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Q & A Column
Community E-ssentials introduces a new monthly column. Each month we answer legal related questions submitted from our readers.
Q: Proxys can be assigned for the annual meeting. However, if a board member cannot attend a regularly scheduled board meeting, can the board give his/her proxy to another board member to be used for voting purposes?
A: Pursuant to Colorado law, board members can grant each other proxies (to be used during board meetings) only if the association’s bylaws specifically authorize the use of such proxies. Additionally, Colorado law only allows a board member to assign a “directed proxy” to another board member which directs the proxy holder exactly how to vote on an issue. If there is more than one issue to be voted upon by the board, the director assigning the proxy must designate how the proxy holder is to vote on each issue or assign a separate proxy for each issue to be voted on at the board meeting.
Q: Is it better for a homeowner association to accept or refuse a registered letter sent to the registered agent for the association if the association assumes (based on the sender's name or the recent course of events) that the letter contains a demand the association prefers to avoid?
A: We recommend that associations accept registered letters. If the registered agent refuses to accept a registered letter, the sender may still give "notice" in accordance with the terms of the Colorado Revised Nonprofit Corporation Code ("Code") and the bylaws of the association. Under the terms of the Code, service of notice or demand may be accomplished five days after mailing with first class postage prepaid. Actual knowledge of a demand gives the association an opportunity to respond. If the board is uncomfortable responding, it may seek legal counsel as to how best address the issue. Resolving disputes at an early stage may save the association money in the long run.
* Please email or fax your questions with your name and contact information to: QAcolumnist@ortenhindman.com or 303.432.0999. Due to the volume of questions received, we cannot guarantee an answer.
[PRINTER FRIENDLY VERSION]
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Community Associations Institute
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The Community Associations Institute (CAI) is a nonprofit organization that provides education and resources to community associations. To find out more about CAI visit www.caionline.org
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