Articles

Client Alert: Maryland Permanently Authorizes the Use of Virtual Meetings

Date: May 12, 2021
During the pandemic, many associations were required to resort to virtual meetings in order to conduct business. Now, the Maryland General Assembly has acted to make virtual meetings a permanent option for condominiums, homeowners associations, and housing cooperatives. The law, known as House Bill 1023/Senate Bill 686, creates the following new virtual meeting provisions: § 11-139.3 of the Maryland Condominium Act, § 11B-113.6 of the Maryland Homeowners Association Act, and § 5-6B-25.1 of the Maryland Cooperative Housing Corporation Act. These laws become effective June 1, 2021, and are summarized below.
 
The new laws allow governing bodies of community associations to conduct remote or virtual membership meetings, Board meetings, and committee meetings notwithstanding the language contained in the association’s governing documents and without the need for specific prior authorization from the members of the association. Should a Board of Directors decide to hold such “a meeting by telephone conference, video conference, or similar electronic means,” certain requirements must be met:
  1. a link or instructions on how to access the meeting must be included in the notice of the meeting given to the association’s members; and
  2. the equipment or system used to conduct the meeting must permit the persons in attendance to hear and be heard by all other attendees of the meeting.
 These laws further establish that, when a meeting is conducted virtually, any individuals attending via electronic means are authorized to vote a ballot and are deemed present for quorum and voting purposes.  On the other hand, individuals who are not present at the virtual meeting may attend by proxy in accordance with the association’s governing documents and are considered present for quorum purposes through their proxy. 
 
With regard to matters for which a vote of the association members is necessary, the Board may set the voting to be held at the virtual meeting and, in that case, a ballot may be delivered to the members together with the notice of the meeting. The Board may also set a reasonable deadline for the return of the ballots, including return by “electronic transmission,” but that deadline cannot exceed 24 hours after the conclusion of the meeting. Finally, the new laws address nominations from the floor of the meeting and provide that the inability of any member to join a virtual meeting due to technical difficulties will not invalidate the meeting or any action taken at the meeting.
 
Please contact a Whiteford, Taylor & Preston, LLP community association attorney for more specific advice based on your community’s individual needs and concerns.
The information contained here is not intended to provide legal advice or opinion and should not be acted upon without consulting an attorney. Counsel should not be selected based on advertising materials, and we recommend that you conduct further investigation when seeking legal representation.