from attending. Inform the members that if they do attend the meeting, their proxy will be voided if they should choose to vote a ballot at the meeting.
Why are proxies so important?
Because they may help contribute to the quorum, which will be discussed in the following section.** Without a quorum, an association can’t do business, and eventually that affects the homeowners.
QUORUM
A quorum is the minimum number of owners who must be at a meeting before business can be transacted. State law and the governing documents tell us what that minimum number is for an association. It is generally relatively low (usually in the 20% to 35% range), but it can still be difficult reaching it. It’s a common problem in many associations.
Meetings that don’t have a quorum must be adjourned and rescheduled at a later date. This costs the association money and creates more work. And, achieving a quorum at a second meeting—if it could not be arrived at the first time—is even harder.
So, why bother to try again?
Because the board is legally obligated to conduct an annual meeting. It’s an important part of conducting association business. During the annual meeting, new board members are elected and the coming year’s budget is presented to the homeowners for approval. No quorum—no election, no budget. This means the current directors will have to continue serving until an election can be conducted. It also means that last year’s budget will remain in effect until a valid meeting (one with a quorum) can be held to approve a new budget.
Good news: You can be “at” a meeting and across the country at the same time by signing a proxy! That’s how you assign your vote, in writing, to another person. Proxies may count toward the quorum, so they’re very important to the association.
INSPECTORS OF ELECTION
When you go to your local polling place, you’ll see volunteers sitting at tables, checking people in, verifying they are registered voters, guiding them through the voting process, answering questions, observing voters as they vote and cast their ballots, attempting to prevent voter misconduct, and otherwise assisting as needed in the election process. The same goes for association elections!
Associations need impartial individuals to serve as inspectors of election in order to ensure the election is conducted fairly and legitimately. Governing documents may state that inspectors of election or election judges may be appointed from among the association members. This is a one-time commitment and can be an opportunity for an individual to serve his or her association in a meaningful way. If you’re new to your association, it also provides a
24 | COMMON INTEREST®
great way to meet your neighbors!
Inspectors would likely be fully briefed by the association’s attorney, accountant or manager on how to carry out their duties before the membership meeting and election. Duties might include examining proxies, establishing that a quorum is present, distributing and collecting ballots, tabulating votes and certifying their accuracy. Inspectors would also be asked to observe the voting process, assist members to cast votes and ensure no irregularities arise.
Members who have an interest in the election results are not eligible to serve as inspectors. This includes candidates, their family members,
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association officers or board members. y
Some associations hire professionals such as attorneys to be present during the election to state the election rules, observe the process and otherwise answer any questions that may arise. Some associations hire independent accountants or CPA firms instead of engaging association members to verify quorum, examine proxies, tabulate votes (especially if complicated votes-per-percentage-of- ownership calculation are involved), announce results, and certifying their accuracy.
If an association fears it may have a particularly tense or close election, it may be a wise idea to engage at least one of these professionals to be present to carry out election inspection duties. In that way, it reduces temptation for the unelected candidates to complain or blame the members who volunteered to be election inspectors for the results.
ACCLAL MATION
Sometimes, there is no formal election! In some associations, you may have three open board positions and three candidates running for those positions. If no one opposes or challenges the candidates becoming directors, then it’s “easy-peasy.” In that case, the candidates are voted in “by acclamation,” which means that since there was no opposition, the candidates were voted in by an enthusiastic verbal vote of approval, instead of by casting actual ballots.
MYTH-BUSTING
One common myth heard is that homeowners vote for the board presidents, vice presidents, secretaries, treasurers, etc. That is a common misconception. The board of directors is voted onto the board, and the board members vote amongst themselves for the various board positions.
THEWINNER
Regardless of the candidates, the campaign promises and the platforms, at the end of the day, if you’ve participated in your association’s election, you’ve participated in something greater than yourself. You considered the greater good above your own wants and needs. That makes both you and your association the real winners!
** Consult your association’s attorney regarding specifics on this. A Publication of CAI-Illinois Chapter
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