The Annual Meeting

People who enjoy meetings should not be in charge of anything

Thomas Sowell

It's that time of year again, leaves are changing, weather is changing, clothes are changing, all of which means its that time of year for one thing that doesn't change, the requirement for most condominium associations to have their the Annual Meeting. (Over the years I've learned that while some associations have them at other times of the year, far and away, most associations have them in the fall/winter.) And there are a few things you should know both to make them less painful and to make them solid legally.

Under New Hampshire law a Notice of an Annual Meeting has to go out a least twenty-one days in advance of the meeting. Oh, how lovely it would be if

in Annual Meetings

Many associations will see little or no need for their lawyer at the annual meeting, and in an association without controversy, and with a good manager, this decision is defensible. And the reality is that association meetings are not the highlight of anyone's practice. They're often boring, and it may seem a waste of time to be present.

But associations, managers and lawyers should keep in mind that the issues and controversies that lead to litigation often arise at, or are foreshadowed by events that occur at the annual meetings. For this reason, and for the client retention reasons suggested above, you might consider offering a discounted rate, or a complimentary attendance at annual meetings.

Whether or not you attend your association's annual meeting, it's a good idea to check in with the board and/or manager in advance of the meeting to assure that they're properly prepared. I continue to be shocked at how many seemingly competent managers will walk into an annual meeting with identical, non-distinguishable ballots in a varied par value association. Or how often there is no plan in place to deal with proxies that are submitted without a designation as to the holder thereof.

Executive sessions should be used sparingly, as they are antithetical to the establishment of community, and are routinely disfavored by owners and courts. When a board enters executive session, they are often required – and best practices suggest – that the general nature of the matter being discussed should be recorded in the minutes.

When people purchase into a condoThis fracturing of common interest communities is fueled in part by the unfortunate fact that an association achieves its dual property maintenance and keep-the-peace missions by taking actions an owner is hardwired to oppose.

A person who perceives a threat to her well-being will naturally oppose the threat. Such as a threat to her personal finances. Or a threat to her control over decisions affecting her. Or a threat to her freedom to act as she pleases. Any of these threats will trigger opposition to the source of the threat.

12Paradoxically, an association is a source of all three of those threats. Note that it fulfills its dual missions by taking her money, by asserting control over decisions that affect her, and by restricting her freedom to do as she pleases. No surprise, then, that association boards are increasingly viewed by those whom they serve as the evil elite against which owners must unite to resist.T

To buy a home in a common interest community is to enter a co-owner partnership, a legal relationship that bears a striking resemblance to a celibate marriage. To purchase that home is to pledge yourself to those strangers with whom you co-own the Commons. And yet no one thought to explain to these happy honeymooners that the governing documents we lawyers authored are their Pledge of Allegiance, Prenuptial Agreement, and Marriage Vow, all rolled into one.