Cooperative Articles of Incorporation

[comairfa]

Recently, our Cooperative voted to allow mortgages of the units. The Articles of Incorporation state:

"A conveyance or mortgage of real property of the Corporation can be made only upon the consent, in writing, of stockholders of record holding ninety per cent (90%) of the outstanding stock of the Corporation. This restriction shall apply also to the Corporation's leasing its real property, other than its leasing apartments. This restriction shall not apply and in no way shall it limit the Corporation's leasing any, or all, its apartments for any period or term, definite or indefinite."

Since the "real property" of the corporation is the units themselves, does this mean that 90% of the stockholders needed to vote to allow mortgages? No mention of mortgages is mentioned in the by-laws and the board is saying that they only needed 75%, the amount of votes required ti anebd the by-laws.

Thanks for any assistance.

 

[seniorjudge]

Since the "real property" of the corporation is the units themselves, does this mean that 90% of the stockholders needed to vote to allow mortgages? No mention of mortgages is mentioned in the by-laws and the board is saying that they only needed 75%, the amount of votes required ti anebd the by-laws.

I think y'all need to clarify this (unless you want to spend thousands of dollars to have a judge and a bunch of lawyers do it).:angel

 

[comairfa]

Yes, that's why I came to ask for free advice!

 

[seniorjudge]

Yes, that's why I came to ask for free advice!

Let me rephrase.

No one here can interpret your language.

You all need to clearly indicate in your documents what you mean.