Last week
we spoke about all the errors that can be made before we
even get to the annual meeting and election night. Today,
let’s assume that the HOA has done everything right up until
now. It’s the annual meeting. It’s election night.
Tonight we decide which people will get to lead our HOA for
at least the next year. We’re ready to count the votes. Or
are we?
A host of
problems may be ahead of you tonight. Let’s start in an HOA.
If the association is required to take nominations from the
floor and names for consideration were not taken before the
meeting, it’s time to take nominations from the floor. That
is…… if a quorum of members is present either in person or
by proxy. No quorum, no election. So let’s look at the
proxies. If they are not properly prepared showing what the
proxies can be used for, or are not properly executed and
dated they cannot be used. So, you may have to throw some
proxies out. Suppose by default, the proxies appoint the
Secretary as the proxy, and the Secretary does not show up?
Those proxies are useless. If they are useless, do you
still have a quorum? If not, you can’t proceed with the
election and the old board rolls over.
Suppose
you have a quorum and it’s time to take nominations from the
floor? Two nominees currently are late in assessments owed
to the association? Well…….they can’t run. But suppose the
current ledgers were not brought to the meeting by the
management company and you have no idea who is delinquent?
Suppose you move on and it turns out a delinquent owner or
two got on the Board? What do you do now?
Suppose
on the other hand, you don’t take nominations from the
floor. Instead you allowed owners to submit their names to
be candidates in advance of the meeting. You then sent out
ballots to be counted tonight with the names of those
candidates. Suppose you need an election because there are
more candidates than there are available positions? Well,
if you don’t get your quorum at tonight’s meeting, you need
an election. In order to have an election, you need a
quorum. No quorum, no election and the same old board rolls
over. Only if there is a quorum, do we have an election.
Let’s say
that only 3 people submit their name for five seats. Do we
still need an election? No. Since there is no election
required, no quorum is required and those people who
submitted their names to be candidates are the new board
members. Confused yet? Dizzy even?
Suppose
you have staggered terms of at least two years? Let’s
assume that you don’t get a quorum. Do the current members
roll over for a two year term? No because by law you can
only roll over for a one year term? Well suppose last year
there wasn’t a quorum either and those directors rolled over
for a two year term? Well they didn’t roll over for a two
year term. They rolled over for a one year term. If they
didn’t submit their names to be candidates this year they
are all off the Board. Dizzier?
Suppose
we get passed all that and it’s time to count the ballots.
Some exterior envelopes are not signed. Do we count them?
No, they are to be disregarded. Suppose the handwriting
doesn’t look like the owner’s? Can we disregard it? No,
unless you are a handwriting expert. Suppose the home is
owned by a corporation or an LLC owns the home? Who gets to
vote for that unit? Suppose there is no voting certificate
on file? Suppose voting certificates were never mailed to
the owners to fill-out?
You get
the point. There’s just a lot of things that can go wrong
and I can tell you that in doing hundreds of elections over
the years, what can go wrong probably will. So the
important thing is to slow down and not to rush the
process. Start the process early so that if an error is
made, you still have time to start over without blowing the
statutory deadline. Have a few sets of eyes on the
documents that are put in the mail. Have the manager and
the attorney work together.
Prayer
can’t hurt either.