So my NYC co-op just completed its own mid-east style pro-democracy revolution
A crazy proxy fight that lasted 6 months ended with the election of an entirely new board of directors committed to transparency, no conflicts of interest, and better communication with shareholders.
The old board simply stepped down allowing the new board to take over without a hitch. The president of the old board, widely distrusted and despised actually stuffed a 2 page missive under all 350 doors in the building screaming about her own beheading and placing blame for her failures on a group of shareholders who banded together to win hard-to-come-by board seats.
In the end the new board took all 7 seats, a mighty achievement where the original Sponsor still owns 17% of the shares.
The new board, supported by a larger group of concerned shareholders managed to secure 55-60% of proxies before the election sealing their victory going into the election and apparently persuading the incumbents to step aside.
Many people would have preferred a Gaddafi-esqe approach of going after them with real fire power given the anger that was bubbling.
I am amazed by the power of the democratic process. Of course a $30mm facade renovation project was the catalyst for our regime change. That’s enough money to depose about any incumbent.
Lesson: buy a condo not a coop.