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A shareholder passed away. She was the sole owner and only her name was on the Stock Certificate and proprietary lease Her will leaves the co-op to her son's who are her beneficiaries.
Her family is in the process of selling the apartment but have not listed it to date.
The bylaw state you must be a shareholder (have your name on certificate) to vote at the annual meeting.
My question is, can the son vote or appoint another shareholder to vote at the annual shareholder meeting?
Marym is correct that the son cannot vote. However the apartment still has a voice in the voting.
When a shareholder passes away and is the only individual named on the stock certificate, their estate, which "stands in the shoes of the deceased", has the right to vote the shares of the apartment. In NYS, if there was a will and it was probated, the executor named in the will is the individual who does the voting. If there was no will and no probate, the Surrogates Court will appoint an estate administrator, and that person does the voting.
Even though the sons are named in the deceased's will, they do not automatically become the owners of the stock. Most proprietary leases provide for a board approval process before there is a formal share transfer. If for some reason the sons are rejected (usually for financial reasons), the estate will be forced to sell the shares to an acceptable purchaser, or maybe try to sublet the apartment if allowed by the co-op.
I hope this helps.
Thanks Steve very informative.
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The son absolutely cannot vote. Only the person whose name is on the stock certificate and proprietary lease can vote.
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