Veto of rules changes

A request by 5% of the homeowners in Park Lane has been delivered to the board of directors requesting a special meeting to reverse the rule changes that took effect in February. This has generated some internal discussion among board members about how best to respond. Below is my reply to the rest of the board and our property manager.

According to Civil Code 1357.140, it takes 5% of the owners to call a special meeting, and they must make the request within 30 days of notification of the rule change. Since we have 159 homes, it takes 8 homeowners to call a special election, and since notice of the rule change was not delivered to the homeowners until 14 Feb, it appears that they are within the 30 day time limit.

The Civil Code does not give a time frame for scheduling of the meeting, but section 3.02 of our bylaws states that it must be scheduled "promptly". I would take this to mean within 30 days.

The bylaws require 51% of the homeowners (81, 82 to be absolutely sure) to constitute a quorum at which time a simple majority vote is sufficient to settle the matter. Based on my understanding, the same rules for the annual meeting regarding quorum apply to special meetings.

So, in answer to your question, I believe we are now bound to hold a special meeting in accordance with Corporations Code 7511 and deliver ballots according to Civil Code 1363.03. (1363.03 states that ballots must be sent 30 days in advance of the vote, which means we probably can't reasonably schedule a meeting in less than 45 days.)

Watch this space for updates.