Homeowners’ associations in Louisiana
must be organized as corporations and are therefore subject to the Business
Corporation Act. During Louisiana’s second special session of 2020, the
General Assembly passed SB 33, signed by the Governor to amend the Business
Corporation Act allowing a board of directors of a corporation to elect to call
a virtual only shareholder meeting, this became effective October 16, 2020. The
Business Corporation Act provides most of the regulations applied to HOAs. The Louisiana Homeowners Association Act was
also passed to provide regulations more specific to community associations. Contact
your association’s attorney to see what your community’s options are for
virtual meetings based upon your governing documents.
Applicable Statutes: Business Corporation Act/Homeowners Association Act
§1141.3 of the
Homeowners Association Act states that community documents are superior to any regulations
provided in the act. The powers described in the LA HOA Act are only applicable
if not addressed within community declarations or bylaws.
§1-709. Remote
participation in annual and special meetings
A. Shareholders of any class or
series may participate in any meeting of shareholders by means of remote
communication to the extent the board of directors authorizes such
participation for such class or series. Participation by means of remote communication
shall be subject to such guidelines and procedures as the board of directors
adopts, and shall be in conformity with Subsection B of this Section.
B. Shareholders participating in a
shareholders' meeting by means of remote communication shall be deemed present
and may vote at such a meeting if the corporation has implemented reasonable
measures to do all of the following:
(1) Verify that each person
participating remotely is a shareholder.
(2) Provide such shareholders a
reasonable opportunity to participate in the meeting and to vote on matters
submitted to the shareholders, including an opportunity to communicate, and to
read or hear the proceedings of the meeting, substantially concurrently with
such proceedings.
C. Notwithstanding any provision of
Subpart A of Part 7 of this Chapter to the contrary, unless the bylaws
expressly require the meeting of shareholders to be held at a place, the board
of directors may determine that any meeting of shareholders shall be held
solely by means of remote communication, in accordance with the provisions of
Subsection B of this Section and the guidelines and procedures as the board of
directors adopts.