Approval for Capital Expenditure

[Guest Stephen Kopp]

Our By-Laws state that "Capital expenditures in excess of $1,800 shall require pre-approval of 2/3s majority of the eligible membership"

If we have a project in mind and have a yes/no vote to approve the project for $10K and the project is approved can we then have a vote for how this project will be paid, i.e. assesment or to borrow funds. Is the second vote 2/3s of membership or a simple majority?

[Guest Guest]

I felt that the first vote is for approval to expend funds, requires a 2/3s vote.

The second vote is a policy question of how to pay for the project, which is not

a 2/3s vote since only amendments and expenditures are specified in the by-laws

[David A Foulkes]

Our By-Laws state that "Capital expenditures in excess of $1,800 shall require pre-approval of 2/3s majority of the eligible membership"

If we have a project in mind and have a yes/no vote to approve the project for $10K and the project is approved can we then have a vote for how this project will be paid, i.e. assesment or to borrow funds. Is the second vote 2/3s of membership or a simple majority?

First, some here would say the phrase "2/3s majority" is ambiguous. In RONR, there is a majority vote (more than half the votes cast are in favor) and a 2/3 vote (at least twice as many yes as no votes cast). These votes can be further modified to alter the pool of voters, including not only those who vote (i.e. don't abstain) but perhaps all the members present at the meeting (whether they abstain or not), or the entire membership whether they're present at the meeting or not, similar to your phrase of "the eligible membership." What does eligible mean, anyway? Are they unmarried, but worthy catches? (kidding) I assume it is eligible to vote. But you tell me.

The answer is that your bylaws dictate the voting threshold required to (pre-)approve a capital expenditure in excess of $1800. Once it has been (pre-)approved by the bylaw-dictated vote, that part of the business is done. Now, the question becomes "Hey guys, where we gonna get $10k from?" And that does sound like a separate issue from the (pre-)approval to spend it. As such, I'd think a majority vote would do. But stay tuned, and come back often over the next few days to see what others have to say about it.

One last question -- after the expenditure is "pre-approved", what does it take to get the actual "approval?"

[Gary c Tesser]

Well done, Mr Foulkes; and you too, poster of post #2 (if you don't want to use your real name, plese make something up).