BBG News

What to Know Before Your Co-Op and Condo Board Meeting

Jan 20, 2025

For board members of co-ops and condominiums, annual meetings are more than just a formality. They provide an opportunity to update shareholders or owners on the state of the building, address concerns, and ensure smooth operations moving forward. 

However, these meetings can also become a source of tension if not properly planned and managed. Preparing thoroughly for your co-op and condo board meeting is key to ensuring it runs efficiently and achieves its goals.

Read our detailed guide on how you can enter these meetings prepared, communicate effectively, and handle any challenges that may arise. From reviewing financials to addressing potential bylaw amendments, these tips will set you up for success.

Engage Shareholders Early and Maintain Transparency

One of the most important steps in preparing for a co-op and condo board meeting is ensuring consistent communication with shareholders or owners throughout the year. By addressing concerns as they arise and keeping residents informed of key developments, you can minimize surprises during the meeting. Here’s how:

  • Encourage Questions: Shareholders will likely have questions about recent projects, finances, or planned changes. Anticipate these questions and prepare detailed answers.
  • Be Transparent: If there are significant changes or challenges—such as a major assessment or an increase in maintenance fees—make sure shareholders are informed in advance. Transparency builds trust and fosters constructive dialogue during the meeting.

Ideally, if the board has maintained open communication, the annual meeting can serve as a recap rather than a forum for airing grievances.

Review Financials and Budget Proposals Thoroughly

Financial health is often a primary concern for shareholders during a co-op and condo board meeting. It’s crucial for board members to be well-versed in the building’s financials and prepared to discuss budget proposals for the upcoming year. Be sure to:

  • Analyze Financial Statements: Review the building’s income and expenses, reserve fund levels, and any outstanding debts or liabilities. Be ready to explain how these numbers affect assessments, maintenance fees, and future projects.
  • Prepare Budget Proposals: If there are plans for capital improvements or repairs, make sure these costs are reflected in the proposed budget. Clearly outline how funds will be allocated and any anticipated financial impact on shareholders.

To expedite the process, share budget summaries with residents ahead of the meeting to give them time to review and prepare questions.

Brush Up on Legal Responsibilities

Board members have fiduciary duties to act in the best interest of the building and its shareholders. Before the co-op and condo board meeting, take time to review these responsibilities to ensure all decisions align with your legal obligations.

  • Duty of Care and Loyalty: Board members must make informed decisions, exercise reasonable care, and avoid conflicts of interest.
  • Duty of Obedience: Ensure all actions comply with the building’s bylaws and governing documents, as well as applicable local laws.

Understanding these responsibilities helps boards navigate contentious issues and demonstrate professionalism during meetings.

Know Your Bylaws Inside and Out

Bylaws govern the structure and operation of your co-op or condominium. They dictate everything from how meetings are conducted to election procedures and voting thresholds. 

Familiarity with these rules is essential for keeping the meeting on track and avoiding procedural errors, helping you to:

  • Prepare for Potential Changes: If amendments to bylaws or policies are on the agenda, review them carefully in advance. Consider seeking legal guidance to ensure that proposed changes comply with state and local regulations.
  • Understand Voting Requirements: Many bylaws specify quorum and voting thresholds for passing resolutions or electing board members. Verify these requirements to avoid invalidating decisions.

If complex bylaw amendments or contentious issues are involved, consulting with a real estate law firm, like Belkin Burden Goldman, beforehand can prevent disputes.

 

Are you a New York property owner wondering if your co-op can survive Local Law 97? Read our comprehensive blog to learn more.

Read More

 

Anticipate Common Shareholder Questions

Annual meetings often bring a mix of routine updates and unexpected concerns from shareholders. Anticipating potential questions and concerns will help the board provide clear and confident answers. Common questions might include:

“How are maintenance fees or assessments being used?”

“What progress has been made on building repairs or improvements?”

“What are the plans for upcoming projects or capital improvements?”

“Are there any changes to building policies or bylaws?”

“What is the building’s financial outlook?”

By addressing these questions proactively, the board can demonstrate its commitment to transparency and accountability.

Review Communication and Meeting Notices

Clear and timely communication is essential for a successful co-op and condo board meeting. Most bylaws require boards to notify residents of the meeting date, time, and location well in advance. This notice often includes important documents, such as the meeting agenda and financial reports.

You should remember to:

  • Send Notices Early: Check your building’s bylaws to determine the required notice period, which often ranges from 10 to 50 days.
  • Include Key Information: Ensure shareholders have access to all relevant materials, such as the agenda, proxy forms, and proposed budgets or amendments.

A well-structured meeting agenda keeps discussions focused and prevents meetings from running longer than necessary.

Prepare for Bylaw or Policy Changes

Annual meetings often serve as a forum for discussing and voting on changes to building policies or bylaws. These changes can include anything from alterations to subletting policies to updates on building management practices.

To stay prepared, communicate proposed changes early. Make it a point to share the proposed amendments with shareholders well before the meeting. This allows residents time to review and provide feedback.

Additionally, seek legal review. Any proposed bylaw changes should be reviewed by a real estate law firm to ensure they comply with local laws and do not unintentionally create liabilities for the board or the building.

Plan for Potential Conflicts

While most annual meetings proceed smoothly, disagreements among shareholders or between residents and the board can sometimes arise. It’s important to have a plan for managing conflicts to maintain order and productivity.

Above all, set ground rules and have experts on hand. Establish clear guidelines for speaking times and respectful behavior during the meeting. Additionally, consider inviting your building’s accountant, property manager, or legal counsel to address specific concerns and provide clarity on complex issues.

As a pro tip, a skilled moderator can help de-escalate tensions and keep the discussion focused on productive outcomes.

Confirm Attendance of Key Participants

Your co-op and condo board meeting should include not just the board but also other key figures who can provide valuable insights and answer shareholder questions.

Depending on the agenda, this may include the building’s property manager, accountant, or engineer. Their expertise can help address operational and financial concerns. On top of this, having legal counsel present can be invaluable, especially if contentious issues or bylaw amendments are on the table.

Follow Up After the Meeting

The work doesn’t end when the meeting adjourns. Following up with shareholders and implementing decisions made during the meeting is critical for maintaining trust and ensuring progress. Always do the following:

  • Distribute Meeting Minutes: Share a summary of the meeting’s outcomes with all shareholders, even those who were unable to attend.
  • Act on Resolutions: Ensure any decisions made during the meeting are carried out promptly and transparently.

The Bottom Line

Preparing for a co-op and condo board meeting requires careful planning, thorough document review, and clear communication with shareholders. However, navigating the complexities of financials, bylaws, and potential conflicts can be challenging without professional guidance.

Partner With Trustworthy Legal Experts for Your Co-Op and Condo Needs

At Belkin Burden Goldman (BBG), we bring over 35 years of experience in New York City real estate law to help co-op and condo boards manage their responsibilities effectively. From reviewing budgets and bylaw amendments to resolving disputes, our team provides the trusted support you need to ensure your meeting runs smoothly.Contact us today to learn how we can assist with your next co-op and condo board meeting. Let us help you protect your building’s interests and foster a positive relationship with your shareholders.

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