One of the most important tenets of any corporation is its public image and its members’ perception of how the individual responsible for managing a corporation acts outside of the board room.

As COVID-19 cases are on the rise, many states have again mandated stay-at-home orders or have pulled back on reopening plans. Some states have even tightened restrictions on businesses that must remain closed and/or have ordered that all employees that can work remotely, must do so. With any state, local or county government law, order, guidance, or directive that provides for COVID-19 restrictions and/or requirements in the workplace, a cooperative Board of Directors must contact its cooperative attorney to not only interpret the restrictions and/or requirements but to assist the Board of Directors with the implementation of restrictions.

Many of us already know that housing cooperatives are made up of the entire membership. By this token, cooperatives are inherently diverse. Since a cooperative’s Board of Directors typically consists of a group of members elected by the entire membership, its Directors are usually equally diverse and important as the entire membership that makes up the cooperative. There are several important characteristics, traits, and duties that each director holds as a position of trust and fiduciary to the corporations they serve. It is important for Cooperatives to understand these duties and the extent upon which they bestow obligations to each director. A good approach to doing this is for a cooperative to adopt certain ethics, conduct and confidentiality policies, and for their Directors to execute agreements avowing their fiduciary duties and obligations to the cooperative. These policies and agreements should strengthen the sense of loyalty and ethical conduct of the Directors, and add a sense of transparency. In addition, they may also insulate the Cooperative from potential liability from legal claims and challenges to official Board actions.

Personal injury lawsuits typically arise in housing cooperatives when a member, a person of a member’s family, or guest are injured on the Cooperative’s real property. Injuries can range from slip-and-falls, physical confrontations or fighting, to criminal assault and battery. Since the range of different types of cases in which a Cooperative may be defending claims seeking liability and damages, this serves as an important reminder to Cooperatives, of the legal responsibilities that Cooperatives owe. Specifically, this article focuses on those duties owed to non-members, such as guests.

All housing cooperatives either have a requirement that all members of the Board are to also be members of the corporation, or, that at least a majority of the Board must be members of the corporation. Not all housing cooperatives, however, have any requirement when it comes to how the members themselves are qualified to be on the Board of Directors.

As Fall is now upon us, Board of Directors may be scheduling their fall inspections of the cooperative premises and dwelling units to ensure that all members are in compliance with their House Rules and Regulations. As more of us are spending more time at home these days, you may have purchased a few new items to store outside for your own personal use, such as a patio set, canopy, grill, wading pool, etc. Each cooperative has its own unique House Rules and Regulations for not only what is permitted or prohibited but how such items can be used and stored.