November 2010
Dear Shareholder of Garden Grove Manor, Inc.,
Since the Board of Directors canceled the recall election for the second time in May 2010, a group of concerned shareholders continued to consult attorneys and other experts in the California laws that govern Garden Grove Manor. We will hold a meeting to share the information we collected and answer your questions in the near future. Until our next meeting, here are some quick facts about the rescheduled recall and election meeting:
· The recall/election meeting will be held on Thursday, December 16, 2010, at 6:30pm. You can bring your ballot to the election meeting or you can mail your ballot to the Inspector of Election. The Inspector of Election must receive all mailed ballots before December 15, so please mail your ballot no later than Friday, December 10, 2010.
· Your ballot will be a secret ballot just exactly as it is when you vote for Governor and vote in all other official elections. No one will know how you vote unless you tell them. The ballot has the same candidate names that appeared on the ballot you received in May 2010 from Stanley Feldsott. These are the same candidates nominated by shareholders on the nomination form Mr. Feldsott mailed to you in March. You may remember that Mr. Feldsott was GGM's attorney and acting as the Inspector of Election at that time.
· The Board of Directors of GGM will not run the election meeting and they cannot cancel it as they canceled the last two recall elections.
· The recall/election meeting will be run by the independent Inspector of Election. The Inspector of Election is appointed and commissioned by the California Secretary of State to run our election. He is fully qualified and experienced in running elections just like ours. The Inspector of Election cannot and will not take sides in the election. He has no pre-existing relationship with anyone who lives at GGM. His job is to make sure the election is fair and legal.
· The Board of Directors canceled the recall election two times in 2010, suspending the voting rights of all shareholders. Under the GGM bylaws and California law, the Board of Directors cannot suspend your right to vote or any of your other rights you have as a shareholder. There is absolutely nothing in the GGM governing documents or California law that allows the Board of Directors to cancel or postpone elections because a copy of your stock certificate is allegedly missing from their files. If your stock certificate is lost or damaged, the Board of Directors is required to replace it for you under the GGM bylaws.
· Under the GGM bylaws and California laws, shareholders have the right to vote in the recall election or any other GGM election if they are current in their monthly carrying charges. If you have a receipt for your November 2010 carrying charges, check the receipt to see if it shows a $0.00 balance. When you pay your December 2010 carrying charges, make sure you get a receipt that shows if you owe any balance. This receipt is not required in any way to vote and is for your records only to protect your right to vote. If you owe any balance on your carrying charges, let us know, as you might still be able to vote.
· Shareholders have invited the HUD Los Angeles staff to attend the December 16, 2010 recall/election meeting.
· The GGM bylaws allow shareholders to remove directors from the Board at any special or regular meeting.
We wish you and your family a wonderful Thanksgiving. Thank you very much.
Concerned Shareholders of Garden Grove Manor, Inc.
