Texas

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

Scheduling the annual meeting for your homeowner’s association can be a hassle. It is frustrating when you schedule meetings but fail to reach a quorum to conduct business. BuildingBoard has a better way to hold annual meetings and board meetings.

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Population

28,995,881

Housing Units

11,283,353

Owner Occupied

62%

Associations

21,000

Simplify Your Board Meetings in Texas With BuildingBoard

BuildingBoard’s remote platform allows your members and directors to attend meetings virtually. Our easy-to-use system gives individuals the opportunity to participate in live meetings and submit their votes electronically. There are no software or apps to download. All you need is an internet browser.

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Risks of Missing a Quorum in Texas

Missing a quorum means you cannot transact business. Instead of taking care of community matters, you spend time and money rescheduling a meeting. Even though you reschedule the meeting, it does not guarantee that more people will attend the next meeting.

Remote access to homeowner association meetings increases participation. It is more convenient for members to attend and vote when they can do so from their home, office, or wherever they may be at the time of the meeting.

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

The Texas Uniform Condominium Act governs condominiums created on or after January 1, 1984. Condominiums built before this date may choose to be subject to this Act.

Meetings of the association are to be held at least once per year. Notice must be provided in accordance with the bylaws. If the bylaws do not state how notice should be given, then notice is given according to the Texas Nonprofit Corporation Act.

Unless the bylaws state otherwise, a quorum for an annual meeting equals at least 20 percent of the votes that may be cast for the election of a board member. The bylaws may not reduce a quorum for an annual meeting below 20 percent.

Voting may be in person or by written proxy. Cumulative voting is not permitted. 

Condominiums organized as nonprofit corporations would be subject to the Nonprofit Corporations Act, discussed in HOAs below.

Co-Ops

Chapter 251 of Title 6 of the Business Organization Code governs cooperative associations. If a co-op is subject to this Chapter, meetings of members are held at least once a year. Generally, each member of the cooperative association has one vote. Members are not entitled to vote by proxy. However, the bylaws or certificate of formation may contain procedures for allowing voting by mail. 

The code states that the bylaws may contain provisions for the number or percentage of the members constituting a quorum. The same applies to the number of directors necessary for a quorum. 

Co-ops organized as nonprofit corporations would be subject to the Nonprofit Corporations Act, discussed in HOAs below.

HOAs

Chapter 201 of Title 11 of the Property Code applies to many real estate subdivisions located within Texas. The code section deals with restrictive covenants applicable to specific subdivisions.

Many HOAs are organized as nonprofit organizations. Therefore, they are subject to the Nonprofit Corporations Act. In addition, many co-ops and condominiums are also organized as nonprofit corporations. 

A meeting of the members shall be held each year at a time stated in the bylaws. If the bylaws provide for more than one regular meeting of the members, directors may be elected as provided by the bylaws. Written notice of the annual meeting is provided to members at least ten days before but no more than 60 days before the meeting date. The bylaws may change the requirements for the notice of meetings.

Unless the bylaws or certificate of formation state otherwise, a quorum equals at least 1/10 of the members entitled to vote in person or by proxy. 

Members may vote in person or by proxy unless proxy voting is restricted or prohibited by the bylaws or the certificate of formation. In addition, members may vote by mail, electronic message, or facsimile if the bylaws or certification of formation allows.

Virtual Annual Meetings in Texas

In §82.108 of the Condominium Act, it states that board meetings may be held by any method of communication, including electronic and telephonic, provided that:

  • Proper notice of the meeting is given
  • Each director can hear and be heard 
  • The meeting does not involve voting on specific issues

The Condominium Act does not address remote meetings of members. Likewise, the Cooperative Associations statutes do not mention remote or electronic meetings.

Any homeowners association organized as a nonprofit corporation should be subject to §22.002 of the Nonprofit Corporations Act. The law allows for remote communications to be used for annual meetings and board meetings. Examples of electronic communications used for meetings include conference telephone, video-conferencing, and the Internet.

Hold Your Texas 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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