AB-2460 (Ta) Common interest developments: association governance: member election.

Would provide clarification to the reduced quorum requirements for a reconvened membership meeting to elect the board of directors.

Current Status: Pending

FindHOALaw Quick Summary:

Existing law prescribes that a quorum is required only if stated in the governing documents or by law. In the absence of a quorum, existing law authorizes an association to adjourn the proceeding to a date at least 20 days after the adjourned proceeding, at which time the quorum required for purposes of a membership meeting is 20% of the voting members present in person, by proxy, or by secret written ballot received. Existing law requires an association to provide general notice of the membership meeting, as specified, no less than 15 days prior to the election of directors.
In the absence of a quorum, this bill would amend Civil Code Section 5115 to instead authorize the board of an association to adjourn the proceeding on behalf of the members to a date at least 20 days after the adjourned proceeding, at which time the quorum required for purposes of a reconvened membership meeting would be 20% of the voting members present in person, by proxy, or by secret written ballot received. The bill would require an association to provide general notice of the reconvened membership meeting, as specified, no later than 15 days prior to the date of the reconvened membership meeting.
Under existing law, for elections of directors and for recall elections, an association is required to provide general notice of specified information about the election at least 30 days before the ballots are distributed, including a statement that the board of directors may call a subsequent meeting at least 20 days after a scheduled election if the quorum is not reached, as specified.
This bill would also amend Civil Code Section 5115 to require an association whose governing documents require a quorum for election of directors to provide general notice of a statement that the board of directors may call a reconvened meeting at least 20 days after a scheduled election if the quorum is not reached.
For a corporation that is a common interest development, existing law imposes notice requirements for special meetings. In the absence of a quorum, existing law authorizes a corporation that is a common interest development to adjourn a membership proceeding to a date at least 20 days after the adjourned proceeding, at which time the quorum required for purposes of a membership meeting is 20% of the voting members present in person, by proxy, or by secret written ballot received.
In the absence of a quorum, this bill would amend Corporations Code Section 7512 to instead authorize the board of the corporation that is a common interest development to adjourn a membership proceeding on behalf of the members to a date at least 20 days after the adjourned proceeding, at which time the quorum required for purposes of a reconvened membership meeting would be 20% of the voting members present in person, by proxy, or by secret written ballot received.
**AB 2460 was amended on April 1, 2024, clarifies that the association, not the board of directors, shall adjourn the meeting:
(5) (A) If the association’s governing documents require a quorum for election of directors, a statement that the board of directors may association may call a reconvened meeting at least 20 days after a scheduled election if the required quorum is not reached, at which time the quorum of the membership to elect directors will be 20 percent of the association’s members voting in person, by proxy, or by secret ballot.
(B) This paragraph shall not apply if the governing documents of the association provide for a quorum lower than 20 percent.
(2) For an election of directors of a corporation that is a common interest development, an association, and in the absence of meeting quorum as required by the association’s governing documents or Section 7512 of the Corporations Code, unless a lower quorum for a reconvened meeting is authorized by the association’s governing documents, the board of the association may adjourn the proceeding on behalf of the members meeting to a date at least 20 days after the adjourned proceeding, meeting, at which time the quorum required for purposes of a reconvened membership meeting to elect directors shall be 20 percent of the association’s voting members present voting in person, by proxy, or by secret written ballot received. ballot.
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from the California Legislature's website