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GileaH2 (California)
Posts: 38
Posted:
I currently sit on the BOD's in California, our HOA is 200+ units. Is there any Civil code or law that requires us to adjourn our annual meeting and continue to solicit ballots for elections? Our annual meeting is next week and as of today we have received "Zero" ballots. Our Management company is insisting we are required by law to do so. For the past 8 years we have not had a board member elected by ballot even with a reduced quorum. I see no need to waste time and money with adjourning the annual meeting. Again, is there any law which requires us to do so?
RichardP13 (California)
Posts: 3,868
Posted:
Section D would cover the legality of adjournment of meetings.

Corporations Code ยง7512. Member Meeting Quorum.

(a) One-third of the voting power, represented in person or by proxy, shall constitute a quorum at a meeting of members, but, subject to subdivisions (b) and (c), a bylaw may set a different quorum. Any bylaw amendment to increase the quorum may be adopted only by approval of the members (Section 5034). If a quorum is present, the affirmative vote of the majority of the voting power represented at the meeting, entitled to vote, and voting on any matter shall be the act of the members unless the vote of a greater number or voting by classes is required by this part or the articles or bylaws.

(b) Where a bylaw authorizes a corporation to conduct a meeting with a quorum of less than one-third of the voting power, then the only matters that may be voted upon at any regular meeting actually attended, in person or by proxy, by less than one-third of the voting power are matters notice of the general nature of which was given, pursuant to the first sentence of subdivision (a) of Section 7511.

(c) Subject to subdivision (b), the members present at a duly called or held meeting at which a quorum is present may continue to transact business until adjournment notwithstanding the withdrawal of enough members to leave less than a quorum, if any action taken (other than adjournment) is approved by at least a majority of the members required to constitute a quorum or, if required by this division, or by the articles or the bylaws, the vote of the greater number or voting by classes.

(d) In the absence of a quorum, any meeting of members may be adjourned from time to time by the vote of a majority of the votes represented either in person or by proxy, but no other business may be transacted, except as provided in subdivision (c).

The proper procedure would be for the presiding officer to make a motion to adjourn the meeting to a specified date, no less than 10 days and no more than 30 days, at which time the quorum would be reduced to the percentage stated in your Bylaws. It would be up to the members present in person or holding proxies to make that determination.

I pretty much know why things happened the way they did in the past, but there is a law that allows for an adjournment. I am more concerned that "zero" ballots have been received. It may be that you have a high number of rentals.

KerryL1 (California)
Posts: 14,550
Posted:
I'm baffled by zero ballots received too, Gilea. Didn't you vote either?

In CA HOAs, owners may vote absentee by mail and their vote counts toward quorum. And even though we're about 30% rentals in our 200+ condos, landlords vote just as often as owner occupants in our HOA. About 12% of our owners are part-time occupants.

Since absentee ballots became OK in CA in '06, no one in my HOA votes by proxy anymore, and maybe 30 people attend our annual meetings basically to socialize and enjoy the wine & appetizers we offer to entice turnout. Quorum is about 56 and we usually receive 90 ballots.

What ballot materials do you send by US mail before your annual meeting, Gilea?

We always set an adjournment date well before the annual meetings and it's among the info that is mailed out in our ballot package.
GileaH2 (California)
Posts: 38
Posted:
Correct, I did not send in my ballot as I saw no reason to do so. We have not had a member elected to the BOD's for the past 8+ years even with a reduced quorum. Our rental rate is extremely high hence the member non-participation. We are at about 70% rental. I am aware of the legal steps in adjourning the meeting. Our Management company, however, is insisting the law says we are "required" to adjourn the annual meeting and continue to solicit ballots. Is this correct? I have debated with them that it is a waster of time, money and energy and there is no such Civil Code or case law which requires us to do so.
RichardP13 (California)
Posts: 3,868
Posted:
The presiding officer is supposed to make a motion to adjourn where quorum would then be reduced to 33%. It is up to the members present to make the decision to adjourn to a new meeting with the prospect of a reduced quorum. IT IS not proper to set a time and place for a adjourned meeting and send in an election package as it is the Member's decision, not the Board or the Inspectors.

This is a scenario that happened to me last April.

I was the inspector of elections for an association holding their annual meeting. A Board member asked me how many ballots had been returned and what the procedure would be for a presiding officer conducting the meeting. I told them the same as I have posted, the presiding officer makes a motion, and someone seconds the motion to adjourn and the Members PRESENT decide whether to go to a later date. A majority of those present determine how to move forward.

Date of meeting, polls were closed at 6:15 PM. There were 16 Members present at the meeting. They were one ballot short. At 6:30 PM, the presiding officer made a motion, it was seconded and by a hand vote, 10 voted not to adjourn and 6 voted to adjourn. Ballots were not opened and the Board remained the same. The two non directors running as you can imagine were not happy, but the rules were properly followed. At 6:45 PM one new vote was returned, but the polls had closed and the vote to adjourn had been taken.

If voting for President of the United States, if you are not in line by 8:00 PM, you don't get to vote.
RichardP13 (California)
Posts: 3,868
Posted:
Quote:
Posted By GileaH2 on 08/22/2018 1:51 PM
Correct, I did not send in my ballot as I saw no reason to do so. We have not had a member elected to the BOD's for the past 8+ years even with a reduced quorum. Our rental rate is extremely high hence the member non-participation. We are at about 70% rental. I am aware of the legal steps in adjourning the meeting. Our Management company, however, is insisting the law says we are "required" to adjourn the annual meeting and continue to solicit ballots. Is this correct? I have debated with them that it is a waster of time, money and energy and there is no such Civil Code or case law which requires us to do so.

You're required by your Bylaws to allow the Members present at the meeting to make that decision.
RichardP13 (California)
Posts: 3,868
Posted:
I'm curious, how did the new Board come about?
GileaH2 (California)
Posts: 38
Posted:
Thank you RichardP13, extremely helpful. After years of constantly questioning the financials and discovery of HOA dues being deposited into an account that did not belong to the Association "Commingling" board members started to resign and these seats were filled by a vote of the remaining Board. Eventually a new Board was born. It was a long battle ( 3 years) one that has probably shorten my life span by 10 years. I thank you for the insight you had provided us in the past.
GileaH2 (California)
Posts: 38
Posted:
KerryL1, I am curious how you set an adjournment date before the annual meeting? Doesn't sound correct.
RichardP13 (California)
Posts: 3,868
Posted:
I am hopeful things have turned around for you guys there.
KerryL1 (California)
Posts: 14,550
Posted:
We use a Consent Calendar in our July Open Meeting to cover every possibility for the annual election. It includes an adjournment date that works for directors and management. IF we ever had to set such a date, the presider would ask those owners present if xx/xx/xxxx is acceptable. If not, we'd all drag out our calendars and find a date that is acceptable. Have never thought about it as not an issue here.

I still wonder, Gilea, what does your HOA send out with the ballots.

From what I can tell at Davis-stirling.com, Elections, adjournments are not required. Ask your PM to show you where something says they ARE required.
RichardP13 (California)
Posts: 3,868
Posted:
Quote:
Posted By KerryL1 on 08/22/2018 3:20 PM
From what I can tell at Davis-stirling.com, Elections, adjournments are not required. Ask your PM to show you where something says they ARE required.

It is in their Bylaws, and allowed under Civil Code.
KerryL1 (California)
Posts: 14,550
Posted:
I don't think "allowed" and "required" mean the same thing.
RichardP13 (California)
Posts: 3,868
Posted:
Quote:
Posted By KerryL1 on 08/22/2018 4:11 PM
I don't think "allowed" and "required" mean the same thing.

You're right, they don't. And transparency means absolutely nothing either.
GileaH2 (California)
Posts: 38
Posted:
RichardP13, I hate to keep pushing this question. I don't know if it's me or the wording of our CC&R's. (Article 3.11) "Lack 0f Quorum" says "If at any meeting a quorum is not present, a majority of members present and entitled to vote "MAY" adjourn the meeting..". Then we have (Article 3.13) 'Adjournment of Meetings" "Any member's meeting, annual or special, whether or not a quorum is present, may be adjourned from time to time..." it goes on to say. " In the absence of a quorum, no business may be transacted except to adjourn the meeting to another date". Can you make heads or tails of this? I apologize for my ignorance.
RichardP13 (California)
Posts: 3,868
Posted:
Not a problem.

There is a different between "may" and "shall". If the Bylaws state you "shall" adjourn if quorum is not reached, then there is no vote, just set another date and move forward.

"May" means the Members at that meeting have a "choice". The presiding officer has a duty to put the motion to the Members if quorum had not been reached.The Members then have a vote to either adjourn to a later date, at which time quorum would be reduced and the possibly that ballots, if enough already on hand, would be counted. They could also say no, and that is what happened at a recent elected I was involved with. It wasn't fair, but done properly.

Someone said that allowed and required are not the same thing. This happened at my last meeting. 97 homes and 48 ballots returned prior to poll closing. 1 short at time of poll closing. If the presiding hadn't made the motion to adjourn I would have raised hell. This happened to me in my old association and we went on the re-write the Bylaws, fire the MC and the legal counsel. This same thing happened in your association in 2012.

Section 3.13 means if you don't have quorum, the Members can't take any action. You can have a three hours open forum chit chat, but no business can be transacted and if you did have quorum, only items that were on the agenda could have action taken on them. The same procedure for adjourning a meeting in Section 3.11 would apply here.

BTW.. Did you ever get the disk I mailed out with your records?
KerryL1 (California)
Posts: 14,550
Posted:
I agree with Richard, Gilea. Both say the members present may choose to adjourn to a later date, or not. One goes on to remind you that no biz can be conducted without a quorum except setting an adjournment date.

As noted above, have your MC SHOW YOU "the law" that says an adjournment date is required.
JenniferG11 (Texas)
Posts: 667
Posted:
Quote:
" In the absence of a quorum, no business may be transacted except to adjourn the meeting to another date". Can you make heads or tails of this? I apologize for my ignorance.

And what does it say after that? I ask because in our by-laws, it says we have to adjourn if there is no quorum (30% for us), re-schedule, notify everyone, and the second try, whoever participates constitutes a quorum.

Some could argue that is a waste of time and money (mail-outs), but it's what the by-laws require.
GileaH2 (California)
Posts: 38
Posted:
. I imagine any point can be argued in a court of law, but at what expense?

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