Page 25 - CooperatorNews Chicagoland EXPO 2021

CHICAGO.COOPERATORNEWS.COM COOPERATORNEWS CHICAGOLAND — EXPO 2021 25 ? the board isn’t protecting the value of the break the deadlock. In Illinois a court property, the appointment of a receiver is may appoint a provisional director or ap- an improvement over the current board. point a custodian. A provisional director It’s really the receiver stepping in as a re- placement for the board, at least tempo- rarily. The receiver would make the deci- sions on whether to keep the managing will be remedied. A provisional director agent, corporation lawyers etc. In a condominium, it’s harder. The ers of a duly elected director. As with a condo board doesn’t control the real provisional director a custodian may be property where most of the control of a appointed in cases where doing so will receivership is based, says McCracken. remedy the grounds alleged by the com- “To the best of my knowledge, for a condo plaining director or member. Subject to a receiver only makes sense where there court limitations a custodian exercises is a substantial block of unsold units, as the powers of the corporation's board in newly-built or formed condominiums.” The other question is, who are you ap- pointing a receiver for? McCracken ex- plains that one can appoint a receiver for so for the advantage of its creditors until an individual unit for instance, to make removed by one of several methods re- sure common charges are paid. But in a turning control to the board.” co-op, it’s conceptually easier to substi- tute a receiver for a managing agent to gency situation, says Barnett, unlike a run the whole property. Conservatorships Conservatorship is the appointment of in a condo can’t take care of themselves or someone to protect the interests and es- tate of an individual. “In Illinois, a con- servatorship is a judicial process pursuant vator may become necessary. to which a person is appointed and super- vised by a court to manage the financial and conservatorship in the long run is affairs of a minor or incapacitated adult,” that there is a court-appointed, highly says Kasten. “That court appointed per- son is called the conservator or guard- ian of the estate (not to be confused with and individuals depending on the legal guardian of the person, who manages a mechanism employed. They are fiduciary person’s care). Generally, a conservator and acting on a court’s direction. In es- does not have authority to manage real sence they are quarterback for a problem estate, as does a receiver. Accordingly, a to win the game. They can fix a difficult conservatorship is not a viable strategy situation and get a property or estate run- for condominium or co-op properties ning smoothly again. to address operation, administration, or maintenance, repair, and replacements is- sues of such properties.” Kirsch adds that, “A conservatorship is a legal procedure in which the court appoints, depending on the state, an in- dividual or a nonprofit community de- velopment corporation—called a con- servator for the purpose of managing the general day to day operations and affairs, finances, and management of the prop- erty with the intent of returning the as- sociation in a stable condition and turn- ing full control over to the board of the entity. Unlike receivership the parties are not seeking dissolution.” Kirsch explains further that “claims for conservatorship or receivership may only derive themselves out of the ele- ments of a particular statute. If the par- ticular facts and circumstances required by statute don’t exist, a remedy may not be available. Petitions for conservatorship arise, among other causes, when there are claims of fraud, failures of the board in their handling of the management of the association including failure to manage funds or carry out its purposes, abuse of the board’s power and if the directors are deadlocked and the members cannot will be appointed if it appears by doing so the grounds alleged by the complain- ing director or member entitled to vote is appointed with all the rights and pow- of directors and officers. In addition to managing and furthering the purposes and affairs of the association it also does Conservatorship is more of an emer- power of attorney. If someone becomes disabled, she explains, or an elderly person puts themselves or other residents at risk and the family won’t intervene, a conser- In the end, the benefit of receiverships qualified, licensed, and insured person looking out for best interest of owners, n A J Sidransky is a staff writer/reporter for CooperatorNews, and the author of several published novels. existing board members and their sup- port professionals looking to help educate newer members—or themselves. Step By Step Once our co-op’s board election was certified, one of the veteran board mem- bers called to inform me of my ‘win.’ A retired educator with a fondness for con- spiracy theories and a helping of good ol’ mid-century chauvinism, he told me, “I have one piece of advice for you: Stay quiet and let the others talk.” He said in my first year, I was there to learn. (Our board members serve three-year terms.) There was a lot of complicated stuff going on, he warned, and it would be best if I would just listen. My “board orientation,” as it were, consisted of a four-inch binder from our NEW KIDS... continued from page 1 continued on page 26 See us at Booth 623 See us at Booth 123, 125