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TomW (Utah)
Posts: 31
Posted:
Our HOA bylaws state that proxies may be used to gaurantee a forum at our annual meetings, and to authorize others to vote on their behalf on matters that may arise at the meeting.It also states that Trustees are to be elected by secret ballot. In our most recent HOA meeting, proxies were sent to the membership requesting that they be signed and returned to the existing Board president, who was running for re-election, or to the MC who manages our HOA. The 8 candidates were listed but nowhere did it state to vote for your choice to fill the 3 open positions. As a result, all of the proxies that were returned without a choice indicated were assigned to the 2 board members running for re-election and an individual who has never attended an HOA meeting. Our Board has been using this tatic for a number of years to keep re-electing themselves or their choice to fill vacancies. Is this legal?

EdR (Texas)
Posts: 170
Posted:
No Tom, it's not legal. We send out ballots with all names that we know are running for the board, after a deadline is given for letting the board know that you want to run, plus room for three write-ins. A member can give their ballot to someone to vote for them, but that doesn't usually happen. What happens is the directors like the ones you mention, take copies around and get those who don't usually mail theirs back, to give them their proxy and then they vote it with the members signature. In our assn. of 500, we only need 50 (10%) for a quorum to have an election, otherwise, the board has to stay the way it is and then we would have to have another election at a newly appointed time.

This is what I do know because our board did it last year--a SECRET [WRITTEN] BALLOT means it is to be opened at the election meeting and counted there. The reason this is so crucial is that--and this is what happened in our assn. (our board was acting like your board)--and needed to know ahead of time how many more votes they needed. The president had the MC open the ballots and count so that they knew how many more proxies to go obtain. THIS REALLY HAPPENED. I was on the board at the time and asked the MC agent in front of the entire audience where the ballots had been opened and instead of telling me the truth, he said they were opened here [at the clubhouse]. I asked to see the envelopes and because he was in collusion with the president, she told him that he didn't have to provide them to me, duh! They went into another room to count them--with a pre-arranged group of dissidents--and when they returned to the meeting room, the MC agent said, "oh, I lied, I just found out from my employees that we didn't open these ballots here". I think he went out to call his attorney, frankly. However, nothing was done about any of this. I complained in writing. This incident was left out of the Minutes of the Annual Meeting (also illegal).

You might mention to your assn's. insurance company that there might be illegal elections going on--isn't this what they think they are insuring against--wrongdoing? I'm sure they don't want to pay a claim!
Ed
RogerB (Colorado)
Posts: 5,067
Posted:
Tom it does not sound legal if I understand correctly. A proxy assigns another member (whomever is allowed) to vote on their behalf. If no one was assiged as the proxy as you inferred by "returned without a choice" then the proxy is not valid, needs to be rejected, and can not be counted towards a quorum nor voted.

If they were asking for a vote on the 8 candidates then it is a ballot rather than a proxy. If so, the ballot is improper unless it specially advises it is a ballot and gives instructions on voting, such as vote for no more than 3 candidates and only 1 vote per candidate is allowed. If it is a mail-in secret ballot then envelopes in which the ballot is enclosed must remain sealed until a talley committee counts them. I prefer allowing nominations from the floor at the annual meeting in which case the talley committee would not start their count until after voting at the meeting.

Roger
TomW (Utah)
Posts: 31
Posted:
RogerB,
To clarify the proxy/ballot that was sent to our membership, the instructions on the proxy were to sign and return it to the existing president or the MC. No instruction was given to vote for any of the candidates listed as running for election.
It is my opinion that a ballot,listing the candidates running for election, along with a means to add a write-in candidate, should be a separate item from the proxy. The ballots should then be sent to the Secretary in a sealed envelope,separate from the proxy, opened and counted at the annual meeting. This was not done at our last HOA meeting. In our case, the proxies and ballots were combined on the same document and returned to the board president or MC prior to the meeting, thus allowing the possibility for the existing Board and MC to arrange the votes as they please.
One suggestion in a prior reply was to contact our insurance carrier and inform them of these election procedures, since they may be at risk for a claim against the actions of the Board. Would you recommend this action?
RogerB (Colorado)
Posts: 5,067
Posted:
Tom, if your goal is to void the election and have a proper election then I would send a registered letter to the the the Board with a copy to the managing Agent. I would state the election was not properly conducted and list the reasons why. For example:
They apparently did not provide a proper proxy and thus may not have had a quorum. If so, no election could take place;
They apparently did not provide a proper ballot resulting in depriving members of the right to vote; and
They violated the requirements of a secret ballot.

Based on those reasons I would DEMAND the election be voided (and the entire meeting if there was not a quorum) and another election held. In the letter I would suggest proper procedures to follow and offer to be on the Teller committee if not a Candidate.

That's my way,
RogerB
RogerB (Colorado)
Posts: 5,067
Posted:
Tom, Boards will try to ignore a request for a new election. So you could add the following incentive:

I know the Board wants to conduct meetings in a proper manner and wants to comply with our HOA documents and the state statues including the non-profit corporation act (if incorporated). Otherwise you would not be doing your fiduciary duty.

I respectfully request prompt consideration and if you can not respond within XX days please let me know the date by which I can expect to receive your decision. Otherwise, a copy of this letter will be forwarded to the State Attorney General's office and Secretary of State (if incorporated).

Sometimes hammering the point home gets action

RogerB
EdR (Texas)
Posts: 170
Posted:
Tom:
Do you mind if I ask the State in which you live, or are referring to where your HOA is located?
TomW (Utah)
Posts: 31
Posted:
The state is Utah.

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