So much paperwork, so little time. If it seems the “to-do” lists for co-op boards and property managers keep on growing, that’s because they do – and now there’s another item to add. On January 1, 2018, a new state law went into effect requiring boards to prepare an annual report of all contracts they awarded in which a director has a financial interest.
But wait, there’s more. The report has to be signed by all directors, and it must include information on the recipient; the amount and the purpose of the contract; a record of the board meetings in which the contract was voted upon, including attendance and how each member voted; the date of the vote; and the effective date of the contract. Finally, boards are required to distribute the report to shareholders and unit-owners. The new statute, which amends the state’s Business Corporation Law and the Not-for-Profit Corporation Law, was designed to cover both co-ops and condos, but since it does not amend the Real Property Law, which governs condos, they aren’t affected – at least for now.
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