This is pretty interesting......
Administration and Management: In addition to your mandatory membership in the Club upon your purchase of an Ownership Interest in a DVC Resort, you will also automatically become a member of the condominium association and/or the vacation owners association, as applicable, for your Home Resort. Your membership in the applicable associations is governed by the governing documents for your Home Resort including the Declaration of Condominium and/or the Plan Declaration and by the Bylaws of each association. The associations are the entities responsible for the overall management and operation of the DVC Resorts. The associations are not owned by TWDC or any affiliate or subsidiary of TWDC; although, they are effectively controlled by DVD. This control by DVD of the associations arises out of the fact that the Master Cotenancy Agreement appoints DVD as the “representative” of each Unit in each DVC Resort. This means that even after a majority of the Ownership Interests in a DVC Resort have been sold, DVD will control all association matters unless and until DVD is removed as representative by the owners of at least sixty percent (60%) of the Ownership Interests in a majority of the Units in the DVC Resort. DVD will be authorized to cast the vote for a given Unit at association meetings in whatever manner it deems appropriate provided that DVD is acting on behalf of the cotenants as a whole pursuant to its duties under applicable law; and further provided that DVD may not cast a Unit’s vote at an association meeting with respect to certain specific matters without the written consent in advance of such meetings by the owners of sixty percent (60%) of the Ownership Interests in that Unit. This authority extends to the election of the board of directors of the association, as well as to other matters. At least sixty percent (60%) of the Ownership Interests in at least a majority of Units would be required in order for the Members to exercise any significant control over the association. Therefore, as a practical matter, the Owners of Ownership Interests in the Units in each DVC Resort will probably be unable to remove DVD from control of the association throughout the term of the DVC Resort. There are also other limited grounds upon which DVD may be removed as the voting representative of any particular Unit (or from all Units in the DVC Resort, depending upon the votes by Owners). In addition, DVD may not cast a Unit vote as the representative of a particular Unit in a manner that would affect the Owners of the DVC Resort as a whole in a materially adverse way. Each Property Management Agreement is for an initial term of either three (3) or five (5) years and contains terms for automatic three year renewals. Under Florida’s Condominium Act, the Management Company may not be removed as manager of Copper Creek Villas & Cabins, Disney’s Polynesian Villas & Bunaglows, the Grand Floridian Resort, Bay Lake Tower Resort, the Animal Kingdom Resort, the Beach Club Villas, the Wilderness Lodge Resort, the Vero Beach Resort, the BoardWalk Villas, the Saratoga Springs Resort or the Old Key West Resort except by the concurrence of seventy-five percent (75%) of the voting interests in the DVC Resort other than the voting interests of DVD if Members other than DVD have assumed control of the association, or if Members other than DVD own not less than seventy-five percent (75%) of the voting interests in the DVC Resort. In addition, pursuant to Florida's Vacation Ownership and Timesharing Act, the Management Company may not be removed as manager of those DVC Resorts unless at least sixty-six percent (66%) of the Members voting (which must be at least fifty percent (50%) of all votes allocated to Members), vote to discharge the Management Company. Under California law, the Management Company may not be removed as the manager of the Grand Californian Resort except upon the vote or written assent of a majority of the voting power residing in Members other than DVD. Pursuant to the Property Management Agreement for the Hilton Head Resort, the Management Company may not be removed as manager of that DVC Resort unless at least sixty-six percent (66%) of the Members eligible to vote at a duly called meeting (which must be at least fifty percent (50%) of all votes allocated to Members), vote to discharge the Management Company.