Page 25 - CooperatorNews Chicagoland EXPO 2021
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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

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