CONDOMINIUM ELECTIONS WHAT HAPPENS
IF TOO FEW PEOPLE RUN FOR THE BOARD?
Many
times condominium associations find themselves with too few people to run
for the available board positions. What do you do?
PREAMBLE:
In 1995
the Florida legislature adopted the double envelope, secret ballot condominium
board election system. While this law and its companion administrative
rule are comprehensive, they still do not and cannot address all election
issues. This article assumes that you already have a working knowledge
of the condominium election procedures and only addresses the circumstance
when too few people apply to run for the board.
FACT PATTERN:
For purposes
of this e-Lawyer we will use the following fact pattern:
1.
Our association has five (5) board members, whom we will identify as "A",
"B", "C", "D" and "E";
2.
All board members serve one year terms, so all five (5) positions must
be filled at the Association’s annual meeting to be held on February 29,
2004;
3.
"A", "B" and "C" have applied to again run for the board. No other persons
have applied.
WHAT LAWS APPLY (boring,
but work with me here):
This circumstance
is not directly addressed in the condominium election laws, therefore,
we must use other available laws to indirectly fashion a reasonable solution.
Unfortunately these laws do not totally conform to each other (e.g. what
is a "vacancy" and what is an "expiration"?), however, they do create general
concepts that can be used to resolve most, if not all, election issues.
First,
we first look to Chapter 617, Florida Statutes (Florida Not-For-Profit
Corporate Act), and find the following relevant section:
617.0806 Staggered terms
for directors.– Directors may be divided into classes and the terms of
office of the several classes need not be uniform. Each director shall
hold office for the term to which he or she is elected or appointed and
until his or her successor has been elected or appointed and qualified
or until his or her earlier resignation, removal from office, or death.
Next,
we look to Section 718.112(2)(d) and Rule 61B - 23.0021 and find the following
relevant language:
718.112 Bylaws. –
*****
(2) Required Provisions.–
The bylaws shall provide for the following and, if they do not do so, shall
be deemed to include the following:
*****
(d) Unit owner meetings. –
1. There shall be an annual
meeting of the unit owners. Unless the bylaws provide otherwise, a vacancy
on the board caused by the expiration of a director’s term shall be filled
by electing a new board member, and the election shall be by secret ballot;
however, if the number of vacancies equals or exceeds the number of candidates,
no election is required....
*****
3. The members of the board
shall be elected by written ballot or voting machine.....Notwithstanding
the provisions of this subparagraph, an election is not required unless
more candidates file notices of intent to run or are nominated than board
vacancies exist.
*****
8. Unless otherwise provided
in the bylaws, any vacancy occurring on the board before the expiration
of a term may be filled by the affirmative vote of the majority of the
remaining directors, even if the remaining directors constitute less than
a quorum, or by the sole remaining director. In the alternative, a board
may hold an election to fill the vacancy, in which case the election procedures
must conform to the requirements of subparagraph 3. unless the association
has opted out of the statutory election process, in which case the bylaws
of the association control. Unless otherwise provided in the bylaws, a
board member appointed or elected under this section shall fill the vacancy
for the unexpired term of the seat being filled. Filling vacancies created
by recall is governed by paragraph (j) and rules adopted by the division.
61B - 23.0021 Regular Elections;
Vacancies Caused by Expiration of Term, Resignations, Death.
*****
(d) Balloting
is not necessary to fill any vacancy unless there are two or more eligible
candidates for that vacancy. In such a case, not later than the date of
the scheduled election:
1. For
a regular election the association shall call and hold a meeting of the
membership to announce the names of the new board members, or shall notify
the unit owners of the names of the new board members or that one or more
board positions remain unfilled, as appropriate under the circumstances.
In the alternative, the announcement may be made at the annual meeting.
2. For an election pursuant
to Section 718.112(2)(d)8., Florida Statutes, to fill a vacancy, the association
shall call and hold a meeting of the membership to announce the names of
the new board members or, in the alternative, shall notify the unit owners
of the names of the new board members or that one or more board positions
remain unfilled, as appropriate under the circumstances.
TWO IMPORTANT LEGAL PRINCIPLES:
From the
above, the following two important legal principles are derived:
1.
The terms of the board members will not expire until their successors have
been elected. Therefore, unlike Cinderella, none of the existing board
members automatically lose their position as a board member at the strike
of midnight on the day of the election; and
2.
An election is not required unless there are more candidates than vacancies.
APPLYING THOSE PRINCIPLES
TO OUR FACT PATTERN:
Applying
the above principles to our fact pattern, the following will be the situation
at the end of the annual meeting held on February 29, 2004:
1.
No election will have occurred. Instead, you will have notified all owners
that "A", "B" and "C" will serve as three of the board members and that
the other two positions remained unfilled; and
2.
Because no one was elected to take "D" and "E’s" positions, they remain
on the board until such time as they resign, die or are properly replaced
by new election.
WHAT DO YOU DO NEXT:
At this
point, the board has the following options based on what they feel is in
the best interests of the Association:
1.
If both "D" and "E" agree to remain on the board, then they may be permitted
to remain until the next election in February, 2005;
2.
If either or both "D" and "E" do not wish to remain on the board, they
will submit written resignations and the remaining board members will appoint
their replacements, unless the Bylaws prohibit such action; or
3.
Notwithstanding the wishes of "D" and "E", the board can start over and
commence a new election process.
WHAT CAN YOU DO TO PREVENT
THESE COMPLICATIONS:
Because
the above conclusions do not come directly from existing laws, it is recommended
that condominium associations carefully monitor the pre-election process
in an attempt to insure that at least the minimum number of candidates
timely submit their notice to run for the board. Please remember that,
while nominating committees are specifically prohibited, there is nothing
that forbids members from encouraging other members to run for the board.
But what
if people just don’t want to serve? Here it is recommended that you invite
such persons to submit their notice with the understanding that they can
and will resign soon after they become a board member. By doing this, the
law clearly and directly permits the willing and remaining board members
to appoint replacement members until the next election.
The firm of Taylor &
Carls, P.A., with offices located in Maitland, Melbourne and Daytona Beach,
Florida, was founded in 1981 and has practiced in the area of community
association law since that date. This edition prepared by Robert L. Taylor,
a partner of Taylor & Carls, P.A. The information contained in The
Association e-Lawyer should not be acted upon without professional legal
advice.
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©2004 Taylor & Carls,
P.A. All Rights Reserved.
The firm can be reached
at 407-660-1040..
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