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Who has voting rights at a stockholder meeting once a bank forecloses on a home? The bank or the previous owner?

New York, NY |

Stockholders told that since previous owners name is still on stock they can vote but that doesn't sound logical. Shouldn't the stock revert back to the corporation? Or shouldn't the bank have a rep attend meetings to vote?

Attorney Answers 4

Posted

It would be whoever bought the property at the foreclosure sale. That would be either the bank or a 3rd party.

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Posted

A person who no longer owns the home would not have voting rights.

Rather, the person or entity who presently owns the home would have the right to vote the shares.

If this answer was helpful, please mark it as helpful or as a best answer. This answer is for general education purposes only. It neither creates an attorney-client relationship nor provides legal guidance or advice. The answer is based on the limited information provided and the answer might be different had additional information been provided. You should consult an attorney.

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Posted

Either the bank or a 3rd Party Buyer.

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Posted

Dear Coop shareholder:

Until there is a transfer of the ownership of the share certificate on the books of the corporation, the by laws of the corporation if a New York City cooperative allow the owner of the shares in the corporation as contained in the books of the corporation on the day of a vote to cast the number of votes allocated to the shares. The shares do not loss the right to be voted and someone has to own the shares, and the corporation may only look to its books for the name of the owner of record.

Good luck.

The answer provided to you is in the nature of general information. The general proposition being that you should try to avoid a bad outcome if you can.

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