Q I wonder what your take is on open meetings. Are all shareholders and unit
owners invited to attend? Are they allowed to make comments? Are they allowed to attend the entire
meeting? Is there some portion of the meeting that relates to litigation or
personal matters, such as a specific personal matter concerning a unit owner
that should be discussed in private? Is everything else discussed in an open
meeting?
—Being in the Know
A “With certain exceptions, all meetings of an association’s governing board are required to be open to attendance by all unit owners and
shareholders, says attorney Gregory M. Dyer, a partner at the law firm of
McCarter & English, LLP, with offices in Newark and several national locations. “Informal conference or working sessions of the board at which no binding votes
are to be taken are not required to be open to all unit owners. In addition,
the board may exclude or restrict unit owner attendance at those meetings, or
portions of meetings (often referred to as 'closed sessions' or 'executive
sessions'), that deal with certain subjects, which may be summarized as
follows: (1) matters which should not be disclosed due to individual privacy concerns;
(2) any pending or anticipated litigation or contract negotiations; (3) any
matters falling within the attorney-client privilege; or (4) any matter
involving the employment, promotion, discipline or dismissal of a specific
officer or employee of the association. If the board meeting does not deal with
one of these subjects and is not merely a working session, then it is required to be open to all unit owners.
“The requirements for open meetings and the exceptions thereto are set forth in
the New Jersey Condominium Act, which applies to the condominium form of
ownership, and in The Planned Real Estate Development Full Disclosure Act, the
provisions of which may apply not only to condominiums but to homeowners
associations and cooperatives as well.
“All unit owners must be given adequate notice of any open meeting (in such
manner as the bylaws shall prescribe). Minutes of each open meeting must be
taken, and copies of those minutes must be made available to all unit owners
before the next open meeting. Open meetings must be held in a suitable meeting
room within the development or, if there is no suitable meeting room within the
development, at a suitable meeting room elsewhere in the municipality in which
the development is located or in an adjoining municipality. To be considered
'suitable,' a meeting room must be large enough to accommodate a reasonable
number of unit owners who might wish to attend an open meeting.
“The participation of unit owners during open meetings, including their ability
to make comments, is at the discretion of the governing board. Thus, a board
may decide that it will not allow unit owners to make comments or ask questions
at an open meeting. However, most association boards do provide for an open
comment or question and answer session at open meetings attended by unit
owners.”
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