— Questioning Co-op Board
“The letter writer is unclear concerning the scenario in this matter, [but] it appears that the selling shareholder and prospective purchaser have entered into a contract, and all contracts state that the transaction is subject to the board’s approval of the purchaser. The board can certainly ‘reconsider their approval after a contract has been signed’ if information came to their attention which would change their vote. Again, the letter writer is unclear whether the board’s initial decision was communicated to all the parties therefore approving the transaction.
“If enough members of the board had ‘second thoughts’ and asked for a revote of the matter, as long as the reconsideration is not based upon any discriminatory practice, the board certainly is permitted to revote the issue. However, the board must do so quickly in the process to avoid the parties taking any action that would be reliance on the board’s initial decision and which could be detrimental to them in the future.”