I guess you would have to contact the State Attorney Generals office with that question. I would like to think that the shareholders would not vote for the person if they are aware that there are term limits and this person should not be running. On the other hand, having someone with experience on the board is an asset, unless that person is self-serving, showing favoritism to specific owners or residents, etc. I've only seen maybe a half dozen prospectuses and didn't see term limits in any of them, but that doesn't mean some plans exist that do have limits.

I agree with JG about contacting the AG's office and term limits in general. Contacting the AG, while a no-cost option, could take months to get any results. A better option (but one with a cost) would be to consult with an attorney who specializes in Co-op and Condo law. Do not ask the board's attorney because they work for the board and not for you so their response can be biased in favor of the board.

Which document specifies the term limits? Proprietary Lease, Bylaws, House Rules, other? Do you know if they were they in the original document or added as an amendment? I'm asking because I also find having term limits to be a non-standard condition. It's often difficult enough to get shareholders to serve on the board, let alone limit how long they can serve for.

Term limits were established several years ago with an amendment to the by-laws. Last year a mailing by a slate solicited proxies. One csndidate was ineligible and he ultimately withdrew, but no notification was given to shareholders until it became obvious at the Annual Meeting. Thus, proxies were solicited under false pretenses.

So, the situation came up last year and the candidate withdrew. I doubt that the AG or anyone would take any action at this time. It would be a different story if the person was elected and is serving a term now.
What would happen if there were 5 positions on the board and only 4 candidates (excluding the ineligible candidate)? Would the board function with only 4 members until the next election?

The By Laws permit a minimum of three Directors. My post is in anticipation of the next Annual Meeting in March.

Do you know others in the building that share your concerns and are like minded? (2 others as you mention that you need 3 Directors). If you do, solicit their help and simply do a petition. You need to canvass the building and explain to people why you are petitioning for a new board to be put in place; no financials, elderly board members who don't understand what is going on, concern for all of your investments etc. You may be surprised at how many signatures you will obtain. Then simply present it, via a letter to the board a couple of days before the meeting or even at the meeting. If you get the majority signing; their out, you and your team is in. It takes work and effort, but it can be done.

I don't think that petitions supersede shareholder share votes. Wouldn't obtaining proxies be the legal way to go?

If a group of shareholders want to re-elect someone who term has ended and the majority of them vote for this person, then I'm certain the person would get in regardless of the house rule or by-laws. On the other hand if you can get support of shareholders for a new board by canvassing, at the same time you canvass, ask for their proxy. I do not believe that there is a law against petitions. You may want to follow some of the guidelines here http://www.dos.ny.gov/lg/publications/CitizenGuidetoPetitions.pdf