Provides that a two-thirds majority of all outstanding shares is necessary to dissolve a mutual limited profit housing company; disallows proxy voting except for illness or disability.
TITLE OF BILL: An act to amend the private housing financing law, in relation to the dissolution of certain limited-profit housing companies
PURPOSE OR GENERAL IDEA OF BILL: To require that, whenever the dissolution of a limited-profit housing company is proposed, the vote taken may not be done by proxy.
SUMMARY OF SPECIFIC PROVISIONS: Section one amends section 35 of the private housing finance law by adding a new subdivision 5 that says that no mutual company may be dissolved except by affirmative vote of 2/3 or more of the holders of all outstanding shares of the company and that no person who has a right to cast a vote may do so by proxy or by any other means except in person.
An exception is made for persons who are certified by a physician as unable to cast a vote by reason of illness or disability.
JUSTIFICATION: The bill prevents the dissolution of certain limited-profit housing companies when persons who have a right to vote cannot be present to vote in person. It allows for such voting to be carried out only in person, and not by proxy vote. This will ensure that persons who have a right to take such vote, crucial to the future of their homes' existence, will be voting in person.
PRIOR LEGISLATIVE HISTORY: 2004: S.7666 (Duane), Died in Rules; A.11745 (Sanders), Died in Housing 2005: S.2573 (Duane), Died in Housing 2006: S.2573 (Duane), Died in Housing 2007: S.1877 (Duane), Died in Housing 2008: S.1877 (Duane), Died in Housing 2009: S.1342 (Duane), Died in Housing 2010: S.1342 (Duane), Died in Housing
FISCAL IMPLICATIONS: None to State.
EFFECTIVE DATE: Immediately.
STATE OF NEW YORK ________________________________________________________________________ 1275 2011-2012 Regular Sessions IN SENATE January 6, 2011 ___________Introduced by Sen. DUANE -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development AN ACT to amend the private housing financing law, in relation to the dissolution of certain limited-profit housing companies THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 35 of the private housing finance law is amended by adding a new subdivision 5 to read as follows: 5. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF THIS SECTION OR ANY OTHER PROVISION OF ANY GENERAL, SPECIAL, OR LOCAL LAW, NO MUTUAL COMPANY MAY BE DISSOLVED EXCEPT UPON THE AFFIRMATIVE VOTE OF TWO-THIRDS OR MORE OF THE HOLDERS OF ALL OUTSTANDING SHARES OF SUCH COMPANY. NO PERSON HAVING THE RIGHT TO CAST A VOTE MAY DO SO BY PROXY OR ANY MEANS OTHER THAN IN PERSON, UNLESS SUCH PERSON IS CERTIFIED BY A PHYSICIAN LICENSED TO PRACTICE MEDICINE IN THIS STATE AS UNABLE TO CAST SUCH PERSON'S VOTE IN PERSON BY REASON OF ILLNESS OR DISABILITY. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00958-01-1