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Boardnew - Without knowing how "problematic" your SH is, I always think it's preferable to take an easier route first and have our property manager, not our coop attorney, send a letter to a SH in arrears asking him to pay up. It can also save you a little money in legal fees if it works. I'd copy the SH's lender on a second letter, not the first.
You can't revoke a SH's voting rights on any issues. That includes voting for a flip tax. If you need 66-2/3% for a flip tax to be enacted, that's based on the total number of shares for all SHs of record. Per Business Corporation Law (the BCL" with which all coops must comply), all SHs are to be treated "fairly and equally."
You also can't prevent a SH from running for the board if he wants to. If your board members campaign prior to your annual meeting to get themselves reelected and/or to win votes away from the SH who's in arrears, it would also be very inappropriate to tell other SHs that he's in arrears. This is personal, confidential information about him that other SHs should not be privy to. I assume that your board members are the only SHs who know about his delinquency.
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Thanks for your response. SH in arrears has already received a letter from the Managing Agent and phone calls from Board Pres. and MA again, and still has not sent in any money. Is it time to engage counsel?
Regarding voting rights, I recall a story in NYTimes where it is possible to write into the Prop lease the requirements for being a Board member and being current on maintenance was a one of them.
In a book called "The Co-Op Bible (Shapiro, p.176) she recommemds buildings set Board members' qualification standards that are then written into the by-laws. Being "paid up" and having no violations" are suggestions she makes--it is protected by Corporation Law. Elseware in the book, she refers to revoking voting rights to SH in arrears is legal.
Anyone else?
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