** Transparency * Competency * Civility **
Board of Directors' candidate statements: Click here
Concerned Shareholders letter, October 27, 2013: Click here
Is Your Board Carrying Out Its Fiduciary Duty? (Click here)
Know What that Duty Is & What Constitutes a Breach
One of the most distressing issues confronting board members is how to comply with their fiduciary duty to shareholders and unit owners. Although misconceptions abound as to the precise nature and scope of this obligation, a breach of the fiduciary duty could result in grave consequences for both the offending board member and the community which he or she represents. Basically, a breach of the fiduciary duty to shareholders and unit owners occurs whenever a board member's abuse of such power results in harm to one or more of his constituents.
Ask an Expert: My co-op board keeps too many secrets (Click here)
Q. I was recently elected to my co-op's board of directors. Some incumbents were not re-elected, much to the chagrin of the previous board. The re-elected board members are now withholding information and making financial decisions without my involvement. The president does not allow a board vote and even when we agree on an action at a board meeting, she may unilaterally reverse it later. Some of the re-elected board members cut me off at meetings, yell and try to intimidate me, likely hoping I will become so frustrated that I will resign. Others on the board are too afraid to speak up about this behavior or try to force a vote. I want to represent the shareholders who have had decisions forced on them in the past that were not in their best interests, but what can I do when board members refuse to cooperate or follow the rules?
SHAREHOLDER DISCUSSION AND COMMENTS (Updated!)
- Who are you and why are you anonymous? We are a diverse group of shareholders who are very concerned about the co-op's critical financial situation. We are anonymous because we want people to focus on thoughtful, well-researched information, getting answers to questions, and not on the messenger.
you for creating the website. We've needed a website with good
building-related information as a shareholder resource for a long
- Impressive, informative and thought provoking.
appears that more than 10% of the apartments in the building are for
sale now. When 10% of the building is for sale, we have to question
- The former assistant superintendent’s apartment should be rented for the income until it is sold. It should not be an exclusive listing given all the apartments on the market right now. An open listing encourages more broker-salespeople to consider the apartment.
- It has
been brought to my attention that the Super has been doing "side
jobs" in resident apartments during business hours. Is this
- I have
concerns with staffing in the building. I learned that the new
"handyman in training" works part of the day.
Is he part-time or full-time?
- Great work!!!! Thank you for your wisdom and efforts. This will help clarify things somewhat! Please keep up with things.
Optimum charge, thrown at us was appalling and caused all sorts of
problems. I feel that I was forced into changing internet providers.
I think Garthchester is partially to blame.
- They signed all of us
up for Optimum without consultation and charged us retroactively. I
am outraged that they didn't put this before the shareholders
maintenance has almost doubled in 10 years. What is being done to
seems to be little regard to the shareholders who aren't wealthy
and can’t afford the rising costs of living here.
glad to see a group concerned about the finances of River Terrace. I
thought the board would have called a shareholder meeting by now.
need a very capable finance person on the Board who deals with these
kinds of situations--or the Board should have researched and hired a
financial consultant with the right background and qualifications to
help navigate this nightmare.
- I am all
for hiring people that come recommended but I find it a serious
conflict of interest to hire someone that is a part time super down
- What is
the intent of the board with filling Wellington's position in the
future? Is Danny to become the next handyman? Why are we
not encouraging our long time employees to become the next handyman?
Why is the staff morale at an all-time low?
- I heard all the new hires are relatives of the superintendent - is this true? Is this allowed? Isn't this a conflict of interest?
for your concern!
We appreciate that you took the time to share your thoughts with us.