Q One of our board members has been president for many years. She runs the
building on a unilateral basis, giving out very little information about the
business of the condo. Unit owners have little influence because she is elected
by the board, not by unit owners. When it comes to elections, she controls
them. Our accounting firm runs the election. After the ballots are cast, the
president (who is also one of the candidates) takes all of the ballots and
mails them to the accounting firm. Is that fair? The accounting firm counts the
votes, and I’m sure they do it in an honorable way, but what if the ballots have already been
manipulated by the president? We want to get a fair count. Who should we go to
to deal with this?
—A Voting Unit Owner
A “The New Jersey courts have held that the Planned Real Estate Development Full
Disclosure Act (PREDFDA) requires fair and open elections for the board of
directors of associations,” says Hubert C. Cutolo, Esq. of the law firm of Sodini & Spina, LLC in Edison. “Your current board must exercise their legislatively established powers in a
manner that promotes the goal of fair and open elections. PREDFDA does not set
forth specific guidelines that must be followed to adhere to the fair and open
standard for elections. Notwithstanding the lack of specific statutory procedures for elections, your
current board should strictly adhere to any procedures outlined in your
governing documents. You should review the governing documents of your association to ascertain
whether specific election procedures are outlined. Most governing documents
contain provisions that outline a basic agenda for elections and also contain
procedures such as the appointment of inspectors for elections. The appointment
of neutral inspectors can help avoid charges of tampering that may occur if ‘concerned parties’ are involved in the tabulation of ballots.
“After ensuring that the current board is following any procedures outlined in
governing documents, you should request that your board adopt a written policy
providing for exact procedures to be followed for elections. A written policy
would assist current board members in fulfilling their responsibility to hold
fair and open elections. Furthermore, you should advise your current board of the reservations that you
have with the current election procedures. You have a valid concern with your
president, also an interested party, collecting or sending ballots to the
disinterested accounting firm. Your current board should seek to avoid even the
appearance of impropriety.
“If your current board refuses to implement a written policy concerning
elections, you may contact the Department of Community Affairs and notify them
of your concern with your association’s election process. The Department of Community Affairs may assist your board in
implementing an election process that is fair and open.”
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