Important information for owners in condominiums, cooperatives and planned communities

Do you own in a Condominium or community association? Chances are, during the first quarter of each year, you will see a notice posted for your association’s annual meeting. Shortly thereafter, you should receive an annual meeting packet, which includes a meeting notice and agenda, a “proxy” ballot (more on that later) and the previous years’ meeting minutes. Here are some common questions about the purpose of annual meetings and what goes on.

What is an annual meeting?

An annual meeting is a meeting of the members of the association or corporation that is held once a year for the purpose of conducting the specific business of the group, such as the election of the board of directors, or amendments to the governing documents. Annual meetings are different from (and sometimes confused with) board of directors’ meetings, where the day-to-day business of the association is handled.

Who can attend my association’s annual meeting?

Annual meetings are for all of the members of the association – in other words, the owners of all units or homes in these properties.

What happens at the meeting, and why should I attend?

One of the primary purposes of the annual meeting is to elect members of the board of directors. Often due to term completion or resignations, director positions must be filled. It is important to note that the board of directors of your association has the fiduciary responsibility to make the day-to-day decisions regarding your property, which makes your say in who is elected very important. In addition, you will receive financial reports, adopt the tax resolution and possibly amend the governing documents during the meeting. All members are encouraged to attend, and to participate in setting the direction of the organization for the coming year.

How is the agenda and meeting format determined?

Your association bylaws contain a specific agenda for all annual meetings. It is the job of your managing agent to provide the board president a written script for the meeting, which he or she must follow. In addition, Robert’s Rules of Order, the standard procedural format for all annual meetings, will require a certain procedure and language for your meeting.

What is “quorum,” and why is it necessary at the meeting?

A “quorum” is the percentage of people necessary to conduct business at a meeting. It is normally a majority of the owners or co-op members, but may be less. This requirement is listed in your association’s bylaws.

What is a proxy, and why is it important?

A proxy permits the member to assign his or her vote to someone else, in the event that the owner cannot be present to vote in person. The proxy holder should be someone the member trusts. Your proxy is used to help establish quorum for the meeting. A quorum must be established for any business to be conducted at the annual meeting.

What should I do with the proxy when I receive it?

Complete the proxy and mail it back as soon as possible, even if you are planning to attend the meeting. If you do attend, your proxy will be voided and a ballot will be given to you to vote as you wish. In the event you cannot make it, returning your proxy can save your association money by eliminating the need for additional mailings to establish quorum. Proxies are required for condo associations. Similar proxies may be used for planned communities & co-ops, but are not required. Check your documents or with your manager for the specific requirements for your association.

Methods of Voting

There are several methods of voting which may be used in different situations, and are stipulated by your association documents and/or state law. These include majority vote, majority of owners, percentage of common interest, unanimous consent and cumulative voting. A majority vote (of both those present and by proxy), for example, may be required at a meeting to adopt a motion or action. Other items, however, may require a majority of owners (over 50%), whether they are at the meeting or not.

Can my concerns be addressed at an annual meeting?

While additional questions and concerns cannot be brought up during the formal meeting, most annual meetings feature an “owners’ forum” after the meeting. This is a time where owners can discuss their questions and concerns with the board.

As a rule, most annual meeting problems arise only when something unexpected happens, such as someone making a motion not on the agenda, or attendance by a non-owner. Your managing agent is equipped to handle these and other common occurrences. If more complex issues are expected, arrangements to have a professional parliamentarian run the meeting is a wise move.

Annual meetings don’t have to be somber event. Many associations conclude with refreshments and a little social time. Annual meetings can be fun and even festive, and an opportunity to get together with your neighbors. For informational videos on this and other subjects relating to your association, please visit www.hmcmgt.com. Videos are located under the “News & Info” menu.