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Hi,
Does anyone know what percent or shareholders votes are required to amend the by-laws?
I thought it was two-thirds, but read an article that states the “BCL which was amended in 1998 now only a bare majority of the votes cast at a shareholder’s meeting at which a quorum is present”.
Our co-op has 525 shareholders. How many votes constitute a quorum?
The governing documents of your coop should clearly state how to amend the proprietary lease. You'll find that in the by laws.
A quorum is necessary to validate the election of a board. Usually 50% is enough. (that is 50% of the total shares of a coop)
To amend the by laws or the proprietary lease, a super majority is required. In other words, a commending majority of the residents of a building must agree on important changes. (Usually 66% or 75% of the total number of shares)
After additional research, I have come across this baffling conclusion.
The amendment made to the BCL in 1998 only applies to co-op that were formed February 22, 1998 and beyond.
If the BCL which governs all co-ops, deems it reasonable to change two-thirds majority to only a bare majority of all outstanding shares to amend, adopt or repeal by-laws, why is it not law for previously existing co-ops.
If the speed limit is changed today from 40 MPH to 60 MPH it stands to reason that it pertains to all drivers not the ones that received their driver’s license as of current date.
There seems to be a break in the system that needs repair. Any opinions’ on who to contact would be greatly appreciated.
Very important material here! Thanks for sharing. I agree that if the rules for changed for co ops formed after a certain date, that they should also apply to co ops formed earlier. The speed limit example makes sense. I think the NY Attorney General's office needs to take a much closer look at co ops where Sponsors refuse to sell. By neglecting this issue, there are many shareholders being harmed.
I contacted the AG and New York State dep.t of Corporations.
If they responds, I will share the information.
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According to Wikipedia, your governing documents determine what constitutes a quorum. It may be based on one vote per unit, on the number of shares, or some other measure represented at a meeting. See http://en.wikipedia.org/wiki/Quorum#Number_constituting_a_quorum.
You should also check this article from the Cooperator - http://cooperator.com/articles/1189/1/Business-Corporation-Law/Page1.html
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