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Why Are Quorums Important To HOAs?

A quorum is the minimum number of North or South Carolina homeowners who must be at a meeting before business can be discussed. State law tells us what that minimum number is for our associations. It’s relatively low, but we still have a tough time reaching our minimum. This is a common problem in many homeowner associations.

Meetings that don’t reach a quorum must be adjourned and rescheduled at a later date. This costs the association money and creates more work for their teams. Further, achieving a quorum at a second meeting—if we couldn’t get one the first time—is even harder.

So, why bother to try again? The Home Owners Association board is legally obligated to conduct an annual meeting and it’s an important part of conducting association business. During the annual meeting, new board members are elected and the coming year’s budget is presented to the Carolina homeowners for approval. No quorum means no election and no budget. This means the current directors will have to continue serving until an election can be conducted. It also means that last year’s budget will remain in effect until a valid meeting can be held to approve a new budget.

Good news: You can be “at” a meeting in the Carolinas and across the country at the same time by signing a proxy! That’s how you assign your vote, in writing, to another person. Proxies count toward the quorum, so they’re very important to the association.

We ask you to complete a proxy form even if you plan to attend the meeting. That’s just in case something comes up that prevents you from attending. When you do attend the meeting, your proxy will be returned to you.

Since proxies are so important to achieving a quorum, you may find us knocking on your door, calling on the phone or even stopping you in the common areas asking you to sign a proxy form. We’ll do anything to achieve a quorum. Without it we can’t do business, and eventually that affects you, the Carolina homeowner.