Community E-ssentials

July 2002 ISSUE 8   Volume 1 Issue 8  
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CONTENTS
Association Prevails in Covenant Enforcement Matter
Mail Ballots Effective If Done Right
What Makes a Good Rule?
Staying On Track At Board Meetings
Mail Ballots Effective If Done Right

The Colorado Revised Non-Profit Corporation Act allows associations to use mail-in ballots in place of actual attendance at a meeting or proxies if, and only if, the required procedures are followed. If mail-in ballots are used it is not necessary to hold a meeting as all voting is done by mail.
 
Below are the requirements for valid mail-in ballots:

1.  The ballot must state each specific item to be voted on (C.R.S. § 7-127-109(2)(a)). An example would be, “to increase the monthly assessment to $178.00 per unit” or “to elect two directors to the Board of Directors.”
 
2.  The ballot must give an opportunity to vote for or against each proposed action (C.R.S. § 7-127-109(2)(b)). For example:
                              For                  Against
                        
John Doe                     ___                 ___
Mary Smith                  ___                 ___
Hank Jones                  ___                 ___
 
3.  The ballot must indicate the number of ballots that must be returned in order for a quorum to be reached (C.R.S. § 7-127-109(4)(a)). The quorum requirement is the same as it would be for an in-person members meeting. The association bylaws should be reviewed to determine the exact number of ballots. For example, if there are 150 homes and the quorum is 30%, 45 ballots must be returned. 
 
4.  The ballot must indicate the necessary vote needed to pass each item to be voted on (C.R.S. § 7-127-109(4)(b)). For example, if a special assessment required the approval of 2/3 of all owners and there were 150 homes, the ballot would need to say that 100 ballots must be cast in favor of the special assessment for it to pass.
 
5.  The ballot must state the date and time by which the ballot must be received to be counted (C.R.S. § 7-127-109(4)(c)). An example: “Ballot must be received by the management company by June 1, 2002 at 5:00 p.m.”
 
6.  The ballot must also have sufficient information attached to it to permit members to reach an informed decision (C.R.S. § 7-127-109(4)(a)). This might include board candidates’ bios or a statement explaining why the special assessment is needed, how the money will be spent, and when it will be done.
 
Mail-in ballots can help associations conquer the all-to-common apathy problem. And doing it right will help ensure that the results are valid and not subject to challenge.


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Published by Orten & Hindman, P.C.
Copyright © 2002 Orten & Hindman, P.C.. All rights reserved.
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