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DeeS1 (Michigan)
Posts: 223
Posted:
Anyone up for settling an interpretation disagreement? We are a 52-Unit community. Our CCRs define quorum as:

"The presence in person or by proxy of 35% of the Co-owners qualified to vote shall constitute a quorum for holding a meeting of the members of the Association ..."

As is fairly typical, they require the following for a bylaw amendment:

"These Bylaws may be amended by the Co-owners at any regular annual meeting or a special meeting called for such purpose by an affirmative vote of not less than 66-2/3% of all Co-owners."

I'm reading this as, quorum is 35% of members in good standing just to hold a meeting or vote related to passing a bylaw amendment. However, to pass, an amendment would still need 66-2/3% votes of the entire community — 35 votes — regardless of how many people attend as long as quorum was reached.

Another Board member is saying is would be 66-2/3% of people at the meeting, provided quorum was reached.

Thanks
ChrisP5 (Missouri)
Posts: 165
Posted:
I would agree with you that you need 2/3 of the total votes. If you are a condo I believe this answers your boards dispute

http://www.legislature.mi.gov/(S(dan3exqoqepxxm45ob1rgzqf))/mileg.aspx?page=getObject&objectName=mcl-559-190

For others reading how many of your states have similar language in your laws???

"Any mortgagee ballots not returned within 90 days of mailing shall be counted as approval for the change."
DonnaS (Tennessee)
Posts: 5,671
Posted:

Dee,

What does co-owners mean? Are there 2 co-owners of each unit or 1. Co- to me means 2 and that would certainly change the numbers that I used for quorum and total votes allowed.
DeeS1 (Michigan)
Posts: 223
Posted:
Donna:

Our Master Deed defines it as below:

"Co-owner or Owner. "Co-owner" means a person, firm, corporation, partnership, association, trust or other legal entity or any combination thereof who or which owns one or more Units in the condominium Project. The term "Owner," wherever used, shall be synonymous with the term co-owner.""

However, there is only 1 vote allowed per unit and each unit must have a designated voting representative on file

"Each Co-owner shall file a written notice with the Association designating the individual representative who shall vote at meetings of the Association and receive all notices and other communications from the Association on behalf of such Co-owner."

It looks like according to the Michigan Condo Act, my interpretation is slightly off ... I would have read the "of all co-owners" in our bylaws to mean all 52 units; however the MI condo Act says "For purposes of this section, the affirmative vote of a 2/3 of co-owners is considered 2/3 of all co-owners entitled to vote as of the record date for such votes." So, it looks like we take delinquent units out of the equation.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Dee,

IMO, "entitled to vote" and "qualified to vote" are one and the same. IAW your bylaws the quorum of 35% is based upon the members who are in good standing. The required vote % is 66 2/3 of ALL the members, regardless of whether or not they are in good standing.

BTW, your fellow board member is incorrect in his/her interpretation. The members do not have to be present to vote. The quorum requirement states members voting in person or by proxy.
DeeS1 (Michigan)
Posts: 223
Posted:
Mary:

Sorry for any confusion ... the other board member understands the proxy ... he is saying that the amendment would pass if 66-2/3 of the people present either in person or proxy voted for it -- basically 66-2/3 of those that vote, not of the entire community.

On the other point, I agree with you that the bylaw states 66-2/3 of all the members, which was what I originally thought was required; however, in rereading the link to the Michigan Condo Act that Chris posted, it looks like the Act says 66-2/3 of those "qualified to vote" can pass an amendment. In this instance, the state Act would be the higher authority to our bylaws, correct?
DonnaS (Tennessee)
Posts: 5,671
Posted:

Dee,
It all depends on how the State law is written. It can say--"-shall be 2/3rds or may be 2/3rds or depending on the governing docs" The State laws in many cases just reccomend numbers IF the governing docs do not address it. So if Michigan law gives the associations to set their own percentages, then your Docs are the governing numbers for passing. Can you post the MI. Statute on this ?
SureshD
Posts: 268
Posted:


State law notwithstanding, it seems clear to me-

"These Bylaws may be amended by the Co-owners at any regular annual meeting or a special meeting called for such purpose by an affirmative vote of not less than 66-2/3% of all Co-owners."

Quorum req. only establishes a legal meeting. The word "all" means 66%-2/3 of 52. No reference to "in attendance".
DeeS1 (Michigan)
Posts: 223
Posted:
Donna:
There are two sections of the Act that seem to address this topic. The portion that I was referencing (559.190 Amendment of condominium documents) says:
"(8) For purposes of this section, the affirmative vote of a 2/3 of co-owners is considered 2/3 of all co-owners entitled to vote as of the record date for such votes."

Also in 555.190, there is a section that says anything in our docs that might require more is essentially void:

"(2) Except as provided in this section, the master deed, bylaws, and condominium subdivision plan may be amended, even if the amendment will materially alter or change the rights of the co-owners or mortgagees, with the consent of not less than 2/3 of the votes of the co-owners and mortgagees. A mortgagee shall have 1 vote for each mortgage held. The 2/3 majority required in this section may not be increased by the terms of the condominium documents, and a provision in any condominium documents that requires the consent of a greater proportion of co-owners or mortgagees for the purposes described in this subsection is void and is superseded by this subsection."

SureshD:
I'm satisfied from the discussion that the other board members position of the 3/2 vote of those in attendance is not valid. But it looks like although I might have interpreted our documents correctly that 2/3 vote of the community is required to pass, our state law overshadows that and says essentially 2/3 of our community that is eligible to vote (those that are not delinquent). This is fairly significant in a community of our size as it would take the number required to pass an amendment at present from 35 down to 30.
SureshD
Posts: 268
Posted:
Well I agree with what the dues delinquency clause does to the total votes requied too. My opinion was that meeting attendance numbers means nothing to the "votes required" if the quorum is met.

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

Well, the other board member is still wrong -- your bylaws and MI state law both mean 2/3's of ALL the members, not just those in attendance whether in person or by proxy. This is something that confuses many people, so your other board member is not alone. The bylaws and state law must be read very carefully to arrive at the proper meaning. If it was meant to mean only those voting it would say "2/3's of those voting either in person or by proxy".

And, you are right, MI law trumps your bylaws. If it says "of those qualified to vote" that means only those in good standing can be part of the 2/3's.

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