Q&A: Accessing Complaint Documents When a Co-op Is in Litigation

Q. Litigation has been brought against our co-op, its board of directors, and individual board members, accusing one or several members of the 2015/16 board of directors of malfeasance. If the allegations are substantiated in court, it could cost the shareholders of the co-op millions of dollars in non-recoverable damages and legal fees. The litigation/claims documents have been served to our board via our management office, and the management agent forwarded the claims documents to the co-op’s attorney, but no copy of the claims against the co-op is available for review by the shareholders.

The questions I have are:

According to the New York Business Corporation Law, are shareholders entitled to see the claims/complaint document to specify the charges against the co-op board and/or some of its members?

Would the process server leave a receipt or confirmation of the signed receipt or acceptance of the court papers by the management agent (recipient) at the management office?

                        —What Are Our Rights?


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