—Cutting the Red Tape
“The governing documents for the cooperative will inform as to whether the co-op was formed pursuant to the New Jersey Corporations Act or New Jersey Non-Profit Corporations Act. Both acts contain nearly identical provisions pertaining to the inspection of records by shareholders. The applicable inspection provision for the Corporations Act can be found at 14A:5-28 and at 15A:5-24 for Non-Profit Act.
“The applicable provisions of either act provides that the corporation "shall make available for inspection...records containing the names and addresses of all members, the number, class and series of memberships held by each and the dates when they respectively became members of record thereof, within 10 days after demand by a member entitled to inspect them." The act further elaborates that those people entitled to inspect shall be a member of the corporation for at least 6 months immediately preceding that person's demand or be a person holding (or authorized by the members holding) at least 5% of the membership of any class or series. Both acts allow for a shareholder showing proper purpose to appeal to the court for inspection of records and other documents, irrespective of the shareholder's membership tenure or percentage stock holding in the cooperative.”