A Final Reminder: Year-End Deadline for Boards to Report to Owners Regarding Interested Contracts
We have previously reported on New York State legislation, adopted in 2017 and amended earlier this year, requiring cooperative and condominium boards to report annually to their shareholders or unit owners on certain contracts approved by the board. Most recently, we summarized the new requirements in the October 2018 issue of this Client Advisory. The law took effect on January 1, 2018 and hence the first disclosure report required by the new law will be due by December 31, 2018. Any boards of directors or boards of managers that have not yet focused on this disclosure should do so immediately so they can issue a timely report, signed by all board members, to their shareholders or unit owners. Because some boards might perceive there to be ambiguity as to what types of contracts or transactions need to be reported, boards should consult with their legal counsel in determining what matters, if any, must be included in their annual report and how to draft the report.