Dennis Greenstein Published in Habitat Magazine
"What is the most realistic option for a board dealing with a shareholder's objectionable behavior?"

New York partner Dennis Greenstein wrote an article published in the November issue of Habitat magazine. The article discussed a specific case in which Dennis guided a co-op board through the process of terminating the lease of a shareholder who repeatedly threatened board members, other shareholders and staff. Based on this unacceptable behavior, the next step was to seek termination of the shareholder's lease, since another option, notice to cure, was probably an unlikely fit.

In order to avoid costly litigation, Dennis initially advised the board to come to an agreement with the shareholder, and when it became clear that wasn't possible, he recommended proceeding with the termination of the lease as a default based on her conduct.

A letter was sent to the shareholder, documenting the behavior and record of complaints, and after a meeting between the shareholder and her counsel, as well as Dennis and the board, the board voted to terminate the lease.

Dennis concluded by pointing out that, while most co-op boards would prefer to resolve situations by meeting with and hoping that there is a change in behavior, the process could become time consuming. He recommends to boards and their counsel to use good judgment in deciding how they deal with each set of circumstances, weighing the cost and amount of time it could potentially require.