Remote Annual Meetings of Community Associations – Why A Board Resolution Should be Adopted to Authorize Them
November 19th, 2020 | Community Association Law Blog
By Eric F. Frizzell.
Due to the pandemic, many community associations are holding their annual meetings of unit owners this year via Zoom or other remote video platform. Before an association holds a remote members meeting, however, the association’s board should adopt a formal resolution authorizing the meeting and adopting guidelines and procedures for it. Here’s why.
Amendments were enacted earlier this year to New Jersey’s NonProfit Corporation Act (which applies to the vast majority of condominium associations and homeowners associations) and Business Corporation Act (which applies to cooperatives) that permit community associations to hold remote meetings of their members.
However, both statutes allow such remote meetings “to the extent the board authorizes and adopts guidelines and procedures governing such a meeting.” N.J.S.A. 14A:5-1.a., N.J.S.A. 15A:5-1.a. Both statutes also provide that a member’s remote participation in a meeting “shall be subject to those guidelines and procedures as the board adopts.” N.J.S.A.14A:5-1.b., N.J.S.A. 15A:5-1.b. [Emphasis added]
Clearly, a Board’s implementation of these requirements makes a formal resolution warranted.
Note that these same requirements apply to special meetings of the members, such as to vote on an amendment to the governing documents.
As always, please contact our law firm if you have any questions about this matter or any other legal matter affecting your community association.