The bill also outlines processes for the removal of directors, providing that members can remove one or more directors elected by cumulative voting with or without cause. It stipulates specific procedures for such removals, including the requirement for a petition signed by a certain percentage of members. These changes are designed to streamline governance and accountability in community associations, making it easier for members to exercise control over their elected representatives.
Summary
House Bill 1781 aims to amend Chapter 421J of the Hawaii Revised Statutes regarding the governance of planned community associations. The bill introduces provisions for cumulative voting, allowing members to aggregate their votes when electing directors. This means that members can multiply their voting power based on the number of positions they are entitled to vote for, thereby enabling a more flexible voting method that could support minority opinions and candidates. This change seeks to enhance democratic participation within these associations, which often manage community affairs and operations.
Contention
Notably, the bill aims to exempt planned community associations from certain provisions under the Hawaii Nonprofit Corporations Act, a point that has sparked some debate. Critics may argue that this exemption could undermine the oversight currently provided by the Nonprofit Corporations Act, potentially leading to less transparency and accountability in governance. Supporters, however, believe that allowing associations greater autonomy without the additional burdens of state regulations could foster more responsive and representative leadership at the community level.
An Act Concerning Revisions To The Connecticut Business Corporation Act, The Uniform Limited Partnership Act And The Connecticut Limited Liability Company Act.