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After 5 of 9 board members were replaced in the last election after widespread dissatisfaction with the board, one new board member discovered irregularities in our monthly arrears report. We then learned such irregularities went back to 2006, that the board had been aware, and that our lien and foreclosure action were at a standstill because we had suspect arrears figures.
When one new board member sought to start a finance committee, the incumbents fought against it. When it was eventually formed, they refused to let the committee, made up of homeowners, see the building's financial records (which any homeowner, let alone a board member, is allowed to do once a month).
Finally, when four of the newcomers wanted a forensic accounting,or at least an independent outside regular accounting, the four incumbents and a fifth member who had previously served on the board staged a coup, deposing the newcomer president and reinstalling the previous board's president.
These four incumbents had, as well, during this term taken several months worth of unapproved minutes from the previous board's term and rewrote them to reflect their own spin, without any input from the five ex-board members, and voted among themselves to approve them.
What I'd like to know is: Are the other newcomer members and I crazy, or does there seem to be something suspicious here? Are the incumbents behaving unethically, possibly corruptly?
Now that the four incumbents and their ally have a five-vote bloc, they can push through anything they want without opposition, including preventing a financial investigation into the arrears irregularities. Is there anything we can do?
When four of the newcomer board members began seeking a finance committee, the incumbents fought against it. When it was eventually formed, they refused to let the committee, made up of homeowners, see the building's financial records (which any homeowner, let alone board member, is allowed to do once a month).
Finally, when four of the newcomers wanted a forensic accounting, or at least an independent, outside regular accounting (since the arrears irregularities had stopped cold all our lien and foreclosure actions), the four incumbents and a fifth member who had previously served on the board staged a coup, deposing the newcomer president and reinstalling the previous board's president.
As well, the four incumbents had taken several months worth of minutes from the previous board's year, which hadn't been approved, and rewrote them to reflect their own spin, without any input from the five ex-board members.
What I'd like to know is: Are the other newcomer members and I crazy, or does there seem to be something suspicious here? Are the incumbents behaving unethically, or are possibly even corrupt?
Now that the four incumbents and their ally have a five-vote bloc, they can push through anything they want without opposition, including preventing a financial investigation into the arrears irregularities. Is there anything we can do?
I have a situation where the President who self managed the building without any other officer in other words there was no other member on the board but herself, There is only 5 shareholders , She self managed the bldg for 4 years straight with no minutes in this 4 years but my main concern for writing is because we viewed the bank statements and she has withdrawn over 25k via atm machine and she was still voted in as a Treasurer and with UHAB urban housing assistance borough help,2 of the shareholders including myself demand that she step down and inform of us of where the funds of our building went, She never responded and continues to collect rent and have authority of our bank account once again what can we do its only 2 of us that care the other 2 no disrespect but is not that educated and really does not care these elderly ladies are all friends and have no concept of what an hdfc coop is , Please help us 2 that do care what can we do to remove her? To have her explain these withdrawals ?
Unfortunately, it sounds like there is very little you can do directly. But from what you describe, it sounds like the "gang of 5" are taking actions which are borderline if not outright illegal. I am not a lawyer, but I suggest you and the other disenfranchised board members contact an attorney who is familiar with Co-op laws and regulations (definitely *not* the board's attorney!). There may be actions you can take through the Attorney General's office to get things changed.
It doesn't sound like you're helpless, but first:
1--Are you 1 of the new board members? [It's implied, but not stated.]
2--You say that any homeowner can see financial records; does that actually happen, or is it just supposed to...per your by-laws? And, how are "financial records" defined therein?
3--It's clear the forensic work you desire has been blocked, but have any board members been denied individual access to building information & records?
I'm one of the newcomer board members. Bylaws allows homeowners to view financial records once a month; "financial records" isn't defined. I spoke yesterday with the managing agent, who told me that the Treasurer, who led the coup, told him not to let one of the other newcomers see the financial records. (She told him the board, meaning the Gang of 5, had to decide and get back to him; she never did after weeks, of course.)
He said if the boardmember were to email him a request asking as a homeowner, that then he'd have to let the requester see the records. So he's trying to do the right thing, I believe. We'll see. But still -- the Treasurer forbidding another board member from seeing the records just to protect herself and the other incumbents from the homeowners finding out about their mismanagement (or worse)? It's horrible.
I appreciate you and the others here offering advice and suggestions. It's nice of you to take the time.
Try contacting ACCO; they're doing work on board member access to information.
advo@condocoopowners.org
I had a similar issue in my building the first thing you need to do is get a support group and get the shareholders to take an interest in this shady behavior. unfortunately it cost us 2 years and $60,000 in legal fees to finally get 70 percent of the financials. We now have the majority on the board and we still had to subpoena information from past directors.
If you dont want to spend that kind of money your best bet is to get shareholders to notice the issues and vote them out come election time.
good luck too you.
I had a similar issue in my building the first thing you need to do is get a support group and get the shareholders to take an interest in this shady behavior. unfortunately it cost us 2 years and $60,000 in legal fees to finally get 70 percent of the financials. We now have the majority on the board and we still had to subpoena information from past directors.
If you dont want to spend that kind of money your best bet is to get shareholders to notice the issues and vote them out come election time.
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