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SallyF1 (Arizona)
Posts: 1
Posted:
I am from Phoenix AZ.
We had our annual meeting to elect new Board members. For the 3rd year we have not met our quorum to have a meeting. There are 569 homes at 10% we needed 57 ballots only got 33. There were 12 members present 4 Board members missing which included the President and Secretary. The 4 Board members did not put their names on the ballot and have stayed on due to the fact we cannot get a quorum.
Help!!! The 12 members signed a petion at the meeting to have a continuation or 2nd meeting so that the quorum could be cut in half we would only need 29 ballots. The property manager said it was up to the Board if we could have a second meeting. They have not responded and will probably wait till the next regular meeting and more than likely will vote no.
Our bylaws state
ARTICLE III MEETING OF MEMBERS section 2 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 who are entitled to vote one-fourth(1/4) of all of the votes of the Class A membership.
1. We have 4 new homeowners that were on the ballot for the Board of Directors.
2. According to our bylaws do we need 143 signatures for the petition and would the homeowners need to be in good standing? We have about 284 homes that are delinquent and over 120 homes that are rentals.
3. If we get the second meeting do the 33 ballots get carried over to the 2nd meeting or do new ballots go out again?
Thank you for any help on this. The propery manager has very little input.
FG
SusanW1 (Michigan)
Posts: 5,202
Posted:
Your bylaws should outline what happens when a quorum is not reached for the annual meeting, but it sounds like you have the "bones/structure" for another meeting.

The presiding officer should have adjourned to another meeting, set the date of the meeting, at which a lower quorum count would need to be reached.

Quorum numbers don't have anything to do with the voting. Some people decide not to vote. Whomever decides to vote at a duly called meeting, votes. The majority of those voters can vote in the new officers. Did you have a live vote or was it mail in ballots?

At any rate, the election process must start over - you can't hold on to previously cast ballots.

You may have some state laws that apply here, but with such a LOW participation rate, you have got to get these new board members elected. I hope your new board members can do something to deal with the apathy in your HOA.

SusanW1 (Michigan)
Posts: 5,202
Posted:
PS - our HOA bylaws say that business can be conducted at the annual meeting, including election of officers, even if a quorum is not present. Only amendment changes (vote on membership/water rates) would require a quorum.
AnnJ2 (Colorado)
Posts: 120
Posted:
In some cases when we have ahd this situation we have taken teh route that the vacating positions are "vacant" and the by-laws will normally provide for an appointment function of the board for a vacated position. Teh remaining board members then appoint the missing positions.

If you proxies were not directed, meaning that the vote was attached to a proxy, then the proxies should have a hold over provision stating that they are good for 90 or 120 days or even 11 months. by-laws frequently will speak to how long a proxy may be given.

If you are using directed proxies or mail in ballots they most liekly are unusable at this point. You might need to start over again with new notice of meeting (first or second meeting) and send out new proxies without voting and make sure they carry the hold over language.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Sally,

Are you aware of the rather new state law which requires mail-in ballots for the annual meeting election and those mail-in ballots count toward the quorum? Did your BOD follow the procedure outlined in ARS 33-1250 (condos) or 33-1812 (planned communities)? If not, then they have violated state law; therefore if a special meeting is held they sure better follow the statute! Your PM should know about this statute!

Do your bylaws speak to a postponement of the annual meeting if a quorum is not reached. If not then a special meeting should be called. Members entitled to vote means members in good standing. Taking away the members delinquent there is still a balance of 285 and you would need 143 to petition the board for a special meeting. The owners of the rentals should be notified of the meeting so they have the opportunity to vote. If they were not notified then that was a gross injustice! If a special meeting does take place for the purpose of holding an election, the ballots cast in the first annual meeting would not count because that would be a direct violation of the above cited statutes.
RobertG12 (Arizona)
Posts: 160
Posted:
Quote:
Posted By MaryA1 on 05/28/2009 2:01 PM
Sally,

Are you aware of the rather new state law which requires mail-in ballots for the annual meeting election and those mail-in ballots count toward the quorum? Did your BOD follow the procedure outlined in ARS 33-1250 (condos) or 33-1812 (planned communities)? If not, then they have violated state law; therefore if a special meeting is held they sure better follow the statute! Your PM should know about this statute!

Mary, I agree completely that the use of absentee ballots is the ONLY way most HOAs in this state can get a quorum for annual meeting.

However, I think there is a quirk in the AZ law that your are referencing that wonders who did the proofreading. Notice the law states "The association shall provide for votes to be cast in person and by absentee ballot and may provide for voting by some other form of delivery. Notwithstanding section 10-3708 or the provisions of the community documents, any action taken at an annual, regular or special meeting of the members shall comply with all of the following if absentee ballots are used:" Now notice that in the first sentence "shall" is used, but then at the end it states "if absentee ballots are used". It makes one wonder if it means that you HAVE to use absentee ballots (the if part) or that you are required (the shall part).

No matter what the law states, use absentee ballots!
MaryA1 (Arizona)
Posts: 7,043
Posted:
Robert,

I agree the law is not written very well. As usual it's sometimes very difficult to get the legislators to change the wording. :-( The big problem is the portion that says "and may provide for voting by some other form of delivery". I really don't understand what that means -- what other form of delivery is there? With regard to the last portion that says "if absentee ballots are used", IMO that means if "another form of delivery is (may be) used" the following requirements do not apply. Bottom line, you are required to use absentee ballots or this mysterious other form of delivery. Since no one knows what that is, I feel pretty safe in saying absentee ballots are the real requirement.
SusanW1 (Michigan)
Posts: 5,202
Posted:
IMHO -

The association shall (is obligated) to (provide voting procedures so that) votes (can be) cast in person and by absentee ballot, and (the board)may (has the power, option to) provide for voting (methods to members) by some other form of delivery (such as email, text, write-in ballot, phone, etc. etc.)

"delivery" means method of voting.

RobertG12 (Arizona)
Posts: 160
Posted:
Quote:
Posted By SusanW1 on 05/29/2009 3:42 AM
IMHO -

The association shall (is obligated) to (provide voting procedures so that) votes (can be) cast in person and by absentee ballot, and (the board)may (has the power, option to) provide for voting (methods to members) by some other form of delivery (such as email, text, write-in ballot, phone, etc. etc.)

"delivery" means method of voting.

Susan, I would disagree with your definition of delivery. Delivery (to me) means how the specific ballot gets into the possession of the homeowner, not what content it contains. So "other" could be fax, snail mail, email, hand delivered, pony express (this is the west), telegram... No matter how it gets there, the same ballot must be used and in the same form as created by the deliverer.

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