Alex Can a co-op board represent the best interests of the building?
Co-op and condo board members are required to act only in the building’s best interests, not for their own benefit, said Steven Wagner, a partner at the law firm Wagner Berkow. A board member cannot represent the co-op’s best interests when he or she stands to make money from the board’s decisions, Mr. Wagner said.
Can a state Attorney General prosecute a co-op board?
Liang contacted the state attorney general’s office over a year ago asking it to investigate Mr. Mohd, but it has jurisdiction only over condo and co-op offering plans. Criminal prosecution of board members is also rare.
Are there penalties for violating co-op law?
But no agency is named to enforce the law and there are no penalties for violating it. Lawyers who specialize in co-ops say that the kinds of allegations in the Gardens at Forest Hills lawsuit are extremely troubling.
How do you change a co-op board in New York?
Elections are really the only way to change a board, said Mary Ann Rothman, the executive director of the Council of New York Cooperatives and Condominiums. “Democracy is hard work,” she said. “You have to attend meetings, vote in elections and consider serving on the board.”
What are the rules for a co-op board?
A board of directors in a cooperative has two basic, legal obligations: • It must exercise prudent business judgment in making decisions, just like any other corporate board. • It must follow the co-op’s internal rules (as set forth in the by- laws, the proprietary lease, the certificate of incorporation and the house rules).
What’s the law on co-ops in New York?
N.Y. Priv. Hous. Fin. Law § 576 (McKinney). Broken down this section of the statute states that co-op units are meant as homes for people whose income not exceed six times the yearly housing cost.
Liang contacted the state attorney general’s office over a year ago asking it to investigate Mr. Mohd, but it has jurisdiction only over condo and co-op offering plans. Criminal prosecution of board members is also rare.
Can a board of directors of a HDFC co-op be compensated?
HPD defines this to mean that board members that are not providing direct services to the co-op (i.e. accounting, legal, etc.) can not be compensated. The agency gives guidelines for Board of Directos in HDFC co-ops: