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JeanS1 (California)
Posts: 23
Posted:
Does your association do business via e-mail?

Our board and our agent from the management company are having a discussion re doing business via e-mail . Some of the board feels that it is legal and I think that it isn't. I read that the only way one could conduct business is a telephone conference call with all members of the board involved. And, one of the members of the board doesn't have e-mail.

For example we are discussing have a water test done as one of the units has a water leak, even though it hasn't been raining.
1) Do we need to inform the member who doesn't have e-mail about the discussions that are taking place online?
2) Are we taking action without a meeting and without the unanimous consent of the board?
3) Can we do business via e-mail that has been voted on by the board at a regular meeting?
4) What happens if the person who doesn't have e-mail misses a meeting?

I have been delivering messages about the business to him (his position on the board is member-at-large) ,either by phone or personally.

What is the policy of your board of directors?

Jean in Encino
GloriaM (North Carolina)
Posts: 829
Posted:
Jean:

Many laws are old and outdated and when they were made we didn't have PC's so readily available so emails aren't a part of many laws, unless they have been updated or recently enacted.

Emailing is the way of doing business in our world today. However I agree that some topics should wait for the monthly meeting so everyone can voice their opinions.

However in many cases, if the email is recorded correctly and is not against your state laws, I feel that emailing is a "real" time answer to getting things done in our fast paced world. Therefore IMO there are some circumstances that should be allowed to be decided on via email.
RaymondC (Minnesota)
Posts: 64
Posted:
A good bit of a board's work is simply executing actions which were are already established in the governing documents or have been the subject of prior votes. These are far more effectively dealt with by email.

Even where a vote must be taken on an issue, prior discussion and exchange of information can shorten the path to a decsion which is finally taken at a public meeting.

Remember, no email is secret. They can be produced to court order when needed. In fact, they leave an excellent background to various board actions. Far better documented than by meeting minutes.
CharlesW1 (Georgia)
Posts: 826
Posted:
JeanS1

I agree with GloriaM post. Back some 25 years ago, email didn’t even exist, let alone computers. Therefore “tele conferencing” was also permitted (in the governing documents) Certainly a way of communicating, even now a days, although rather primitive, IMO.

I personally feel that a “vote” via email is adequate among board decisions, thus preventing any delays when performing HOA business.

Our board discusses HOA business via email throughout the day on a regular basis. There is just so much that needs our immediate attention, the majority of HOA business can not wait to the end of the month. It is in the best interest of our community to resolve ASAP.

RaymondC makes a very valid point, that emails can be surrendered as evidence in a court of law, therefore emails are essentially better than the majority of minutes taken at any given monthly meeting.

I wish you all the best.

Chuck W.

BTW- How many board members do you have?


Charles E. Wafer Jr.
ChrisB4 (West Virginia)
Posts: 175
Posted:
This is what my state says about the subject. Keep in mind that this is the West Virgina Code, CHAPTER 31E. WEST VIRGINIA NONPROFIT CORPORATION ACT. There is also another section that deals with HOA's called the CHAPTER 36B. UNIFORM COMMON INTEREST OWNERSHIP ACT.

Under section 31E it says:

§31E-7-704. Action without meeting; validity of actions at meetings not properly called.

(a) Any action which, under any provision of this chapter, may be taken at a meeting of members may be taken without a meeting if one or more members consents in writing, setting forth the action taken or to be taken, signed by all of the persons who would be entitled to vote upon the action at a meeting, or by their duly authorized attorneys which action for purposes of this subsection is to be referred to as "unanimous written consent". The secretary shall file the consent or consents, or certify the tabulation of the consents and file the articles, with the minutes of the meetings of the members. A unanimous written consent must have the same force and effect as a vote of the members at a meeting duly held, and may be stated as having the same force and effect as a vote of the members in any articles or document filed under this chapter.
(b) Where directors or officers are to be elected by members or any other action is to be voted upon by members, the articles of incorporation or bylaws may provide that the elections may be conducted and the actions voted upon by mail or electronic means in a manner provided in the articles of incorporation or bylaws. The vote of members, or of the members of any particular class, is to be determined from the total number of members who actually vote by mail, rather than from the total number of members entitled to vote, unless the articles of incorporation otherwise provide. A ballot signed under this section has the same force and effect as a vote of the member who signed it at a meeting duly held, and may be stated as having the same force and effect in any certificate or document filed under this chapter.
(c) If not otherwise fixed under section seven hundred three or seven hundred seven of this article, the record date for determining members entitled to take action without a meeting is the date the first member signs the consent or ballot under subsection (a) or (b) of this section.
(d) The absence from the minutes of any indication that a member objected to holding the meeting prima facie establishes that no objection was made.

My interpretation is that if the Board wishes to take up items outside a Board meeting they must do this by unanimous written consent (I pretty sure e-mail won't count). I believe that any motions made outside a duly called meeting should be read at your next public board meeting.

Does this mean it applies to you? No, does it mean that there are laws in some states that address your question? Absolutely!

Remember if your By-Laws are anything like mine, they are inadequate to deal with issues like this. You have to find some authority to which to base your claims of impropriety. What I'm finding in my struggle to "fix" my HOA is there is very little authority outside the communities governing documents that you can establish any type of authority. You must organize your members and take your community back.
JackieB (California)
Posts: 198
Posted:
I agree with both of you. It cuts to the chase and keeps members informed.
Much less frustration and super input.
Jackie
JaneK (California)
Posts: 175
Posted:
California law is pretty similar to that quoted above. Check CA Corp. Code §7211(b) and CA Civil Code 1363.05
Jane
KathyS (California)
Posts: 145
Posted:
Here is a past post on Beth Grimm's website. She is a California attorney.

http://www.californiacondoguru.com/FYI/fyiframe.html

USE OF EMAIL - Watch Out For the Pitfalls

How many of you think about where your e-mail goes, where it is stored, and what kind of damage it might do,... before you press the "send" button?

Undesired Distribution of Messages NOT "Meant" to be shared or Use of Email To Controvert Regulations and Laws:

Believe it or not, there are some more or less unwritten "rules" relating to the use of the internet (email). It seems people forget the "rules" with the ease of the simple act of typing a message, and pushing "send". The hassle of the telephone and voicemail "tag" is gone. The accountability of face-to-face communication is out the window. Inhibitions that might otherwise exist seem to dissolve. People often act differently, more bold, and less "reasoned" when communicating by email. It is important to understand that use of email for association purposes can be easily abused, in light of existing laws regulating communications among board members and meetings requirements. Here are some of those: 1363.05 (b) requires open meetings except for specified issues entitled to executive consideration, 1363.05 (d) requires minutes of any meeting to be made available to the members, 1363.05 (f) considers 'meetings' to include any congregation of a majority of the members of the board at the same time and place to "hear, discuss, or deliberate upon any item of business scheduled to be heard by the board, except those matters that may be discussed in executive session." These rules do apply!

Possible Unlawful Meetings: If board members are discussing any business of the association via email, and especially if they end up together through instant messaging or otherwise, that could constitute a "meeting" under the statute. Legal meeting requirements would apply. If decisions are made outside meetings via email "polling" - that conflicts with legislation requiring access by members to meetings where open discussions should be held, and could be challenged. (Telephone "polling" was one concern by legislators who expressed a necessity for open meetings rules so that "behind the door" decision-making would be eliminated except as to specific subject matter).

Lack of Consideration: Using e-mail or sending a message on the Internet is not like using the telephone. On a telephone call, there is someone on the other end that has the ability to respond or to challenge what you say. When using e-mail, it's not like having a face-to-face dialogue. There is no one on the other end that can contradict you, challenge, or punch you in the nose. When using e-mail, it is not like pounding away on a "vent letter," sticking it in an envelope, and having a "cooling off period" between the time you seal the envelope and mail it. You can pull it back before you stick it in the mail. It is virtually unretrievable once sent. This can be a problem. It seems that some people find great satisfaction in "venting" via e-mail. Personalities often change. I find that people tend to be more aggressive, more careless, more pointed, more emotional, more condescending and less thoughtful, less careful, less amiable, and less aware of protocol. Given the "trail" of the message, this can lead to claims by owners of unfair treatment, lack of due process, and even discrimination if email is used to disparage people.

Lack of Security/Legal Protections: Other concerns involve security and "discovery" of messages sent by email. You may think you have "erased" damaging information from your computer but copies of e-mail messages may end up stored on mail servers that have general access to all material to check for unauthorized access and monitoring purposes. Because of this access and storage capability, discovery of the information for litigation purposes is considered by some to be guaranteed for all except encrypted messages. Client e-mail protection and security for homeowner associations communications (board and/or attorney) is as yet untested in the courts but it is possible that a fact finder could conclude that there is no reasonable expectation of confidentiality of unencrypted e-mail messages.

The "test" if an attorney-client privileged communication or confidential communication is sent over the Internet, if such communications are demanded in a discovery order, probably comes from a 1947 case where Judge Learned Hand was examining the question of whether failure to use available technology could subject a person or business to liability of that failure causes injury to others. The case was U.S. vs. Carroll Towing (1947) 159 F.2d 169. The facts in this case were that a barge broke away from its mooring and sank, causing losses. The court determined that because the barge company failed to use readily available protective resources (a bargee or attendant), the barge owner was liable for the losses. From this case came a "test" that certainly could be used to test failure to use available technology to protect confidentiality e-mail messages. That test of whether an owner/business' (or association board's or board members in this case) duties to protect against injuries involves three variables: 1) The probability of the event (barge breaking away in older case) 2) The gravity of resulting injuries (if the barge does break away in older case) and 3) The burden of adequate precautions (cost of adding available protections)

In our world of email use, there are protections available (encrypted email, confidential statements, etc.). This case suggests that in our scenario, there is risk in dealing with any sensitive information via email, without taking precautions to protect it.

Perhaps the most important message of this article is that Associations need to be aware of the pitfalls and implement "Use of Email" policies to assure adequate protections are in place.

Beware of the pitfalls you may suffer through the ease and seeming simplicity of email communications - they may be very large!

http://www.communityassociations.net/cacondoguru/archives/2006/12/

December 12, 2006

What To Do If Board Meets In Secret

An email I received recently claims that the Board of the Association meets "in secret" in one of the Board Members homes and the sender wanted to know if this was illegal and what he could do about it. That is not really an uncommon complaint and it may or may not be a problem. If the Board holds all of the meetings in a Board Member's home, that is not necessarily a problem, especially when there is no clubhouse. However, if all of the meetings are in a Board Member's home, and homeowners are not notified of any of the meeting dates and times, or allowed to come, then there is a problem. There are only a few subjects that entitle a Board to meet "in secret". In California, those subjects are basically related to discussions of threats of or pending lawsuits, with or without legal counsel present, contract negotiations, personnel matters, and disciplinary matters. These subjects are considered appropriate for "executive sessions" (which are essentially the same as a "secret" meeting when homeowners are not invited to attend). In addition, holding an executive with the association counsel to discuss attorney-client privileged matters of a legal nature are appropriate. All other board meetings must me disclosed, and owners have a right to at least 4 days' notice, either by mail, posting in the common area, newsletter, provisions in bylaws, etc.

So what happens if a Board is not complying with these requirements? The requirements are found in Civil Code Section 1363.05 which is part of the Davis Stirling Common Interest Development Open Meetings Act (which is similar but not exactly the same) to "the Brown Act" which relates to public meetings. If a Board violates the provisions of Civil Code Section 1363.05, then 1363.09 provides a remedy to owners. It says, in pertinent part:

"1363.09. REMEDIES. (Operative July 1, 2006.)

(a) A member of an association may bring a civil action for declaratory or equitable relief for a violation of this article by an association of which he or she is a member, including, but not limited to, injunctive relief, restitution, or a combination thereof, within one year of the date the cause of action accrues. Upon a finding that the election procedures of this article, or the adoption of and adherence to rules provided by Article 4 (commencing with Section 1357.100) of Chapter 2, were not followed, a court may void any results of the election.

(b) A member who prevails in a civil action to enforce his or her rights pursuant to this article shall be entitled to reasonable attorney's fees and court costs, and the court may impose a civil penalty of up to five hundred dollars ($500) for each violation, except that each identical violation shall be subject to only one penalty if the violation affects each member of the association equally. A prevailing association shall not recover any costs, unless the court finds the action to be frivolous, unreasonable, or without foundation.

(c) A cause of action under Section 1363.03 with respect to access to association resources by a candidate or member advocating a point of view, the receipt of a ballot by a member, or the counting, tabulation, or reporting of, or access to, ballots for inspection and review after tabulation may be brought in small claims court if the amount of the demand does not exceed the jurisdiction of that court."

As you can see, there are some remedies that could apply to a violation of the meetings act and also the new elections laws. It's best to comply, of course. If an Board has extenuating circumstances that lead it to believe it can have closed meetings, it should seek the opinion of a knowledgeable attorney. There are some circumstances that would suggest seeking court approval of alternative meeting structures to deal with disruptions or other potentially serious problems.

JaneK (California)
Posts: 175
Posted:
I found this article about email VERY intereting.
http://www.condomagazines.com/Fast,-Convenient-and-Possibly-Dangerous~116710~13234.htm
Jane
SusanW1 (Michigan)
Posts: 5,202
Posted:
Unless it is in the bylaws, Boards cannot do "business" by phone, FAX, email or any other kind of electronic devices. Amend your bylaws to allow the board these options, if your really need to. Decisions will have to be ratified at a member-attended Board meeting, anyway.
DonN (Michigan)
Posts: 357
Posted:
This subject has been covered several times before. I suggest a search of HOA Talk with the phrases "unanimous consent" "action without a meeting".

Because of the potential for abuse, I believe most state laws provide language equivalent to that described by ChrisB4 for West Virginia.

Large boards with members dispersed over large distances may find Actions without a Meeting to be necessary. But because of no discussion, the requirement is usually Unanimous Consent.

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