NYC Co-op board of directors (sales, apartments, to buy)

[Deihmos]

I bought a Co-op back in 2008 and in 2009 we had board elections but since then we have been stuck with the same incompetent board. The reason is we have not had a quorum at the annual general meeting since then. Does anyone with experience with co-op know of a way to get rid of the current board or have any tips?

[bluedog2]

Originally Posted by Deihmos

I bought a Co-op back in 2008 and in 2009 we had board elections but since then we have been stuck with the same incompetent board. The reason is we have not had a quorum at the annual general meeting since then. Does anyone with experience with co-op know of a way to get rid of the current board or have any tips?

If you don't have a quorum the assumption is that the majority of shareholders are happy with the status quo.If you want a revolution you have to organize it yourself by making phone calls and banging on doors to talk to people and convince them to give you their proxies.If you want to replace the whole board you will have to convince other like minded people,if there are any,to do the same.It's that simple

You might want to start by running for the board yourself and getting enough proxies to assure there is a quorum and that you get elected.In most
co ops it would probably only take 10 or 15 proxies.

[Deihmos]

I cannot run for the board because I work for the management company. The problem is the management company, sponsor and retail space owner are all affiliated and do a horrible job at managing the co-op funds and the board does absolutely nothing.

The other shareholders have no interest in the affairs of the co-op. They don't care that the co-op has had negative cash flows from the day it started and some shareholders have not made any payments for nearly 2 years.

I did not know that I could get proxies from other shareholders. We have 5 candidates but because of the failure of the last election the board remains the same. Now the question is how do I get them to have another election.

Proxies sound like an option. Thanks.

[bluedog2]

Originally Posted by Deihmos

I cannot run for the board because I work for the management company. The problem is the management company, sponsor and retail space owner are all affiliated and do a horrible job at managing the co-op funds and the board does absolutely nothing.

The other shareholders have no interest in the affairs of the co-op. They don't care that the co-op has had negative cash flows from the day it started and some shareholders have not made any payments for nearly 2 years.

I did not know that I could get proxies from other shareholders. We have 5 candidates but because of the failure of the last election the board remains the same. Now the question is how do I get them to have another election.

Proxies sound like an option. Thanks.

I can't imagine that other shareholders would have no interest .Have there been any sales in your building ? If the financial condition is bad the banks wouldn't lend,nobody would be able to buy and the value of all the apartments would go down.

When notices about the annual shareholder meeting go out they usually include a proxy with the unit number and the number of shares on it.You should be able to get other owners to sign their proxy and voting rights over to you.How many units in the co op and how many are still owned by the sponsor?

[Deihmos]

There are just a few shareholders that show up for the meeting. The building has 88 units 1 super unit. The last 3 units were recently sold so no more sponsor units. The board meeting notices never included any such information. The board members don't have a clue of what they need to do. They don't meet and nothing is shared with the shareholders.

I wish I knew this at the last meeting I would have knocked on everyone’s door.

[bluedog2]

Originally Posted by Deihmos

There are just a few shareholders that show up for the meeting. The building has 88 units 1 super unit. The last 3 units were recently sold so no more sponsor units. The board meeting notices never included any such information. The board members don't have a clue of what they need to do. They don't even meet.

I wish I knew this at the last meeting I would knocked on everyone door.

LOl,start with the bigger apartments and the ones on higher floors because they have more shares.The quorum needed to take votes will be half of the shares,not half of the units.

Get out there and start talking to people…..in the elevator,in the laundry room.Probably best to play it cool without bad mouthing anyone at first.Just tell everyone you would like to serve on the board and would appreciate their support.Then when you get on the board you will have a better idea of what's going on behind the scenes and continue to enlist others who think like you to also run.

Better chance of long term success by going about it slowly and methodically rather than raising too much of a stir at first and making enemies.