Cozen O’Connor: How Transparent Should Boards Be

How Transparent Should Boards Be

Thursday, November 9, 2017

Leni Cummins, a member of Cozen O’Connor’s Real Estate Practice Group, discusses what information cooperative and condominium boards are required to provide to shareholders and unit owners in The Cooperator New York. Leni explains that a cooperative shareholder, historically, has a broad right to examine corporate documents where the request is made “in good faith and for a proper purpose.” These documents include, but are not limited to, minutes of shareholder meetings, a list of shareholders, annual balance sheets, and profit and loss statements. The trend in recent years has been for condominiums to be treated more like cooperatives. A condominium unit owner has the unfettered right to examine the detailed, accurate records of receipts and expenditures arising from the operation of the property, the right to a list of all of the unit owners in connection with a board election, and the right to monthly financials, invoices, redacted legal invoices, board meeting minutes, and perhaps more, if sought “in good faith and for a valid purpose.”

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