Proxy

Started by CherylD • 7 replies • 1194 views

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CherylD (Massachusetts)
Posts: 9

Posted:

Background: Property management has been on site for 15 years and the same board members as well. I would like change to occur and I'm getting no where.

Questions:
1. Can I use a proxy or a Quorum to get the Property Mangement books audited. They have not been audited for 2 years now. Is that against the law in MA?
2. Since they keep reelecting the same board members each time their term is about to expire can I use the Proxy or Quorum to elect someone new to be on the board?

Plan: to go door to door and have unit owners sign the proxy. Which one would you use a Proxy or Quorum? This will be brought to the annual meeting. Goal is to get 75% percent vote per by laws.

GlenL (Ohio)
Posts: 5,491

Posted:

Cheryl, I think you have some terms mixed up. A quorum is the minimum number of people required to conduct business and should be spelled out in your documents. Usually for meeting purposes it is 51%, 75% is usually required to amend the CC&R's. A proxy is a limited power of attorney allowing a person to act in place of another for a specific purpose. Whether or not you can use proxies should also be spelled out in the CC&R's.

If they are allowed then you can certainly collect them and use them to vote different people onto the BOD or even yourself. As to the audit, check your CC&R's as it might be required, I would also check your state statutes governing HOA's and non-profit corporations. You can find them with a simple Google search. (Massachusetts HOA law)

CC&R's - Declaration of Covenants, Conditions and Restrictions the documents that govern the operation of your community.

BOD - Board of Directors

Studies show that 5 out of 4 people have problems with fractions

SusanW1 (Michigan)
Posts: 5,202

Posted:

Cheryl - what do your bylaws say about an annual audit? Is it required? How often?

If your bylaws talk about an audit, then the board needs to carry out its own rules (bylaws) At the annual meeting you can ask them about it OR you can make a motion to have an audit and there will be a vote on it by the Members of the association.

Note: audits can be very expensive. Are you receiving annual financial reports from the treasurer stating the revenues and expenditures for the year AND a Balance shhet?

CherylD (Massachusetts)
Posts: 9

Posted:

Hello there. The bylaws are silent on the audit. There's nothing in there even stating we need one. However it says they have to send us out a budget at year end. I'm on the board and we can't get the total amount of revenue. She just hands us a list of expenses. When I questioned it the other board members looked at me like I had 10 heads. I asked this information from the Property Management since they hand all of the responsiblites. The other board members are puppets and do not cross her. All board members with the exception of myself and one other have been relected and on the board for 15 years with the property management. When motioned we wanted an audit it was shut down by the property management saying there is no money in the budget to do this. Others just agreed. We have not had an audit for 2 years.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Cheryl,

Sounds to me like these "entrenched" board members need to go. You need board members who are willing to get involved in the operations of the HOAs instead of relying solely on the P.M. As it stands now, the PM is running the assn possibly with no input from the board at all. Your board needs new blood!!!

SusanW1 (Michigan)
Posts: 5,202

Posted:

What happened to the MOTION for the audit?
The PM has no business inserting any opinion when a motion is on the table.
Was the vote taken?

An Audit Review could be done by a Finance Committee appointed by the board - one board member, the treasurer and 2 residents can do an audit review.

If you can't get the board fired up about this need for an audit, get the residents active in insising that there be accountability for ALL revenues AND expenses.

Something is fishy, here.

RichardB10 (New York)
Posts: 20

Posted:

So true regarding entrenched BOD aka Old Boys Club. We have same problem and P.M. is running the show because the pres. is one level up from an ant in brain power. How do you gert rid of these types of people. Most HO are unaware of the stupidity of some of the BOD members.

ArtN (Massachusetts)
Posts: 48

Posted:

Cheryl, you need to read your By Laws and then read the Mass. State Condo Laws 183A, get yourself a copy or download from the internet, goto Mass State Laws, please.

I know your problems, because you have a Board that does not follow their By Laws, I suspect.

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