bylaw amendment to change the quorum for a member action may be approved by the members and, if required, be approved as provided in Section 33-31-1030.

(c) An amendment to the articles of incorporation or bylaws that adds, changes, or deletes a greater quorum must be adopted under the quorum then in effect or proposed to be adopted, whichever is greater.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Renee

As I have not read your Bylaws, I cannot tell you what they say. What I am saying is our Bylaws make no reference to members in good standing when it comes to establishing a Quorum and my experience on this chat says that is common.

Our Bylaws do say only members in good standing can vote and my experience on this chat says that is common.

I would say unless your Bylaws specifically/directly address a member in good standing when discussing establishing a Quorum, do not add/read in such.

In regards to the earlier posted info about SC Corporations, most Corporation rules/laws in SC are riddled with the expression "unless the Corporation's Bylaws say otherwise". The reason is SC believes in letting corporations pretty well operate any way they want to operate. SC is very pro corporation/business versus watching out for the stockholders/employees.

Our original Bylaws called for 51% of owners for a Quorum but we voted to change that to 20%.

Many get confused regarding Quorum and voting majorities required to change things such as Covenants and/or Bylaws. They are different subjects.

Hope this helps.
AugustinD
Posts: 5,144
Posted:
My former HOA does it ND's way. My current HOA prohibits MNIGS from voting but does let them count towards a quorum.

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