Frequently Asked Questions about Annual Meetings and Elections

OF MUTUAL INTEREST

By Ripa Barua

election specialist

The 2023 annual meeting season begins May 16. The fever-pitch of activity will continue for the next six weeks as all 16 mutuals host their annual meetings.

The annual meeting and election season begins in January and concludes at the end of June. There are often many questions about this time of the year and why these activities are important. Here are the most common questions and their answers.

What is an annual meeting and how is it different from a regular board meeting?

The Mutual corporations and the GRF are required to have annual meetings in order to report to the membership their activities during the past year. Directors read reports concerning finances, infrastructure, accomplishments and goals for the future. An annual meeting is similar to a state of the union speech as directors are limited to presenting reports whereas business is conducted at board meetings.

Who can attend annual meetings?

Shareholders/owners are encouraged to attend their mutual annual meeting (see schedule below).

Are the elections and annual meetings held on the same day?

The ballot counting for your mutuals election will be conducted at the annual meeting.

How often are elections conducted?

Most mutual boards of directors are elected annually.

How many ballots will I receive?

Everyone will receive two ballots due to the GRF bylaw amendments.

Should I separate the votingportion of the ballot before mailing it in the envelope provided?

No, return the full legal-sized ballot in the envelopes provided.

Has my ballot been mailed?

Check the election schedule (below ) to see when the mutual ballots were mailed.

There are three people who live in my unit; do we each receive a ballot?

One ballot is mailed to each unit on file. The unit represents one share of stock/voting power. Per Mutual bylaws, if there are multiple owners of one membership (unit) in the corporation, despite the multiplicity of owners, they shall jointly have only one vote.

Can I use a proxy or designate someone to vote on my behalf?

Depending on your Mutuals election policy, proxies may be used in Mutual elections. To ensure the ballots integrity, ballot envelopes must be signed by the shareholder member connected to that household.

Are write-in candidates permitted?

There is a space on most Mutual ballots for write-in candidates. However, for the vote to be properly cast for the write-in candidate, that candidate must be nominated at the annual meeting (called “nominated from the floor”) and must be present to accept the nomination.

My mail is forwarded to a post office box or an address outside the community. Will my ballot be forwarded to me?

No. As the voting rights are tied to the unit, ballots are all mailed to the units. However, a replacement ballot can be mailed to you at the address of your choice. Call Accurate Voting Services toll free at 949556-3936 to request a replacement ballot.

The candidates on my ballot are running unopposed;

why should I vote?

Your participation in the election process is critical for the operation of this community. Every vote counts! Additionally, the return of your properly cast ballot ensures that your Mutual will obtain the necessary number of votes to produce the annual meeting and counting of ballots.

I do not know the candidates running for my Mutuals board of directors; why should I vote?

Read the candidate Statement of Qualifications (often referred to as a resume or biography) included with the ballot for information. Ask candidates questions on topics that are important to you. Attend meet-the-candidates events. Ask your friends and neighbors their opinion.

If you decide you still do not want to cast your votes for any of the mutual candidates, you are still strongly encouraged to vote by checking the box labeled abstain from votingballot counted for quorum only portion of the ballot. This lets you participate in the election process by returning a properly cast ballot.

I have heard a quorum is necessary before the ballots can be counted. What is a quorum?

A quorum is the minimum number of members that must be present to make mutual annual meeting proceedings valid. In the case of elections, your participation in the voting process, i.e. your properly cast ballot, counts as your attendance. A quorum of at least one-third for some Mutuals and half plus one for some of the Mutual corporation membership is required before the mutual ballots can be counted.

I lost my ballot or cannot remember if I mailed my ballot. What do I do?

Call Accurate Voting Services toll free at 949-556-3936 to have a replacement ballot mailed to you or to confirm if your ballot was received.

Where do I mail the ballot?

The yellow-and-blue mailing envelopes are postage-paid and pre-addressed to the Inspector of Elections, Accurate

Voting Services, Inc., P.O. Box 6117, Laguna Niguel, CA 926076117.

Drop the ballot in a U.S. mailbox as soon as possible. Your ballot must be received before noon on the business day BEFORE the annual meeting. You may also hand deliver your ballot to Clubhouse 4 on the day of the annual meeting. See instructions on your ballot for further information. Do not forget to sign the outside return envelope.

I still have questions about annual meetings and elections. Who can help me?

Contact Rosie Estrada, Stock Transfer manager, at 562-431--

6586, ext. 346, or Ripa Barua, election specialist, at ripab@lwsb.com for assistance.

The election schedule (page 5) is provided to assist with dates for your specific Mutual and save the date to attend your annual shareholder meeting. Mutuals are listed in order of annual meeting.