Homeowners’ associations in Louisiana must be organized as corporations and are therefore subject to the Business Corporation Act. During Louisiana’s second special session of 2020, the General Assembly passed SB 33, signed by the Governor to amend the Business Corporation Act allowing a board of directors of a corporation to elect to call a virtual only shareholder meeting, this became effective October 16, 2020. The Business Corporation Act provides most of the regulations applied to HOAs. The Louisiana Homeowners Association Act was also passed to provide regulations more specific to community associations. Contact your association’s attorney to see what your community’s options are for virtual meetings based upon your governing documents.
Applicable Statutes: Business Corporation Act/Homeowners Association Act
§1141.3 of the Homeowners Association Act states that community documents are superior to any regulations provided in the act. The powers described in the LA HOA Act are only applicable if not addressed within community declarations or bylaws.
§1-709. Remote participation in annual and special meetings
A. Shareholders of any class or series may participate in any meeting of shareholders by means of remote communication to the extent the board of directors authorizes such participation for such class or series. Participation by means of remote communication shall be subject to such guidelines and procedures as the board of directors adopts, and shall be in conformity with Subsection B of this Section.
B. Shareholders participating in a shareholders' meeting by means of remote communication shall be deemed present and may vote at such a meeting if the corporation has implemented reasonable measures to do all of the following:
(1) Verify that each person participating remotely is a shareholder.
(2) Provide such shareholders a reasonable opportunity to participate in the meeting and to vote on matters submitted to the shareholders, including an opportunity to communicate, and to read or hear the proceedings of the meeting, substantially concurrently with such proceedings.
C. Notwithstanding any provision of Subpart A of Part 7 of this Chapter to the contrary, unless the bylaws expressly require the meeting of shareholders to be held at a place, the board of directors may determine that any meeting of shareholders shall be held solely by means of remote communication, in accordance with the provisions of Subsection B of this Section and the guidelines and procedures as the board of directors adopts.