Pursuant to a new New York State regulation, Board Members belonging to all Cooperative and Condominium Associations will be required to provide an annual report to the members of your cooperative or association containing information on any contracts made, entered into, or otherwise voted on by the Board that were considered a related party transaction; such as a director with an interest in the company or a relative of the director with an interest in the company that a contract has been entered into with.
The annual report given to all members shall include (1) a list of all contracts voted on by the Board, including information on the contract recipient, contract amount and the purpose of entering into the contract, (2) the record of each meeting including director attendance, voting records for contracts and how each director voted on such contracts; and (3) the date of each vote on each contract, and the date the contract would be and remain valid.
If a Board does not have any relevant information for related parties for each annual report, then they shall submit to the members of the Cooperative or Association a statement that notes “No actions taken by the Board were subject to the annual report required pursuant to section 727 of the Business Corporation Law”.
More information can be found at the following link: http://tinyurl.com/yearlyboardstatement.
This law will go into effect on January 1, 2018.