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This is the scenario:
7 Board members total.
4 Board members vote to direct general Coop funds to an elective project that directly and only benefits those 4 board members.
Motion Passes since the vote is 4 yes, 3 no.
Legal?
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I feel the best course of action is for you and all other questioning shareholders to engage your own attorney. You've provided very little information about this scenario (which is understandable). Only a trained attorney can evaluate the facts and offer an opinion regarding the board's fiduciary responsibilities vs. the business judgment rule.
Good Luck.
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Board Talk members who registered prior to March 9th, 2016 will need to reset their password.