REPORT TITLE:
Proxies

DESCRIPTION:
Allows the limited use of proxy votes in the election of board of
directors of community associations and condominiums.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           1455
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO PROXIES.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Section 421J-4, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "[[]421J-4[]]  Proxies.(a)  A proxy shall be in writing
 
 4 and shall be valid for only a specified meeting of the
 
 5 association and any adjournments of that meeting.
 
 6      (b)  A member of the association may give a proxy to any
 
 7 person or the board of directors as an entity, and the proxy may
 
 8 be limited as indicated by the member.  No proxy shall be
 
 9 irrevocable unless:
 
10      (1)  The proxy is coupled with a financial interest in the
 
11           unit; or
 
12      (2)  The proxy is held pursuant to a first mortgage of
 
13           record encumbering a unit or an agreement of sale
 
14           affecting a unit.
 
15      (c)  [A proxy, to] To be valid[, must:] a proxy shall:
 
16      (1)  Be delivered to the secretary of the association or the
 
17           managing agent, if any, no later than 4:30 p.m. on the
 
18           second business day prior to the date of the meeting to
 
19           which it pertains;
 

 
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 1      (2)  Contain at least the name of the association, the date
 
 2           of the meeting of the association, the printed name and
 
 3           signature of the person or persons giving the proxy,
 
 4           the unit or units for which the proxy is given, and the
 
 5           date that the proxy is given; and
 
 6      (3)  Contain boxes wherein the owner has indicated that the
 
 7           proxy is given:
 
 8           (A)  For quorum purposes only; 
 
 9           (B)  To the individual whose name is printed on a line
 
10                next to this box;
 
11           (C)  To the board of directors as a whole and that the
 
12                vote be made on the basis of the preference of the
 
13                majority of the board; or
 
14           (D)  To those directors present at the meeting and the
 
15                vote to be shared with each board member receiving
 
16                an equal percentage. 
 
17      (d)  An association having more than three hundred members
 
18 shall allow the voting of proxies in accordance with this
 
19 section, except when voting for the election of members to its
 
20 board of directors, in which case:
 
21      (1)  A proxy given for a specified meeting in which one or
 
22           more directors are to be elected shall only be valid
 

 
 
 
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                                     S.B. NO.           1455
                                                        
                                                        

 
 1           for quorum purposes and shall not be counted for
 
 2           election purposes;
 
 3      (2)  Before the annual meeting of the association, the
 
 4           association shall solicit nominations for board
 
 5           positions that are open for election;
 
 6      (3)  The nominations shall be included in the notice of
 
 7           annual meeting packet that is mailed to the membership,
 
 8           and the membership shall elect the board members from
 
 9           those nominations; and
 
10      (4)  A majority of the votes cast shall determine the
 
11           winners-at-large or from the district.  Blank votes
 
12           shall not be counted in determining the number of votes
 
13           cast."
 
14      SECTION 2.  Section 514A-83.2, Hawaii Revised Statutes, is
 
15 amended to read as follows:
 
16      "514A-83.2  Proxies.(a)  [A proxy, to] To be valid,
 
17 [must:] a proxy shall:
 
18      (1)  Be delivered to the secretary of the association of
 
19           apartment owners or the managing agent, if any, no
 
20           later than 4:30 p.m. on the second business day prior
 
21           to the date of the meeting to which it pertains;
 
22      (2)  Contain at least the name of the association of
 
23           apartment owners, the date of the meeting of the
 

 
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                                     S.B. NO.           1455
                                                        
                                                        

 
 1           association of apartment owners, the printed name and
 
 2           signature of the person or persons giving the proxy,
 
 3           the apartment or apartments for which the proxy is
 
 4           given, and the date that the proxy is given; and
 
 5      (3)  Contain boxes wherein the owner has indicated that the
 
 6           proxy is given:
 
 7           (A)  For quorum purposes only;
 
 8           (B)  To the individual whose name is printed on a line
 
 9                next to this box;
 
10           (C)  To the board of directors as a whole and that the
 
11                vote be made on the basis of the preference of the
 
12                majority of the board; or
 
13           (D)  To those directors present at the meeting and the
 
14                vote to be shared with each board member receiving
 
15                an equal percentage.
 
16      (b)  A proxy shall only be valid for the meeting to which
 
17 the proxy pertains and its adjournments, may designate any person
 
18 as proxy, and may be limited as the apartment owner desires and
 
19 indicates; provided that no proxy shall be irrevocable unless
 
20 coupled with a financial interest in the unit.
 
21      (c)  No officer of a board of directors shall use
 
22 association funds to solicit proxies; provided that this shall
 
23 not prevent an officer from exercising the officer's right as an
 
24 apartment owner under section 514A-82(b)(4).
 

 
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 1      (d)  Nothing in this section shall affect the holder of any
 
 2 proxy under a first mortgage of record encumbering an apartment
 
 3 or under an agreement of sale affecting an apartment. 
 
 4      (e)  An association with more than three hundred members may
 
 5 allow the voting of proxies in accordance with this chapter
 
 6 except when voting for the election of members to the board of
 
 7 directors, in which case:
 
 8      (1)  A proxy given for a specified meeting in which one or
 
 9           more directors are to be elected shall be only valid
 
10           for quorum purposes and shall not be valid for election
 
11           purposes;
 
12      (2)  Before the annual meeting of the association, the
 
13           association shall solicit nominations for board
 
14           positions that are open for election;
 
15      (3)  The nominations shall be included in the notice of
 
16           annual meeting packet that is mailed to the membership,
 
17           and the membership shall elect the board members from
 
18           those nominations; and
 
19      (4)  A majority of the votes cast shall determine the
 
20           winners at-large or from the district.  Blank votes
 
21           shall not be counted in determining the number of votes
 
22           cast."
 

 
 
 
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                                     S.B. NO.           1455
                                                        
                                                        

 
 1      SECTION 3.  Statutory material to be repealed is bracketed.
 
 2 New statutory material is underscored.
 
 3      SECTION 4.  This Act shall take effect upon its approval.
 
 4 
 
 5                           INTRODUCED BY:  _______________________