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Hello. A co-op board member/president wants to purchase an additional apt/shares from a sponsor. A couple of other board members as well as some shareholders are aware of a proposed kickback scheme by the purchasing board member (unknown if any "benefit" has been consummated). It is understood that the same board member has attempted and acted on other very unethical, illegal arrangements and behavior in the context of coop governance. Should and could the remaining board members refuse to endorse shares and any other purchase-related documents due to this knowledge and therefore sink the purchase ? It seems to me that cooperating with the shady board member's enhancement of his presence in the corporation is not only unethical and immoral but would practically render the board members vulnerable to liability. Does anyone out there agree ?
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Nothing you can do, nor is it illegal.
Most "offering" plans exempt the sponsor from board approval when selling "unsold shares". And the sponsor is free to sell his unit to whomever they want to.
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Board Talk members who registered prior to March 9th, 2016 will need to reset their password.