AB 2460 was a clean-up bill dealing with reduced quorums. If governing documents have a quorum requirement of 20% or more for the annual election of directors and the quorum cannot be met, associations can convene another meeting at least 20 days later.
At that point, the quorum requirement is reduced to 20%, even if the governing documents require a higher percentage. If an association’s documents already allow for a quorum of less than 20%, the statute does not override the lower quorum.
Recommendation: Associations should amend their governing documents to eliminate quorum requirements altogether for the election of directors. When that is done, it completely eliminates the problem and the cost of repeated adjournments to make quorum.
This information originally appeared on the Davis Stirling website.
Comments