Being a shareholder in an HDFC co-op comes with unique rights, responsibilities, and privileges.
Governance
Shareholders have the right to . . .
Elect representatives to the board of directors at the annual shareholder meeting
Recall board members who are not doing their job (in accordance with the procedure outlined in the By-Laws)
Recommend amendments to their co-op documents or propose policy to the Board
Vote on proposed amendments to the By -Laws and proprietary lease
Meet with the board of Directors
Call special meetings in accordance with the procedure outlined in the By-Laws (10% of the shareholders are needed to call a special meeting)
Request shareholder education/training programs
Run for the board of Directors
Sublet their apartment with the approval of the board or 2/3 of the shareholders
Shareholders have the responsibility to . . .
Attend the annual meeting, and other important shareholder meetings
Vote competent representatives to the board of Directors
Take a turn serving on the Board, if elected
Know what is in the By-Laws and proprietary lease
Finance
Shareholders have the right to . . .
Receive an annual financial report
See the corporate books and records including board meeting minutes upon request, during business hours
Sell their shares
Receive equity and applicable profit upon the sale of shares
Shareholders have the responsibility to . . .
Pay their maintenance fees and any special assessments on time
Repair and maintenance
Shareholders have the right to . . .
A building that is well maintained
Basic services (such as heat, hot water, security, etc.)
Make alterations to their apartments, with the prior approval of the board of directors
Shareholders have the responsibility to . . .
Notify the board immediately if a hazardous condition exists in the building
Maintain and repair their apartments, according to the proprietary lease (shareholders are responsible for most things within their apartments, including appliances, ceilings, walls, floors, electrical and heating fixtures)
Social
Shareholders have the right to . . .
“Quiet enjoyment” of their apartments
Shareholders have the responsibility to . . .
Abide by the house rules
Live cooperatively with your neighbors
Advantages of Being a Shareholder
Security
Shareholders can remain in the co-op for as long as they like provided that they abide by the terms and
provisions of their proprietary lease.
Inheritance/Equity
Shareholders have an ownership interest (equity) in the co-op. They may transfer their lease and assign
their shares to a Spouse without asking for the Board’s consent. The board or shareholders “may not
unreasonably withhold consent to assignment of the lease and the transfer of shares to a financially
responsible member of the shareholder’s family. (proprietary lease 5.05 ii B)
Control over Building Mgmt.
Shareholders annually elect a board of directors to represent their interests in how the building should be
managed. The board as their representatives screen and approve new shareholders.
$ Cost control
Shareholders can keep costs down in their building by doing tasks themselves (i.e. super’s duties,
management) and implementing energy and water conservation techniques.
Lifestyle
Shareholders live cooperatively with their neighbors. They really come to know the people in their building by working together to resolve issues that affect everyone’s quality of life.
Networking
Shareholders can join forces with other co-ops to get the best possible goods at the lowest possible price.
They can also share resources such as information on good attorneys, contractors, handypeople etc.
Shareholders also have a greater ability to effect political change as a group than they do as individuals.
Education
Shareholders learn how co-ops work. They serve on the board of directors and chair committees. They can attend conferences and training classes that help them run the building more effectively.