November 15, 2009

MOTHER'S PROXY

QUESTION: My mother is well into her eighties and has significant hearing issues. When she was recently pointed out at a board meeting "put her up front, she can't hear." she became very embarrassed and refuses to attend any more board meetings. Can she appoint me, her daughter, as a proxy to attend all meetings?

ANSWER: Yes, you can attend on her behalf. However, a proxy is not the correct form of authorization. Proxies apply only to membership meetings, not board meetings. A power of attorney is the proper document to give you the legal authority you need to attend meetings. Having said that, the board should not make you jump through legal hoops to attend the meeting--a simple written authorization from your mother should suffice. As your mother's agent, you would also have the right to speak on her behalf at the open forum.

DELINQUENT OWNER AS PROXY

QUESTION: A member made a delinquent owner their proxy for the annual meeting. Can a delinquent owner cast a proxy vote?

ANSWER: Yes. The Davis-Stirling Act does not require that owners be in good standing to be proxies, only that they be owners. Civil Code §1363.03(d)(1)(A).

DIRECTORS NOT IN
GOOD STANDING

QUESTION: Is there anything in the Davis-Stirling Act that requires a director to be a member in good standing, that is, not owing any monies to the association?

ANSWER: There is nothing in the Act requiring directors to be ingood standing. However, associations can add that as aqualification by amending their bylaws.

CANDIDATE WITH
UNRECORDED DEED

QUESTION: Our CC&Rs require that board members be owners. The son of a member wants to run for the board. He has an unrecorded Quit Claim deed (he claims it's unrecorded for tax reasons). Does this qualify him to run for the board?

ANSWER: No, an unrecorded deed does not qualify him to serve on the board. People who walk around with "pocket deeds" (unrecorded deeds they carry in their pocket) usually do so for reasons other than taxes. If your non-member wants to run for the board, he needs to record the deed and become a member of the association.

ANNUAL MEETING
QUORUM

QUESTION: Do ballots establish quorum for all actions at an annual meeting or only for the election part of the meeting?

ANSWER: Ballots establish quorum for the meeting as a whole. However, new matters cannot be raised and voted on from the floor at the annual meeting. Only incidental matters may be voted on by the membership, such as approving the minutes, closing balloting, adjourning the meeting, etc. Any significant business requires notice to the membership, secret balloting, and a 30-day voting period.

RECALL REDUCED QUORUM

QUESTION: Regarding quorum for a recall election, if a quorum is not established on the first try, is the recall void? Would we set another date to establish a smaller quorum, as in a regular election handled at an annual meeting?

ANSWER: If your bylaws do not provide for a reduced quorum, the recall fails and everyone goes home. If your bylaws provide for a reduced quorum, you set another date as provided for in your bylaws. If you meet quorum at the rescheduled meeting, you must also factor in the size of your association. If your association has fewer than 50 members, the removal of directors must be approved by the affirmative vote of a majority of all members entitled to vote, regardless of the reduced quorum. Corp. Code §7222(a). If you have 50 or more members, the recall is approved by the affirmative vote of a majority of the votes represented and voting, with the affirmative votes also constituting a majority of the required quorum. Cumulative voting may also be a factor in the recall effort.


   Sincerely yours,
 
   Adrian Adams, Esq.
   Adams Kessler PLC


 
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