Virtual annual meetings are now a permanent fixture in NY.
During the Covid-19 pandemic, Community Boards for, Co-ops and Homeowners’ Associations relied heavily on virtual platforms to stay connected, informed and conduct their business. Now, Governor Hochul has signed into law a bill, pursuant to a temporary Executive Order originally set to expire on December 31, 2021, that eliminates the requirement of in-person meetings in a physical location.
The new law, which amends the Business Corporation Law and the Not for Profit Corporation Law, allows members “to participate in in-person meetings via electronic communications, or for meetings of members to take place solely via electronic communications, at the discretion of the board of directors.” This allows Boards to conduct meetings from anywhere, without having to physically assemble in one common place.
Of course, Boards will have to make sure that safeguards are in place to verify the identification of members and that there is a proper mechanism to record votes. Boards also must provide an opportunity for members to ask questions and discuss issues on the virtual platform.
The flexibility to utilize virtual platforms to conduct meetings allows for more public participation in meetings, especially for the elderly and others who may find it difficult to attend in-person meetings.
Also, more people are likely to attend and participate from the comfort of their own living rooms. This will make scheduling easier as well. Further, virtual meetings can allow for more frequent meetings, more orderly meetings, and less interruptions.
Special guests, such as attorneys and engineers will also have more accessibility to meetings and will be able to attend more frequently. Property managers are encouraged by the law, highlighting that they can now attend more than one meeting a night and still provide the same level of quality input.
It is worth noting that the law does not specifically reference condominiums and no changes were made to the Condominium Act. Some attorneys are taking the position that the new law applies to condominiums also, even without a specific legislative reference. There is a bill in the State Senate that would extend the ability to hold virtual meeting to Condominium communities, but that bill has not been made law as of this writing.
