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The Board is faced with a Shareholder who has been posting notes in the lobby about the Board and what he calls mis-management of the Managing Agent. Although the Board Members do no get paid for the time and services they provide, he is incenuating there is some underhanedness going on . This is a HDFC where no one gets paid other than the managing agent for his services. He is spreading vicious lies and there are a number of new Shareholders who don't really know us or the number of things done through out the years. He was on the Board however voted off because of his bad attitude and racial remarks. What can we do?
Join the Conversation Comments (5)People will often believe what they read, even in anonymous notes, and especially if your nuisance shareholder is pushing people's buttons concerning their money. You should definitely go with Steve Rosenstein's very good advice, with a few additions. Part and parcel of coop life is a certain number of oppositional folks who seem to enjoy the power that comes with manipulating opinion. Board members' work will therefore always involve responding to misinformation and continually communicating with shareholders, with clear factual information, so that they know what is going on. My additional advice addresses the dynamic discussed by Frank Lovece in his recent article on the Habitat website. Namely, people with more time on their hands will often win board elections--in spite of a lack of competence--because they use their time for one-on-one interactions with shareholders. Busy professionals - who often have more of the budgetary and managerial skill needed to run a building - are therefore at a disadvantage. You and other board members need to be strategic about including informal discussions with shareholders. People appreciate the give and take of conversations, in which their questions and concerns can be answered, moreso than the one-way communication of written memos. If you split up the work - and track the people you and other Board members interact with - the board can (re)gain shareholder trust and you will have an easier time managing the building.
Very good points on the importance of establishing bonds with shareholders. Personal communication is much better than memos. Maybe a bit off topic, but I think one mistake those from ‘professional’ backgrounds make is thinking that all it takes is memos to gain shareholder trust. Also, please do not over-emphasize your professional jobs, that will alienate you from those who do not have similar status. In my last building we had a blue collar guy who was treasurer, he was conscientious, good w/ numbers, and he did a very good job. And, I am curious as to whether Pat got anything out of our various comments. Hope that at least some of this helped.
If you can't disprove what he is saying - just keep calling him a racist - that is the stock answer and might stop him.
If you can't disprove what he is saying - just keep calling him a racist - that is the stock answer and might stop him.
I don't think responding to the nuisance shareholder by calling him a racist will solve anything because it usually has the opposite effect and causes escalation (he's getting the reaction he wants).
Instead, try publishing a one or two page newsletter every month or every quarter with the actual reasons why the "mismanaged" decisions were made or the actions were taken. Do not make any reference to the shareholder's accusations, but simply describe the truth in general, informational terms. Toot your own horns! Slip a copy under each apartment door, or send via coop-wide email if you have that set up. You are under no obligation to provide "equal time" for any responses.
Do this enough, and I bet the annoyances will decrease because they won't gain any traction, and nuisance shareholder will start to look like an idiot.
What does Racist have to do with it? If what this person is stating has any truth to it or there is a perception by others that feel the same way, then there is a reason for concern. Validity is important and who can one trust, the MA, the Board? That is the question. Posting a newsletter is just someone else's point of view. There may be truth on both sides. We know board members don't get paid, but there certainly are favors for some, that's a known fact. Disclosure is very important.
Does your coop have some issues? Are any of his concerns valid?
turn the tables on the shareholder and create a taskforce/committee and have the person run. HDFC is not known for efficiency so this could help the cause and get the nay sayer doing some productive work.
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If the postings contain facts that are correct or well-founded concerns (not all buildings are managed well ),then it shoud be OK.
Also if you feel you are doing a wonderufl job then what are you afraid of? Why not just post correct facts in the lobby board to correct his facts?
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