New Jersey Condo Board Not Holding Elections

J.B. from New Jersey writes:

Dear Mister Condo,

  1. Our Condo Board meets in a conference room in local town hall. The meeting is open to all condo owners. Is it possible to have the Board Meeting in Skype or conference call instead of meeting in person? Will it meet the NJ Condominium Act requirement of “All meetings at which a board takes a binding vote are required by law to be open to all owners and advance written notice of such meetings must be given as provided by law.”
  2. Some of our Condo Association Board Members have continued without any election for years. Is that legally allowed? No election notices were sent out, they just continued on for years. Can other members who got elected request for an election? If yes, how do we do it?

Mister Condo replies:

J.B., “without any election for years”!!! I have never heard of that in a functioning condominium. Surely, your governance documents call for an Annual Meeting and a proper election process for Board members. Adding Skype to your Board meetings is the least of your worries right now!

I am not an attorney nor am I an expert in New Jersey Community Association Law, J.B., so please accept my advice as friendly. If you require a legal opinion, you will need to seek out a local attorney. That being said, let’s start with your governance documents with regards to election of officers. Typically, the condo docs require a minimum of one Annual Meeting per year. This is also done to satisfy most states’ Corporation laws that require an Annual Meeting of Shareholders be held to conduct corporation business. Your condo is a corporation, albeit a non-profit one, but a corporation nonetheless. At the Annual Meeting, a few pieces of business must happen. Perhaps the single most important is the adoption of the Annual Budget for the upcoming year. The second is to hold the election for officers. Now if there are no new candidates to select from, it is quite possible that a single vote is cast returning the Board members up for reelection to another term. Terms can vary but are typically one, two, or three years. The Board also has the ability to appoint Board members in the case of vacancy. However, it is done, there needs to be Minutes of the meeting to reflect the action. As a unit owner, you have the right to inspect Minutes once they are approved by the Board. In other words, you can go back and look at the election records for your association. If you can’t find any, you have a problem. My guess is that these folks have run unopposed for many election cycles and have simply continued to serve. If that is not the case, you would be wise to insist that elections are held at the next Annual Meeting or sooner if the situation merits it.

Whether a meeting is held in person or via conference call or Skype, the same rules apply as if the meeting were held in the real world. I know of many associations that have adopted technology advances like Skype to their meetings. However, just like any meeting of the Board, there must be minutes and the meeting must be made available to all unit owners, even if they are required to be muted during the meeting, they have the right to observe. The use of technology does not dissolve the burden of advance notice and all unit owners should be given notice of upcoming meetings in accordance with law.

Hope that helps. All the best!

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