The business judgment rule can offer boards protection in various categories, with boards generally having more protection in contractual issues. Directors and officers insurance covers these claims, but only up to a point.
The business judgment rule can offer boards protection in various categories, with boards generally having more protection in contractual issues. Directors and officers insurance covers these claims, but only up to a point.
New board members must understand their fiduciary duty, legal responsibilities, and consequences of breaching trust when serving their community.
Elderly co-op shareholders are increasingly transferring ownership of shares to trusts for estate planning. Conditional consent agreements can address concerns.
In condominiums, commercial unit-owners may be asked to pay for expenses unrelated to their unit. Bylaws and agreements govern these obligations, often leading to negotiations.
When amending bylaws, avoid making extensive changes, choose the right timing, consult your attorney, gather input from shareholders or unit-owners.
Hoarders can be of any age. When hoarding is suspected, gather documentation, seek court orders, and appoint a guardian for prompt action.
To mitigate rising insurance costs, co-op and condo boards can shift water damage coverage to homeowners by amending proprietary leases or bylaws. Communication is key.
Residents seeking emotional support animals must establish a disability and provide medical documentation. Co-op/condo rules still apply, and resolutions are preferred over eviction.
Key considerations for co-op bylaw updates include allowing electronic annual meetings, implementing staggered board terms for continuity, and ensuring adequate indemnification for board members.
Shareholders seeking stock transfers in co-ops must follow a board-approved procedure, including legal transactions, judgments, and lender approvals to ensure equal treatment.