Scheduling an annual meeting for an HOA, condominium association, or co-op can be a frustrating task. Trying to coordinate schedules and pick a time that unit owners will come to the meeting may seem impossible. What if there was a better way to hold annual meetings? BuildingBoard has found a better way to hold annual meetings.
The virtual meeting platform we designed is simple to use. There are no apps or downloads required to attend a virtual annual meeting. The shareholders or unit owners only need to follow a link to take them directly to the live meeting.
Because members can attend from wherever they may be at the time of the meeting, you are likely to have better participation. Unit owners and shareholders can also vote electronically through our platform, making tabulating results quick and accurate for the board.
One of the problems many boards face is meeting the quorum to conduct business at the annual meeting. A quorum is the minimum number of votes that must be present or given by proxy to elect board members and conduct other business.
If there is not a quorum at the annual meeting, the meeting is rescheduled. Now the association must pay the costs of rescheduling the meeting with no guarantee that a quorum will be reached at the rescheduled meeting.
Virtual annual meetings are the answer. Members are more likely to watch the meeting and vote if they can do so from the comfort of their home or without leaving their job.
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.
The North Carolina Condominium Act applies to all condominiums created in North Carolina after October 1, 1986. Section 47C-3-108 requires that the association hold a meeting of the members at least once a year. In addition, special meetings may be scheduled throughout the year as necessary.
Notice of the annual meeting is mailed or delivered to the unit owners at least ten days before the scheduled date when using first-class or registered mail. Otherwise, the notice must be sent at least 30 days if mailed by another method. However, the notices cannot be delivered more than 60 days before the annual meeting date. Electronic notices are permitted.
There must be a quorum at the annual meeting for the board to hold votes or elections. Unless the bylaws state otherwise, a quorum is achieved if 20 percent of the votes which can be cast for an election of the executive board are present. Proxy votes count toward the quorum. The quorum for an executive board meeting is achieved when 50 percent of the persons entitled to vote on that board are present for the meeting.
Co-operatives are different from HOAs and condominiums. A co-op is a corporation organized to hold title to shared interest property. People purchase shares of the corporation. The shares give the individuals the right to exclusive possession of a unit within the shared property.
Co-ops are generally organized under the North Carolina Nonprofit Corporation Act. Shareholder meetings must occur at least once a year. The bylaws may allow meetings at other times. Section 55A-7-05 states that shareholders must receive fair and reasonable notice of meetings.
Reasonable notice occurs when the corporation mails the notice by first-class, registered, or certified mail at least ten days before the annual meeting date. If the notice is mailed in another manner, the notice must be sent no less than 30 days before the meeting. Notices must not be sent sooner than 60 days before the meeting date.
A quorum for an HOA is 10 percent of the votes entitled to be cast present at the meeting. The bylaws may increase or decrease the percentage for a quorum. Unless at least one-third of the votes entitled to elect directors are present in person or by proxy, the matters that may be voted upon are limited to the matters described in the meeting notice.
The North Carolina Planned Community Act governs HOAs for planned communities created on or after January 1, 1999. An exception exists for planned communities with no more than 20 lots, or all lots are restricted to nonresidential purposes.
Section 47F-3-108 requires an annual meeting of the association. Notices must be sent no more than 60 days before the meeting, but at least ten days before the scheduled date for the meeting. The HOA’s bylaws govern meetings of the executive board.
Generally, the bylaws for the HOA set the quorum for annual meetings. However, if the bylaws do not set the quorum, Section 47F-3-109 states that at least 10 percent of the votes to elect the executive board members must be present in person or by proxy to have a quorum.
If the meeting is rescheduled because of a lack of quorum, the quorum for the rescheduled meeting is one-half of the quorum required for the original date.
Generally, virtual annual meetings for homeowners associations are not permitted in North Carolina. There were emergency orders issued during the pandemic allowing remote meetings for members. Associations should discuss virtual meetings with their lawyers to determine the current laws related to electronic communication used for annual meetings.
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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