Board v. Shareholder Information

Being involved with different Cooperatives and Condominiums allows me to see the differing ways in which Boards manage information with their Shareholders/Owners. Some buildings are completely hands off and allow the Board to act within the framework that they're allowed while others seem to want to be involved in many decisions that the Board makes, such as increases, assessments and choosing colors to paint the walls.

A natural balance has to exist in those buildings that want to require open and transparent information. While it is always the best business practice to be open and transparent, it is not fair to the Boards to have their every move analyzed and questioned. There must be a sense of the Board acting on behalf of those who voted them in and they have to feel that they have some room to work with the powers that are given to them. If the entire building is up in arms with the general decisions that are being made, their best recourse is to drum up support for a new Board the next time around (or at a special meeting with a supermajority of Shareholders).

As opposed to beaming information to the Shareholders every time the Board moves, I'm a big proponent of building newsletters, community websites (controlled by the Board or Management) and open meetings (twice per year for vocal buildings). By sending out information in a controlled, yet predictable manner, the Board can keep everyone in the loop and keep the operations running smoothly (and hopefully the negativity down).

Mark B. Levine, R.A.M. is the Vice President of Business Development and a Partner of Excel Bradshaw Management Group, LLC. You can e-mail him, follow him on twitter, or leave a comment below. When not managing properties or writing on Habitat, Mark publishes a variety of local restaurant review websites and is the co-host of the bi-weekly video segment "Reservations with Rob" on FiOS Channel 1 (Long Island).