55-444 - Allocation of ownership interests, votes and common expense liabilities. - Virginia Statutes

§ 55-444. Allocation of ownership interests, votes and common expenseliabilities.

A. The declaration shall allocate an ownership interest in the association afraction or percentage of the common expenses of the association and aportion of the votes in the association, or to each cooperative interest inthe cooperative, and state the formulas used to establish those allocations.Those allocations may not discriminate in favor of cooperative interestsowned by the declarant or an affiliate of the declarant.

B. If units may be added to or withdrawn from the cooperative, thedeclaration must state the formulas to be used to reallocate the allocatedinterests among all cooperative interests included in the cooperative afterthe addition or withdrawal.

C. The declaration may provide: (i) that different allocations of votes shallbe made to the cooperative interests on particular matters specified in thedeclaration; (ii) for cumulative voting only for the purpose of electingmembers of the executive board; and (iii) for class voting on specifiedissues affecting the class if necessary to protect valid interests of theclass. A declarant may not utilize cumulative or class voting for the purposeof evading any limitation imposed on declarants by this chapter, nor maycooperative interests constitute a class because they are owned by adeclarant.

D. Except for minor variations due to rounding, the sum of the common expenseliabilities allocated at any time to all the cooperative interests must equal1 if stated as a fraction or 100 percent if stated as a percentage. In theevent of a discrepancy between an allocated interest and the result derivedfrom application of the pertinent formula, the allocated interest prevails.

E. Any purported conveyance, encumbrance, judicial sale or other voluntary orinvoluntary transfer of the ownership interest in the association madewithout the possessory interest in the unit to which that interest isrelated, is void.

(1982, c. 277.)