Know Your Co-op Legal Documents

• You usually can find most of your policies and procedures in your co-op's bylaws and shareholders' proprietary lease. Whereas bylaws describe your co-op's decision-making procedures, such as elections and officers responsibilities, the proprietary lease describes the relationship between the co-op and members or shareholders, including policies on issues such as noise and pets, often called "house rules."
  
  

Making Co-op Policy

• Co-ops often set policy when the board of directors makes a decision at a duly called meeting, although these policies are not as legally enforceable as when those decisions are reflected in amendments to the bylaws or proprietary lease. Both of these legal documents have sections about how to make amendments, and most require a vote of a certain percentage of shareholders.
  
  

Limits to Co-op Policy and Procedures

• The bylaws and proprietary lease cannot be amended to contradict the co-op's Articles of Incorporation, other founding document or state or federal law. For example, the co-op cannot amend the bylaws to mandate elections for the board of directors every two years if the co-op is a corporation and that state's business corporation law requires annual elections. Every co-op's legal documents and state laws are different, so it's important for co-ops to seek qualified legal advice, especially on important or contentious issues.