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SUSPENDING
VOTING RIGHTS
 Too
many boards improperly suspend voting rights automatically when an owner is
delinquent. To suspend voting rights, boards must do the following:
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In Bylaws. The procedure must be in the articles or
bylaws. In the alternative, it must be annually sent to all members.
Corp. Code 7341(c)(1)
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Notice of Hearing. The
person must be given written notice by either personal delivery
or first-class mail, at least 10 days prior to the meeting at which
voting rights will be suspended (unless the governing documents
provide for a longer notice period).
Civil Code 1363(h) The
notice must be reasonably calculated to provide actual notice to the member.
Corp. Code 7341(d) The notice must contain the following:
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The
date, time, and place of the hearing,
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The
nature of the alleged violation for which a member may be disciplined, and
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A
statement that the member has a right to attend the hearing and present
evidence in his/her defense.
Civil Code 1363(h)
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Executive
Session. Hearings should always be in
executive session.
Civil Code 1363(h);
Civil Code 1363.05(b)
Members have the right to submit their defense in writing rather than
make an appearance before the board.
Corp. Code 7341(c)(3)
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Decision. If
the board suspends the member's voting rights, notice of the suspension must be given by personal delivery or first-class mail
within 15 days
following the board's decision
Civil Code 1363(h) (unless the governing documents provide a
shorter notice requirement) and at least 5 days prior to the effective date
of the suspension.
Corp. Code
7341(c)(3) Once imposed, suspension of voting rights may continue until such time as the
violation ceases.
RECOMMENDATION. The above procedures are generally NOT found in an
association's articles or bylaws. Therefore, boards
should either (i) amend their bylaws to include the above procedures or (ii)
include the procedures in the annual disclosures mailed to all members with
the budget.
The procedure for suspending
common area privileges is
somewhat easier but still requires
due
process.
Contact us
for more information.
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Sincerely
yours,
Adrian
J. Adams, Esq.
Adams Kessler PLC |
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