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In my co-op board members are not interested about finances. They just ignore this part, unlike me. They don’t like that I am reviewing financial records and made many obstacles for me to read documents. Like, when a board member can review financial information needs to take an appointment, and it’s allowed only 1 hour per week with supervision of one person from a management company.
Our monthly financial reports include also personal shareholders information as part arrears report. Two times I made motion to split that report in two sections: financial and personal information. After that financial section would not need supervision and time restriction. However my motions were rejected two times.
Surprisingly, the next day after the meeting, the management company had divided the monthly financial reports without board motion, approval and knowledge. And they change the localization of those documents. Nobody – president, vice-president and manager respond to my questions where the documents are right now.
Is this legal what the management company did without the board consent about this? It is Ok when the board says No, and the next day the management is doing something opposite?
Nobody from the board cares about it. Do you have any idea what to do in this situation?
I checked that article earlier and presented it to the board. However, they are very stubborn and addition to that, the corporate attorney said that a board member has the right to inspect corporate books and records, such right is not an unqualified right and the board can limit access to such information so that it does not interfere with the day to day operations of the corporation.
So according to this the board can do whatever they want. They limit the power for themselves. They are doing this because only I want to check financial record.
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Please see the Board Talk posting titled "Denying Board Member Right to Read Building Related Contracts," which is dated July 25, 2011. In my opinion, my board was acting on two bases: retaliation against me personally and the erroneous opinion of its attorney, which was supported by the managing agent, that I, as a board member had no right to see building-related documents, including financials, without the express permission of the board. I obtained a written legal opinion, which confirmed that a board member's right to access is absolute and projected that should I sue the board over the issue, I would win. I presented the opinion to the board and they backed down. Also see the following article http://www.stroock.com/SiteFiles/Pub240.pdf as it directly deals with the issue. Good luck.
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