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Check your bylaws.
If they don't require a board member to live in the building, then let her/him serve. An investor is an investor, whether she lives there all the time, part-time or none of the time. That's because it's her money, not her presence, that makes her a shareholder.
She (or he) still has the same interest in seeing her investment increase in value no matter where she lives.
In fact, living somewhere else may be an advantage, because she can see other ways a residence is managed.
Finally, remember that New York State corporate law (which governs co-ops) prohibits treating any shareholder differently from the others. The courts consider it discrimination.
I said elsewhere ["They should not serve"] that board members should discontinue service once they sell, or determine that they will sell. I should have stipulated that living elsewhere--whether full-time or part-time--should NOT disqualify them from service. As Board Treasurer points out, the key factor is whether they maintain their investment in the property. As long as they have an equity stake, they're well-positioned to act in a fiduciary capacity.
Anonymous - Unless your by-laws say BMs must be Shs and all BMs must be residents, once your BMS close on their apt sales, they're no longer Shs and shouldn't be on the board.
Many by-laws say a "majority" of BMs must be residents. I agree with Board Treas that it's a person's money that makes him a Sh. But a coop isn't just a business corp. It's a home, a community where hopefully people get along, and a bldg that needs watchful eyes to ensure that residents treat it and each other with respect. If BMs don't live in the coop, they can't relate to that, and if they all they want is an investment, let them buy stocks, bonds, funds or CDs.
I also agree with Board Treas that Business Corp Law prohibits any Sh from being treated differently from the others. All SHs must be treated "fairly and equally". But if a BM must be a Sh, not letting someone be on the board who isn't a Sh is not discrimination.
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Nothing to do with discrimination ...
Your byLaws hold the answer...
However,as for sublets....
We have owners that live outside the building, and never intend to return. As oppose to being a positive force, they helped keep a board member (with his own agenda) on the Board who promised (and for many years succeeded) to help them keep thier lucurtive sub-lets --
A coop with high owner/occupation is considered a better investment by the bank and lenders... Also, renters (not all) do not have the same intrest in maintaing the building or keeping the peace with their neighbors. Good luck... VP
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