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.
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