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JimM7 (Florida)
Posts: 71
Posted:
We have a big problem. Some people think we can use a lower number required to constitute a quorum than what is published in the controling documents (bylaws). I am trying to convince them that Florida wants a MINIMUM of 30 but if the bylaws state a larger number that must be used.
It is extremely hard to have people read and understand the law. There was a meeting of another association on Monday that changed the #.

Somebody help......
DonnaS (Tennessee)
Posts: 5,671
Posted:

Jim,
Help is on the way.

The secret to understanding Statutes 720 is to locate the "magic words" That will be "UNLESS OR NOTWITHSTANDING". In the case of #306, the word is UNLESS!!

720.306 Meetings of members; voting and election procedures; amendments.--

(1) QUORUM; AMENDMENTS.--

(a) *****Unless*** a lower number is provided in the bylaws, the percentage of voting interests required to constitute a quorum at a meeting of the members shall be 30 percent of the total voting interests. Unless otherwise provided in this chapter or in the articles of incorporation or bylaws, decisions that require a vote of the members must be made by the concurrence of at least a majority of the voting interests present, in person or by proxy, at a meeting at which a quorum has been attained.

What this means is that your bylaws CAN use a lower number if stated and properly voted on by the membership. Are they wanting to lower the number from what you already have? If that's the case, you must use your current quorum number to get the vote and then IF it passes to a lower number, then you use that lower number in the future.
JudyZ (Florida)
Posts: 23
Posted:
Jim: According to 720.306 ... At a meeting, a quorum is 30% of the total voting interest, unless your by-laws, covenants, and any other governing documents provide a lower number.
JimM7 (Florida)
Posts: 71
Posted:
Thank you DonnaS....JudyZ how's that. I have a person who thinks like me.

I think the other association knew they were not going to get the required number so they fudged it. They have a voting membership of 426 and only had 59 bodies show up and had additional proxies that did not make the 33% as required in the bylaws.

Too bad......Thanks Donna.....Jim
MaryA1 (Arizona)
Posts: 7,043
Posted:
Quote:
Posted By JimM7 on 12/03/2008 10:10 AM
Thank you DonnaS....JudyZ how's that. I have a person who thinks like me.

I think the other association knew they were not going to get the required number so they fudged it. They have a voting membership of 426 and only had 59 bodies show up and had additional proxies that did not make the 33% as required in the bylaws.

Too bad......Thanks Donna.....Jim

Jim,

As I read the statute posted by Donna, not more than a 30% quorum is required to be IAW FL statutes. This assn didn't need 33%, they only needed 30%; however, they didn't even have half the requirement with only 14%. Actually what it boils down to is that no assn need obtain more than a 30% quorum, but some may get away with less if their docs specify less than 30%.
DonnaS (Tennessee)
Posts: 5,671
Posted:

Mary,
According to what Jim posted about "the other association", they did not have the required 33% so they "FUDGED IT" He states that this is another association? Not sure why he gave us that info but you are so right. Florida Statutes say 30% for a quorum UNLESS the governing docs state otherwise. It can be more or it can be less than 30%.

This is one of those Statute numbers that I have not a clue why they even add it to the books. Can be more, can be less. HUH??? What they should say is that bylaws need to have a written quorum requirement. period. I know of an association that uses 10% and another one uses 50% .
JimM7 (Florida)
Posts: 71
Posted:
Thanks all......I think we will see a revision in the law after the 2009 Legislative Session.....I'm keeping a close eye on that.

Thanks again....Jim
PeterB1 (Florida)
Posts: 257
Posted:
Donna,

you said: "What this means is that your bylaws CAN use a lower number if stated and properly voted on by the membership. "

While I agree with your comments on "can use...", I don't see anything requiring the membership to vote on using the 30%. If that were a requirement, what would the quorum be for such a vote????

peter
DonnaS (Tennessee)
Posts: 5,671
Posted:

Peter

All governing documents state a quorum requirement. Those who had a set of internet documents created used the 30% of the States suggestion. If an association accepts the 30% as might be included in their governing docs, then there would be no need for a quorum or vote. I hope this is what you mean
MaryA1 (Arizona)
Posts: 7,043
Posted:
Quote:
Posted By PeterB1 on 12/03/2008 1:18 PM
Donna,

you said: "What this means is that your bylaws CAN use a lower number if stated and properly voted on by the membership. "

While I agree with your comments on "can use...", I don't see anything requiring the membership to vote on using the 30%. If that were a requirement, what would the quorum be for such a vote????

peter

Peter,

I'm not quite sure what you're asking. The topic pertains to a quorum for holding a meeting. Donna posted the FL state law which says: "Unless a lower number is provided in the bylaws, the percentage of voting interests required to constitute a quorum at a meeting of the members shall be 30 percent of the total voting interests." To interpret: the law says a quorum to hold a meeting shall be 30%, but if your gov. docs. require a lower % the assn can use that lower % requirement. Actually, if the gov. docs have a % lower than 30, the state law is a moot point. I would think the law was written to address those assn's that have extremely high % requirements making it near impossible to hold a meeting.
PeterB1 (Florida)
Posts: 257
Posted:
Sorry, I'm not being clear. Suppose our Bylaws say a quorum is 50%. But the State says 30% - cool, now we get to have meetings without dragging people from their beds.

But, Donna seems to say we have to vote to accept the 30%. Vote??? Can't we just accept the State specification and go with the 30%?
SusannaM (Florida)
Posts: 366
Posted:
I have sort of a similar situation. Our annual meeting is next week. Current Bylaws are silent about annual meetings of the membership. They have yet to be amended or revised altogether. Nothing has been done in the past 3 years. So my guess is that we'd have to meet the 30% of "voting interests" or the board will have to call for a 2nd annual meeting, which by the way previous boards have failed to do. They didn't even know FL Statutes 720 existed until recently. Now, what about homeowners who are delinquent ?? or, those who have refused to comply with violation letters ??? FL Statutes does not say "eligible voters." And, our Proxy does not say anything about eligibility nor about percentage of votes to meet a quorum.
DonnaS (Tennessee)
Posts: 5,671
Posted:

Susanna,

Because Florida Statutes were not enacted until the year 2000, many older associations were governed under 617, which are your Articles Of Incorporation. Knowing that your association is older, I would bet a bunch that if you looked at your Articles of Inc, all of your Board, Quorum and Voting numbers will be in there.

Associations that have revised their governing docs after 2000, have those moved into bylaws under the 720 requirements. But they must be consistant with each other (articles and bylaws.)

You said--" FL Statutes does not say eligible voters." 720.305 OBLIGATIONS OF MEMBERS; REMEDIES AT LAW OR IN EQUITY; LEVY OF FINES AND SUSPENSION OF USE RIGHTS." says

"(3) If the governing documents so provide, an association may suspend the voting rights of a member for the nonpayment of regular annual assessments that are delinquent in excess of 90 days."
I interpret this as the reason to lose voter eligibility.

DonnaS (Tennessee)
Posts: 5,671
Posted:

Peter,

IF your bylaws say 50% for your quorum, then it must be 50%. The only way that you can go down to a 30% quorum is by an amendment to your bylaws per a vote by the entire membership. ANY AMENDMENT (change to your cc&rs, articles of inc and bylaws) must be an amendment by a vote.

The States 30% is just a reccomended number that they created, figuring that it was an aceptable number.

SusannaM (Florida)
Posts: 366
Posted:
Donna, I've read our articles of incorporation a few times, and there is nothing about voting, quorum, etc. There is mention however, that "the power to alter, amend or repeal Bylaws or Arcticles of Inc. or to adopt new Bylaws shall be vested in the BOD." I guess that settles the score as far my HOA is concerned.
DonnaS (Tennessee)
Posts: 5,671
Posted:

Susanna,

Below is the Statute from 617, which your HOA was or at least should have been incorporated under. You are telling me that your Articles DO NOT have this included in them? WOW! LOOK AT (d)

Title XXXVI
BUSINESS ORGANIZATIONS Chapter 617
CORPORATIONS NOT FOR PROFIT View Entire Chapter

617.0202 Articles of incorporation; content.--

(1) The articles of incorporation must set forth:

(a) A corporate name for the corporation that satisfies the requirements of s. 617.0401.

(b) The street address of the initial principal office and, if different, the mailing address of the corporation;

(c) The purpose or purposes for which the corporation is organized;

(d) A statement of the manner in which the directors are to be elected or appointed. In lieu thereof, the articles of incorporation may provide that the method of election of directors be stated in the bylaws;

SusannaM (Florida)
Posts: 366
Posted:
Donna, yes, the Bylaws say that "Directors shall be selected by the Declarant acting in its sole discretion....so long as the Class B membership exists....."

Transition from developer, technically speaking, happened 4 years ago but developer did not officially "ASSIGNED" powers, duties and rights to HOA until March 2007.

All our gov. docs need to be reviewed by competent attorneys.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Quote:
Posted By DonnaS on 12/03/2008 6:47 PM

Peter,

IF your bylaws say 50% for your quorum, then it must be 50%. The only way that you can go down to a 30% quorum is by an amendment to your bylaws per a vote by the entire membership. ANY AMENDMENT (change to your cc&rs, articles of inc and bylaws) must be an amendment by a vote.

The States 30% is just a reccomended number that they created, figuring that it was an aceptable number.


Donna,

Sorry, but I don't interpret the statute that way. Here's what you posted earlier:

"(1) QUORUM; AMENDMENTS.--

(a) *****Unless*** a lower number is provided in the bylaws, the percentage of voting interests required to constitute a quorum at a meeting of the members shall be 30 percent of the total voting interests. Unless otherwise provided in this chapter or in the articles of incorporation or bylaws, decisions that require a vote of the members must be made by the concurrence of at least a majority of the voting interests present, in person or by proxy, at a meeting at which a quorum has been attained."

The way I interpret this statute, is that if the assn's quorum requirement is less than 30% their gov. docs. prevail. For any other assn the quorum requirement is 30%.

In answer to the question of whether or not the members not eligible to vote are counted to ascertain the quorum: With regard to a quorum, this statute says "a meeting of the members", not "eligible members" or "members eligible to vote". As for voting, the statute mentions a "vote of the members" not the "eligible members" or "members eligible to vote". I interpret this to mean the quorum and the majority vote are based on the total number of members in the assn, whether they are eligible to vote or not.

SusannaM (Florida)
Posts: 366
Posted:
"The way I interpret this statute, is that if the assn's quorum requirement is less than 30% their gov. docs. prevail. For any other assn the quorum requirement is 30%.

In answer to the question of whether or not the members not eligible to vote are counted to ascertain the quorum: With regard to a quorum, this statute says "a meeting of the members", not "eligible members" or "members eligible to vote". As for voting, the statute mentions a "vote of the members" not the "eligible members" or "members eligible to vote". I interpret this to mean the quorum and the majority vote are based on the total number of members in the assn, whether they are eligible to vote or not."

I also see it that way.

And, as far as to the statement that Bylaws can only be amended by a vote of the membership, I'd have to disagree. That's NOT the case when the articles of incorporation allow the BOD to amend, revise, etc.
DonnaS (Tennessee)
Posts: 5,671
Posted:

Well Mary,
The system ain't perfect and that particular Statute has been argued to need updating. When that was written, there were no considerations written for members NOT in good standing. There is another section that states members not paying assessments can lose their right to vote. So there is a lack of consistancy in this section with the other.

Statutes 720 were written in 2000 and prior to that the Statutes 617(Not For Profit Corps) were the governing documents. This is the Statute on quorums

Corporations Not For Profit

617.0725 Quorum.--An amendment to the articles of incorporation or the bylaws that changes or deletes a greater quorum or voting requirement must meet the same quorum or voting requirement and be adopted by the same vote and voting groups required to take action under the quorum and voting requirements prescribed in the provision being amended. (there is no reccomended %)

Now after reading that, do you wonder why older associations had such a difficult time knowing what number to use for quorums? Developers used numbers all over the place. Many of these HOAs have not updated to 720 but they are governed by it

MaryA1 (Arizona)
Posts: 7,043
Posted:
Donna,

So why should FL statutes be any different than those enacted in other states? LOL In AZ we have a whole host of statutes that are ambiguous, contradictatory, and some downright ridiculous. Guess that's what keeps the legislature in business each year. :-(
DonnaS (Tennessee)
Posts: 5,671
Posted:

Mary,
Florida has 55,000 plus HOAs with a huge majority of them in exhistance prior to the year 2000, when the oh so wise State wrote Statutes for HOAs (720) and condos (718) along with mobile home and time share laws. Prior to that, the Non Profit Statutes were what was followed(617).

Some brilliant legislatures decided that new Statutes were needed. So now we have these massive amounts of Statutes that needed to be seperated according to what type of living situation it was .

So the HOAs were and still are sometimes confused because of a lack of Boards, Attorneys and P.Ms knowing what the changes were and are and getting those updates into the individual documents for their associations.

Each year the State is still trying to fine tune and add to them, making it more complete. MAYBE SOME DAY**********???? And when that happens, I hope they translate them into user friendly english.
SusannaM (Florida)
Posts: 366
Posted:
Donna, don't worry too much about what is happening or will happen in Florida. You have moved to TN, and although you say you have rental properties in an adult (55+) community somewhere in FL, I doubt you will be able to have any participation or impact on these HOAs or Boards while residing in TN.
DonnaS (Tennessee)
Posts: 5,671
Posted:

Susanna,

Au Contraire Mon Amie,

I do document for my 55+ community and still am vocal and involved in what is going on. It''s my right to do so. I do care and will always care as long as this is a large investment for us. And believe it or not, I have many friends/ fellow owners who we do communicate with on all HOA matters. Remember my saying?? "There is power in numbers" and keeping in tune with my fellow owners gives me that power.
SusannaM (Florida)
Posts: 366
Posted:
Salut Donna! and good for you! I have the feeling you miss FL more than you want to admit....perhaps we'll have you back in the future.
I wouldn't live anywhere else.

DonnaS (Tennessee)
Posts: 5,671
Posted:

Right now, this association is working to pass an amendment to the CC&Rs, regarding the roofs. Currently the association pays for all repairs and owners pay for replacement. Needless to say, these side by side villas hav a large roof area which has cement barrel tiles covering them.

We just mailed out a survey with 3 options on care and or replacement responsibilities by owner or association. I have done many e-mails, explaining the options to some of the older folks who do not understand what each of the choices will entail. I was very objective in doing a simple explaination. I hope that one day someone will take the time to help me understand as well.

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