How do you recruit your board in your co-op?

First, one should learn from politics. Some forms of democratic governments throw out their legislative bodies if the elected president and the legislative body come from different parties. This is done to eliminate the wasted time arguing party issues.

Second, a board may look for shareholders who may exhibit certain characteristics: discretion, good judgment, vision,initiative and show some preocupation for the property as such. (No need for PhD's or extremely impressive credentials - I know many "well educated" individuals that you question their practical sense).

Obviously, to wait for surprises at the annual meeting is foolish for a board. You may get a shareholder who may try to advance its own agenda, or you may get a shareholder with mental issues (certified, of course!) attempt to run for the board. There are many shareholders who may not know these individuals and when they present themselves they may sound impressive. So, shareholders may be willing to give them a try to the detriment of the co-op.

Obviously, a Nominating Committee should not be controlled by the board, and the committee should do the most to make sure that information on each individual or even informal meetings are held to promote all the candidates. However, from the many years on the board, I think that a good board should try for sharholders with the right skills sets to make a productive board member who will bring advancement rather than division to the corporation.

AdC

thank you. Do most bldg's have term limits for President, etc....?

Speak with your co-op counsel as to how you go about instituting terms if this is perceived as desirable, whether an Amendment is required or just a simple Resolution of the Board.

Now... terms may be good or may be bad. As they say, every action has an equal but opposite reaction. Some presidents and board members do a great job. Consequently, if they like to serve, then you may be at an advantage. However, as long as you have new members who get into the the board and are trained you have succession. Contrary to what many participants of this chat room say, presidents and board members are not all on ego trips, or are controlling. So, each situation is special and temrs is just a matter of preference.

AdC

Your by-laws will tell you if term limits already exist. If they don't and you want them, you'll have to amend the bylaws, which probably requires a vote of all shareholders.
I would suggest that before you go that way to limit only the terms one can sit in each office -- that is, one could be president no more than three terms, but membership on the board can be six years, or even unlimited.
Remember that the more vacancies on your board, the more volunteers in your building you'll have to recruit for this thankless job.

We have a shareholder who left because of health reasons, got the operation, recovered and was re-elected to board for a two year term. And there are some shareholders who better not even think of running for the board again. They will be met with serious protest. But so far we don't have terms limits.

Term limits can be good in some cases. New board members can bring fresh ideas/perspectives to the table or weed out self-serving or ineffectual members. The best board is a mix of new and old. Those who aren't new provide stability, experience and continuity which every board needs.

Term limits can be bad too. Board vacancies don't always prompt people to run. What if no one runs? What if a few people get elected as a slate and have majority control? If they're new and don't know what they're doing, it can be a disaster - especially if they share a personal agenda and want to do things their way and get what they want.

Term limits can also be a problem in smaller bldgs. Board members may try to get certain people to run. They may convince someone but if that person's heart isn't in it, that won't make for a good board member. It's hard to get an ongoing flow of new board members in smaller bldgs. If you know most/all of your shareholders, think about the ones who probably wouldn't run because they're:
-- not interested enough or don't want the hassle
-- are mainly focused on their work/career
-- often work late or travel a lot on business
-- have many other obligations (e.g. family)
-- may be very ill or elderly

Then there are those who don't live in the bldg...aren't (in your opinion) qualified or whom you don't want on the board...are very new to the bldg and (in your opinion) should get a better "lay of the land" before they run for the board...never come to an annual meeting or even send in a proxy. There may be a few who own two or more apts. After you eliminate all these people, you may have a handful who could be potential board candidates in any given year - if they want to run and, of course, they'd have to be elected.

Shareholders in my bldg (60 apts) voted down term limits a few times. Almost all felt it's unnecessary. But as AdC said, each situation is special. Whether a bldg is large or small, it depends on the board, how effective it is, and what the bldg needs.

AdC makes some good points, but I've seen it work in the opposite way. In a coop where I used to live, the board essentially chose whom it wanted to fill vacancies. Then, at the annual meeting, the board nominated a slate. It happened amazingly quickly, as if it were an auction. Like this:
BOARD PRES: I open the floor for nominations.
FRIEND OF BOARD PRES: I nominate the slate.
BOARD PRES: All in favor?
And it was done. Not even a motion to close nominations, let alone a call for others to run.
So if there's to be a nominating committee, I agree with AdC that it should exist separate from the board.

In addition to believing in independent co-op nominating committes, I believe in drumming up the business for the board. I speak to shareholders who have demonstrated many of the following traits and/or virtues: independent thinking, concern for the building, integrity, ethics, responsibility as a shareholder, and good judgment. I don't recruit among FRIENDS. In fact, I can say, as a board president I have NO FRIENDS.

Why do I recruit members for the board?

1. I don't want to come to an annual election with SURPRISES.

2. I would like to see a board composed of shareholders who exhibit the outlined traits and/or vitues so that their talents and decisions can be put to work, free from the influence of FRIENDS, who exercise prudence and fairness at the time of decisions, a group of shareholders who will work in harmony for the advancement of the co-op if elected.

3. I would rather present 5 good candidates for shareholders to select for 3 positions, but sometimes reality is that good people may not be available that year for personal reasons; but if I were to have them, I would present them all. Why? because it gives variety for shareholders to select from.

Two problems I had to face last year:

1. The investor who only had 10% came to the annual meeting with a second representative to be elected. The investor got one position. The second representative was outvoted because the board (to the dismay of the Habitat's forum readers) collected proxies to ensure a quorum and that business would be transacted and proxies were voted against the second representative.

2. A shareholder who has serious health issues and does not exhibit 90% good conduct and judgment submitted its name. Well, there were many new shareholders who do not know the person who casted a vote for this individual. Having a person on the board with such issues would have been as explosive as a roadside bomb.

AdC