Publications
Laws Outline What Members Can Vote On
Often a board will hear members complain about not being able to vote on certain matters at board meetings or participate in discussions. Owners must be reminded that an association is the purest example of representative democracy. Directors are elected to represent all of the owners. Association business is handled at "board" meetings where only the directors may participate in the discussion and vote on board business. Unfortunately, too many times a board meeting will deteriorate into a "coffee klatch" because the board members do not want to hurt anyone’s feelings. What happens is owners in attendance begin speaking out of turn, raising irrelevant issues and chaos reigns. After all, only the directors have liability for decisions made by the board or policies enacted by the association.
Owners have very limited power, which is generally spelled out in the by-laws and the statute. Illinois law affords owners specified powers in addition to those set forth in the by-laws. The following is a list of issues members are permitted to vote on:
- Elect board members.
- Merge/consolidate/dissolve the association.
- Sell, lease, mortgage or pledge the assets of the association.
- Purchase and sell land.
- Two-thirds of all members of an association at a special meeting can remove board members.
- Review rules and regulations prior to adoption by the board.
- Review a budget before it is adopted.
- Approve street dedication.
- Approve cable TV installation
- Fifty-one percent can overturn a budget or special assessment if it exceeds 115% of the previous year's total revenues after the board is petitioned.
- Amend the declaration and by-laws or challenge a board adopted special amendment.
- Seek relief from real estate taxes.
- Create an Insurance Pool Trust Fund.
- Grant an easement to a governmental body to prevent erosion or water damage.
- Abolish reserves.
- Overturn an appointment by a board to fill a vacancy.
- Overturn a contract between a board and a board member (or their immediate family) who has a 25% or more interest in the entity.
- Vote to approve a purchase or lease when a right of first refusal is implemented.
- Take over an association when the developer refuses after 75% of the units are sold or after 3 years from recording of the declaration.
- Invalidate a developer’s "sweetheart" contract(s).
- Correct an error in the declaration.
- Examine records upon written request stating a proper purpose.
- Remove the property from the Act and dissolve the association.
- Dispose of the property in the event of a catastrophe.
Many of these powers individually require different majorities and different steps to obtain owner approval.
What is most important to remember is that board members are owners, who volunteer their time for no compensation, to act in the best interests of the members of the association. By agreeing to stand for election and serve on the board, an owner is asking their neighbors to place their trust in each candidate they vote for to be elected to the board.
What every owner must realize is that the owners cannot make the day-to-day decisions. That is what the board is for. Likewise, owners cannot be voting at meetings since the board is empowered to do so and are protected in their decision-making by legal limits on liability. Owners do not have that protection, so they must rely on their elected representatives or replace them with people they trust.
