Jack - Our proprietary lease (para 38) says "unsold shares" for an apt cease to retain their character as such if:
1) someone buys them and he (or a family member) lives in the apt, or 2) the sponsor/original holder(or a family member) lives in the apt himself.

The new owner becomes a regular "shareholder". He doesn't have any more/less rights than the others do, and you can't force him to help the board. If he wants to help the board, he has to be elected to the board, or on a committee that reports to the board, if you have committees.

If someone buys "unsold shares" and DOES NOT live in the apt, only rents it for investment purposes, that's another, more complicated matter.

Also - whoever is the holder of shares is the one who has the right to vote for a board or on any issues. By the way, in most coops, if shares are sold (by anyone), the buyer isn't necessarily the one who can vote at the coop's annual meeting. Whoever holds the shares when the meeting notice is received is the one who can vote. For ex: If the notice is received May 20, a closing is June 10 and the meeting is June 15, the seller votes the shares. The buyer can attend the meeting but can't vote.

In any case, consult your attorney on all these matters. He should check your proprietary lease and other governing documents for what applies to your coop.

Ask your attorney who should have at least told the board about the sale and given you some idea of the new buyer, and whether the old sponsor still is financially responsible if there is a default of the investor.

Similarly, you should get more particulars of the sale by way of a new amendment to the plan.

Finally, if your old sponsor had a representation on the board, the new one will probably retain participation. Whether the sponsor participates or not through a representative (management company or directly through a representative), it is a blessing or no blessing. The sponsor or investor will participate if it owns a large block of shares of the building and wishes to have a say on financial issues such as maintenance, capital investment, refinancing, etc.

I would rather have the sponsor or representative participate as you may be able to work closely on tenants issues, and obtain opinions or advise on conractors, service providers and professionals. Obviously, you need to know why the sponsor representative is there for, but again, if you make the person feel you are willing to work with him/her, you may be able to get more out of the relationship than maintaining an adversarial relationship. In fact, if you have a good board and the sponsor is part of it, you may end of builidng a formidable team that may help advance the business of the corporation more than you ever imagined.

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