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MR
Board Member Recusal from Vote?
Sun Feb 21, 2010 13:57
96.246.66.246

We had a Board Members vote on whether or not to refinance our building early for much more than our current mortgage in order to pay some debts and future improvements.Our current loan is good for another three years.

At the meeting, it was revealed that two of the five members on the Board will be moving within the year. Is it proper for them to be voting on an issue as important as this one, which will increase our debt twofold when they are selling their shares so soon? Is it a conflict of interest? They do not want to discuss it with Shareholders beforehand. The vote was 4 to 1, I abstained as I do not feel we have enough information and, as treasurer, I have questions about the details of the refi they are going to greenlight. What should I do?

    • Board Member Recusal from Vote? Steve-Inwood, Tue Feb 23 14:04
      Dear MR, Your question is a tough one for the same reason you feel uncomfortable with the new mortgage lack of information. A building generally has four ways to fund capital repairs: sell treasury ... more
      • This refi is actually being done to pay off huge legal bill that blind-sided us. Does that change your very well reasoned and sound advice?
        • Re: Board Member Recusal from Vote? Steve-Inwood, Wed Feb 24 09:24
          Dear MR, Thank you for the information. I don't know the circumstances surrounding how the legal bill legal bill was incurred however it sounds like your co-op does not have sufficient reserves to... more
          • simple choice: fight or quit C/CS, Wed Feb 24 11:16
            I think Steve's advice is excellent--particularly about not capitalizing non-mortgage-related legal fees--but I differ on 1 point: "if their reasoning is at odds with fiscal prudence," as he... more
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