HABITAT
Subscribe for Daily Updates!
I agree with the Ted that you should first speak with the board pres to ask (again) for a copy of the loan agreement. If he/she says no, write a letter to the board pres, stating his/her previous refusal, and asking again to see the documents -- and cc the entire board, managing agent (and his/her boss), and the corp atty.
Our board recently increase its line of credit, and to do so the board had to vote in favor of it. Unless your l.o.c. was acquired without board approval, I can see no reason why the information should be withheld from the entire board. (And if it was acquired without board approval, well, then you definitely need to get the lawyer involved.)
Remember, too, that the board's attorney works for the ENTIRE board, not just the president. The board's atty, therefore, cannot withhold a corp document if a majority of the members ask for it.
-- a board treasurer
There's the crux of the issue: a nonfunctioning board. If the secretary feels free to state that you have committed felonious fraud (which, I believe, is called "libel per se" and may be strong enough to sue over if she says it publicly), you have a board that cannot function.
I'm beginning to think that perhaps you should cut your losses and resign -- and not because the other members won't play fair.
If they won't let the board see this agreement, I wonder what else they're trying to get away with. Even assuming they're doing nothing illegal, any breach of fiduciary duty committed by a few members applies to all (I'm no lawyer; this is my interpretation). You don't want to be dragged down by something you fought against.
If I felt my board was not open, fair or acting on behalf of ALL shareholders, I seriously consider resigning. (This happened to my mother, when she served on a non-profit board (not a co-op); too many hints of impropriety and her lawyer advised her to resign in writing and destroy her personal notes.)
Good luck.
No board director should operate unilaterally or have power over any other director. Opinions will vary and "majority prevails" - but a majority can't refuse you access to what all directors are entitled. A board is a team of equals. The pres/secretary have certain specific duties, but if you are flatly denied the right to see/approve documents, know how an LOC/other finances are handled or have legitimate questions answered, your coop has a serious problem.
I disagree that you should resign. IF you can support your position as a fair, honest board director and are denied the right to act in that capacity, you do your coop a great disservice by walking away. The problem continues, maybe gets worse, and everyone may suffer consequences.
If coop matters are being mishandled and you get nowhere with the pres/secretary, manager or attorney, take this to the people who can effect change: the shareholders. Present the facts at an open meeting...ask questions and don't let the pres/secretary/attorney brush them off...encourage others to speak, get involved, run for the board. You will stir things up, but you can't avoid it if you want to get the board and the coop back on the right track.
If possible, get non-divisive board directors to stand with you and don't let emotions rule. Work with the shareholders and do it responsibly and professionally.
Problems don't go away if people who can help resolve them go away. You joined the board to improve your coop and to make a positive difference, didn't you? From what you've said, it doesn't sound like you will have a better chance to do that than now.
Introduce yourself to other members of Board Talk! Log in below or register here.
Board Talk members who registered prior to March 9th, 2016 will need to reset their password.
Board Talk members who registered prior to March 9th, 2016 will need to reset their password.
Habitat u
visit habitat uHabitat U: learn about how to manage a building, and what you should know as a co-op or condo board member.
Archives
search
Search, by word or phrase, all magazine articles from January 2002 to present. You may print or email your results. Print subscribers receive free access to the Habitat Article Archive.
Ask the Experts
learn moreLearn all the basics of NYC co-op and condo management, with straight talk from heavy hitters in the field of co-op or condo apartments
Professionals in some of the key fields of co-op and condo board governance and building management answer common questions in their areas of expertise
Subscribe
join nowGot elected? Are you on your co-op/condo board?
Then don’t miss a beat! Stories you can use to make your building better, keep it out of trouble, save money, enhance market value, and make your board life a whole lot easier!
This is precisely what the lawyer has told me that I must get approval from the majority. In my case this will never happen as the majority will say no. What do I do then. I still maintain that I do not need board approval to get copies of documentation ehich we are all entitled to see. The latest objection from the secretary was that "her signature is all over these documents & I would forge her signature as I had done before in trying to access her business accounts". Of course this is false. Another issue with her at the moment.
Thank you for rating!
You have already rated this page, you can only rate it once!
Your rating has been changed, thanks for rating!
Board Talk members who registered prior to March 9th, 2016 will need to reset their password.