A board of directors or trustees manages HOAs, condos, and co-ops. If you are on a board of directors, you understand the importance of annual meetings and quorums. Unfortunately, it may be challenging to reach a quorum when unit owners or shareholders are too busy to attend annual meetings.
BuildingBoard has simplified annual meetings by providing virtual meetings. Property owners can attend the meeting, listen to presentations, and cast electronic votes without downloading any software. It is quick, simple, and cost-effective.
Our system does most of the work for you. You just pick your date, enter the membership information, and send the email invitations. Then, owners and shareholders receive a link to attend the meeting and vote. It is that easy.
Missing a quorum means that you cannot elect directors or conduct other business. In addition, you would need to reschedule the annual meeting, which requires another round of notices. Unfortunately, rescheduling the annual meeting does not ensure you will have a quorum on the new meeting date.
Virtual annual meetings can resolve this problem. Shareholders and owners are more likely to attend a virtual meeting because it is less disruptive to their schedules. In addition, you can use electronic voting once a quorum is present to take care of business quickly and efficiently.
The annual meeting is held to conduct business that impacts the entire community. However, these meetings may also provide owners and shareholders the opportunity to voice concerns or issues.
Mass. General Laws Chapter 183A governs condominiums in Massachusetts. There is not a specific provision in the statute requiring an annual meeting of the unit owners. However, the condominium bylaws may require annual meetings for the unit owners. The bylaws may also specify how many unit owners must be present in person or by proxy to constitute a quorum.
Furthermore, the statutes governing corporations, trusts, or associations used by the unit owners to manage the condominium may require annual meetings. For example, corporations are required to hold annual meetings for shareholders. Therefore, if the condominium is organized under a corporation, there would be required annual meetings.
Co-ops are formed under Massachusetts General Laws Chapter 156D. Each unit owner purchases shares in the corporation, which gives the unit owner exclusive use of a specific unit and an interest in the co-op. Because the co-op is a corporation, it must hold an annual meeting as outlined in Section 7.01.
The time and place of the annual meeting are fixed in the bylaws. Notice of the meeting must be given to the owners no less than seven days and no more than 60 days before the meeting.
According to Section 7.25, a majority of the votes entitled to be cast constitute a quorum. However, that number can be modified in the bylaws or articles of organization.
Voting for directors is governed by Section 7.28. Unless the articles of organization state otherwise, directions are elected by a plurality of votes cast by shares at a meeting in which a quorum is present.
Shareholders cannot cumulate their votes unless the articles of organization explicitly give the shareholders the right of cumulative voting. Cumulative voting allows a shareholder to cast all votes for any one or more candidates instead of giving no more than one vote per share to any single nominee.
There is not a specific law that governs HOAs in Massachusetts. However, a homeowners association may incorporate as a non-profit corporation under Chapter 180 of the Massachusetts General Laws. The non-profit corporation statutes would apply to the HOA, but the Condominium Act does not apply to HOAs in Massachusetts.
Corporate bylaws are drafted and used to manage the association. The bylaws set forth the specifics related to quorums and the election of board members. Section 6A refers to the annual meeting of members.
There does not appear to be a specific statute defining remote or virtual meetings for share interest property associations. However, the bylaws or organizational instruments could provide for remote meetings. Associations can check with their lawyers for legal advice.
BuildingBoard is easy to use, convenient, and avoids problems reaching quorums. Schedule your meeting, invite members via email, and conduct the vote on the day of the meeting. Your members vote via their smartphone or computer.
Are you ready to simply your annual meetings? Contact BuildingBoard to learn more about our services and to schedule a demo.
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