quorum

The Meaning of Quorum

Most community association bylaws state a specific quorum requirement for owner or membership meetings.  The purpose of a quorum is to avoid binding owners to decisions made by an unrepresentatively small number of individuals.  Simply put, quorum is the minimum number of members or owners required to conduct business at a meeting. That minimum number may be a percentage of owners or a specific, fixed number of owners. If at the start of an owner meeting it appears the quorum requirement has not been met, the meeting cannot continue.  The only action that may be taken is to set the time and place for another meeting.  Any substantive action taken in the absence of a quorum is deemed invalid.

Some governing documents may not provide for a quorum requirement.  In that case, there are statutory defaults.  In Oregon, if the governing documents are silent then the quorum requirement is 20% of the owners (ORS 94.655).  Washington has a slightly larger default quorum requirement:

Unless the governing documents specify a different percentage, a quorum is present throughout any meeting of the association if the owners to which thirty-four percent of the votes of the association are allocated are present in person or by proxy at the beginning of the meeting.(RCW 64.38.040)

Keep in mind that quorum can be achieved by owners attending a meeting in person or by proxy.  It’s conceivable that quorum could be achieved by only a few owners attending a meeting in person, but each of those owners having multiple proxies from other owners.

If your homeowner or condominium association has difficulty meeting its quorum requirement, here are a few ideas to consider to increase membership attendance:

- Consider changing the location to a more convenient or comfortable place;

- Plan ahead and choose a meeting date that doesn’t conflict with vacation periods or holidays;

- Send notice of the meeting via mail, email, and any other means which owners are likely to receive;

- Consider serving food or refreshments;

- Give away door prizes.

Reduced Quorum for Oregon Condominiums and HOAs

Many homeowner and condominium associations have difficulty meeting the quorum requirement for annual ownership meetings. Unless a quorum is achieved, the meeting cannot proceed. The association’s bylaws typically contain the quorum requirement—usually a percentage of the ownership. Oregon has a unique statute which allows for a reduced quorum for ownership meetings. For condominiums, the statute is ORS 100.408, for planned communities, the statue is ORS 94.655.

If the membership meeting cannot proceed because of a lack of quorum, you may adjourn the meeting. The meeting may then immediately re-start with a reduced quorum. The reduced quorum is 1/2 of the quorum requirement or 20%, whichever is greater.

So, if your quorum requirement is 50%, the reduced quorum would be 25%. If your quorum requirement is 30%, the reduced quorum is 20% (remember, 1/2 or 20%, whichever is greater). If your quorum requirement is 20%, it stays at 20%. Keep in mind that the notice of the meeting must contain a statement that the quorum will be reduced and what the percentage will be if reduced. The language should also state that the meeting will be immediately recalled with the reduced quorum percentage (otherwise, you must wait 48 hours).

Let’s walk through a hypothetical:

It’s Saturday morning and the annual ownership meeting is about to begin. The association’s governing documents require at least 30% of the ownership to be present in person or proxy. After everyone has checked in with the secretary, only 25% of the ownership is present in person or proxy. Assuming the notice of the meeting contained the required language, the new quorum requirement is 20%. And with 25% of the owners present, you’ve reached quorum!

If you’re interested in calculating your reduced quorum requirement, plug-in your numbers in the Oregon quorum calculator here.