Report Title:

Planned Community Associations; Proxies

 

Description:

Establishes requirements for voting proxies for board members for planned community associations.

 

HOUSE OF REPRESENTATIVES

H.B. NO.

204

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO PLANNED COMMUNITY ASSOCIATIONS.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Section 421J-4, Hawaii Revised Statutes, is amended to read as follows:

"[[]§421J-4[]] Proxies. (a) A proxy shall be in writing and shall be valid for only a specified meeting of the association and any adjournments of that meeting.

(b) A member of the association may give a proxy to any person or the board of directors as an entity, and the proxy may be limited as indicated by the member. No proxy shall be irrevocable unless:

(1) The proxy is coupled with a financial interest in the unit; or

(2) The proxy is held pursuant to a first mortgage of record encumbering a unit or an agreement of sale affecting a unit.

(c) [A proxy, to] To be valid, [must] a proxy shall:

(1) Be delivered to the secretary of the association or the managing agent, if any, no later than 4:30 p.m. on the second business day prior to the date of the meeting to which it pertains;

(2) Contain at least the name of the association, the date of the meeting of the association, the printed name and signature of the person or persons giving the proxy, the unit or units for which the proxy is given, and the date that the proxy is given; and

(3) Contain boxes wherein the owner has indicated that the proxy is given:

(A) For quorum purposes only;

(B) To the individual whose name is printed on a line next to this box;

(C) To the board of directors as a whole and that the vote be made on the basis of the preference of the majority of the board; or

(D) To those directors present at the meeting and the vote to be shared with each board member receiving an equal percentage.

(d) An association shall allow the voting of proxies in accordance with this section except when voting for members of its board of directors, in which case:

(1) A proxy given for a specified meeting in which one or more directors are to be elected, shall only be valid for quorum purposes and any matter before the association except for the director election;

(2) Before its annual meeting, the association shall solicit nominations for the open board positions;

(3) The nominations, resumes and statements of the nominees, and the ballot shall be included in the notice of the annual meeting that is mailed to the membership. A member who will not be present at the annual meeting shall cast the member's vote by returning the ballot and the proxy to the association by mail or personal delivery;

(4) A plurality of voters cast shall determine the winner of each election. Blank votes shall not be counted in determining the number of votes cast."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:

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