During the past 12+ months, most of us have gotten comfortable with conducting HOA board and membership meetings over virtual platforms such as Zoom, GoToMeeting and Microsoft Teams. The authorization for this method of conducting business came from a provision in one of the Governor’s early Covid-related Executive Orders, which has been extended multiple times and is currently set to expire on May 10. Though nothing is certain, I would expect the Governor to continue to renew this provision for the foreseeable future.
Current law already allows board meetings to be held virtually (by conference call or virtual platform, assuming everyone can hear and be heard simultaneously). However, there is currently no provision in the statutes that allows meetings of members to be held in this manner. Under the Governor’s Executive Orders, we have been conducting membership meetings over virtual platforms to convey information, but voting has to take place by written ballots that are filled out by members and mailed or e-mailed back to the HOA. Because of the delay associated with the transmission and collection of these ballots, election and other voting results were often delayed, sometimes for weeks.
On March 16, the North Carolina Legislature, working in conjunction with the North Carolina Chapter of the Community Association Institute ( www.cai-nc.org ) introduced House Bill 320, which will revise certain provisions of Chapter 55A of the North Carolina General Statutes (the Nonprofit Corporation Act).
The proposed revisions to 55A, if approved by the Legislature and signed by the Governor, will allow nonprofit corporations to conduct board and membership meetings over these virtual platforms (which we have been doing for a year now), and also allow voting to take place over these platforms. Of course, there are certain requirements and limitations, but this is undoubtedly good news.
We will post updates on this legislation as it works its way through the Legislature. The bill can be found here (click on the most recent edition shown in the first block of information): https://www.ncleg.gov/BillLookUp/2021/H320
ABOUT MIKE HUNTER
Mike Hunter’s practice focuses on community and condominium association law. He represents more than 700 associations across North Carolina.
Mike’s background includes real estate and litigation, with a concentration in the area of creditors’ rights, including debt collection, bankruptcy, foreclosure, lien enforcement, and collateral recovery.
From 1995 to 2006, Mike served as an assistant attorney for the Mecklenburg County Sheriff’s Office, primarily in the areas of civil process and judgment enforcement.
ABOUT OFFIT KURMAN
At Offit Kurman, we are our clients’ most trusted legal advisors, professionals who help maximize and protect business value and personal wealth. In every interaction, we focus on furthering our clients’ objectives and provide timely services and within budget, all while focusing on the clients’ interests and goals.
Offit Kurman is one of the fastest-growing, full-service law firms in the United States. With over 230 attorneys offering a comprehensive range of services in virtually every legal category, the firm is well-positioned to meet dynamic businesses’ needs, as well as the needs of the people who own and operate them. We also provide representation of individuals and families in diverse matters ranging from estate planning and asset protection to intellectual property structuring and entrepreneurial start-ups. Our International Group provides clients with a broad range of services for transactions and dispute representation for clients worldwide, including Europe, Canada, Asia, Latin America, the Middle East and Africa.
At Offit Kurman, we distinguish ourselves by the quality, breadth, and global reach of our legal services — as well as our unique operational structure, which encourages a culture of collaboration and entrepreneurialism. The same approach that makes our firm attractive to legal practitioners interested in representing clients in the middle market, also gives clients access to experienced counsel in almost every area of the law and in many jurisdictions in the U.S. and abroad
Subscribe and follow us on our Blog, and on Facebook, Twitter, Instagram, YouTube, and LinkedIn. You can also sign up to receive LawMatters, Offit Kurman’s monthly newsletter covering a diverse selection of legal and corporate thought leadership content.
DELAWARE | MARYLAND | NEW JERSEY | NEW YORK | NORTH CAROLINA | PENNSYLVANIA |SOUTH CAROLINA | VIRGINIA | WASHINGTON, DC