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RobertP32 (Florida)
Posts: 7
Posted:
There seems to be ambiguity for what constitutes a Quorum for a members meeting in FL

The bylaws say 2/3 of members for quorum. The FL statutes imply 30%.

How can I figure out if an annual meeting met the quorum requirements and whether it was allowed to conduct business and elect directors?

Much Thanks in Advance for responses.
KerryL1 (California)
Posts: 14,550
Posted:
Please give us the exact wording of the statute. Exact wording of the bylaws too. 2/3 of owners to make quorum at a members meeting and election (I assume?) seems very high.
CathyA3 (Ohio)
Posts: 6,299
Posted:
It's going to depend on how precise Florida statutes are, among other things. And are you in a condo (Chapter 718) or an HOA (Chapter 720) - there are different statutes for each.

The rule of thumb is that when state law and bylaws conflict, state law prevails. However, state law occasionally will defer to the community's governing docs for individual items. So check to see if the relevant part of the statute does something like this. Also watch out for clauses like "unless specified otherwise elsewhere", in which case you need to keep reading.

Also, some bylaws allow a community to reschedule the annual meeting with a lower quorum requirement if they failed to achieve quorum the first time. Do your bylaws say something like that?
RobertP32 (Florida)
Posts: 7
Posted:
I'm in an HOA

That 720 Statute says
(1) QUORUM; AMENDMENTS.—
(a) Unless a lower number is provided in the bylaws, the percentage of voting interests required to constitute a quorum at a meeting of the members shall be 30 percent of the total voting interests. Unless otherwise provided in this chapter or in the articles of incorporation or bylaws, decisions that require a vote of the members must be made by the concurrence of at least a majority of the voting interests present, in person or by proxy, at a meeting at which a quorum has been attained. A meeting of the members must be held at a location that is accessible to a physically handicapped person if requested by a physically handicapped person who has a right to attend the meeting.
(b) Unless otherwise provided in the governing documents or required by law, and other than those matters set forth in paragraph (c), any governing document of an association may be amended by the affirmative vote of two-thirds of the voting interests of the association. Within 30 days after recording an amendment to the governing documents, the association shall provide copies of the amendment to the members. However, if a copy of the proposed amendment is provided to the members before they vote on the amendment and the proposed amendment is not changed before the vote, the association, in lieu of providing a copy of the amendment, may provide notice to the members that the amendment was adopted, identifying the official book and page number or instrument number of the recorded amendment and that a copy of the amendment is available at no charge to the member upon written request to the association. The copies and notice described in this paragraph may be provided electronically to those owners who previously consented to receive notice electronically. The failure to timely provide notice of the recording of the amendment does not affect the validity or enforceability of the amendment.
(c) Unless otherwise provided in the governing documents as originally recorded or permitted by this chapter or chapter 617, an amendment may not materially and adversely alter the proportionate voting interest appurtenant to a parcel or increase the proportion or percentage by which a parcel shares in the common expenses of the association unless the record parcel owner and all record owners of liens on the parcels join in the execution of the amendment. For purposes of this section, a change in quorum requirements is not an alteration of voting interests. The merger or consolidation of one or more associations under a plan of merger or consolidation under part I of chapter 607 or chapter 617 is not a material or adverse alteration of the proportionate voting interest appurtenant to a parcel.

So does it also mean that there must be a majority of the membership casting votes, either in person or by written proxy?
MaxB4
Posts: 3,513
Posted:
1. Quorum to conduct a meeting of the members is 30% of the voting interests.

2. Decisions made at the same meeting of the members must be made by a majority of said quorum of 30%.

Amending the governing documents requires a 2/3 vote, UNLESS the governing documents require a lower number.
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By RobertP32 on 02/23/2023 11:14 AM
I'm in an HOA

That 720 Statute says
(1) QUORUM; AMENDMENTS.—
(a) Unless a lower number is provided in the bylaws, the percentage of voting interests required to constitute a quorum at a meeting of the members shall be 30 percent of the total voting interests.
In this instance there is a bona fide conflict between the statute and the bylaws. Because of the hierarchy of laws and the rules for settling conflicts between statutes and covenants, in this instance the statute controls. As Max posted, this means the quorum for your HOA for membership meetings is 30%.
KerryL1 (California)
Posts: 14,550
Posted:
Agree that Max & ElleN are correct. There really is no conflict because statute says, "Unless a lower number is provided in the bylaws...," but your Bylaws require a higher number.

Still would like to see the wording of your bylaws on this point, if you don't mind, Robert.
RobertP32 (Florida)
Posts: 7
Posted:
So I'm having trouble uploading the PDF for the HOA Docs. I've tried uploading the PDF, a screen shot
absent of someone telling me how to do it,

Here is a link, which is my site, the PDF for the HOA docs is at the bottom

https://dbatopgun.com
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By KerryL1 on 02/23/2023 12:07 PM
There really is no conflict because statute says, "Unless a lower number is provided in the bylaws...," but your Bylaws require a higher number.
Questions about whether a conflict actually exists between a statute and covenant come up here from time to time. This is a logical exercise. If, as Kerry maintains, there is no conflict between bylaw and statute with regard to quorum, then the bylaws and statute both apply as written. In this case obviously both the bylaws and statute cannot be applied as written without ending up with a logical inconsistency. Hence the rules for resolving a conflict must be applied. The only reason the statute controls is because the rules for resolving conflicts between bylaws and statutes say the statute controls.
KerryL1 (California)
Posts: 14,550
Posted:

Well, this is how I see it. Here is an example of a “conflict” between the bylaws and state statute:

Bylaws: Quorum: A quorum at members’ meetings shall consist of persons entitled to cast a majority of the votes of the entire membership ..
Statute: The percentage of voting interests required to constitute a quorum at a meeting of the members shall be 30 percent of the total voting interests.

These two conflict or contradict each other. There seems to be ambiguity. But, since we know state law takes precedence over an association’s governing docs, with this wording, the state law prevails thus resolving the conflict.

The OP’s or similar case

Bylaws: Quorum: A quorum at members’ meetings shall consist of persons entitled to cast a majority of the votes of the entire membership.
Statute: Unless a lower number is provided in the bylaws, the percentage of voting interests required to constitute a quorum at a meeting of the members shall be 30 percent of the total voting interests.

There is no conflict. There is no ambiguity. The statute’s wording removes any potential conflict. It is clear that the bylaws only prevail if the precent required for quorum in them is less than 30%. They are not in the OP’s case in which the percent required for quorum is a majority, i.e., far more than 30%.
ElleN (Idaho)
Posts: 4,420
Posted:
Kerry, the bylaw quorum number is higher, so the part of the statute that speaks of a lower number does not apply.

If the bylaw quorum number were lower than 30%, there would be no conflict between bylaw and statute. They (bylaw and statute) each yield the same result, with no need to apply the hierarchical rules that settle conflicts.
MaxB4
Posts: 3,513
Posted:
The quorum for the OP is 30% or lower. END OF STORY!
KerryL1 (California)
Posts: 14,550
Posted:
You, Max, ElleN & I agreed way above that the quorum for a members meeting in the O.P's case is 30%. ElleN then asserted that there was a bona fide conflict between the OP's bylaws & statute.

I disagreed and still do. The wording of the statute (not its precedence) precludes any conflict.

ElleN (Idaho)
Posts: 4,420
Posted:
The statute starts with "Unless a lower number is provided in the bylaws" The bylaws do not have a lower number, so the latter phrase is ignored. The statute continues with: "... the percentage of voting interests required to constitute a quorum at a meeting of the members shall be 30 percent of the total voting interests."

Statute says quorum shall be 30%.

Bylaw says quorum shall be 2/3rds.

This is a conflict. Hence rules for resolving conflicts have to be applied. The Rules say that, in a conflict, the statute controls. Hence the quorum is 30%.
MaxB4
Posts: 3,513
Posted:
Quote:
Posted By ElleN on 02/25/2023 2:45 PM
The statute starts with "Unless a lower number is provided in the bylaws" The bylaws do not have a lower number, so the latter phrase is ignored. The statute continues with: "... the percentage of voting interests required to constitute a quorum at a meeting of the members shall be 30 percent of the total voting interests."

Statute says quorum shall be 30%.

Bylaw says quorum shall be 2/3rds.

This is a conflict. Hence rules for resolving conflicts have to be applied. The Rules say that, in a conflict, the statute controls. Hence the quorum is 30%.

Actually, IF you had read what the OP posted in the doc, no business can get transacted UNLESS 2/3 of those PRESENT, either in PERSON or by PROXY have been verified. Quorum, per the Bylaws, is NOT 2/3.
ElleN (Idaho)
Posts: 4,420
Posted:
Yeah no, I did not try to load dbatopgun or whatever. Too much data.

Someone can quote here exactly what it says if they want. If the bylaws have some peculiar wording about what it takes to have a meeting, then we can discuss whether it conflicts with the statute. Or what. Ever.
RobertP32 (Florida)
Posts: 7
Posted:
@ellenN and all thank you for your time and reply and thanks to all that are helping sort this out.

From the Bylaws.

(a) Annual Meetings. The annual meetings of the members shall be held annually during the second week of November for the purpose
of electing Board of Directors by the members.
(b) Special Meetings. Special meetings of the members may be called at any time by the president or by the board of directors or upon written request
of the members that are entitled to not one-fourth of all the votes.
(C) Notice of Meetings.........
(d) Quorum. A quorum of members' meetings shall consist of persons entitled to cast a majority of the votes of the entire membership, including
the present and proxies received and verified by the secretary. No business shall be transacted at any membership meeting unless two-thirds(2/3) of the votes present
either in person of by proxy are verified.
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By RobertP32 on 02/27/2023 5:59 AM

From the Bylaws.

(a) Annual Meetings. The annual meetings of the members shall be held annually during the second week of November for the purpose
of electing Board of Directors by the members.
(b) Special Meetings. Special meetings of the members may be called at any time by the president or by the board of directors or upon written request
of the members that are entitled to not one-fourth of all the votes.
(C) Notice of Meetings.........
(d) Quorum. A quorum of [at?] members' meetings shall consist of persons entitled to cast a majority of the votes of the entire membership, including the present and proxies received and verified by the secretary. No business shall be transacted at any membership meeting unless two-thirds(2/3) of the votes present either in person of by proxy are verified.
RobertP32, thank you. I believe this Bylaw and FS 720 translate to the following requirements:

-- The votes (in person or by proxy) have to be verified. The secretary, under supervision of the board, can set the requirements for verification. (These requirements have to be reasonable. Case law suggests best practices is not to place too much of a burden on owners to get their proxy or presence verified. If you do not understand what I mean, ask, and I will explain some of what case law has said about imposing burdens on HOA voters.)

-- For determining whether quorum is met, only votes that are verified count. (Normally this will be all or nearly all votes submitted in person or by proxy.)

-- Subject to the above, quorum is 30% (per FS 720 and the rules for settling conflicts).

-- Before business can be transacted, 2/3rds of whatever votes are present (submitted in person or by proxy) must be verified.

Example:

Suppose a HOA has 1000 members.

600 owners are present in person or by proxy.

The secretary begins verifying votes. This is going to be a head count of those present plus a count of proxy forms, where the secretary has verified that those present, in person or by proxy, are owners. Once 300 votes (or voters) are verified, the President should announce that quorum (per FS 720, the bylaws and the rules for resolving conflicts) is met, but business cannot yet be transacted. Announcements could be made, but votes on, and discussion of, issues on the ballot should not occur.

Once the Secretary verifies at least 400 (= 2/3 x 600) of the votes (present in person or by proxy), business may be transacted.
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By ElleN on 02/27/2023 7:37 AM
Example:

Suppose a HOA has 1000 members.

600 owners are present in person or by proxy.

The secretary begins verifying votes. This is going to be a head count of those present plus a count of proxy forms, where the secretary has verified that those present, in person or by proxy, are owners. Once 300 votes (or voters) are verified, the President should announce that quorum (per FS 720, the bylaws and the rules for resolving conflicts) is met, but business cannot yet be transacted. Announcements could be made, but votes on, and discussion of, issues on the ballot should not occur.

Once the Secretary verifies at least 400 (= 2/3 x 600) of the votes (present in person or by proxy), business may be transacted.
However, I suspect many attorneys would say quorum is 30% of all owners, present in person or by proxy, who have been "verified," period, and business can be conducted as soon as the 30% is reached.

I advise amending the bylaws to get rid of the nonsense (IMO) about 2/3rds. Best practices is to have an elections inspector. This inspector is going to "verify" votes, regardless of whether the bylaws have a requirement to "verify." Also in my opinion the board has an implied right to nullify any ballot it //reasonably// considers suspect. "Reasonably" is a legal term of art. What it is depends on the exact circumstances. Boards, who think a power trip might be fun, should not get cute about nullifying ballots.
RobertP32 (Florida)
Posts: 7
Posted:
Thanks, What I think is a shame is that our HOA has 50 members, so low quorums allow a few to monopolize the community when it come to spending and raising HOA fees. The claim from the HOA president is as follows.

Your interpretation of what a quorum is for annual voting is incorrect. There are 50 homes in our neighborhood, 3 were ineligible to vote due to owing the HOA dues, only a simple majority is required, half of 47 is 23.5

So it sounds like he may be wrong and an even lower number is required?
SheliaH (Indiana)
Posts: 6,964
Posted:
Since it appears the answer is 30% or less (because 2/3rds is 75%), how many people showed up at this meeting or turned in proxies? If that number is at least 30% of your homes (assuming one vote per unit), it would appear you had a quorum unless something funky happened with the attendance or the proxies.

For example, if someone turned in a proxy and then showed up to vote in person, the proxy should have been canceled and that person could vote as usual otherwise, he/she votes twice. Or two people co-own the house, and one person turns in a proxy, but the other shows up and votes in person (or the other way) – that won’t work because co-owners should decide among themselves who will sign and turn in the proxy or show up to cast the vote.

And then you have the people who shouldn’t vote at all because they’re delinquent in paying assessments along with checking the proxies to see if they were turned in on time and were signed and dated by the person who’s actually listed on the ownership lists. At least that’s how it works in my community.

Maybe that’s the question you need to answer first and depending on what’s left, you can then see if you had 30% or more who were eligible to vote and did it. So, what really caused the brouhaha at your meeting? If you end up holding another annual meeting or election to straighten all of this out, perhaps the board could commission an independent voting committee (folks in good standing who aren't affiliated with the current board or candidate) who can open the envelopes and count the proxies in front of everyone and checking in the folks who show up to determine if a quorum was reached


If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
RobertP32 (Florida)
Posts: 7
Posted:
What cause the issue, is that in order to get quorum, it was probably falsely assumed that proxy could be verbal. As nothing was signed. I have requested a copy of the sign in and copies as the proxy. My concern now, is that they voted on board members and conducted business(raised dues) at a meeting that shouldn't have happened without a proper quorum. It sounds you are saying only 30% of the 47 homes is required for quorum and that 30% can elect directors and raise rates.
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By RobertP32 on 02/27/2023 8:03 AM
Thanks, What I think is a shame is that our HOA has 50 members, so low quorums allow a few to monopolize the community when it come to spending and raising HOA fees. The claim from the HOA president is as follows.

["]Your interpretation of what a quorum is for annual voting is incorrect. There are 50 homes in our neighborhood, 3 were ineligible to vote due to owing the HOA dues, only a simple majority is required, half of 47 is 23.5["]

So it sounds like he may be wrong and an even lower number is required?
Robert, yes, per FS 720 an even lower number is required. Elaboration:

This forum has a lot of debate about quorum. Several of us here at HOATalk feel there should be no quorum requirement at all for board elections. The reason I think a very low quorum number, or even no quorum at all, is a good idea is that all owners have notice of what quorum is. The courts say they have full and complete notice that a small number can determine the outcome of things. If owners feel strongly about an issue, then IMO they have a perfectly reasonable recourse: Either show up and vote, or assign a proxy to someone they know.

Failing to meet quorum often means an election cannot be held at all. This way too often holds up business and/or costs the HOA money. Why should a faction of the owners get to stop an election in its tracks, simply by not showing up or refusing to assign a proxy? Especially when there is another faction who are informed on the issues and are ready to elect a board.

Regarding the specifics of your HOA:

I disagree with the President.

I confirmed that Florida statutes still permit a HOA to suspend voting rights for any owner more than 90 days behind in the payment of any "monetary obligation" to the HOA. Assuming these three you mentioned are behind more than 90 days, then 47 ​owners are eligible to vote.

Florida statute 720 (and not the bylaws) control. Hence 30% of the "voting interests" is quorum. Here I take "voting interests" to mean that 47 people are eligible to vote. Thirty percent of 47 = 14.1. Hence 15 eligible owners must be present in person or by proxy for quorum to be met.

(Thanks to Shelia and you for getting into the weeds here and pointing out that "voting interests" is going to mean some Florida owners are not eligible to vote in the first place.)
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By RobertP32 on 02/27/2023 8:20 AM
What cause the issue, is that in order to get quorum, it was probably falsely assumed that proxy could be verbal. As nothing was signed.
This is a gross violation of the requirements for proxies in FS 720, and you should call the board on it. From FS 720:

"To be valid, a proxy must be dated, must state the date, time, and place of the meeting for which it was given, and must be signed by the authorized person who executed the proxy."

See http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0720/0720.html . I advise getting comfortable doing keyword searches of the latter FS 720 site. Where there's smoke, there's fire. If some bozo at your HOA is saying assignment of a proxy can be verbal, then I can just imagine how many other abuses this board is perpetrating, often in violation of the Florida statutes, bylaws and covenant.

If you give me more details of this election, like the outcome, total votes for each candidate, and so on, I can way more and draft a letter where you request (meaning "legally demand") such-and-such as a remedy.

If this election was close, and these (verbal proxies) made a difference, I expect I would be seething.
CathyA3 (Ohio)
Posts: 6,299
Posted:
Quote:
Posted By RobertP32 on 02/27/2023 8:03 AM
Thanks, What I think is a shame is that our HOA has 50 members, so low quorums allow a few to monopolize the community when it come to spending and raising HOA fees.
... snip ...

I agree that quorum requirements make such a scenario possible. However, the requirements are not responsible for the low turnouts at annual meetings. That's totally on the homeowners (I give out-of-town owners a pass since many bylaws require in-person meetings). If people won't push back against entrenched boards, then they have to accept the consequences.

If not for low quorum percentages and the ability to use proxies, many HOAs would be unable to hold elections at all.

Just to play devil's advocate, there are some advantages to having experienced directors who know the community and know their jobs. Having a steady procession of newbies will result in a steady procession of mistakes that experienced board members wouldn't make. Some of those mistakes will be low stakes, some could be serious. I bet if we polled the experienced directors on this website, most of them would say that they would vote differently today if faced with some of the issues they voted on during their first year or two of board service.

MaxB4
Posts: 3,513
Posted:
Quote:
Posted By CathyA3 on 02/27/2023 9:28 AM
Posted By RobertP32 on 02/27/2023 8:03 AM
Thanks, What I think is a shame is that our HOA has 50 members, so low quorums allow a few to monopolize the community when it come to spending and raising HOA fees.
... snip ...


I agree that quorum requirements make such a scenario possible. However, the requirements are not responsible for the low turnouts at annual meetings. That's totally on the homeowners (I give out-of-town owners a pass since many bylaws require in-person meetings). If people won't push back against entrenched boards, then they have to accept the consequences.

If not for low quorum percentages and the ability to use proxies, many HOAs would be unable to hold elections at all.

Just to play devil's advocate, there are some advantages to having experienced directors who know the community and know their jobs. Having a steady procession of newbies will result in a steady procession of mistakes that experienced board members wouldn't make. Some of those mistakes will be low stakes, some could be serious. I bet if we polled the experienced directors on this website, most of them would say that they would vote differently today if faced with some of the issues they voted on during their first year or two of board service.


Is the answer to get rid of elections, and only let "experienced" directors decide who should be on the board?
GeorgeM14 (Florida)
Posts: 1
Posted:
In FL, HOA's and Condo's can be totally different in quorum, voting, etc.
Additionally there is a concept - Kaufman Language - that can dictate which takes precedence, the FL statute of the Association Governing Documents.
Typically there are Substantive and Procedural changes to the law.

A procedural one takes effect immediately and usually going forward, unless explicitly retroactive.
BUT - it applies regardless of the individual association's docs.
A quorum requirement (50% vs 33 1/3 % vs 30%) is typically a procedural change.
So the current FL law of 30% would apply, even without the "Kaufman Language" the so called "as amended from time to time."
JanetB2 (Colorado)
Posts: 4,219
Posted:
Only 30% of voting members is required to meet quorum as your documents have a higher amount vs a lower amount. Keep in mind that State Laws supersedes your governing documents. Over time governing CCR’s can become a little bit obsolete as things change and State Laws change.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By RobertP32 on 02/27/2023 8:03 AM
Thanks, What I think is a shame is that our HOA has 50 members, so low quorums allow a few to monopolize the community when it come to spending and raising HOA fees. The claim from the HOA president is as follows.

Your interpretation of what a quorum is for annual voting is incorrect. There are 50 homes in our neighborhood, 3 were ineligible to vote due to owing the HOA dues, only a simple majority is required, half of 47 is 23.5

So it sounds like he may be wrong and an even lower number is required?

Yes the number is lower. And yes it is a shame that many HOA’s become lax due to member apathy and become complacent. However, the members then cannot complain when they get dished out something they do not like. Think of HOA’s like your local governments … where citizens don’t attend meetings and then your politicians become overbearing and believe they can do as they want without repercussions. Then they go on to state level government positions with that thinking. It was SAD when many times in my local city council meetings I was the only one in attendance. If you do not want certain things to happen … then get yourself and all your neighbors to attend the meetings.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Old thread.

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