I would think that as a board member you should be permitted, in fact responsible to, see these contracts. Something is fishy here!

Thanks, Jeff Lee. I'm smelling something as well. I've looked into NYS laws and find that BCL 701 says: " the business of a corporation shall be managed under the direction of its board of directors." I also know that I have taken on a fiduciary duty to protect the interests of the shareholders. I am unable to see how I can full those 2 duties if building-related contracts are withheld from me. I intend to make my case to the board. I've also engaged an attorney on the question of whether board permission may legally be required. I'll post the results. Thanks again.

There was a question like this in the comparator mag within the last 2 years i believe. They have a question and answer section, but only pick about two.
The board member has the absolute right to see every document concerning the co-op from the day the corporation was formed, was the answer provided by a co-op law firm in nyc. cooperator.com is somewhat searchable and you should be able to find it. I believe it even told the new board member what to do as far as getting a court appearance, without a lawyer, and they said every case they knew of like this the member won and in some cases the judge ordered the board to provide the new member with a copy of everything from day one, for pulling this stunt, at their cost, not the co-ops. The other poster is correct as a board member you are responsible for everything that happens on your watch,even if you don't know about it, i guess if you did your due diligence you would be off the hook, but if you were a puppet or yes'm it's your dime, not the insurance company,you are not indemnified if you do not do your fiduciary duty to the building.

I suggest you keep fighting for your rights. Do not allow the management or the Board bully you into being blind sighted in your investment. You as a shareholder have the right to make sure your investment is handled properly. If contracts and financials are being hidden from you then something is wrong. Get an attorney to reveiw your black book and BCL, I am sure there is a clause in their that gives shareholders the right to inspect books at any time during normal business hours. If managment give you a hard time do yourself and the building a favor and take them to court, get an index number on file so if they pull anymore nonesense you can always open your case with the same index number and supeona the records you want. Good Luck, don't give up the fight or you will lose everything you invested in.

I don't believe it to be true...but I want to know why wouldn't the board give there permission anyway. Also remember the managing agent works FOR you, you do not work for them

Thanks you for taking the time to reply, Phyllis. It remains to be seen if the board will give permission. On our board, it seems that the managing agent is running the show. I ask a lot of questions and the managing agent doesn't seem to like that.

This is another example of why an ombudsman bill is necessary. I live in an upscale co op and our management company runs our board as well. We have major building dept violations, a restaurant that serves wine and beer without the permit required, the owner was not properly certified in NYC when he was granted the right to operate the restaurant, a golf course that is open to the public which is contrary to the permitted use, and on and on. Unless we the shareholders hire our own attorney and pay tens of thousands of dollars in fees, we are unable to fight the powers that be. We need a government agency to whom we can turn. Contact your local state senator and assembly member and demand an explanation as to why this bill sponsored by Sen Liz Krueger is langushing and was not acted upon promptly. We deserve protection from unscrupulous mangement companies and boards that do nothing.

Please get behind this bill so we can get the protecrion to which we are entitlted.

Big thanks, Diane Stomfield, for mentioning this bill. I googled it and, although I have not yet read the entire bill, I am very excited - as a board member and as a shareholder - about what I have read. I'm sure I'm behind the curve on this as my Google search revealed that Habitat has extensively covered the debate in earlier issues. I'll include the some of links I found below in case others like me are getting to the table a little late. The introductory text to the bill points directly to the problems I have already seen: the process of changing a board takes years; the alternative option, i.e., a lawsuit, is costly and intimidating to most shareholders. As a result our board ignores state law, the by-laws, and the proprietary lease (except the parts of it that they like) with impunity. Thanks again for helping me become informed. Here are the links I have explored so far: http://condocoopowners.org/ombudsman-bill-s-395/ AND http://www.habitatmag.com/Publication-Content/2010-December/Featured-Articles/Ombudsman-Bill AND http://condocoopowners.org/wp-content/uploads/2011/03/Habitat-Mar-11-Ombudsman-Debate.pdf

PS: Do you know where one would go to learn which senators and assemblypersons are on record as being for or against the bill?

The Alliance of Condo & Co-op Owners is aware of essentially no circumstance in which the right of a board member to review contracts--or any other corporate documents--is legitimately constrained. Indeed, any attempt to impose such restrictions is often the 1st sign of serious trouble, & we advocate prompt action.

The apparent misapplication of a BCL provision which is, indeed, directed at shareholders would be comical if it weren't so serious.

We're not attorneys, but would like to discuss the particulars of your situation; contact us in confidence: advo@condocoopowners.org

Thank you. A million times, thank you. An email is on the way.

According to our Black Book, it specifically states that shareholders may review the financial books to the coop any day during normal business hours. It does not state you need an appointment, or what documents you cannot review. I would go to court and take out a complaint and summons and request that you be granted a supeona to review the documents of your coop that you belong to as a owner. I did just that and got the documents sent to our lawyer, you can go prosey.

Sorry, DD, but you miss the point. Yes--an SH can always "review the financial books" (though rules vary, e.g. appointments are often needed, & some buildings require that the SH sign an affidavit re: his/her intended use of the information).

...But there is no standard definition as to what constitutes a co-op corporation's (or condo association's) fiscal records. Documentation an SH is allowed to see tends to be extremely limited & general...& we've NEVER seen an SH gain access in this fashion to building contracts, which is what the original poster wants to see.

In sharp contrast, the right of a board member to review corporation/association records is without limits. We strongly recommend that "New Board Member" not get bogged down in misguided discussion of what records shareholders are entitled to review, & instead assert his/her rights as an elected fiduciary.

As a Board member you should be able to read all contracts and each month must get a monthly financial statement. All Board members must review and agree to all contracts before signed. You as a Board member will be responsible for any misappropriation of funds and misconduct in the building so how can the management refuse you your rights to the running and approval of all management tasks conducted, it can't and shouldn't. If I were you I would get other shareholders together and take the management and the Board principals to court and supeona the records. I did and won.

This is unheard of, don't know who your managing agent is, but it's time for a new one that is somewhat more aware of how to manage.

We have replaced all the chutes with the larger (14.5" w x 17.5" h) stainless steel units. They are lockable and have hydraulic closers so that they don't slam shut. We also have separate containers for newpapers and recyclables in each floor's service area. We've had no problems.

a number of people had asked this at our building. The answer was it was impossible or to expensive. I looked at it and i saw that it would be pretty simple to do, knock out some brick and make sure you have clearance on the far chiminy wall. put a new door on and be done, i think an air chisel or one of those carbide saws would do it quickly. This managing agent that says it cant be done also said it was impossible to stop the hallway stairway doors from slamming shut. i guess adjusting the closer or buying a new closer was impossible too.. Trouble is the rest of the building believes him, i guess they don't know which end of a hammer or screwdriver to hold either.i would be much happier with an andwer that is would cost $$$$ and we don't have the money . The door closers are not that expensive and i am sure salvage or rebuilt kits would work too. The same MA said the store room could not be made into lockers due to too many pipes. I can almost guarantee this is BS , since the self dealing president, has the room filled with 80% of his stuff and he has not even lived here for 5 years. I told him at this years annual meeting that he was seld dealing by doing this, since a coule years ago a 10 year shreholder was complaining of no storage space due to a couple people had it alll used up. The BOD pred said at the annual meeting that he ddidn'tcare , didn't know what self dealing was , and wwasn'tmoving anything. Of course the shareholder sheep said nothing. i wish there was some way i could prove that they never had a storage unit builder up for an estimate, but i am sure he has somone he works with that would give him a backded estimate if i pushed it. Maybe i can convince one of the new board members to call a locker company and get a couple estimates on his own. or even pull it off myself, take a bunch of pictures and mail them to storage builders, that is the only way to get the self -dealrs stuff out.. The way i look at it the pipes are unused space now. ski storage could be built around pipes.

We had old casement windows. We replaced the windows for our three building with double-pane argon filled R42 casements from Skyline. They seal wonderfully. Not only have we saved on heating costs (the shareholder/tenants pay for electric) but the sound reduction has been amazing and great quality too!

Be sure to withhold from your last payment an amount sufficient to induce them to stick around to work on any change orders otherwise it may take them awhile to get back to you

Your accountant should be able to help you.

The accountant was told not to talk to the shareholders of the building.

Our managing agent, maxwell kates, doesn't give us anything.

As the Treasurer of my co-op, I sign the returns and send them to our accounting firm to be filed. Our managing agent has no role in that process other than providing the information to the accountant. Neither board members nor shareholders have asked for copies, but we are happy to oblige. We do provide audited financials to all shareholders and the Board gets monthly financial updates.

i wot use the word audited since the auditing company just goes on what the co-op gives them. They don't check anything besdies that the numbers add up, if the numbers or documents are fraudulent, they would not know.
i caught my managing agent and board president in one total lie/fraudulent statement from last year. i asked about page 9 on the audit financial statement where it stated that the co-op exceeds the FICA deposit insurance from time to time. I asked this question at the annual meeting and the managing agent and board president both said they did not, the statement was incorrect. This year same thing, page 9. i called the accountant and he said yes that sometimes they would have 310k,290k, etc and gave me the dates. i brought that up at the annual meeting, they still tried to argue with me on it .i know damn well that banks close all the time, and if you have over 250k you lost the rest. Talk about fiduciary irresponsibility .
in your propriety lease in should state that every shareholder ,not bod, shareholders get a "audited" copy. I have to find out now how to initiate the court battle to see the books since incidental fees are like 14k,admin fees 20k no breakdown, Plus i want to see a couple other things , and it states i can in my proprietry lease, and they have refused

did you get the money back?

Correction, the DOS REVOKED his license. He repaid us $160K but told the DOS he repaid $218. The challenge is now trying to find out what happened to the other $58K because we certaintly never got it.

Can't do a credit line?

Our mortgage holder NCB won't do -

It seems you need to have a lucky lotto number to cover your $200K so that you may avoid borrowing without assessment or a maintenance increase.

Well... what about asking for one or more shareholder(s) as source of funding? What about a second mortgage with incrase in maintenance to pay your second mortgage whether contiguous with the first mortgage or not, depneding on the type of mortgage you have.

No matter what, shareholders' pcokets will have to be affected.

No matter what, good luck!

Hi,

We have found NCB to be accommodating. You may want to take a step back and examine your co-op's finances – perhaps there is a reason, other than size of the loan, that would prevent lenders from granting your request.

For example, do you currently put funds aside regularly for capital reserves? Do your maintenance charges cover your operating costs plus loan principal payments (both principal and interest)? Is the project frivolous or necessary in nature?

Just a suggestion, but this sounds like the perfect opportunity to perform a deeper dive on your finances overall. Here is my e-mail address: stephenvernon@yahoo.com in case you wish to explore this further. I am a co-op President of a 111 unit complex in Inwood/northern Washington Heights in Manhattan. We have done our last two major capital improvements totaling nearly $2 million without assessments. On a professional note, I work with a very large pension fund here in NYC which is in the top 10% of all US plans based on funding.

Sincerely,

Steve

thanks for your response. I may be calling you

Ignore her as long as she doesn't violate any laws and does not disrupt building operations.

i'd see if you or shareholders would go after her for self dealing and theft of the co-op monies for the repairs. As a shareholder i would, and i am. Dont steal my money or screw over my neighbors for your own quid pro quo. The rest of the board didn't do their due diligence and fiduciary responsibility to the building by letting her use the super for her personal contracting. The bod sounds very liable here . There should be a work log from the super.
Boards have to realize they have to perform due diligence and are liable to the shareholders/And they are not indemnified for self dealing, shareholders have to act like owners, we need a template on what to do with these boards to bring them to court, like a small claims court , without a lawyer.

This is a case of harassment.
You should contact your board a report this.

Thanks VP, but he is on the board as am I!

So it should be easier for you to communicate with him.

I agree that it's an invasion of privacy. Even though you're both drectors, I'd report it in writing to the Board to have it formally a protest that this person is harassing you and your guests. Unfortunately, some people think everything is their business when it isn't, or just get some kind of perverse pleasure out of fluffing up their own feathers and putting others on the defensive. Stick to your rights, and I suggest you tell your guests not to answer this person. Good luck with this!

Thanks, VP. This director also told my guests that I was doing something "illegal" by them staying with me. Do you think I should have my personal atty send a letter to the board or to this person personally? He also was abusive to my delivery service a couple of weeks prior, telling them to "get out of my way" and demanded to know what was in the box when they were delivering a piece of furniture to me in accordance to house rules.

All must realize, we are all responsible for our guests, as long as the Shareholder is living on the Premises. Please be aware there are guests that do cause problems or might not be of a particular eliment. Who then is responsible? The Shareholder? Just because you have guests they too should be on their best behavior and of course the Shareholder will stick up for them, what does one do then? They should not impose on legal Residents. Living in a co-op is co-operative living which affects all of us and we all want to protect ourselves. Some might call it harassment and some might call it looking out for their interest. Who's right and who's right and who's wrong? Not all guests are perfect and if the Shareholder doesn't control issues that could and might occur. So all of these opinions, which is what they are, do not take into account guests that become problems. What would any of you do in that case?

I understand your point but there is a line one crosses when overstepping one's bounds and asking personal questions, defaming shareholders to their guests, and the same to the shareholders about their guests, without any misbehavior on guest or shareholder's parts. We have had everything here: shareholders who are bad, bad roommates, an occasional bad guest whose worst sin might be slamming a door. This person is acting without any provocation, while he himself has a stream of dog sitters living in his apartment while he is absent, and other shareholders not only bring in dog sitters, but allow these sitter/friends to bring other dogs into the building. I know they are not supposed to, but they are considerate and well-mannered visitors and make no problems. I am not concerned with that so much as the issue of this newbie, who knows nothing about roommate law, harassment laws, and discrimination that the Board and co-op could be opening themselves up to by one uninformed person targeting me and my guests, some of whom are African-American. No one can predict what can happen or all contingencies; I am asking opinions on how to address this particular situation. Thanks all!

To "My 2 Cents" - you're straying from the topic - the shareholder should deal with only the shareholder, not the guests. The same harassing shareholder goes as far as questioning packages being delivered. S/he's out of line. I stand by my first response, to write a letter to the Board & Management to have a paper trail, and let the Board discuss it and hopefully resolve it.

Thanks North Riverdale - good point and thank you for getting us back on track. I agree with your points and will take that suggested course of action asap. Have a good holiday!

To North Riverdale

You misunderstood, the Shareholder must deal with their guests actions, if not, who should? No one person should question the doorman about packages left, but when it comes to unruly guests and nothing is being done and disturbances are caused what then? What if you have a board and MA that does nothing? What if they are friendly with certain people, how do you go about that? Paper trails are good, if they are not disposed of.

Plain and simple you are being harrassed. It does not make any difference if it is a board member or the old lady in unit 9J, harrassment is harrassment. I would keep/document all correspondance (you mentioned this person e-mailed you). Be firm, copy all board members and managing agent if necessary. Once your guests are conforming to the house rules you have nothing to fear. If it were me I would have told this so called board president? to go mind is business a long time ago.

MRM

I'm not sure, from My Two Cents rambling, disjointed syntax and sentence structure, exactly what he or she is saying.

But as another commenter noted, My Two Cents is straying from the topic. We're not talking about unruly guests.

We're talking about an abusive neighbor who is approaching a fellow neighbor's guests and behaving in a completely inappropriate way that appears to constitute harassment.

Complain to the board and to the managing agent in writing. If that doesn't work, get your attorney involved. Quash this petty dictator's harassment immediately; the more that bullies get away with their behavior, the more it escalates.

Thank you, JB. As I said, my guests are not unruly, they are perfectly lovely, abide by house rules and have been totally upset by this bully interrogating them, as have I. Will let you know how this unfolds.

Emails, sent from Gmail or stored in a file, are are treated the same as a Paper trail....

Once you start sending businesslike Emails, without accusation or emotion ---documenting the problem, the BofD and MangCo will become concerned -- and start to pay attention.

We made major changes in our building, with this method of documentation......

I refered to Gmail because they dont erase your emails... we use it because it keeps the record and emails are easy to locate -- otherwise you need to store your communication in another program... Bottom line is that if you send enough emails (again businesslike) asking questions such as "is this legal and according to the bylaws or prep lease" they will start to pay attention... and want to stop the Email trail...VP

What is the owner specifically accusing your guests of doing? (I.e. is he/she accusing them of violating some house rules?) You need to know what their specific allegations are against your guests.

Also, has this person complained to management or the board about your guests or have they simply annointed themselves the 'co-op' police of the building?

As a Board President, there is very little the Board can do unless the other shareholder is formally complaining that you and your guests are violating house/rules and/or the Proprietary Lease. The Board will also probably be reluctant to get involved if it turns out it is just a dispute between shareholders where one is bothered by the fact that you have a lot of company. This is because anything that the board dicusses is typically recorded in your minutes and in this market you don't want a prospective buyer reading that the neighbors can't get along and as a result choose to buy elsewhere.

I would confront the shareholder directly and find out exactly what about your company is bothering them and ask them to refrain from harassing your company and if there is a problem to address it directly with you or you will be forced to file an aggravated harassment complaint against them with your local precinct.