In a cooperative corporation, who issues the proprietary lease?

In a cooperative corporation, the board of directors is responsible for issuing the proprietary lease. This lease grants shareholders the right to occupy a specific unit within the cooperative property. The ownership structure of a cooperative differs from traditional real estate ownership because shareholders own shares in the corporation rather than owning individual units outright. The board of directors serves as the governing body for the cooperative, making decisions on behalf of the shareholders, including issuing proprietary leases, setting policies, and managing property operations.

This system is set up to ensure that all shareholders have a say in how the cooperative is run, and that the lease agreements are standardized and compliant with corporate bylaws and the overall interests of the shareholders. The issuance of the proprietary lease is significant as it formalizes the relationship between the shareholder and the cooperative, allowing for the right to occupy a specific unit based on share ownership.