ANNUAL MEETINGS? A REQUIREMENT BY STATUTES!

By Jan Bergemann

Published January 24, 2014

  

Every association is required by law to have an annual meeting. Sounds easy, right?

  

It’s definitely not as easy as it sounds! Especially in homeowners’ associations regulated by FS 720 many annual meetings just don’t take place due to lack of quorum. That’s why many associations send out “limited proxies” that do nothing else than creating the quorum needed to let the meeting actually take place!

  

But even that little trick doesn’t help in many cases.

 

According to the Florida statutes, the election of the board members has to take place at the annual meeting – once a year. In condos [FS 718.112(2)(d)] that often creates a weird situation: The election can take place, but the annual meeting can’t.

 

You may ask why? The explanation: Difference in quorum requirements. While it takes only a 20% qualified voter participation to have an election, most governing documents require a 30% quorum to start the business part of the annual meeting.

 

In some HOAs you find reports that the clubhouse was filled, standing room only, but the board quickly declared that due to a lack of quorum the meeting – and election – can’t take place and then quickly flee the scene, if they are afraid the opposing candidates would win the election. That loophole is caused by the vague election rules in FS 720.306 – an issue we want changed with the help of our proposed HOA REFORM BILL PART II.

 

Let’s make no mistake: In most associations the only reason for having the needed quorum is controversy. A seriously disputed election with two groups of candidates opposing each other – or the debate over a special assessment – will get owners to participate.

 

Another pretty common bone of contention is the question: Who chairs the meeting? Some bylaws are silent on that matter -- others make the president of the board the chair for the annual meeting. Never forget: The annual meeting is legally a membership meeting and board members have no specific rights. They have just one vote like every other member of the association. The members present could even elect a chair specifically for that meeting.

 

And hiring the association attorney to chair the meeting? I agree to that suggestion if there are disputed issues (like election) on the agenda and threats of litigation are already flying around long before the meeting takes place. Otherwise it can as well cause more friction since not all members may like the association attorney. Sometimes an off-duty police officer can be of much more help to conduct a peaceful meeting than the association attorney who maybe considered biased by quite some members.

 

When selecting a president the other board members – and the membership – should consider that one of the most important duties of the president is chairing the meetings. With other words, pick somebody who has the necessary know-how to preside over the meetings and doesn’t have to pay the attorney showing up at each meeting doing his/her job. A president who isn’t comfortable chairing a meeting might not be the right person to be elected president.

 

Meetings are an important part of creating a democratic community. CCFJ has over the years added quite a lot of owner-friendly provisions to the Florida statutes. But they all count on the participation of the owners. APATHY is the worst enemy of creating a nice owner-friendly community.

 

A little piece of advice to all the owners who say that “they don’t want to get involved”: You are involved since the moment you bought into the community – for better or for worse. Your lack of involvement allows other members to create sometimes dictatorial rules.  “Dictators” can only rule if the majority of owners is silent and “doesn’t want to get involved.” Recalls and elections are a great tool to get rid of “dictators.”

 

Not getting involved can cost you lots of money. Make sure you go to the meetings and have your voice – and vote – heard – or stop complaining and just write the checks when the “dictators” are wasting more of your money!

 

Wishing you all “peaceful” annual membership meetings!


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Jan Bergemann Jan Bergemann is president of Cyber Citizens For Justice, Florida 's largest state-wide property owners' advocacy group. CCFJ works on legislation to help owners living in community  

associations. He moved to Florida in 1995 - hoping to retire. He moved into a HOA, where the developer cheated the homeowners and used the association dues for his own purposes. End of retirement!

 

CCFJ was born in the year 2000, when some owners met in Tallahassee - finding out that power is only in numbers. Bergemann was a member of Governor Jeb Bush's HOA Task force in 2003/2004.

 

The organization has two websites to inform interested Florida homeowners and condo owners:

News Website: http://www.ccfj.net/.

Educational Website: http://www.ccfjfoundation.net/.

   
We think that only owners can really represent owners, since all service providers surely have a different interest! We are trying to create owner-friendly laws, but the best laws are useless without enforcement. And enforcement is totally lacking in Florida !


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