It’s Never Too Soon for an Update

1. Annual meetings. Before the pandemic, almost all co-op bylaws required shareholders to be present at a specific place for annual meetings. The business corporation law (BCL), which was amended after the pandemic hit, now allows co-ops to hold annual meetings on Zoom or other platforms as well as in person, or a hybrid of both, and condos can do the same. Start by taking the temperature of board members and owners. If resuming in-person meetings is working well, stick with that; if not, it might be time for a change. Most of our clients have made the switch to all-electronic or hybrid. 

2. Staggered board terms. Very few original bylaws had these, but staggered terms mean fewer headaches. If there’s a turnover of the entire board, new members won’t know what happened the previous year. By ensuring some continuity, staggered terms take away a lot of the pressure. 

3. Indemnification. In 1986, the BCL was amended to allow for greater indemnification to board members, but we’ve taken over co-ops that still have the old set of bylaws from 40 years ago. Without a bylaw update, members who act in good faith are not getting the protection they should be.