New York Times Features Steven Gursky on Co-op Board Friction
Olshan Partner Steven Gursky was featured in a recent New York Times article titled "When a Co-op Board Misbehaves." Without any government agency responsible for regulating co-op and condo board behavior, shareholders who believe their building’s board is not acting in the best interest of the co-op are left with few options other than to file a lawsuit. Furthermore, New York State recently amended its business and corporation law to require boards to disclose voting information and the details of any contracts where a board member has a conflict of interest, but the law’s effectiveness diminishes in the absence of an agency to enforce it and carries no penalties for violation. When, in 2015, Mr. Gursky’s Upper East Side co-op held an election that some residents hoped would oust an unpopular board president, some suspected voter fraud to the incumbent’s favor. Once later revelations confirmed the suspicion that not all of the votes for an opposition candidate were counted, a group of shareholders decided to retain Olshan to sue. After a full hearing, a State Supreme Court judge in Manhattan ruled that all the votes had to be counted and the opposition candidate was awarded the victory in the election.