Page 19 - NY Cooperator Expo April 2019

COOPERATOR.COM THE COOPERATOR — APRIL 2019 19 Make the Right Mortgage Choice. $170,000 Brooklyn, NY Residential Underlying Co-Op $300,000 New York, NY Residential Underlying Co-Op/Retail $250,000 Brooklyn, NY Residential Underlying Co-Op 220 RXR Plaza, Uniondale, NY 11556 • www.FlushingBank.com Patrick Akosah 718.512.2798 MLO #674966 Patrick Dolan 718.512.2817 MLO #1016524 Cindy Lam 718.512.2816 MLO #410081 Daniel Lee 718.593.8067 MLO #64756 Anthony Montalbano 718.512.2731 MLO #1180405 Christopher O’Hara 718.512.2809 MLO #673112 Michael Pollis 718.512.2911 MLO #1703994 Community lending expertise with personal service. At Flushing Bank, we are focused on exceeding your goals. Composed of experienced lenders with local market knowledge, Flushing Bank’s Real Estate Lending team is ready to help you with your real estate mortgage solution. As a leader in community lending, we provide competitive rates, including long-term, fixed-rate loan programs. Call us today to discuss a mortgage solution that is right for you. Flushing Bank is a registered trademark FB 952 - RMU Cooperator UPDATE.indd 1 12/13/18 11:13 AM shareholder.’ In addition, shareholders may Th e board may also oppose the sharehold- seek the annual balance sheet and profi t er seeing copies of leases or rent rolls for and records. Th e co-op can transfer docu- and loss statement for the preceding fi s- cal year, and if any interim balance sheet cial tenant. And a board is not required to originals aft er that. Maintaining digital to potential legal action. Although some or profi t and loss statement has been dis- tributed to its shareholders or otherwise pictures of any docu- made available to the public, the most re- cent such interim balance sheet or profi t dered by a court. Th us, and loss statement. Courts have also said a board can require a that shareholders may seek fi nancial state- ments of the co-op and a list of all share- holders. “Depending on the purposes for which ments are stored in the shareholder is seeking the documenta- tion, a co-op may require that the share- holder sign an affi davit that they are not sued by a shareholder seeking the information in the interest of a or group of sharehold- business or object other than the business ers for an accounting of of the corporation, and that they have not the books and records sold or off ered for sale any list of share- holders of any corporation of any type been denied. Addition- within the last fi ve years. Th e co-op may ally, if the shareholders believe malfea- be required to produce further documen- tation if ordered by the court. “Also, a board may oppose a sharehold- er reviewing the minutes of board meet- ings, as opposed to shareholder meetings. each individual shareholder or commer- give shareholders copies or let them take copies is always a good practice, regard- ments, unless so or- shareholder to physi- cally come to the loca- tion at which the docu- order to review them. “A board can be of the co-op, if that has sance is involved, they can sue the co-op and archived fi les, with the exception of end of our relationship. Historic fi les are in a shareholder derivative lawsuit seek- ing damages for any fraud or malfeasance collection matters. conducted. “As a general rule, seven years is the homeowner to review association fi - enough time to store original documents nancial records. Th is provides full dis- ments to digital copy and then archive the so opens an association and management less of how long of fi les are permissible at the owner’s ex- they’re holding the pense, it’s oft en unwise to have the asso- records. Keeping ledgers and records could fall into the wrong hands. Since we in an organized as management are responsible for main- manner can help taining the association’s fi les, we choose to if or when a co-op supervise any review of those fi les. must defend itself, or commence a taining fi nancial records for seven years. lawsuit.” Albert L. Pel- legrino, President of P & A Manage- ment in Hamilton, New Jersey “Typically, asso- ciation members have access to all active of the fi les back to the association at the personal individual homeowner fi les and either boxed or electronically recorded by “Most governing documents allow for tion’s active fi les, so the information can closure and transparency; refusal to do attorneys will argue that printed copies ciation records released in a format that “We typically use the IRS rule of main- Minutes are permanent records of the as- sociation, so those are kept indefi nitely. It’s always good to keep maintenance re- cords as well, because they provide history of building and property issues. We main- tain all of the association records for the years that we manage a site, then turn all year and in the same order as the associa- “A board can be sued by a shareholder or group of shareholders for an accounting of the books and records of the co-op, if that has been denied.” —Peter Rivera continued on page 44