AB 1458: Common interest developments: association governance: member election.

Existing law, the Davis-Stirling Common Interest Development Act, defines and regulates common interest developments, including member elections. Existing law prescribes that a quorum is required only if stated in the governing documents or by law.

In the absence of a quorum, this bill would authorize 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 shall 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 membership meeting, as specified, no less than 15 days prior to the election of directors.

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 the date, time, and location of the meeting at which ballots will be counted.

This bill would additionally require the general notice to include the date, time, and location of the meeting at which quorum will be determined, if the associations governing documents require a quorum. The bill would 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 subsequent meeting at least 20 days after a scheduled election if the quorum is not reached, as specified.

Existing law authorizes and regulates the formation and operation of various corporations, including a nonprofit mutual benefit corporation. Existing law sets forth the parameters of a quorum at a meeting of members, as specified. For a corporation that is a common interest development, existing law imposes notice requirements for special meetings.

In the absence of a quorum, this bill would authorize a corporation that is a common interest development to adjourn a membership meeting to a date at least 20 days after the adjourned proceeding, at which time the quorum required for purposes of a membership meeting shall be 20% of the voting members present in person, by proxy, or by secret written ballot received.