Quorum and Votes in a Panama Condo Meeting (Law 284)
Short answer: In a Panama P.H., a meeting needs more than half of the owners for quorum on first call. A special assessment needs 51% of the units that are current on fees on first call, or 30% on a second call held at least 10 calendar days later (Law 284 of 2022, art. 35).
Calling the meeting is only half the job. If quorum or votes fall short, the decision is not valid. Here are the numbers for owners and boards after the earthquake.
Quorum (art. 67)
- First call: more than half of the owners, in person, online or mixed.
- If there is no quorum after one hour: the secretary records it and the meeting may proceed with 20% of the owners. Decisions pass by majority of those present who are current on fees, unless the law requires another percentage.
- Second call: whoever attends (present, represented or online) forms quorum and decisions pass by simple majority of units current on fees.
Voting thresholds by topic
| Decision | Percentage | Article |
|---|---|---|
| Special assessment, first call | 51% of all units current on common fees | 35 |
| Special assessment, second call | At least 30% of units current on fees; new meeting at least 10 calendar days later, same agenda, time, format and place | 35 |
| Using the Contingency Fund | 51% of all units in the building; the board must justify need and amount | 48 |
| Demolish or rebuild if the building threatens collapse (per the Fire Department) | 75% of units and 75% of the building’s value | 105 |
What “current on fees” means for you
For special assessments, the count is based on units that are up to date on common expenses. If you own in Panama from abroad, check that your fees are paid before the meeting, otherwise your unit may not count toward the percentages.
The Contingency Fund
Mandatory, at least 1% of annual common-fee income (art. 47). It is for unforeseen works or expenses, not routine maintenance (art. 46). An earthquake is a typical use, but only with the owners’ approval.
Frequently asked questions
Can the board charge a special assessment without a meeting?
No. It needs the owners’ approval with the art. 35 percentages. The board can approve, on its own, an urgent extraordinary disbursement from surplus or reserves (art. 80).
How long between first and second call for an assessment?
At least 10 calendar days (art. 35).
Does my vote count if I am behind on fees?
For these percentages, only units that are current are counted.
Informational only, based on Law 284 of 2022. Consult a lawyer before applying it to your case.
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Cover image: Luis Argerich, CC BY 2.0, via Wikimedia Commons. Illustrative image.