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INTERNAL PROTOTYPE — NOT LEGAL ADVICE — DO NOT SEND

13315 Owners Corp. v. Kennedy, 4 Misc. 3d 931 (2004)

Citation
13315 Owners Corp. v. Kennedy, 4 Misc. 3d 931 (2004)
Parent Document
13315 Owners Corp. v. Kennedy, 4 Misc. 3d 931 (2004)
Jurisdiction
New York (state)
Effective Date
2004-06-29

Other Sections in This Document (76)

Full Text

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But when deciding whether to apply the business judgment rule to a Pullman holdover, the board’s failure to hold annual elections in a proper manner is directly related to whether the board “acted outside the scope of its authority.” {Pullman, 100 NY2d at 155.) A situation in which a board can evict shareholder-tenants who never had a chance to vote for its members is precisely the kind of situation the Court of Appeals wished to avoid in requiring that the cooperative board unfailingly follow procedure. Without election as prescribed by its bylaws, a cooperative board can become authoritarian and heavy-handed, assuming a position reminiscent of a dictatorial landlord from feudal times.