Q&A: Is Audited Budget Required?

Q&A: Is Audited Budget Required?

Q Does corporate law require that co-ops have an annual audited financial budget for shareholders?

—Budgeter in Brooklyn

A “The law imposes no such requirement on co-op apartment corporations,” says Thomas E. Kass, a partner at the New York-based Kantor, Davidoff, Wolfe, Mandelker, Twomey & Gallanty, P.C. “Budgets generally represent an estimate of expected expenses in the future and may be based on past financial statements which may in fact have been audited. Audited financial statements for co-op apartment corporations are not required under the law; however, such a requirement may be imposed by the corporation's mortgage and/or its bylaws. If not, such a requirement could be imposed on the corporation by its shareholders who have the power to amend the bylaws.”

Related Articles

Q&A: Annual Shareholder Meetings

Q&A: Annual Shareholder Meetings

Q&A: Annual Shareholder Meetings

Stay at home. Isolation girl suffers from noisy neighbors. Quarantine period. Novel coronavirus pandemic. Flat vector cartoon modern design illustration.

Q&A: Handling Noisy Neighbors

Q&A: Handling Noisy Neighbors

A dog, who serves as an emotional support animal, is lying on a bed after spending most of the day moving into her new home, a college dormitory.

Q&A: Pup Papers, Please

Q&A: Pup Papers, Please