LAKE GENEVA HIGHLANDS CO-OPERATIVE UPDATED BY-LAWS
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1 LAKE GENEVA HIGHLANDS CO-OPERATIVE UPDATED BY-LAWS July 29, 2017 ARTICLE 1 OFFICES The principal office of the Lake Geneva Highlands Co-operative (LGHC), in the state of Wisconsin, shall be located in the Town of Linn, Walworth County, Wisconsin, at the address of a full-time resident of the Co-operative, as determined by the Board of Directors. The Co-operative may have such other offices, either within or without the state of Wisconsin, as the Board of Directors may designate or as the business of the Co-operative may require from time to time. The registered office of the Co-operative, required by Wis. Stat. ch. 185, as amended (the Act ), to be maintained in the State of Wisconsin, may be, but need not be, identical with the principal office in the State of Wisconsin. The address of the registered office may be changed from time to time by the Board of Directors, who will notify the State and other appropriate government agencies as required by law.
2 Section 1- Membership ARTICLE 2 MEMBERSHIP The membership of this Co-operative shall consist of all persons who are homeowners within the Lake Geneva Highlands subdivision, in the Town of Linn, Walworth County, Wisconsin. Members agree to be bound by the terms and provisions of these by-laws. In the affairs of the Co-operative, each home in the subdivision is entitled to one vote, regardless of the number of homeowners of record. Section 2- Annual meeting The annual meeting of the membership shall be called by the Board of Directors and shall be held on the last Saturday of the month of July in each year at the hour of 10:00 A.M., or at such other time and date as the Board of Directors may deem to be fit and proper. The agenda is to be set by the Board. The meeting will be held at the Linn Town Hall in Zenda, Wisconsin or such other place as the Board of Directors may determine for purposes of electing directors and for the transaction of such other business as may come before the meeting. The annual meeting may also be adjourned to reconvene at any place or time if designated by a vote of the majority of the membership represented thereat. Section 3- Special Meetings Special meetings of the membership, for any purpose(s), may be called by the President of the Co-operative, or the Board of Directors, or at the request of not less than 20 percent of all the members of the Co-operative entitled to vote at the meeting. Section 4- Place of Special Meetings The Board of Directors may designate any reasonable place, convenient to the majority of members in good standing, either within or without the State of Wisconsin, as the place for any special meeting called. Any special meeting may be adjourned to reconvene at any place or time if so designated by a vote of the majority of the membership represented thereat. Section 5- Notice of Meetings Each member of record in good standing entitled to vote at such a meeting will receive written notice stating the day, date, time, purpose(s) and place of the meeting, which shall be delivered not less than seven nor more than thirty days before the date of the meeting, either personally or by mail, or at the direction of the President or the Secretary or the persons calling the meeting. If mailed, such notice shall be deemed to be delivered when deposited in the United States mail, addressed to the member at his or her address as it appears in the Co-operative s record book (Directory). Included 2
3 with such notice shall be exact copies of motions to be voted on at the meeting, all resolutions to which such motions pertain, and an appropriate ballot for use by the member in the event they will be unable to attend the meeting in person. Section 6- Financial Responsibility of Members All members are required to submit payment for yearly dues, amenity fees, special assessment fees, and any late fees incurred in a timely fashion as determined by the Board of Directors. Any member of the Co-operative is considered delinquent upon nonpayment of these funds due. Any delinquent member is considered to be not in good standing and, as such, cannot vote and cannot use the amenities and services provided by the Co-operative until such time as their account becomes current. However, in the event that a member chooses to relinquish a previously held amenity or because of non-payment for that specific amenity, said amenity will revert back to the Co-operative for re-assignment to another homeowner member in good standing. A delinquent member shall be liable to the Co-operative for all of its reasonably incurred costs and expenses of collection (including, but not limited to, attorneys' fees and court costs) relating to the member s delinquency. Delinquency may further result in a lien being filed upon the member s property for all amounts due the Co-operative. Section 7- Voting Lists The Board of Directors shall maintain a complete list of members entitled to vote at all Co-operative meetings. This list, arranged in numerical order by lot number(s) is available in the Co-operative Directory. The voting list, with attendance in person or by signed ballot noted, will be kept open at the time and place of the meeting and shall be subject to the inspection of any member during the meeting. Section 8- Quorum A quorum at a member meeting shall be no less than 20 percent of all eligible voting members of the Co-operative. Members represented by signed ballots may be counted in computing a quorum only on those matters for which the signed ballots were submitted. Section 9- Signed Ballots At all meetings of the membership, a membership entitled to vote may vote on any motion or resolution (including, without limitation, those relating to the election or removal of directors) by submitting a signed ballot on such form as provided by the Cooperative. Such ballots shall be filed with the Secretary of the Co-operative before the time of the meeting. No ballot shall be valid after said meeting unless otherwise provided therein. Section 10- Action Without A Meeting by Directors or Members 3
4 Any action which may be taken at a meeting, may also be taken without a meeting if such action is written setting forth the details of the action and is approved by a simple majority of the Co-operative memberships or Directors entitled to vote on such action. Such consent shall have the same force and effect as a majority vote at a meeting. Section 11- Member Directory Information All members are responsible for communicating their current mailing address, telephone numbers, and address to the Board of Directors for the purposes of billing, annual meeting notification, and other member communications. Any Member who sells or otherwise transfers their property is responsible for communicating the new owner s name, mailing address, telephone numbers, and address to the Board of Directors prior to closing the sale. 4
5 ARTICLE 3 CO-OPERATIVE RULES AND REGULATIONS Section 1- Member Responsibilities All members agree to follow the policies, rules and regulations approved by the Board of Directors and/or the voting members at the annual meeting. Members are also responsible for informing their guests to follow these same policies, rules, and regulations. Some rules and regulations are posted at the lakefront and in the common community areas. A comprehensive list of Lakefront and General Rules can be found on the Lake Geneva Highlands Co-operative website at Section 2- Alcoholic Beverages No alcoholic beverages shall be consumed anywhere on the property in the common areas of the Co-operative such as the park, beach, sundeck, patios, piers, roadways, etc. Section 3- Unlawful Use of Residence No member shall permit their home to be used for unlawful or commercial purposes. Each home may only be used as a single family private dwelling or residence of permanent construction. Marketing or advertising of a Member's home for rent (via realtor, internet site, phone application, newspaper, or any other means) is prohibited. No member shall erect or attempt to erect more than one dwelling on a lot of the size as subdivided by Taylor & Powers. No lot shall be used for camping or living purposes in a trailer, camper, tent, etc. In the event any member violates any of the provisions of this Section 3 and does not remedy such violation within 7 days upon notice, such members shall be subject to a special assessment in an amount determined and posted by the Board of Directors from time to time, which shall be charged for each week that the violation continues. (Note: Effective August 2017, the amount of this special assessment shall be $100). Section 4- Maintenance of Residence and Property All homeowner members are required to maintain their residence and property in a reasonable fashion. The residence must look inhabitable. Any member of the Cooperative may contact Linn Township or Walworth County to report violations of this nature. Section 5- Proper Amenity Use A homeowner member may have one or more dissimilar amenities assigned to the 5
6 home. Such a homeowner member may retain the use of the amenity as a lessee of the Co-operative subject to the right of the Co-operative to amend the by-laws or of the Board of Directors to terminate the lease at its discretion for any reasonable cause or for non-payment of fees due or for any violation by such member of the provisions of these by-laws. No amenity may be sublet for profit. An amenity may only be sublet to another homeowner member in good standing with the Co-operative. Violation of these rules will result in a temporary suspension of the amenity. Continued violation will result in a permanent transfer of said amenity to another property. All amenities are owned by the Co-operative and are leased to an individual property and LGHC homeowner member. Should a member not use in any year or season one of these amenities assigned by July 1st, the Board of Directors may permit the use of such amenity by another such homeowner member in good standing for that year or season, who will reimburse the lessee for the costs of the amenity. The lessee may, subject to the above provisions, retain the license to the amenity as long as the homeowner member is in good standing and may assign said amenity to the person who buys and becomes the owner of that home in the subdivision. The user of any ramp, dinghy, buoy, or boat slip shall annually give to the designated Board Director the boat registration form if required by the state which includes the registration number and evidence of liability insurance. The licensee must add the Lake Geneva Highlands Co-operative as an additional insured on their boat owner s liability insurance. ARTICLE 4 SERVICES The services furnished by the Co-operative shall consist of the ownership, operation, maintenance, repair, upkeep, supervision and management of the park, beach, piers, buoys, docks, lockers, lights and other allied facilities now owned or hereafter leased, purchased or otherwise obtained by the Co-operative. 6
7 Section 1- General Powers ARTICLE 5 BOARD OF DIRECTORS The business and services provided by the Co-operative shall be managed by its Board of Directors. The Board of Directors is responsible for setting policies, rules and regulations. The enforcement of all policies, rules, and regulations, etc., is vested in all members of the Co-operative. The Board of Directors shall request a financial audit at its sole discretion. Section 2- Number, Tenure and Qualifications Board members are elected by the homeowner members. The number of Directors of the Co-operative shall be seven. Only one homeowner member per home may serve on the Board of Directors. Each Director must be a member homeowner for a minimum of two years and shall hold office for a term of two years minimum or until a successor shall have been elected or appointed. A slate of seven candidates shall be presented at the annual meeting by the current Board of Directors. At that time, the candidates shall be elected by the homeowner members. If there are one or more vacancies, the homeowner members will be notified prior to the annual meeting in order to solicit volunteers. From these volunteers, the Board will fill the vacancy and thus be able to present a full slate of Directors at the annual meeting. Beginning in the year 2005, election of Board Members will take place at the annual meeting. Section 3- Regular Meetings The Board of Directors shall determine the time and place of all regular Board meetings, either within or without the State of Wisconsin. Section 4- Special Meetings Special meetings of the Board of Directors may be called by, or at the request of, the President, Secretary, or any two Directors. The person or persons authorized to call special meetings of the Board of Directors may fix any reasonable time and place, either within or without the State of Wisconsin, for holding any special meeting of the Board of Directors called by them. Section 5- Quorum A quorum for regular or special meetings of the Board of Directors shall be simple majority of all current Board members. Section 6- Notice of Meetings 7
8 Notice of any special meeting shall be provided at least 48 hours prior to the meeting. The attendance of a Director at a meeting shall constitute a waiver of notice of such meeting except when a Director attends a meeting and objects thereat to the transaction of any business because the meeting is not lawfully called or convened. The business to be transacted or the purpose of any regular or special meeting of the Board of Directors shall be disclosed at the time of notice. Section 7- Removal Any Director may be removed for cause from office by the affirmative vote of a 2/3rds majority of the Board of Directors then in office (excluding the Director whose removal is being sought). Section 8- Vacancies The Board of Directors may fill any vacancy on the Board occurring after any regular annual meeting, until the next succeeding annual meeting, by the affirmative vote of a simple majority of the Directors then in office. Section 9- Compensation The Board of Directors, the officers of the Co-operative and any volunteer agents of the Board serve as volunteers without monetary or in-kind compensation. However, they may be reimbursed for out-of-pocket expenses incurred upon presentation of a valid receipt for such expenditures. The expense(s) must have been incurred in the execution of Co-operative business and approved by the Board of Directors. Section 10- Authority Between Board Meetings When the Board of Directors is not in session, the power of the Board of Directors in the management of the business and services of the Co-operative, except action in respect to membership, election of officers, or the filling of vacancies in the Board of Directors, rests with the officers of the Co-operative. Section 11- Committees The Board of Directors may designate one or more committees. Each ad-hoc committee shall consist of at least one Director and may include non-director members. A Board member shall be the chairperson of said committee. The Board of Directors may elect one or more of its members as alternate members of any such committee who may take the place of any absent member or members at any meeting of such committee upon request by the President or upon request of the chairperson of such meeting. Each committee, in the discharge of its activities and in accordance with the rules and regulations set forth by the Board in the by-laws and elsewhere, shall report its activities to the Board of Directors. The President is an ex-officio member of all committees. 8
9 Section 12- Indemnity The officers and Directors of the Co-operative shall be indemnified against all expenses and liability to the fullest extent provided under the Act (Wis. Stat. ch 185). Any member of a committee appointed by the Board of Directors who is named as a party in a proceeding by virtue of his or her service on the committee shall likewise be indemnified as if they were an officer or Director of the Co-operative. As used in this Section, the terms expenses, liability and proceeding shall have the same meanings as those assigned under the Act. 9
10 Section 1- Number of Officers ARTICLE 6 OFFICERS The principal officers of the Co-operative shall be a President, a Vice-President, a Secretary and a Treasurer, each of whom shall be elected by the Board of Directors at their first meeting after the annual meeting. Any two or more offices may be held by the same person, except the offices of President and Secretary and the offices of President and Vice-President. The Secretary and Treasurer may be one person. All Officers must be Directors of the Co-operative. Section 2- Election and Term of Office The officers of the Co-operative shall be elected annually by the Board of Directors at the first meeting of the Board of Directors held after each annual meeting of the membership. If the election of officers shall not be held at such meeting, such election shall be held as soon thereafter as conveniently possible. Each officer shall hold office until his successor shall have been duly elected or until death or resignation or if that Director has been removed in the manner hereinafter provided. Section 3- Removal Any officers or agent elected or appointed by the Board of Directors may be removed by a simple majority of the Board of Directors whenever in its judgment the best interests of the Co-operative will be served thereby, but such removal shall be without prejudice to the contract rights, if any, of the person so removed. Election or appointment shall not in and of itself create contract rights. Section 4- Vacancies A vacancy in any principal office because of death, resignation, removal, disqualification or otherwise, shall be filled by a simple majority of the Board of Directors for the remainder of the term. Section 5- The President The President shall be the principal executive officer of the Co-operative and, subject to the control of the Board of Directors, shall in general supervise and control all of the business and affairs of the Co-operative. The President is an ex-officio member of all committees. The President shall preside at all meetings of the membership and the Board of Directors. The President shall sign, with the Secretary or any other proper officer of the Co-operative authorized by the Board of Directors, certificates for the Cooperative, any deeds, mortgages, bonds, contracts, or other instruments which the Board of Directors has authorized to be executed, except in cases where the signing and execution thereof shall be expressly delegated by the Board of Directors or by 10
11 these by-laws to some other officer or agent of the Co-operative, or shall be required by law to be otherwise signed or executed; and in general shall perform all duties incident to the office of the President and such other duties as may be assigned by the Board of Directors from time to time. Section 6- The Vice-President In the absence of the President or in the event of his death, inability or refusal to act, the Vice-President shall perform the duties of the President, and when so acting, shall have all the powers of and be subject to all the restrictions upon the President. The Vice- President may sign, with the Secretary, certificates of the Co-operative; and shall perform such other duties as from time to time may be assigned by the President or by the Board of Directors. Section 7- The Secretary The Secretary shall: (a) keep the minutes of the membership and the Board of Directors meetings in one or more books provided for that purpose; (b) see that all notices are duly given in accordance with the provisions of these by-laws or as required by law; (c) be custodian of the Co-operative s records; (d) keep a register of the post office address of each member; (e) sign with the President or Vice-President, certificates of the Co-operative, the issuance of which shall have been authorized by resolution of the Board of Directors; (f) have general charge of the books of the Cooperative; and (g) in general perform all duties incident to the office of Secretary and such other duties as from time to time may be assigned to this office by the President or by the Board of Directors. Section 8- The Treasurer If required by the Board of Directors, the Treasurer shall give a bond, funded by the Cooperative, for the faithful discharge of the duties in such sum and with such surety or sureties as the Board of Directors shall determine. The Treasurer shall: (a) have charge and custody of and be responsible for all funds and securities of the Co-operative, receive and give receipts for monies due and payable to the Co-operative from any source whatsoever, and deposit all such monies in the name of the Co-operative in such banks, trust companies, or other depositories as shall be selected in accordance with the provisions of Article 7 of these by-laws; (b) cooperate fully in any audit approved by the Board of Directors; (c) with Board approval may retain a bookkeeper who does not have to be a homeowner member to perform such duties as assigned by the Treasurer; (d) in general perform all of the duties incident to the office of the Treasurer and such other duties as periodically may be assigned by the President of by the Board of Directors. Section 9- Compensation See Article 5, Section 9. 11
12 ARTICLE 7 CONTRACTS, LOANS, CHECKS, AND DEPOSITS Section 1- Contracts The Board of Directors may authorize any officer or officers, agent or agents, to enter into any contract or execute and deliver any instrument in the name of and on behalf of the Co-operative and such authorization may be general or confined to specific instances. Section 2- Loans No loans shall be contracted on behalf of the Co-operative and no evidences of indebtedness shall be issued in its name unless authorized by or under the authority of a resolution of the Board of Directors. Such authorization may be general or confined to specific instances. Section 3- Checks, Drafts, Etc. All checks, drafts or other orders for the payment of money, notes, or other evidence of indebtedness issued in the name of the Co-operative shall be signed by such officer or officers and in such manner as shall be periodically determined by or under the authority of resolution of the Board of Directors. Section 4- Deposits All funds of the Co-operative shall be deposited periodically to the credit of the Cooperative in such banks, trust companies, or other depositories as may be selected by or under the authority of the Board of Directors. Section 5- Monetary Authority Limits The Board of Directors shall determine periodically, or under the authority of resolution, the maximum amount of any check issued by the authorized officers. Above these limits the Board shall seek approval by a simple majority of the Board of Directors. ARTICLE 8 FISCAL YEAR The fiscal year of the Co-operative shall begin on the 1st day of January and end on the 31st day of December. A statement of the fiscal condition of the Co-operative shall be provided annually to homeowner membership. 12
13 Section 1- Contribution of Dues ARTICLE 9 OPERATING FUNDS The Board of Directors shall determine periodically the amount of funds needed from each member to cover the Co-operative s expenses for each fiscal year. The allocation of dues to the Co-operative s various internal funds is determined by the Board of Directors. Other funds may be established or eliminated as determined by the Board of Directors. If needed to cover anticipated Co-operative expenses, the Board of Directors may vote a dues increase of up to 10% per year of the current dues without the approval of the members. Any increase above 10% per year must be approved by a simple majority of those represented in person or by signed ballot at an annual meeting where a quorum is present. Section 2- Maintenance Fund The Maintenance Fund shall be used by the Co-operative for the care, maintenance and upkeep of the community park and common areas, to take up and replace the swim piers yearly, to defray the expense of maintaining electric lights on community property, for the cost of maintaining and repairing the lakefront well and water system and for improvements and other miscellaneous expenses as the Board of Directors may determine. Section 3- Special Assessments If and when the proper maintenance and operation of the Co-operative shall require funds in addition to the regular annual assessments, the Board of Directors or the members in annual or special meetings may pass special assessments from time to time to cover the cost of such maintenance and operation. Section 4- Ramp, Locker, Buoy, Dinghy Fund and Boat Slip Fund These amenities will be leased annually only to homeowner members of the Cooperative at a rental cost as determined by the Board of Directors. These amenities may only be sublet to another homeowner member in good standing and only at the rate of rent established by the Board of Directors. Even if sublet for one or more seasons, the amenity is retained by the original lessee if they are in good standing. If rent is unpaid by June 1st, the amenity may be assigned to another homeowner member applicant at the established rate of rent for that year only. The use of the buoy space in the waters of Geneva Lake within 200 feet north of the shoreline of the Lake Geneva Highlands Co-operative subdivision park shall be under the control of the Board of Directors of the Co-operative in the same manner and under the same policies, rules and regulations as previously provided herein. 13
14 Due to the limited amount of some amenities, at each July 1st the Board of Directors may determine, with information contributed by homeowner members, which amenities are available for rent for the remainder of that season at a pro-rated rate of rent payable to the original lessee. These amenities WILL NOT be transferred from the historically assigned property. If sublet, it will only be sublet to another homeowner member in good standing in the LGHC community for that season only. Section 5- Picnic Fund Each homeowner shall be billed an amount of money to help defray the cost of a community picnic, which traditionally has followed the annual meeting. This amount, determined by the Board, may be increased from time to time. This amount will entitle the homeowner to two tickets to the picnic. In the event that there is only one homeowner living in said home, then one-half of billed amount (one ticket) may be paid. Section 6- Accountability The statement of financial condition, the Annual Report, shall be distributed annually to all homeowner members. 14
15 ARTICLE 10 COMMERCIAL ENTERPRISE: LOT 45 The Tavern on Lot 45, a commercial enterprise, with upstairs residential quarters, existing at the time of the updating of these by-laws of the Co-operative, approved and adopted as of January 1, 2005, shall be subject to the same charges as are assessed on solely residential properties. In the event that this commercial enterprise ceases its operation for a period of one year, an application must be made to the Walworth County Zoning Board and the Board of Directors for a new commercial enterprise. Future use will be restricted to the same operation as its prior occupancy, namely a bar that serves a small amount of food. In the event that the member who owns and operates this commercial enterprise should convey title of said commercial enterprise to another member or non-member, application must be made for securing the approval or rejection of the Board of Directors. No other commercial enterprises may be established in the Co-operative, as stated elsewhere in these by-laws. Section 1- Adoption ARTICLE 11 AMENDMENTS These by-laws may be adopted, amended or repealed by simple majority of all the homeowner members eligible to vote. 15
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