I have a question about the new conflict of interest amendments to the New York Business Corporation Law (https://www.nixonpeabody.com/en/ideas/articles/2017/09/20/new-conflict-of-interest-laws-for-condos-and-co-ops-in-new-york). Specifically, I'm hoping you could clarify what, precisely, constitutes a conflict of interest for a Co-op Board.
For example, does the Board approval of a sale of a unit/shares to the owner of the hired Management company for a price far below the market value of the co-op unit constitute a potential conflict? Similarly, would approval of a similar sale to a member of the Board constitute a potential conflict?
I have recently identified numerous transactions of this nature in my Brooklyn Cooperative. None of the units in question were advertised as being for sale, and appear to all have been sold in private transactions between the Management Company or Board Member and the shareholder or the shareholder's estate. All have sold far below the market value, even when accounting for the physical condition of the unit.
Thank you in advance for your response.
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