SUSPENDING VOTING RIGHTS

To suspend voting rights, boards must do the following:

1. In Bylaws. The procedure for suspending voting rights must be in the articles or bylaws. In the alternative, it must be annually sent to all members. Corp. Code §7341(c)(1)

2. Notice of Hearing. The person must be given written notice by either personal delivery or first-class mail, at least 10 days prior to the meeting at which voting rights will be suspended (unless the governing documents provide for a longer notice period). Civil Code §1363(h) The notice must be reasonably calculated to provide actual notice to the member. Corp. Code §7341(d) The notice must contain the following:

   1. The date, time, and place of the hearing,

   2. The nature of the alleged violation for which a member may be disciplined, and

   3. A statement that the member has a right to attend the hearing and present evidence in his/her defense. Civil Code §1363(h)

3. Executive Session. Hearings should always be in executive session. Civil Code §1363(h); Civil Code §1363.05(b) Members have the right to submit their defense in writing rather than make an appearance before the board. Corp. Code §7341(c)(3)

4. Decision. If the board suspends the member's voting rights, notice of the suspension must be given by personal delivery or first-class mail within 15 days following the board's decision Civil Code §1363(h) (unless the governing documents provide a shorter notice requirement) and at least 5 days prior to the effective date of the suspension. Corp. Code §7341(c)(3) Once imposed, suspension of voting rights may continue until such time as the violation ceases.

RECOMMENDATION. The above procedures are generally NOT found in an association's articles or bylaws. Therefore, boards should either (i) amend their bylaws to include the above procedures or (ii) include the procedures in the annual disclosures mailed to all members.

The procedure for suspending common area privileges is somewhat easier but still requires due process. For more information, contact us.

Updated by ADAMS KESSLER 10/9/2008