How to Avoid Five Common Annual Meeting Mistakes

January is the annual meeting time for many condos and HOAs. Our expert property managers offer insight on how to begin working now to avoid five common annual meeting mistakes. 

Mistake #1: Not Setting up a Pre-meeting Timeline

The most common mistake board members make is not setting up a timeline for all of the other essential factors of the annual meeting. This timeline should include knowing when the board plans to establish a nominating committee and to review the governing documents. The best way to prepare is to work backward. Establish what materials you need and set due dates on the calendar before the annual meeting. If you fail to plan, you may not hit the correct times. That's a problem, especially if the bylaws say things have to happen on specific dates. If the governing documents don't provide flexibility, you could potentially get stuck with a date for the meeting without having the prior materials beforehand. 

Mistake #2: A Lack of a Reasonable Attorney to Oversee the Meeting Notices and the Election

It's essential to have a fair attorney run the election and, if possible, prepare the annual meeting notice package. In Florida, you have to send the first notice, and then you have to send a second notice. Also, there are time limitations on when those have to go out and what to include. If you plan on using last year's forms, be sure to update all of the dates, so you don't confuse homeowners. Another point to consider is writing the ballot provisions according to the statutes. If they aren't written correctly, the election could be contested. This type of litigation is not fun, so having a lawyer look it over before it goes out is crucial. It is best to have an attorney oversee the election to avoid the appearance of impropriety. Finally, be sure the property manager receives the documents, which is especially important in regards to proxies. 

Mistake #3: Rogue Board Members Resolve Issues Before the Annual Meeting 

While it is imperative to plan for the meeting, it is never okay to discuss and decide on issues before the actual meeting. This type of behavior also violates the Florida statutes. Be sure all board members are transparent and are abiding by the law. Unfortunately, sometimes people join the board to pursue their agendas, which violates the Duty of Loyalty and Care. 

Mistake #4: Careless Attendance Tracking   

A reliable check-in process must be in place, so homeowners, whether accidentally or not, do not vote more than once. Have a list of the homeowners and a check system that shows whether or not they already voted by mail-in ballot. That way, mistakes are not made, and the voting process is as fair as possible. Overall, homeowners need to be in good standing. In this case, it is the board's responsibility to provide that assurance. At Condominium Associates, our property managers assist during this process, so attendance tracking runs as smoothly as possible. 

Mistake #5: Gossiping About Private Matters 

Keep in mind that the agenda should only cover appropriate topics. Discussions about confidential or private concerns of homeowners in the community should never occur at a meeting. Examples of this include reviewing delinquent accounts or disciplinary actions about a particular homeowner. Another issue that should not be on the list include details of ongoing contract negotiations with a vendor. These items should be discussed in a closed, executive session, and then the results should be vaguely broadcast to members. You have to be careful about what items on your agenda should be kept confidential and which shouldn't.