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Are shareholders allowed to see the monthly reports (from our managing co)? Several people (ex-board members /sponsors) who were voted out because they were found to be incompetent and self serving, are always asking for the monthly reports. While new board prides itself on transparency, releasing reports which have some delicate issues (I,e, late maintenance) it seems these reports are for managemnt and board eyes. Sometimes they require a skillful eye- of course all this can be explained to shareholders but serving on the board is time consuming already. To make matters worse the old ex board members are on some vendetta in retaliation for being called out.
Any thoughts on the matter would be helpful.
Again, if shareholders feel the need to micro manage the elected board members thru some bully-like behavior and constantly ask for documents and materials for management - shouldn't they try to get elected?
If a shareholder requests to see the monthly reports they do have that right. There is a great article in the Cooperator " Watch Your Mouth"a few years(2011) back that touches on your concerns about shareholders who are in arrears in their maintenance and how the board should handle it. " The community has the right to know what's affecting their value of their investment " Harting explains. If their neighbor is a deadbeat, they have the right to know that. But, she adds, if they go on to say, "and by the way, they have stiffed every guy in town' without conducting an investigation as to whether that's true-that crosses the line."
It is a great article for anyone who contributes to the discussion in Board Talk. Another quote from the article that is worth sharing "According to the pros, defamation occurs when you publicly malign someone's character by accusing him or her of doing something that is reprehensible or criminal, and thereby damage their reputation. Written defamation is called libel, and defamation that is spoken is called slander. If they can substantiate in court, damages that result from such statements can result in heavy penalties."
There was another article in the New York Times about a newly elected board member that asked the president of the board to see the monthly reports. The president declined the new board member the reports. The new board member thought the the president was behind in his maintenance and that is why he refused to show the report. The lawyer that answered his question stated that not only did the new board member have the right to see the report but anyone that is a shareholder has that right. There are two reasons why shareholders have the right to know if the president or anyone in a co-op or condo is behind in their maintenance. One is that maintenance is part of the finances of the corporation and the shareholders have the right to view all the financial information and also that if someone is late in their maintenance they are violating their lease or contract with the co-op or condo and that is also a shareholders right to know.
Transparency is the best way to run a co-op or condo. But you have to be careful not to step over the line and abuse the information that is given out.
If a shareholder requests to see the monthly reports they do have that right. There is a great article in the Cooperator " Watch Your Mouth"a few years(2011) back that touches on your concerns about shareholders who are in arrears in their maintenance and how the board should handle it. " The community has the right to know what's affecting their value of their investment " Harting explains. If their neighbor is a deadbeat, they have the right to know that. But, she adds, if they go on to say, "and by the way, they have stiffed every guy in town' without conducting an investigation as to whether that's true-that crosses the line."
It is a great article for anyone who contributes to the discussion in Board Talk. Another quote from the article that is worth sharing "According to the pros, defamation occurs when you publicly malign someone's character by accusing him or her of doing something that is reprehensible or criminal, and thereby damage their reputation. Written defamation is called libel, and defamation that is spoken is called slander. If they can substantiate in court, damages that result from such statements can result in heavy penalties."
There was another article in the New York Times about a newly elected board member that asked the president of the board to see the monthly reports. The president declined the new board member the reports. The new board member thought the the president was behind in his maintenance and that is why he refused to show the report. The lawyer that answered his question stated that not only did the new board member have the right to see the report but anyone that is a shareholder has that right. There are two reasons why shareholders have the right to know if the president or anyone in a co-op or condo is behind in their maintenance. One is that maintenance is part of the finances of the corporation and the shareholders have the right to view all the financial information and also that if someone is late in their maintenance they are violating their lease or contract with the co-op or condo and that is also a shareholders right to know.
Transparency is the best way to run a co-op or condo. But you have to be careful not to step over the line and abuse the information that is given out.
If a shareholder requests to see the monthly reports they do have that right. There is a great article in the Cooperator " Watch Your Mouth"a few years(2011) back that touches on your concerns about shareholders who are in arrears in their maintenance and how the board should handle it. " The community has the right to know what's affecting their value of their investment " Harting explains. If their neighbor is a deadbeat, they have the right to know that. But, she adds, if they go on to say, "and by the way, they have stiffed every guy in town' without conducting an investigation as to whether that's true-that crosses the line."
It is a great article for anyone who contributes to the discussion in Board Talk. Another quote from the article that is worth sharing "According to the pros, defamation occurs when you publicly malign someone's character by accusing him or her of doing something that is reprehensible or criminal, and thereby damage their reputation. Written defamation is called libel, and defamation that is spoken is called slander. If they can substantiate in court, damages that result from such statements can result in heavy penalties."
There was another article in the New York Times about a newly elected board member that asked the president of the board to see the monthly reports. The president declined the new board member the reports. The new board member thought the the president was behind in his maintenance and that is why he refused to show the report. The lawyer that answered his question stated that not only did the new board member have the right to see the report but anyone that is a shareholder has that right. There are two reasons why shareholders have the right to know if the president or anyone in a co-op or condo is behind in their maintenance. One is that maintenance is part of the finances of the corporation and the shareholders have the right to view all the financial information and also that if someone is late in their maintenance they are violating their lease or contract with the co-op or condo and that is also a shareholders right to know.
Transparency is the best way to run a co-op or condo. But you have to be careful not to step over the line and abuse the information that is given out.
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The reports provided to the board by the management company are generally not intended for inspection by other shareholders or buyers. Other shareholders have no right to know specifically who is behind in their maintenance, for example. The board meeting minutes however can be viewed if requested. Minutes are often brief comments on the meeting/agenda without going into extensive details which may prove to be fodder later for lawsuits.
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Board Talk members who registered prior to March 9th, 2016 will need to reset their password.