Welco Associates v. Gordon

OPINION OF THE COURT

Milonas, J. P.

The issue involved in this case, which was described as novel by the Supreme Court, is whether the sponsor of a cooperative conversion, after terminating "special developer control”, can reinstate its control over the board of directors based upon its authority under the offering plan and the corporate bylaws.

Petitioner Welco Associates, of which petitioner Frederick Elghanayan is a partner, was the sponsor of a plan to convert a luxury building containing approximately 330 apartments to cooperative ownership. The conversion occurred on or about March 31,…