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Please make sure that the vote of shareholders is necessary in your by-laws as a result of the first few years of operations or the sponsor involved holding a certain percentage of the unsold shares of the corporation. Otherwise, the by-laws have tied the hands of the board more than necessary by not being able to assess when necessary, i.e., capital emergency repairs, raising reserves, etc.
Now, returning to your question, if the board proves you wrong because you believe that you need to vote, then you get the late fees.
AdC
Hi, QT,
I've lived in two co-ops and in both the abatement was offset by an equal charge. If your by-laws restrict assessing so dramatically then, as AdC points out, your board is severely limited in its ability to raise funds
But the board can always work around the limitation. Instead of calling it an "assessment," they could call it a "surcharge" or "fee" and avoid the issue. Why don't you make that suggestion?
hi treasurer,
is it legal to just plunk on a fee like that? without it being in house rules etc? we also have had a 19% mntnce in crease in the last three years so shareholders are restless.
I'm not a lawyer, so don't take this as legal advice!
But just you would charge a shareholder for other work -- such as an emergency leak, where the super calls a plumber & the plumber bills the co-op -- you can certainly charge for this.
I'd urge you to call your lawyer first if you want his/her opinion.
oops! i was replying to a different thread -- sorry ... anyway:
Check your bylaws. What do they say about a surcharge? Or one-time fee? I'm no lawyer, but I don't see why a corporation should be prevented from raising money under N.Y. State corporation law. Sure, it's using a loophole to your advantage, but if it's the board's decision that you need the money to stay in the black, you have the authority raise the funds.
As mentioned in my mistaken response, check with your lawyer (or property manager) for more info.
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that if the holder of unsold shares holds any shares then there must be a vote (he has plenty) . it also says if the reserve fund is under $15,000. OUrs is way over that. while they sort this out, they are apparently calling the reserve fund a slucsh fund.( I do believe shareholders would vote it in if it were an emergency. ) - but it it is a bylaw it must be upheld, no?
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