Annual Meeting Planning for Coops and Condos
A Step-by-Step Guide to Success
The annual meeting is a cornerstone event for any coop or condo building. It’s not just about checking off a governance requirement; it’s an opportunity to foster transparency, engage shareholders or unit owners, and build trust in the board’s leadership. Importantly, this is where the board members are elected, making it a critical event for shaping the building’s governance. A well-planned annual meeting can set the tone for the entire year, while a chaotic one can erode confidence and create unnecessary friction. Here’s how to ensure your building’s annual meeting runs smoothly and achieves its goals.
1. Comply with Legal Requirements
Every co-op or condo is governed by its bylaws, which dictate the rules for annual meetings. While your building’s bylaws set your building’s requirements, they are overruled by local and state laws. In New York State:
Co-ops are governed by the New York Business Corporation Law (BCL).
Condos are governed by the New York Condominium Act.
Common requirements include notifying owners a certain number of days in advance, providing proxy forms, and ensuring a quorum is present. Review your building’s governing documents and consult with your property manager or legal counsel to ensure compliance.
2. Set a Nominations Deadline
A key part of many annual meetings is electing board members. To streamline this process, we recommend having a formal board nomination process. This includes how to nominate yourself and the deadline to do so. One important requirement should be for all incumbent board members running for re-election, as well as any new nominees, to submit a bio that includes:
Your qualifications: What are your skills or experiences that would benefit the board and the owners that you will represent.
Personal background: Include things like how long you have owned your apartment, what’s your involvement in the community, and why do you want to join the board.
This ensures transparency and allows shareholders or unit owners to make informed decisions. Sharing the submitted bios with all residents prior to the meeting can encourage engagement and participation. Think about it, if your favorite neighbor is nominating themselves, wouldn’t you make an extra effort to attend the annual meeting to support them?
Pro Tip: When writing the annual meeting invitation with nomination rules, include what is expected from board members. This will help those who are considering nominating themselves to evaluate whether they have the bandwidth to join the board. For instance, the board meets every first Tuesday of the month at 6pm via Zoom, which will eliminate those that coach little league that exact time. It is also great to share the expected commitment such as besides the one hour monthly meeting, each board member is expected to dedicate one additional hour per week on various assignments.
3. Choose the Right Format
The pandemic has forever changed the way we gather, forcing boards to adapt and innovate to meet the needs of their communities. Choosing the right format for your annual meeting is crucial to ensuring maximum participation and engagement. With varying preferences and circumstances among shareholders or unit owners, it’s important to evaluate which option best fits your building’s needs. Consider factors like attendance rates, technology capabilities, and accessibility to decide whether your meeting will be in-person, virtual, or hybrid. Each format has its own set of advantages and challenges:
In-Person: Encourages face-to-face engagement but may limit attendance.
Virtual: Increases accessibility but requires robust tech support.
Hybrid: Offers flexibility but demands careful planning to engage both audiences equally.
By thoughtfully selecting a format that aligns with your community’s preferences and resources, you can set the stage for a productive and inclusive meeting.
4. Decide on Who Will Run the Meeting
There are several ways to run the annual meetings and elections. From digital invitations to virtual Q&A platforms, technology can make your annual meeting more efficient and engaging. For larger buildings with lots of voting owners, a great system is crucial. For smaller buildings, elections can often be run by the board with simple business tools. When deciding who will run the meeting, consider the following options:
Property management firms often conduct annual meetings for the coops and condos that they represent. This is traditionally how most coop and condo boards arrange the annual meetings. As one would expect, property management firms typically charge extra for their time, and how much that is depends on the firm and the setup.
Third-party election platforms specialize in exactly that, annual meetings and elections. Since these firms specialize in elections, their services tend to be well organized and often more cost effective as well. If your board is expecting a contested election or if you are planning to take over the board, we especially recommend using a third-party election service provider.
Simple business tools are often a great solution to run the annual meetings and elections for small condos and coops, especially when the majority of owners are on the board.
5. The Annual Meeting
The backbone of any successful meeting is the agenda. This document should outline key topics such as financial reports, building updates, board elections, and time for Q&A. Include time estimates for each section to help keep the meeting on track. Distribute the agenda, or put it up on the screen, set up the expectations for what’s to come. Make sure to emphasize that you will save ample time at the end for questions. This can help avoid interruptions.
Leveraging technology by using simple presentation slides can enhance the experience. Visuals are often an easy way to show complex projects. For instance, we recently held an owners’ meeting whose façade inspection required additional costly repairs. Showing before and after pictures is a very effective way of explaining the situation in one simple presentation slide.
It is very common to have the building’s CPA and Attorney attend the annual meeting. Since both of them represent many coops, they attend tons of annual meetings. To respect their time, we highly recommend starting the meeting with the CPA and Attorney, followed by a Q&A section for each of them before continuing the rest of the meeting without them. This will also minimize your Attorney’s billable hours.
Closing Thoughts
A well-executed annual meeting is more than just a procedural requirement—it’s a powerful opportunity to foster transparency, build trust, and strengthen your community’s sense of collaboration. By carefully planning every detail, from the agenda to the election process, your board can create a meeting that is both productive and engaging. Remember, this event is a platform for dialogue, allowing owners or shareholders to voice their concerns, ask questions, and contribute ideas. Encouraging respectful communication and promptly addressing unanswered questions after the meeting further enhances trust and accountability.
When your building’s annual meeting is thoughtfully managed, it sets the stage for a successful year ahead, promoting confidence in your leadership and reinforcing a shared vision for your community.
Need help planning your building’s annual meeting? The Folson Group specializes in creating seamless, efficient, and engaging experiences for condo and coop boards. Contact us today to learn how we can support your board’s success!