California

California Annual General Meeting Requirements for Condos, Co-Ops, and HOAs

Scheduling and holding annual meetings of members should not be difficult. But, unfortunately, coordinating schedules for board members and unit members can be impossible, especially for large communities. Could there be a better way to hold these meetings that would avoid problems with participation and quorums?

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Population

39,512,223

Housing Units

14,366,336

Owner Occupied

54.80%

Associations

49,200

Simplify Your Board Meetings in California With BuildingBoard

BuildingBoard is a convenient, easy-to-use platform that allows your directors and members to attend meetings virtually. With remote meeting access, members can participate in live meetings and cast their votes electronically. 

Because our platform is internet-based, there are no software or apps to download. Therefore, your members and directors only need to access the internet from their mobile devices to attend the meeting wherever they may be located when the meeting begins.

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Risks of Missing a Quorum in California

When you miss a quorum in California, it’s not only frustrating, but it also means you cannot pass measures or conduct any official business. Rescheduling meetings waste time and add additional operational costs. Furthermore, there is no guarantee that your members will show up for the rescheduled meeting.

Allowing members to attend remotely can solve quorum problems. In addition, virtual meetings can encourage greater member participation, which benefits the entire community.

Annual General Meeting Requirements

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.

Condos

Condominium associations generally have annual meetings as a provision of their bylaws. The Davis-Stirling Common Interest Development Act does not discuss quorums, so the bylaws or articles should set the quorum for these meetings. However, if the bylaws are silent as to quorums, the Nonprofit Mutual Benefit Corporations code sets a 1/3 quorum for meetings, if the condominium association is organized as a nonprofit.

Co-Ops

Co-ops are corporations organized to own real estate for members. The members purchase shares in the corporation, which gives them the right to exclusive possession of a specific unit. The Davis-Stirling Common Interest Development Act applies to stock cooperative associations. However, the Nonprofit Mutual Benefit Corporations may also apply.

HOAs

The Davis-Stirling Common Interest Development Act governs homeowners associations. HOAs generally hold annual meetings of members to elect board members and conduct other association business. Quorums, proxies, and voting rights are usually outlined in the bylaws and articles. However, the requirements discussed above in the Davis-Stirling Common Interest Development Act will apply to HOAs in California.

Virtual Annual Meetings in California

Section 7510 of the Nonprofit Mutual Benefit Corporations code states that subject to guidelines, procedures, and requirements, members not physically present at a meeting of members may participate through electronic communication. Therefore, these members may be counted as present in person (or by proxy if proxies are allowed) and cast their votes. 

Board members may attend board meetings electronically by video or telephone. They must be able to participate in the live meeting by hearing all other board members, and all other board members must hear the absent director. [Corp. Code §7211(a)(6)

If the entire board meeting is held virtually, at least one physical location must be given to the owners where they can attend and listen/observe the board’s meeting. [Civil Code §4090(b)]

Hold Your California Annual Board Meetings Virtually with BuildingBoard

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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