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JudyP1 (Florida)
Posts: 24
Posted:
What happens if an HOA in Florida fails to have enough people, either in person or by proxy, to hold an annual meeting to elect officers? We tried a second time and again did not have quorum of homeowners. Now what? I think three of the five board members were up for re-election. We are now into a new year still without having an annual meeting. Help!
DonnaS (Tennessee)
Posts: 5,671
Posted:

Judy,

Seeing that an Annual meeting is a required event for all HOAs in Florida, I would suggest that the Board reschedule it again. But your Board and members who will be willing to do some preliminary work need to get members out collecting proxies and informing the membership of their responsibilities to the HOA.

I posted the first couple of paragraphs on 617, which is the Articles of Inc, that you follow to be a Not For Profit Corp in the State.There is a way to get the annual meeting done if you use this as a guide.

617.0701 Meetings of members, generally; failure to hold annual meeting; special meeting; consent to corporate actions without meetings; waiver of notice of meetings.--

(2) Failure to hold an annual meeting does not cause a forfeiture or give cause for dissolution of the corporation, nor does such failure affect otherwise valid corporate acts, except as provided in s. 617.1430 in the case of a deadlock among the directors or the members.

(3) Special meetings of the members may be called by the president, the chair of the board of directors, the board of directors, or such other officers or persons as are provided for in the articles of incorporation or the bylaws.

(4)(a) Unless otherwise provided in the articles of incorporation, action required or permitted by this act to be taken at an annual or special meeting of members may be taken without a meeting, without prior notice, and without a vote if the action is taken by the members entitled to vote on such action and having not less than the minimum number of votes necessary to authorize such action at a meeting at which all members entitled to vote on such action were present and voted. In order to be effective, the action must be evidenced by one or more written consents describing the action taken, dated and signed by approving members having the requisite number of votes and entitled to vote on such action, and delivered to the corporation by delivery to its principal office in this state, its principal place of business, the corporate secretary, or another officer or agent of the corporation having custody of the book in which proceedings of meetings of members are recorded. Written consent shall not be effective to take the corporate action referred to in the consent unless the consent is signed by members having the requisite number of votes necessary to authorize the action within 60 days of the date of the earliest dated consent and is delivered in the manner required by this section.

SusanW1 (Michigan)
Posts: 5,202
Posted:
"In person OR by proxy" - and you can't get a quorum???
What is your quorum requirement?
JudyP1 (Florida)
Posts: 24
Posted:
Thanks for your information. Our HOA needs 177 Homeowners and/or proxies to have a legal voting quorum. We have been door to door twice but still haven't been successful. We have explained to the homeowners how much it cost to reschedule the annual meeting. I'm at a loss at this point with the apathy
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Judy,

Why not take a different tack and see if you can get two or three members interested, have each one of them bring one member to a scheduled "Town Hall Meeting". Maybe the owners would be a little more receptive to any "Open" forum. Anything to get a few warm bodies to start talking. Keep having this Town hall meetings for a few weeks and hold them at different times.

It is not an easy job and it will not just "work out." You must push and work hard to get people there. Right now it sounds as if the Formality of the "Owners Meeting" may turn people off. Who knows why you all are not getting a response. But don't negate the fact your association is not that much different than any other association, and other associations can get some folks involved. you just need to punch the right buttons , and work hard. It can be done, mainly because if you all can't do it, you are going to have more trouble and expense, than if you do form a BOD. You really don't have much choice. The OP, at this point can throw up their hands and walk away, but, they are not walking away from the trouble. Trouble will come to you and all other owners, unless you sell out and leave, and that ain't gonna happen, probably.
KirkW1 (Texas)
Posts: 1,665
Posted:
Some people have resorted to drastic measures because of what you are talking about. I have heard of people sending notice of a special assessment. And one BOD has even gone as far as making it a finable offense for failure to attend or send a proxy.

I would say that part of the problem would probably be rooted in the following:
  1. Perception their vote won't matter.

  2. Perception the HOA doesn't have relevance

  3. Past meetings may have taken too long


    1. One thing you may find though is that the next meeting has even fewer then the first two did. And if you go to a fourth you will surely have a losing battle as people who were coming will feel defeated and not come because "What is the point?"

      I would not focus on getting people to this meeting. It just won't happen this year. But perhaps you could convince a few people to collect proxy votes. In return, they get the power to decide the direction of the neighborhood for the next year.

      If you have a pool, then you may have the answer at some point in that you could simply not open the pool until a properly held meeting takes place.
JudyP1 (Florida)
Posts: 24
Posted:
Thank you again for all your suggestions...we might have to play "hardball" since being neighborly isn't getting much accomplished. You are totally right about the homeowners that attended to first two attempts at annual meetings are now losing interest as well. Thanks again.
SusanW1 (Michigan)
Posts: 5,202
Posted:
Go ahead and hold the meeting - with whomever shows up!!
If someone complains, let them file the complaint. Any judge that would look at your attempts to hold a meeting, and were thwarted by non-participation of your own members, would tell you to go ahead and hold it with whomever shows up.

GeorgerwilliamsW (Indiana)
Posts: 975
Posted:
I agree with Susan. If you are unable to achieve a quorum, then it is unlikely that anyone will make an issue of it.

Remember the no harm, no foul rule.
JohnK3 (Pennsylvania)
Posts: 967
Posted:
Quote:
Posted By SusanW1 on 01/31/2009 10:43 AM
Go ahead and hold the meeting - with whomever shows up!!
If someone complains, let them file the complaint. Any judge that would look at your attempts to hold a meeting, and were thwarted by non-participation of your own members, would tell you to go ahead and hold it with whomever shows up.


Any judge who would decide that perhaps shouldn't be on the bench. Thwarted by non-participation is not a cogent reason to ignore the rules.

Get enough proxies for a quorum. People (HOAers), in my experience, will sign anything if it results in being otherwise left alone. I've even had folks stop me 10 seconds into the pitch by saying "Sure. I'll sign it" without caring what the issue is.
DonnaS (Tennessee)
Posts: 5,671
Posted:

Susan and George,
I have to agree with John on this one. The annual meeting is also the elections meeting. Any Board seated under circumstances where there was no quorum, thus making it a non legal meeting, is just opening the door for a years worth of problems, lawsuits and member discord. Be that they show up or not, once word got out that a new Board was elected without the proper numbers, I can see the flames all the way up here in Tennessee.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Quote:
Posted By DonnaS on 01/31/2009 11:30 AM

Susan and George,
I have to agree with John on this one. The annual meeting is also the elections meeting. Any Board seated under circumstances where there was no quorum, thus making it a non legal meeting, is just opening the door for a years worth of problems, lawsuits and member discord. Be that they show up or not, once word got out that a new Board was elected without the proper numbers, I can see the flames all the way up here in Tennessee.

IMO, the best way to handle this might be to send a letter to all the members and explain exactly what happened. Because so many of the members didn't feel the need to either send in a proxie or a ballot or to even come to the meeting and vote, a quorum was not attained. However it wasn't until after the election was held that this was noticed. Include a survey in the letter asking the members to state whether or not they feel another election should be held or if the members elected should just serve out their term. It's really up to the members because they are the ones who have to make up the quorum. I would be very shocked if they voted to hold another meeting and election. If they weren't concerned enough to participate in the first meeting, what makes you think they'll want another one?
DonnaS (Tennessee)
Posts: 5,671
Posted:

I know what you are saying Mary and do agree. I remember when we had called a "Special" meeting because of the resolution to our court case. Purpose?? To detail the costs of the case, results and a special assessment due to the costs.

About 15 or so showed up out of 199 homes. It was a good meeting and everyone attending left with the facts that the Board did what they were forced to do and the assessment was the only answer to having the bills paid.

Maybe a week or so later, the sh** hit the fan, "No One Told Me about a meeting, Why weren't we asked about the money, Who said that we have to pay if we didn't want to sue?", and so on. Meeting was properly posted and everyone was notified.

This is another example of non interest in what the Board or association does until it comes into more money. I don't have an answer on how to get members to show up so the show must go on, with or without those who chose not to participate.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
To all,
And if this has been covered, forgive me.

Seems to me the Annual Meeting, if that is what we are talking about, should have this all resolved before the meeting. I suspose this also means no one will attend any board meeting either. But, in any case, the good folks that are trying to put this together should, by notification, somehow, to all members. Now single postings would work, but it the atmosphere warrants, a legal notice in the paper would help. Not to get more people but when no one shows as a substanation that official notice was given. If you can't get a board meeting, do town hall with announcements to get people interested. I see nothing is gained if all you do is to establish something that you can not do (hold annual meeting). Best to prepare, have exactly how you intend to proceed and announce it at the annual meeting.
DonnaS (Tennessee)
Posts: 5,671
Posted:

Robert,
That all sounds good but Florida-the O.P, requires all Not For Profit Corps, have an annual meeting for one purpose, including elections. These meetings are required to be posted at least 14 days prior to the meeting. Ballots and proxies are sent by mail to each member. The meeting is posted in a conspicuous place so there is NO excuse for anyone not to be aware of these meetings. A "town hall" meeting as you suggest is not something that an association can use in place of an Annual or Board meeting, sorry.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Donna,
This must be my slow Saturday and I don't explain well. My intent of a Town Hall Meeting is to get attention by Public announcement. Now if no one comes to meetings then publish notice in the legal section of paper that the annual meeting will be held as required. Then if you go to annual meeting and not one attends, open and close meeting with whatever resolution this OP wants to make. If serious enough you go before a judge for receivership or something. OP is under the gun, he presents to judge the attemps at trying to hold annual meeting along with notice of Townhall announcement to discuss problem. Judge is likely to take his efforts as good faith and will help or do what has to be done. You go before the judge without good faith documented effort he may order you to go back and do it again.
Does that make sense or suggest a different way to take the problem out of the OP hands?
DonnaS (Tennessee)
Posts: 5,671
Posted:

Robert,
I think that you explained yourself well and I understood it. My view is that after posting the meeting , sometimes per newssletters and the internet websit of the HOA,and after receiving ballots in the mail, there comes a time when enough is enough. Short of a limo pickup to get members at a meeting, a Board cannot go beyond what should be more than sufficient notice.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Donna,
I agreed 100% and the interesting, maybe unsolveable part of this equation is "when is enough enough>" Which I think we have never pinned down here. There is certainly nothing in the documents that I have seen that define the line. Talk to me about when is enough enough, not so much the steps to try and find this line in the sand. Maybe the answer is there is no answer. Is there a legal criteria? A minor point here is: is there a functioning board here? I thought the OP was alone or close to being alone and Board meeting could not be held also?

I sort of feel it falls by default to the last remaining soldier. He has to stand up and take the bullet (so to speak). I am sure there are places that NO BODY cares enough to stand up and that is another problem. I am also sure there are associations that never got registered, never had a Board election and never paid many dues. I doubt there are any condos like this. But, dysfunctional to a varied degree, we know that.

Anyway, what is the answer here and does it apply to all and is there a reply to all association?
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Read back to OP I suppose we can assume there is more than 1 left. On the other hand nothing is clear about whether Board Meetings have been held, quorum met and business conducted, and it may be simpler that way if the place was going down the tubes, for sure.
IF, there is a functioning Board with quorum and they have some cash, they need to get the people together and formally inform them of what THE BOARD has decided to do. I still think they would be served well by noticing a couple Town hall meetings and a Newspaper legal notice, then go before a judge.
AR1 (Virginia)
Posts: 12
Posted:
Our BOD was told by the attorney that they had to stay on, and if they wanted to get off to resign one at a time while appointing others. We ended up with a BOD that got THROWN OUT the next year.

My solution would have been different, because of our voting rules. I would change the proxy to be for quorum only, you know like the corporations do. Our Bylaws state that they only have to get a majority of votes ... not of quorum! The proxy I regularly received says that I am also conveying all voting rights on whatever issues come up ... I'm not willing to sign that so, I either find someone I trust of let the BOD deal with it. I've tried to get them to change the proxy, but that request goes unanswered!

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