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ChrisE8
Posts: 454
Posted:
In NY State, coops and condos (if organized under one of several NY statutes) have to disclose "interested director" transactions: deals approved by the board that are between the coop or condo, on one side, and a director or an entity in which a director has an interest, on the other side. If there are no such approved transactions, then a report saying "there are no such transactions" has to be sent to owners. This is done under New York Business Corporation Law Section 727. I assume (but do not know) that other states have similar requirements.

* If you own a property in a NY coop or condo, have you been receiving these reports?

* If there are deals between the coop/condo and a director/a director's entity, but the board didn't approve them, are they disclosed?

* If there are shady deals going on, but they don't technically fall within the disclosure requirements, is it better to disclose them, for the HOA's protection?

* What if one or more directors won't sign the report: is it best to disclose them anyway?

I know that nobody on this board gives legal advice, and I can talk to a lawyer, but before doing so, I'd just like to see how your HOA handles these reports, if they are required.

Thanks.

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