Q:We have a nine-member board in our cooperative. Several of our shareholders claim that any time five or more of them are in a room together, it constitutes a board meeting. If it is not posted ahead of time, it violates the statutes.
They have even said a board member cannot have a party in his home and invite more than three of the other directors. If four directors are in a room, a fifth cannot enter. One has even said if there are four directors eating (even at separate tables) in a restaurant, a fifth cannot go in until one of the others leaves.
Several others believe this is ridiculous and any such gathering would not be considered a board meeting so long as no decisions about co-op business are made or votes taken. Who is right and just what is the rule about directors being together at other than a posted board meeting?
— F.S., Apollo Beach
A: They are almost right! The way the statutes read is that any time a quorum of directors gathers to discuss business it is considered a board meeting. If the directors have a dinner out or attend a party and they do not discuss association business, it is not a meeting.
Hard WorkTo Get Quorum
Q: I am the president of our condominium. Next month we conduct our annual meeting. Every year we are scratching to achieve a majority of people or proxies to vote on business. Most of the work is done in the eleventh hour to get the necessary proxies.
If we do not have a quorum of members in person or by proxy can the officers conduct business?
— Anonymous
A: You need to understand that usually an annual meeting’s primary action is to elect a new board of directors. Since the statutes (FS 718.112) require that two notices be sent to the members and the second includes a ballot to elect the new directors, you only need 20 percent of the ballots returned to elect the new board.
Yes, other business to be brought before the members to vote would require a quorum of the members, not a quorum of the directors. You may want to use a limited proxy rather than a general proxy.
No, the officers cannot conduct business; however, if proper notice of a board meeting is published, then the directors can conduct a board meeting.
Normally all business is conducted by the board for the members. The board has the responsibility for the operations and maintenance of the condominium. About the only thing the members would vote at a members meeting is to accomplish changes to the documents or other business that would require members’ approval.
Trees Grow, Roots Need Care
Q: We live in a gated community and pay a maintenance fee. When the community was built, trees were planted near the sidewalks in front of the homes. Now the roots are pushing up the sidewalks. Who is responsible for the repairs to the common walks?
— A.L., Leesburg
A: The answer should be in your documents. Normally in a homeowner association, the owner of the property would have the responsibility to correct the problem. However, if you plan to remove the tree, you would need to seek association approval. Also, the county or city may have some responsibility in this area.It is not a standard answer that can be applied to all homes. You need to seek answers from your board of directors, the county or city, and maybe your neighbors.
Owner’s Insurance
Q: I own a condominium where the association provides insurance on the building. I also carry insurance on my unit. In past years I have had a value on my unit of $50,000.
I have received a letter from the insurance company that they recommend I increase the coverage. Along with this letter is an increase in my premium. In talking with my agent, he says I can expect that construction costs will be evaluated each year to determine replacement costs.
Can the insurance company do this any time they want to raise my costs?
— R.R., Naples
A: Yes, they do this to protect the coinsurance amount of risk. This term reflects a relative division of risk between the insurer and the insured.Most insurance companies use the “New York Standard Clause”: That the company shall not be liable for a greater proportion of any loss or damage to a property described than the sum insured.
Say that you insure for 75 percent of the actual value and you suffer a total loss. Then you will receive only that share covered by the insurance to replace the loss. If on the other hand you insure for the total value, then the insurance would pay the entire claim, deductible excepted.
There is another situation, if you insure for 75 percent of value and you suffer a 30 percent loss. Because you did not insure for the total value, the insurance would cover only 75 percent of the loss. Then you would be responsible for the deductible and 25 percent of the loss totaled.
For more specific information on your coverage, consult with your insurance agent.
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Tags: Board, Board Members