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GenoS (Florida)
Posts: 4,276
Posted:
Florida Statutes 720.303 says, "Directors may not vote by proxy or by secret ballot at board meetings, except that secret ballots may be used in the election of officers."

Can a director nominate someone for an executive office if that person (the one making the nomination) is not present at the meeting? One of our carryover directors wants to nominate another carryover director for president next week, but the director who wants to make the nomination is not able to make the meeting. The applicable statute, as I quoted above, says a director may not vote by proxy, but it says nothing about making nominations. It doesn't seem right that someone should be able to nominate someone for office and then be unable to cast a vote for the candidate they've just nominated.

I think we're going to have to wing it because my research has turned up nothing on this subject. State law, Roberts Rules and our governing documents are all silent on the issue. A Google search turns up nothing relevant in the first few hundred hits. I was wondering if anyone has any thoughts or has dealt with something similar?
TimB4 (Tennessee)
Posts: 21,059
Posted:
In my opinion, yes.

You know the desires of this director, so why not make the nomination yourself. You can even add that you are making this nomination on the request of xxxx. This will keep things happy if anyone asks the same question you are.

The issue you ask is so small of an issue that I wouldn't think it's worth alienating another Director over.

If you don't think the nominated individual will make a good candidate, then vote against them.
GenoS (Florida)
Posts: 4,276
Posted:
Thanks, Tim.
KerryL1 (California)
Posts: 14,550
Posted:
What a nice question, Geno.

I think that Tim's approach is a good one.
GenoS (Florida)
Posts: 4,276
Posted:
Earlier I searched the Davis-Stirling pages and they note that directors may nominate themselves if they wish. Paraphrasing the rationale, if members can nominate themselves for the board is that if members can nominate themselves to run for the board, it would be reasonable to allow self-nomination of officers (and cites CA Civil Code).

That makes it a moot point. And besides, I found out today that even the director who will be absent was not planning to make the nomination anyway, even if she was in attendance at the meeting.

Thanks again
GenoS (Florida)
Posts: 4,276
Posted:
One more time with grammar...

Earlier today I searched the Davis-Stirling website and they say that directors may nominate themselves if they wish. The rationale (citing CA Civil Code) is that if members can nominate themselves to run for the board then it's reasonable to allow self-nomination of officers.

That makes it a moot point. Besides, I found out today that the director who will be absent wasn't planning to make the nomination anyway regardless of her being at the meeting or not.

Thanks again
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By GenoS on 01/16/2017 5:01 PM
Florida Statutes 720.303 says, "Directors may not vote by proxy or by secret ballot at board meetings, except that secret ballots may be used in the election of officers."


First and foremost only utilize your own State Laws: http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0720/0720.html

Davis-Stirling is CA law and absolutely will not apply to FL.

Second ... the Statute you noted blatantly states NO Proxy or secret ballot ONLY for BOD meetings. It would not apply for annual membership meetings and election of officers.
GenoS (Florida)
Posts: 4,276
Posted:
Florida statutes are silent on the question of whether directors may self-nominate for officer positions. If a dispute erupted over it I think the test would be one of reasonableness. Since California, a state of 39 million people, allows it then I think it would be hard to argue that the practice is unreasonable.

While our bylaws state, "Executive Officers shall be elected by the membership at the annual membership meeting," the Articles of Incorporation take precedence in the hierarchy of governing documents, and that document says, "Said officers shall be elected by the Board of Directors annually at its meeting following the annual meeting of the members."

Therefore, our election of officers happens at a board meeting, not a members meeting, and the prohibition against directors voting by proxy applies. They may use a secret ballot for the election of officers, but not vote by proxy. My question was more about the ability to nominate by proxy, which is not addressed in either the statute or the bylaws.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Directors are first and foremost also members of the association. As a member they also have membership rights to nominate individuals including themselves.

If the text in your documents is as you noted above I would contend your election DOES NOT happen at a Board Meeting if your Articles say as you stated: "Said officers shall be elected by the Board of Directors annually at its meeting following the annual meeting of the members". The membership elects a BOD of an HOA not the BOD itself. I would contend this is actually just badly written text. What it actually most likely means is that the BOD between themselves after the Annual Meeting where X number of Directors are elected by the membership will then vote or decide between themselves who will serve as the various officers i.e., President, Secretary, Treasurer, etc. Is this the way it happens?
LeeH6 (Florida)
Posts: 1
Posted:
GinoS

Regardless of what F.S. 720.303 cites, there is little you can do about any violation of the statues. That is, unless you are prepared to hire an attorney and pursue the matter in civil court. The 720 statutes are unregulated and unenforced.

As you may know attempts during last years legislation process failed to pass SB1122 and HB1375 which would have partially remedied this oversight.

If you are interested, Rep. Charlie Stone is sponsoring a modified bill in the House again this year. It is being filed as HB295. You can read the bill at https://www.floridahomeownersunite.com/documents/HB295.pdf. You may also wish to review the information on the site as well ( https://www.floridahomeownersunite.com ).

Regards,

Lee

Regards,

Lee
Florida Home Owners Unite, Inc.
www.floridahomeownersunite.com
[email protected]
JohnC46 (South Carolina)
Posts: 14,265
Posted:
I have seen a BOD Meeting called to elect Officers directly after the Annual Meeting. I have also seen then wait until the next scheduled BOD Meeting. Either was not an issue unless someone is trying to pull a fast one.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By LeeH6 on 01/21/2017 8:00 AM
GinoS

Regardless of what F.S. 720.303 cites, there is little you can do about any violation of the statues. That is, unless you are prepared to hire an attorney and pursue the matter in civil court. The 720 statutes are unregulated and unenforced.


That would be incorrect because they are "enforced" in a Court of Law. If an owner sues the Court would tell the HOA that the State Law is supreme unless it defers to the CCR's. Those HOA's who may still have older documents containing items which may now violate State Laws or errors in the contract, those sections are void and no longer enforceable and do not negate rest of the contract.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By JohnC46 on 01/21/2017 9:46 AM
I have seen a BOD Meeting called to elect Officers directly after the Annual Meeting. I have also seen then wait until the next scheduled BOD Meeting. Either was not an issue unless someone is trying to pull a fast one.


I agree the election where membership elects the directors can be held anywhere the documents designate. My concern is what the OP is "alluding" to with regards to the election:

Quote:
Posted By GenoS on 01/20/2017 3:15 PM
While our bylaws state, "Executive Officers shall be elected by the membership at the annual membership meeting," the Articles of Incorporation take precedence in the hierarchy of governing documents, and that document says, "Said officers shall be elected by the Board of Directors annually at its meeting following the annual meeting of the members."


I am looking for clarification on how they handle their election for their BOD.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
In many Articles of Incorporation it says So and So shall happen unless Corporation Bylaws say other. SC is riddled with that as SC believe in the Corporation controlling its destiny, not the state.

One example is SC says 10% of Owners form a Quorum unless the Corporation Bylaws say other.
GenoS (Florida)
Posts: 4,276
Posted:
This is exactly how we do it.

Quote:
Posted By JohnC46 on 01/21/2017 9:46 AM
I have seen a BOD Meeting called to elect Officers directly after the Annual Meeting. I have also seen then wait until the next scheduled BOD Meeting. Either was not an issue unless someone is trying to pull a fast one.

The members vote for directors at the annual meeting and right after that meeting ends there is a separate short board meeting where election of officers takes place. It's that meeting, where the executive officers are elected by the directors, that I was originally asking about.

We're working on some amendments to our documents and adding election procedures to the bylaws is a big goal. We're already aware of some unusual ballots and proxies that have been turned in for the board election next week and if the outcome is close we're going to be in a bad way if the losers file for arbitration for a disputed election. For example, the president gave an envelope she had received to the secretary that has obviously been opened and re-sealed with tape. A couple of other ballots have been mailed back with no identifying information anywhere at all on any of the envelopes except postmarks from out of state. We're not using a 2-envelope system, the sign-in and ballot sheets have four owners listed twice, the president is on the ballot for re-election and her husband is on the vote tally committee. Anyone voting in person must hand in a ballot before they'll be allowed to sign the sign-in sheet.

It's a real horror show waiting to happen. I can't wait.
JanetB2 (Colorado)
Posts: 4,219
Posted:
I would contend you MUST use two envelope system. Also I may have found possible answer to your original question:

720.306 Meetings of members; voting and election procedures; amendments.—

(8) PROXY VOTING.—

(b) If the governing documents permit voting by secret ballot by members who are not in attendance at a meeting of the members for the election of directors, such ballots must be placed in an inner envelope with no identifying markings and mailed or delivered to the association in an outer envelope bearing identifying information reflecting the name of the member, the lot or parcel for which the vote is being cast, and the signature of the lot or parcel owner casting that ballot. If the eligibility of the member to vote is confirmed and no other ballot has been submitted for that lot or parcel, the inner envelope shall be removed from the outer envelope bearing the identification information, placed with the ballots which were personally cast, and opened when the ballots are counted. If more than one ballot is submitted for a lot or parcel, the ballots for that lot or parcel shall be disqualified. Any vote by ballot received after the closing of the balloting may not be considered.

(9) ELECTIONS AND BOARD VACANCIES.—

(a) Elections of directors must be conducted in accordance with the procedures set forth in the governing documents of the association. Except as provided in paragraph (b), all members of the association are eligible to serve on the board of directors, and a member may nominate himself or herself as a candidate for the board at a meeting where the election is to be held; provided, however, that if the election process allows candidates to be nominated in advance of the meeting, the association is not required to allow nominations at the meeting. An election is not required unless more candidates are nominated than vacancies exist. Except as otherwise provided in the governing documents, boards of directors must be elected by a plurality of the votes cast by eligible voters. Any challenge to the election process must be commenced within 60 days after the election results are announced.

What is in your governing documents regarding nominating candidates?
GenoS (Florida)
Posts: 4,276
Posted:
In general, Janet, I would agree with your points. Those are all things we need to get into our bylaws.

The requirement for a double-envelope balloting system is predicated on, "If the governing documents permit voting by secret ballot by members who are not in attendance ...". Ours do not. The HOA has been doing its own thing for quite some time. Some years they use double envelopes and some years they don't.

As for nominating candiates for the board, our documents call for the use of a nominating committee. It functions more like a "candidate search committee". Otherwise there are no rules about nominations and we wing it. Anyone in good standing who wants to run for the board can do so. We don't allow nominations from the floor.

There's nothing in our documents regarding the election of officers except for one line in the Articles that says, "Said officers shall be elected by the Board of Directors annually at its meeting following the annual meeting of the members of the Association and may be removed or replaced at the pleasure of the Board of Directors."

Since members can nominate themselves for the board of directors, it makes sense that directors should be able to nominate themselves as officers. This isn't written down anywhere, though.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:

The requirement for a double-envelope balloting system is predicated on, "If the governing documents permit voting by secret ballot by members who are not in attendance ...". Ours do not. The HOA has been doing its own thing for quite some time. Some years they use double envelopes and some years they don't.

Then I am confused because you stated receiving ballots:

A couple of other ballots have been mailed back with no identifying information anywhere at all on any of the envelopes except postmarks from out of state.


Are those votes null and void?
GenoS (Florida)
Posts: 4,276
Posted:
That's just one example of how things here are off the rails at election time. Those envelopes should not be counted; they should be marked "Disregarded" and left unopened. If we were a condo association it would be against the law to count them. I think there's a good chance they will be counted anyway. In Florida FS 270 HOAs, elections have to be conducted in accordance with the governing documents. When the documents are silent, anything goes and that's the way it has gone here for 20+ years.

The vote-tally committee last night finally convinced the president's husband that it was improper for him to participate in the ballot counting. He relented only after an hour-long phone call and a big argument. Today, the president hand-delivered a list of "How to Count the Ballots" instructions to the head of the counting committee - all made up by her - along with a directive to keep it confidential and not tell anyone about it.

We have 100 lots and 32 new owners since the last election was held three years ago. I expect a lot of people will be asking questions after the meeting is over.
JanetB2 (Colorado)
Posts: 4,219
Posted:
I disagree with you ... when the documents are silent State Law prevails. Also, State Law prevails unless it defers to the documents. What I noted above is the FL State Law and what it states with regard to proxy voting for HOA's. Again, that Statute is for HOA's not condos. It is never good for a spouse to run for position and the other spouse be counting votes. It is good that is not taking place.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Posted By GenoS on 01/22/2017 5:39 PM
That's just one example of how things here are off the rails at election time. Those envelopes should not be counted; they should be marked "Disregarded" and left unopened. If we were a condo association it would be against the law to count them./div>
It is same for HOA. When a State Law says "must" that is pretty absolute. Words in statutes that are pretty much absolute are "Shall", "Must" and "Will" or the adverse would be "Shall Not", "Must Not", and "Will Not". If your governing documents allow Secrete Ballot (which apparently does if receiving ballots by mail), then that section of the FL laws is supposed to be followed as stated in the codes.
GenoS (Florida)
Posts: 4,276
Posted:
With regard to FS 720 HOA elections, the statutes defer to the governing documents (e.g. bylaws). Even FS 617, the statute covering "Corporations Not For Profit", which preceded FS 720, says, "If directors or officers are to be elected by members, the bylaws may provide that such elections may be conducted by mail." In that case, if the bylaws don't explicitly allow voting by mail then it is not allowed.

This entry at the FLORIDA CONDO & HOA LAW BLOG says the same thing.

"Unlike condominiums, where a uniform election procedure must be used by all associations ... HOA election procedures are primarily dictated by the bylaws."

It goes on to say that:

"While the statute permits HOA’s to use the “condo election procedure” for the election of directors, the procedure must be authorized in the governing documents. If it is not, the governing documents must be followed."

Our governing documents say nothing, so we're left with:

"... your association may be conducting its elections improperly if the absentee ballot procedure is not authorized in your community’s governing documents."

Clearly, it depends on the wording of both the statutes and the bylaws, but in the case of elections the rule for homeowners associations seems to be, "If it's not authorized and permitted in your governing documents, then you can't do it."
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By JanetB2 on 01/22/2017 6:09 PM

I disagree with you ... when the documents are silent State Law prevails. Also, State Law prevails unless it defers to the documents.

In my opinion, that is a very poor general statement.

When documents are silent, especially when dealing with contracts, the general agreement is that the intent was to exclude what is silent.

From Sarnir R. Farran, et al. v. Olde Belhaven Towne Owners Association Case No. CL-2009-11786 Case No. CL-2009-11786, A VA Supreme Court Decision (which is no longer available online for free that I could find)

Property owners associations and their members must abide by the corporation's governing documents. Virginia High Sch. League v. J. J. Kelly High
Sch., 254 Va. 528, 531, 493 S.E.2d 362, 364 (1997). The governing documents constitute a contract collectively entered into by all the owners in the association. White v. Boundary Ass'n, Inc., 271 Va. 50, 55, 624 S.E.2d 5, 8 (2006). As such, effect must be given to the intention of the parties. Foti v. Cook, 220 Va. 800, 805,263 S.E.2d 430, 433 (1980). Importantly, under the principle of expressio unius est exclusio alterius, the omission of a particular covenant or term from a contract reduced to writing shows an intent to exclude it. First Nat'l Bank v. Roy N. Ford Co., 219 Va. 942, 946, 252 S.E.2d 354, 357 (1979).

We all know that State law must be complied with but does not always prevail over governing documents even if they do not defer control.
When there is no conflict, the governing documents may typically be more restrictive then applicable statutes.

Secondly, I'm not really sure why we are on this tangent.

The issue the OP raised was about making a motion to nominate someone for an Officer position.
It was not about casting votes.
It was really not that big of an issue.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Tim:

That statement was in reference to a comment the OP made regarding a section of FL law and his documents we were discussing. That statement while general I contend would apply for the situation and discussion. As a FL Attorney notes:


http://soflcooperator.com/article/knowledge-is-power/full

As to which documents are more important, look to the statute, says Robbins. “Florida Statutes can affect an association's governing documents in three ways: (1) it may supersede the association's governing documents (such as instances where the association's governing documents provides for a higher threshold than allowed pursuant to statute); (2) it may fill in missing information within the governing documents (such as when the governing documents are silent as to a key provision that must be contained in the governing documents - such as thresholds for amendments); or (3) it may not affect the association's governing documents (such as instances where the statutes set minimum thresholds, but the association's governing documents permissively exceed such minimum thresholds),” he says.


The bold text is the point I was trying to make to the OP with regards to a statement the OP made himself that his documents were "silent" on elections and is how we ended up further on the subject. The OP also titled the thread "Election of Officers" and which we were discussing.
GenoS (Florida)
Posts: 4,276
Posted:
Just to wrap this up, we had our Annual Meeting last night. All potential problems between the election of directors and the subsequent election of officers were rendered moot when one of the board candidates withdrew their name from consideration at the start of the meeting. Thus, no election was necessary. The election of officers went smoothly. There were some hurt feelings but everyone was civil and behaved themselves in a professional manner. Not too many bridges burnt, which is a really good thing because the person you reject today may be someone you'd like to reconsider in future years.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Thanks for the update Geno.

Glad everything worked out.

Tim

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