Spotlight on: Proper Election Administration at Your Annual Meeting

Notice of Meeting  The notice of meeting must be sent no less than 10 and no more than 40 days before the meeting. You should also obtain a "proof of mailing," a sworn affidavit by the manager or a certified letter saying that it went out to every owner on the required date.

The notice package should include a meeting agenda and any supplemental items that help explain it. Any specific issues (such as amending the bylaws) that need a shareholder or unit-owner vote must be announced beforehand.

Along with the announcement, distribute the final budget for the year. 

The Proxy  Proxies are statements by a shareholder or unit-owner authorizing another person — the proxy-holder — to vote his/her shares or common interests. If your governing documents allow it, send out proxies with the notice of meeting.

Be aware of the different types of proxies. There are some proxies that merely give the proxy-holder the right to vote for the quorum so the meeting can be held; other types that give the proxy-holder the right to vote the shares or units. And then there are proxies that provide that, unless the proxy-holder gives specific instructions on how to vote, the proxy-holder has the right to vote as he or she sees fit.

Voting  Voting for the board is a major reason for the annual meeting and can be accomplished in one of two ways. Most cooperative and condominiums use straight voting, although some co-ops boards are elected through a process called cumulative voting.

For example, with a seven-member board and straight voting, each shareholder or unit-owner can vote his/her shares or common interests for up to seven candidates, and each candidate can receive no more votes than are equal to the shareholder's shares or the unit-owner's common interests. In cumulative voting, each shareholder can multiply his or her shares by the number of board seats being elected (e.g., if the board has seven directors and a shareholder has 200 shares, then that shareholder has 1,400 votes), and either gives all the votes to one candidate or spreads them around among multiple ones.

Counting  Even when the meeting is over, it's not over. There's the critical matter of tallying the votes, both for directors and for any changes to the governing documents.

Many boards have the managing agent, lawyer or volunteer residents count the ballots and proxies. Some start counting as soon as the ballots are cast, and some wait until the following day. Other, larger properties, turn for help to outside companies, such as the Honest Ballot Association (HBA). Boards may want to use these companies if there's a particularly contentious election or perhaps when amending the bylaws.

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Adapted from "Election Admin." by Tom Soter and Bill Morris (Habitat, April 2010)