One of the challenges every board of directors faces is ensuring that they have a quorum for their annual meetings. Owners have busy lives and complicated schedules. For that matter, so do the people who serve on the board. Therefore, choosing a time for an annual meeting that suits everyone’s schedules is impossible. Fortunately, BuildingBoard has the solution to your problem.
BuildingBoard has designed an online platform for holding virtual annual meetings. Our platform also allows owners to submit their votes electronically. As a result, it is much easier to obtain the quorum you need to conduct business at your annual meeting by holding your annual meeting and voting virtually.
Furthermore, our platform is easy to use and affordable, especially when considering the time and expense of rescheduling annual meetings. Board members and owners use a link to access the meeting and vote. Nothing to download, and it works on all electronic devices that have a browser.
The worst part about missing a quorum in Rhode Island is rescheduling the meeting. Unfortunately, some owners may not return for a rescheduled annual meeting. Therefore, you could have the same problem again.
You are faced with choosing another date for the annual meeting that will not suit everyone. Also, the expense of sending out notices again can be costly.
Instead, use BuildingBoard to hold a virtual annual meeting. You will save time, money, and hassle. Board members can hold virtual or electronic meetings when the board approves doing so. However, the statutes do not explicitly discuss virtual annual meetings or electronic voting. Therefore, they are silent on the matter of virtual annual meetings.
Board members can discuss state law with their lawyers and refer to their bylaws for guidance.
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.
Condominium associations are governed by the Rhode Island Condominium Act. The Act applies to all condominiums created in Rhode Island after July 1, 1982. Any condominiums created before that date may voluntarily adopt the provision of the Act.
Section 34-36.1-3.08 requires that the association holds an annual meeting at least one time per year. Special meetings may be called as necessary. Notice of the annual meeting must be given to owners at least ten days before the scheduled meeting, but not more than 60 days before the annual meeting. Notices must state the time and place of the annual meeting and the items that are on the agenda.
The following section, §34-36.1-3.09, states a minimum quorum of 20 percent must be present to conduct business. However, the bylaws may call for a different forum. Unless the bylaws state others, a quorum is presumed throughout the meeting if at least enough people are present at the beginning of the meeting to cast 50 percent of the votes.
Condominiums created before July 1, 1982, are subject to the Condominium Ownership Act. The older law merely states that the bylaws must contain the method for calling meetings of unity owners and the percentage necessary for a quorum. Most bylaws require an annual meeting. If the condominium association adopted the new law, they are required to hold annual meetings.
The Condominium Act does not apply to HOAs (homeowners associations) or co-ops. Co-ops begin with a corporation. Unit owners purchase shares in the corporation. Their shares entitle them to exclusive possession of a unit.
HOAs are made up of property owners within a planned community. The association represents the shared interest of the community.
HOAs and co-ops generally incorporate under the Rhode Island Nonprofit Corporation Act since there is no specific statute governing these associations.
According to §7-6-18 of the Nonprofit Corporation Act, meetings of members are held each year at a time provided in the bylaws. In addition, special meetings may be scheduled as needed. Notices must be provided to the owners no more than 60 days before the annual meeting, but at least ten days in advance of the annual meeting.
The minimum quorum according to the statute for an annual meeting is 1/10 of the members who have voting rights on the matter at hand. However, the association bylaws might state a different percentage for a quorum.
Rhode Island’s nonprofit corporation laws allow the board of directors to meet by electronic means. It does not mention virtual meetings for the annual members meeting. Virtual meetings are not defined by the cooperative statutes.
Board members should review their bylaws, articles, and charters to determine if these documents permit virtual meetings. They should also discuss the matter with their lawyers to determine whether virtual meetings are allowed by law.
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.
