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Hi,
Our coop board is not allowing any shareholders who are currently trying to sell their unit to the annual shareholders' meeting. This was emailed to us last year then rescinded at the last minute. In the new house rules, there is now a rule stating this. Is this allowed under regular articles of incorporations? This is a NYC coop, for reference.
What the??
This has to be illegal. All shareholders are automatically entitled to attend the annual shareholder's meeting. The Board cannot change NYS corporate law.
Talk to your coop attorney for their ruling on this and report back to us here.
It sounds to me like a misguided attempt to prevent someone who is contemplating or actively looking to sell their apartment from voting in their own interest instead of what is best for the co-op.
For example, suppose the board is going to propose a large maintenance increase for all the good and valid reasons. The thought is that anyone looking to sell their apartment will vote against the increase because it will hurt their sales potential even if the increase is badly needed, and because they most likely won't be affected by it.
Barring these shareholders from the meeting is still illegal and should be challenged in every way possible.
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Hi
This is strange and what if the sale doesn’t go through and/or you changed your mind? They also have to send you the minutes of the Annual meeting afterwards because you’re still the owner/shareholder . What are they trying to hide? You should contact your management company and your co-op attorney. Also contact the attorney general’s office. If someone wants to buy a unit don’t they get to see the minutes of meetings if they want to do so they can really see the state of the building? How long have these board members been on the board? What would they do if you show up? Call the cops? This doesn’t sound right.
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