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JohnC73 (Massachusetts)
Posts: 344
Posted:

Who is responsible for verifying signatures on a petition? As a former Secretary of our association I believe this is the responsibility of the Secretary and the BOD should not be involved. I performed this function as Secretary and will admit there was not much of a verification process and most signatures were accepted at face value unless the person signing wasn't an ownerr.

A little more background. I created an e-signature process using a subscription service to expidite the process of gathering petition signatures. The process has a two-factor authentication method and the signatures can't be forged. Without getting into to many specifics on the process, it is secure.

The BOD and not the Secretary is telling a few petitioners that the e-signatures can not be validated and their petitions are invalid. Very convienent since 2 of the petitions are to address some unethical practices of the BOD. One of these practices involved contacting owners that signed a petition and asking them why? This seems like voter intimidation and caused many to shy away from signing other petitions.

Do any other folks use E-signature? And should the BOD be involved in the process of verifying signatures?

Thanks
John Cummings
TimB4 (Tennessee)
Posts: 21,059
Posted:
Corporations are not required to accept electronic signatures.

Pen and Ink or faxed signatures are typically the accepted style for verification.

Are Electronic Signatures Valid? from a law blog
AugustinD
Posts: 15
Posted:
Quote:
Posted By JohnC73 on 07/24/2022 5:12 AM
The BOD and not the Secretary is telling a few petitioners that the e-signatures can not be validated and their petitions are invalid.
So far, I think it's likely that the following Massachusetts statute section applies:

Section 7. (a) A record or signature may not be denied legal effect or enforceability solely because it is in electronic form.

(b) A contract may not be denied legal effect or enforceability solely because an electronic record was used in its formation.

(c) If a law requires a record to be in writing, an electronic record satisfies the law.

(d) If a law requires a signature, an electronic signature satisfies the law.


See
https://malegislature.gov/laws/generallaws/parti/titlexv/chapter110g/section7
and
https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXV/Chapter110G (read the sections on where this statute section applies)

I would share this with the board and suggest the directors get the HOA/COA attorney's opinion.

TimB4's link appears to me to apply to Florida HOAs/COAs.
TimB4 (Tennessee)
Posts: 21,059
Posted:
I law does not apply unilaterally.

See: Section 3: Application of chapter; transactions governed by other laws

To my understanding the OP is in an HOA. MA does not have an HOA law (they do have condo laws).
This leaves corporate law. I did not find anything about recalling directors in the corporate code (but I may have missed it).

Hence, I don't believe that the statute on electronic signatures apply.
SheliaH (Indiana)
Posts: 6,964
Posted:
Why wouldn't the board be involved in verifying the signatures - that doesn't make sense. What if the secretary is the subject of a recall petition - do you really want him or her to validate signature on a petition that wants her/him out?

As for this e-signature verification process you created, does the board have access so the current Secretary can verify signatures and is everyone trained on how to use it? It may have checked for signers who weren't members, but what about duplicate signatures? Can someone e else come in and doubled your work so nothing was missed (you may have set this up but that doesn't automatically make you any more trustworthy than someone else).

I'm sure your documents don't go much further than requiring petitions to call for special homeowner meetings because they were probably written at a time when we didn't have the internet, e-mail or e-signature ability. That's why I think it would be appropriate for the board to establish some policies and procedures to flesh out the process. Those rules shouldn't be so cumbersome to discourage homeowners from starting a petition or signing it.

You might start by doing some Googling on verifying e-signatures. I saw several that discussed things like reviewing a sample of signatures and then extrapolating that to the total number of signatures collected. I might also make the petition collectors partly responsible for verification - perhaps when the petition is presented, they could explain how they validated the e-signatures and provide verification of the same. That shouldn't stop the board from doing its own audit using another sample from the petition.

Eventually, the board could propose amending the documents to address e-signatures in general - amendments require homeowner approval, so everyone could consider if they want to use them, how to protect against fraud and continue to have options for using paper and ink, especially if someone doesn't have email or internet access.


If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
JohnC73 (Massachusetts)
Posts: 344
Posted:
Thanks for the responses.

I failed to mention that the HOA is a vacation association in New Hampsire. I live in Mass. Most owners are not there at all times, so the only way they can participate in our democracy is to be able to e-sign.

I also failed to mention that we recently held a Special Meeting based on 100% e-signatures on the petition. Seems like the precedent to accept e-signtures has occured because of the acceptance of the e-signatures for the Special meeting. The BOD fought this special meeting and I assume the association told the BOD that the signature are legal and the meeting was held.

Our by-laws state that the deadline to accept petitions is today, the 4th Sunday in July. I submitted the petitions 1 week ago with the anticipation that the association president would try to deny these signatures. I was notified today that they would not accept these signatures after they sat on them for 1 week. The BOD was also well aware that the e-signature drive was taking place. The president told me he would look the other way and ignore our by-law and give me a 7 day extension to collect these signatures in writing. Not sure, but don't think the president has the power to pick and choose which by-laws to ignore and enforce. The signatures are either valid or not, not extension in my mind.

I think the President is taking this stand to silence the owners as he recently also tried to deny "directed proxies". The process of signature verifcation is not complicated. We are talking 15 signatures and I supplied the email address associated with each signature. They could simply reach out to the owners to verify that they signed and the issue would be solved. Also, there is zero checking of physical/paper signature, so this e-signature is much more secure.

Thanks
John
AugustinD
Posts: 15
Posted:
Quote:
Posted By TimB4 on 07/24/2022 8:47 AM
I law does not apply unilaterally.

See: Section 3: Application of chapter; transactions governed by other laws

To my understanding the OP is in an HOA. MA does not have an HOA law (they do have condo laws).
This leaves corporate law. I did not find anything about recalling directors in the corporate code (but I may have missed it).

Hence, I don't believe that the statute on electronic signatures apply.
?

I read the Massachusetts statute section TimB4 linked above before my first post here. I do not see his logic. I think electronic signatures for a Massachusetts HOA or Condo are fine.

The OP has clarified he is in New Hampshire. It appears the OP does not have google on his computer. If he did, he would have found this: https://law.justia.com/codes/new-hampshire/2021/title-xxvii/title-294-e/section-294-e-7/ . Consequently I think electronic signatures as described in the OP are also lawful in New Hampshire.
TimB4 (Tennessee)
Posts: 21,059
Posted:
John,

The fact that they used e-signatures in the past hurts the boards position a lot.

You may need to have an attorney write a letter on your behalf (hence, showing potential intent of taking this further) that since the board accepted e-signatures in the past, there is no standing to deny the signatures for the basis of being electronic.

Probably cost you $300 or so to get one out quickly.
JohnC73 (Massachusetts)
Posts: 344
Posted:
Quote:
Posted By AugustinD on 07/24/2022 11:30 AM
Posted By TimB4 on 07/24/2022 8:47 AM
I law does not apply unilaterally.

See: Section 3: Application of chapter; transactions governed by other laws

To my understanding the OP is in an HOA. MA does not have an HOA law (they do have condo laws).
This leaves corporate law. I did not find anything about recalling directors in the corporate code (but I may have missed it).

Hence, I don't believe that the statute on electronic signatures apply.
?

I read the Massachusetts statute section TimB4 linked above before my first post here. I do not see his logic. I think electronic signatures for a Massachusetts HOA or Condo are fine.

The OP has clarified he is in New Hampshire. It appears the OP does not have google on his computer. If he did, he would have found this: https://law.justia.com/codes/new-hampshire/2021/title-xxvii/title-294-e/section-294-e-7/ . Consequently I think electronic signatures as described in the OP are also lawful in New Hampshire.

What is google - lol. Thanks for pointing out that article. I was really looking for other HOA's that used e-signatures and if they had issues. It was also a 2 part question with the second part being "who" verifies the signatures.

The article is great, but unfortunately the BOD is telling me that the new lawyer they have reviewing our documents says they don't have to accept e-signatures. The BOD is not willing to share the question to or the answer from the lawyer with me. I guess I have no other recourse than to consult an attorney.
JohnC73 (Massachusetts)
Posts: 344
Posted:
Quote:
Posted By TimB4 on 07/24/2022 1:28 PM
John,

The fact that they used e-signatures in the past hurts the boards position a lot.

You may need to have an attorney write a letter on your behalf (hence, showing potential intent of taking this further) that since the board accepted e-signatures in the past, there is no standing to deny the signatures for the basis of being electronic.

Probably cost you $300 or so to get one out quickly.

Thanks Tim!

That is the plan myself and a few other owner are going to follow.
AugustinD
Posts: 15
Posted:
Quote:
Posted By JohnC73 on 07/24/2022 3:13 PM

What is google - lol. Thanks for pointing out that article. I was really looking for other HOA's that used e-signatures and if they had issues. It was also a 2 part question with the second part being "who" verifies the signatures.

The article is great,
It's not an article. It's a New Hampshire statute section.

Many boards have attorney-prostitutes who will defend any position the board wishes to take.

You can lawyer up but unless you want to spend a lot of money, with no guarantee, forget about doing so.

Also trying to get an obtuse board to behave, using their very own attorney-prostitute paid for by you and the other owners, is no fun.

It's cheapest to try to change the board at the next annual election. Though the question will remain whether any of you owners is truly better qualified than the current board.

JohnC73 (Massachusetts)
Posts: 344
Posted:
Quote:
Posted By AugustinD on 07/24/2022 3:29 PM
Posted By JohnC73 on 07/24/2022 3:13 PM

What is google - lol. Thanks for pointing out that article. I was really looking for other HOA's that used e-signatures and if they had issues. It was also a 2 part question with the second part being "who" verifies the signatures.

The article is great,
It's not an article. It's a New Hampshire statute section.

Many boards have attorney-prostitutes who will defend any position the board wishes to take.

You can lawyer up but unless you want to spend a lot of money, with no guarantee, forget about doing so.

Also trying to get an obtuse board to behave, using their very own attorney-prostitute paid for by you and the other owners, is no fun.

It's cheapest to try to change the board at the next annual election. Though the question will remain whether any of you owners is truly better qualified than the current board.


Thanks, I think you nailed it with the attorney-prostitute analogy.

As far as someone running for the BOD goes. I'm running for the BOD and the election is in 3 months. I've been the association secretary and also the IT committee lead with a 35 year career in IT. I designed and implemented the e-signature web interface and it is secure. I designed this as a tool for the owners and not a weapon for the BOD.

Am I more qualified than others running, maybe, maybe not, we shall see how the owners feel. I would really prefer to remain in my role as IT lead and bring some of our processes into the 21st century, but that ship has sailed without me getting on the BOD.

We will fight this to a point legally but as you say that could get expensive.

Thanks for the feedback

John
AugustinD
Posts: 15
Posted:
Quote:
Posted By JohnC73 on 07/24/2022 3:45 PM
As far as someone running for the BOD goes. I'm running for the BOD and the election is in 3 months. I've been the association secretary and also the IT committee lead with a 35 year career in IT. I designed and implemented the e-signature web interface and it is secure. I designed this as a tool for the owners and not a weapon for the BOD.
Right. The bastards.
MaxB4
Posts: 3,513
Posted:
If people here would refer to the Board Members Toolkit, I have it on my website, but we can't share that, can we, you can turn to the section labeled "The Role of the Secretary"

Here are some passages:

ANNOUNCE MEETINGS AND PREPARE AGENDAS
Notifying board members and association members of meetings is required by law. How and when notice is given is typically stat¬ed in the association’s governing documents.
Agendas are essential to the success not only of the meeting, but of the association as well.

WITNESS AND VERIFY SIGNATURES
Many associations have policies to safeguard assets that require two signatures on checks or a witness to verify signatures. Generally this responsibility falls to the secretary.

MAINTAIN LISTS
The secretary is responsible for maintaining lists of all association board and committee members, officers, and members, their current mailing address, and voting percentages.

VERIFY PROXIES
The secretary accepts and verifies proxies for annual or special membership meetings, and ensures that proxies and ballots are kept in the association’s records.

FILE FORMS WITH STATE AGENCIES
The secretary is responsible for filing certain forms with state
agencies. These might include employment forms, incorporation documents, and other official records of the association.

MANAGE CORRESPONDENCE
--Route correspondence to appropriate association representatives—manager, office, board member, committee chair, etc.
--Ensure that tone, form, and spelling of all association correspondence reflect positively on the association.

Personally, I don't believe in the use of e-signatures for association business, such as elections or petitions.
JohnC73 (Massachusetts)
Posts: 344
Posted:
Quote:
Posted By MaxB4 on 07/24/2022 6:34 PM
If people here would refer to the Board Members Toolkit, I have it on my website, but we can't share that, can we, you can turn to the section labeled "The Role of the Secretary"

Here are some passages:

ANNOUNCE MEETINGS AND PREPARE AGENDAS
Notifying board members and association members of meetings is required by law. How and when notice is given is typically stat¬ed in the association’s governing documents.
Agendas are essential to the success not only of the meeting, but of the association as well.

WITNESS AND VERIFY SIGNATURES
Many associations have policies to safeguard assets that require two signatures on checks or a witness to verify signatures. Generally this responsibility falls to the secretary.

MAINTAIN LISTS
The secretary is responsible for maintaining lists of all association board and committee members, officers, and members, their current mailing address, and voting percentages.

VERIFY PROXIES
The secretary accepts and verifies proxies for annual or special membership meetings, and ensures that proxies and ballots are kept in the association’s records.

FILE FORMS WITH STATE AGENCIES
The secretary is responsible for filing certain forms with state
agencies. These might include employment forms, incorporation documents, and other official records of the association.

MANAGE CORRESPONDENCE
--Route correspondence to appropriate association representatives—manager, office, board member, committee chair, etc.
--Ensure that tone, form, and spelling of all association correspondence reflect positively on the association.

Personally, I don't believe in the use of e-signatures for association business, such as elections or petitions.

Thanks Max, great info.

I see your point on e-signatures and I would agree if this was a residential HOA, but it is not. This is a vacation HOA on a lake in NH. Many owners come here infrequently and on different schedules. Without the use of e-signatures many owners would be left out of the democratic process.

Thanks again,

John

JohnC73 (Massachusetts)
Posts: 344
Posted:
When in doubt,take to social media to build a case. With the help of the gracous responders on this page and the fact that one responder pointed me to the legal statute on electronic signature, the BOD has dropped their fight and have agree to accept electronic signatures after they perform a validation proces. The electronic signatures are all valid and each owner had to validate their signature by responding to the verification email that only they have access to to verify that they signed.

Thanks everyone.
John

JohnC73 (Massachusetts)
Posts: 344
Posted:
The Statute you posted, NH 294-E does apply, but there is more to it.

The additional information is that BOTH parties in an e-signature transaction must agree to the process. I'm working with an attorney to understand the definition of "party" and what constitutes and agreement. Here are my thoughts.

. Party "A" is the owner signing the online petition. This person is agreeing to using their electronic signature by responding to the signature confirmation email. At least I hope so.

. Party "B" - I am assuming this party is the "association" and governing documents. If your by-laws allow the use of electronic signatures then that would be considered party "B" agreeing to the process.

John

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