P. Michael Nagle, Esq.
Introduction
Some say that community association owners' meetings are the truest form of democracy, similar in nature to the town meetings held in 17th and 18th century colonial America. However, the democratic process in associations requires order and rules of procedure and behavior to prevent either anarchy or a tyranny of the minority.
This guide provides basic information on the processes and procedures applicable to annual and special meetings. It also provides specific information relating to elections, whether held at an annual or special meeting.
Key Points
- An association operates as a business. As a business, whether incorporated or unincorporated, an association must conduct meetings of its shareholders—the owners. These meetings provide a forum for the election of those who will govern the community and manage its affairs.
- The annual meeting brings owners together so they may elect directors and take any other action not delegated to the board by the governing documents.
- Special meetings provide owners with a forum in which to handle issues that occur between annual meetings.
- The association must obtain a quorum—a minimum number of owners present in person or by proxy—to conduct business lawfully at an annual or special meeting.
- Although subject to a variety of limitations and restrictions, most states allow owners to appoint a proxy to attend the meeting and vote in place of the owner.
- Guardians, trustees, personal representatives, and those holding power of attorney may attend meetings and vote as if they were the owner.
- Members have a right to vote based on the ownership of a unit or lot in the association. However, owners can lose their voting rights under certain circumstances.
- The election process, including nominations, campaigning, balloting, and vote tabulation, is subject to controls established by the association as long as they are implemented according to state law and the governing documents.