Serving on the board of an HOA, condominium or cooperative comes with important responsibilities. New York law requires boards to complete certain annual compliance obligations to promote transparency and to help directors understand their fiduciary duties.
Below are two key requirements every board must be aware of.
Each Director Must Receive a Copy of NY CLS N-PCL §715.
At least once a year, each Board member must receive a copy of NY CLS N-PCL §715, which addresses conflicts of interest. These are guidelines to ensure that Board members understand their fiduciary responsibilities when properly identifying and addressing potential conflicts of interest. Boards Must Provide Annual Reports to Members and Shareholders
Boards are also required to prepare an annual report for its members. This annual report must include the following:
- A list of all contracts voted on by the board of directors (Including information on the contract receipt, contract amount, and purpose of entering into the contract)
- The records of each meeting (Including director attendance, voting records for contracts, and how each director voted on such contracts)
- The date of each vote on each contract and the date the contract would be and remain valid.
Importance of Compliance
Complying with these annual requirements prompts transparency and strengthens confidence in the board’s governance while keeping members and shareholders informed about important board actions.
As always, please contact our office with any questions.