§514B-123 
Association meetings; voting; proxies.  (a)  If only one of several owners of a unit is present at a meeting of
the association, that owner is entitled to cast all the votes allocated to that
unit.  If more than one of the owners is present, the votes allocated to that
unit may be cast only in accordance with the agreement of a majority in
interest of the owners, unless the declaration or bylaws expressly provide
otherwise.  There is majority agreement if any one of the owners casts the
votes allocated to that unit without protest being made by any of the other
owners of the unit to the person presiding over the meeting before the polls
are closed.



(b)  Votes
allocated to a unit may be cast pursuant to a proxy duly executed by a unit
owner.  A unit owner may vote by mail or electronic transmission through a duly
executed proxy.  If a unit is owned by more than one person, each owner of the
unit may vote or register protest to the casting of votes by the other owners
of the unit through a duly executed proxy.  In the absence of protest, any
owner may cast the votes allocated to the unit by proxy.  A unit owner may
revoke a proxy given pursuant to this section only by actual notice of
revocation to the secretary of the association or the managing agent.  A proxy
is void if it purports to be revocable without notice.



(c)  No
votes allocated to a unit owned by the association may be cast for the election
or reelection of directors.



(d)  A
proxy, to be valid, shall:



(1)  Be delivered
to the secretary of the association or the managing agent, if any, no later
than 4:30 p.m. on the second business day prior to the date of the meeting to
which it pertains;



(2)  Contain at
least the name of the association, the date of the meeting of the association,
the printed names and signatures of the persons giving the proxy, the unit
numbers for which the proxy is given, the names of persons to whom the proxy is
given, and the date that the proxy is given; and



(3)  If it is a standard
proxy form authorized by the association, contain
boxes wherein the owner has indicated that the proxy is given:



(A)  For
quorum purposes only;



(B)  To the
individual whose name is printed on a line next to this box;



(C)  To the
board as a whole and that the vote is to be made on the basis of the preference
of the majority of the directors present at the meeting; or



(D)  To
those directors present at the meeting with the vote to be shared with each
director receiving an equal percentage.



The proxy
form shall also contain a box wherein the owner may indicate that the owner
wishes to obtain a copy of the annual audit report required by section 514B‑150.



(e)  A
proxy shall only be valid for the meeting to which the proxy pertains and its
adjournments, may designate any person as proxy, and may be limited as the unit
owner desires and indicates; provided that no proxy shall be irrevocable unless
coupled with a financial interest in the unit.



(f)  A
copy, facsimile telecommunication, or other reliable reproduction of a proxy
may be used in lieu of the original proxy for any and all purposes for which
the original proxy could be used; provided that any copy, facsimile
telecommunication, or other reproduction shall be a complete reproduction of
the entire original proxy.



(g) 
Nothing in this section shall affect the holder of any proxy under a first
mortgage of record encumbering a unit or under an agreement of sale affecting a
unit.



(h)  With
respect to the use of association funds to distribute proxies:



(1)  Any board
that intends to use association funds to distribute proxies, including the
standard proxy form referred to in subsection (d)(3), shall first post notice
of its intent to distribute proxies in prominent locations within the project
at least twenty-one days before its distribution of proxies.  If the board
receives within seven days of the posted notice a request by any owner for use
of association funds to solicit proxies accompanied by a statement, the board
shall mail to all owners either:



(A)  A
proxy form containing the names of all owners who have requested the use of
association funds for soliciting proxies accompanied by their statements; or



(B)  A
proxy form containing no names, but accompanied by a list of names of all
owners who have requested the use of association funds for soliciting proxies
and their statements.



The
statement, which shall be limited to black text on white paper, shall not
exceed one single-sided 8‑1/2" x 11" page, indicating the
owner's qualifications to serve on the board or reasons for wanting to receive
proxies; and



(2)  A
board or member of the board may use association funds to solicit proxies as
part of the distribution of proxies.  If a member of the board, as an
individual, seeks to solicit proxies using association funds, the board member
shall proceed as a unit owner under paragraph (1).



(i) 
No managing agent or resident manager, or their employees, shall solicit, for
use by the managing agent or resident manager, any proxies from any unit owner
of the association that retains the managing agent or employs the resident
manager, nor shall the managing agent or resident manager cast any proxy vote
at any association meeting except for the purpose of establishing a quorum.



(j)  No
board shall adopt any rule prohibiting the solicitation of proxies or
distribution of materials relating to association matters on the common
elements by unit owners; provided that a board may adopt rules regulating
reasonable time, place, and manner of the solicitations or distributions, or
both. [L 2004, c 164, pt of §2; am L 2006, c 273, §20]