Governor signs ACT 238, relating to Planned Community Associations
On July 12, 2016, Governor Ige signed into law Act 238 (HB 1541 HD1 SD 1) relating to Planned Community Associations (“PCA”). The Act seeks to amend certain sections of Hawaii Revised Statutes Chapter 421J.
In particular, the Act amends HRS section 421J-4, bringing proxy forms and proxy solicitation in line with condominium associations governed under HRS Chapter 514B.
If a PCA board intends to use association funds to distribute proxies that include the election of directors, the board must now post notice of its intent to distribute proxies twenty-one (21) days, instead of thirty (30) days prior to its distribution of proxies. Rather than being strictly limited to one hundred (100) words, the proxy statement may now be accompanied by a longer statement available on the Internet. However, the notice of intent to distribute proxies must state that the statement shall not exceed one hundred (100) words, but a longer statement will be available on the Internet.
McKeon Sheldon Mehling LLC represents over 100 condominium, community, and homeowners’ associations on Maui, including residential and commercial condominiums, planned developments, condominium conversions, retirement and single-family home communities. Our attorneys assist clients with conducting and managing elections, including proxy voting procedures and quorum requirements, and advise our clients on issues concerning director and officer liability and good governance practices.