SECRET BALLOTS

By Adrian J. Adams, Esq., Adams & Kessler LLP

 

 

Vote by Secret Ballot. As provided for in Civ. §1363.03(b), community associations in California must vote on the following matters by secret ballot (starting July 1, 2006):

 

*           special assessments over 5% or regular assessments over 20% (see exceptions)

*           election of directors (see exception)

*           amendments to governing documents (see exceptions)

*           grant of exclusive use of common area property (see exceptions)

 

No Revocation of Ballot. Unless otherwise provided in the articles or bylaws, a written ballot may not be revoked. Corp. §7513(d)

 

Special Envelopes. Ballots and two preaddressed envelopes must be mailed by first-class mail or delivered to every member not less than 30 days prior to the deadline for voting. To preserve voter confidentiality, there must be no signature line, dentifying name, address, lot, parcel, or unit number on the ballot. The unsigned ballot must be put into an envelope that is then sealed. This envelope is inserted into a second envelope which is also sealed. In the upper left hand corner of the second envelope, the voter must print and sign his/her name, address, and lot, or parcel, or unit number.

 

The second envelope is addressed to the inspector(s) of election who will be tallying the votes. The envelope may be mailed or delivered by hand to a location specified by the inspector(s) of election. The member may request a receipt for delivery.

 

Problems with Proxies. If an association uses proxies, the statute requires that they be specially designed so as to ensure secret voting by the owner. This creates enormous logistical problems for associations as well as opening the door to error and election tampering. To avoid these problems, I recommend against the use of proxies. Instead, elections should be done entirely by ballot through the mail.

 

Quorum Requirements. Achieving a quorum has always been a problem for associations, which is why proxies were needed. The new election procedures resolves that problem. If elections are conducted entirely through the mail, the ballots can be counted at a board meeting, thereby eliminating the need to establish a membership quorum. As provided for in Civ. §1363.03(f), all votes must be counted by the inspectors of election in public at a properly noticed open membership meeting or board meeting. If the counting is scheduled for a membership meeting, achieving a quorum will be extremely difficult--once people vote by mail, there is less incentive for them to attend the membership meeting. No attendance means no quorum, which means no meeting. The association would then need to reschedule the meeting until such time as it achieved a quorum, just so it could count the votes. This would create delays, frustration and extra expense.

 

RECOMMENDATION. I recommend that election ballots be counted at a specially noticed board meeting since only a quorum of the board is needed to hold the meeting. No proxies are needed and any members interested in watching the count Civ. §1363.03(f) can set aside time for the meeting without fear of delays and rescheduling for lack of a quorum.

 

Keeping Ballots Secret. Ballots must remain in a secure place and unopened until the official vote-counting meeting. No person, including a member of the association or an employee of the management company, may open or otherwise review any ballot prior to the time and place at which the ballots are counted and tabulated. Civ. §1363.03(f)

 

 

 

 

Adrian J. Adams, Esq., is a Managing Partner of the law firm of Adams & Kessler LLP

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