It can be a nuisance to coordinate the schedules of various board members to schedule an annual meeting. Additionally, you need to worry about getting enough owners to show up at the annual meeting to establish a quorum.
BuildingBoard makes it easy to hold annual meetings and achieve quorums through our virtual meeting platform. Owners can attend annual meetings and vote electronically. We take the frustration out of scheduling and holding annual meetings for common interest developments.
BuildingBoard has done all the work for you. You pick your meeting date, enter ownership information, and send an email invitation. The system even sends reminder emails to owners for you.
On the day of the meeting, owners click a link and join the meeting. They do not need to download software. Our system operates on smartphones, desktop computers, laptops, and tablets.
When you miss a quorum at your annual meeting, it is frustrating. However, it can also be costly. You need to reschedule the meeting, deliver new notices, and worry about missing a quorum again.
Also, board members need to continue managing the association. It can be a tricky legal issue when a board member's term ends but an election has not been held.
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.
Notice of the meeting's time, place, and purpose must be provided to the unit owners at least 21 days before the annual meeting. Notice periods may be waived for emergency meetings. Notices can be sent electronically or to a mailing address. If no address is provided, the notices must be hand-delivered, mailed, or sent by a delivery service to the unit address.
The bylaws or declaration may permit the annual meeting to be conducted by video, telephone, or another conferencing process.
The default minimum quorum for an annual meeting is 33 1/3 percent, but the bylaws may provide for a smaller percentage. The smallest percentage by law for a quorum is 25 percent.
Condominiums created before September 10, 1977, are governed by the New Hampshire Unit Ownership of Real Property Act. Section 479-A:18 states that the terms of at least 1/3 of the directors expire annually. The bylaws provide the method of calling meetings of the unit owners and the percentage used to obtain a quorum.
There is no specific reference to "annual" meetings under the old law, but if the condominium association is organized as a corporation, corporate laws could require the annual meetings.
The Condominium Act does not apply to co-ops or homeowners associations (HOAs). Co-ops are corporations. Owners purchase shares of the corporation, which grants them the exclusive right to possession of a specific unit. Therefore, co-ops are subject to corporate laws.
Most co-ops are formed under Chapter 301-A of the New Hampshire Statutes as nonprofit corporations. Therefore, the associations formed under this chapter are subject to general corporation law as found in Chapter 292 and Chapter 293 of the New Hampshire statutes.
Because all community associations must be registered as corporations, HOAs are also subject to the provisions in Chapter 292 and Chapter 293.
Section 293-A:7.01 states that an annual meeting of shareholders must be held unless directors are elected by written consent instead of an annual meeting. Section 293-A:7.04 states that it is not necessary to hold a meeting to take an action if all the shareholders entitled to vote on the action agree.
The articles of incorporation might provide that actions may be taken without a meeting or notice if written consents are obtained by no less than the number of votes required to take the action if a meeting were held.
Therefore, it is possible to elect board members without holding an annual meeting of shareholders for an HOA or co-op. However, the procedures for doing so must follow the requirements within the statute without exception.
Notice of meetings must be sent to shareholders at least ten days, but not more than 60 days, before the meeting.
There appears to be nothing in the law prohibiting virtual annual meetings for HOAs and co-ops. Still, board members need to carefully review the bylaws and articles of corporation to determine whether virtual annual meetings are allowed.
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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