55-456 - Master associations.
§ 55-456. Master associations.
A. If the declaration provides that any of the powers described in § 55-460are to be exercised by or may be delegated to a profit or nonprofitcorporation or unincorporated association which exercises those or otherpowers on behalf of one or more cooperatives or for the benefit of theproprietary lessees of one or more cooperatives, all provisions of thischapter applicable to associations apply to any such corporation orunincorporated association, except as modified by this section.
B. Unless a master association is acting in the capacity of an associationdescribed in § 55-458, it may exercise the powers set forth in subdivision A2 of § 55-459 only to the extent expressly permitted in the declarations ofthe cooperatives which are part of the master association or expresslydescribed in the delegations of power from those cooperatives to the masterassociation.
C. If the declaration of any cooperative provides that the executive boardmay delegate certain powers to a master association, the members of theexecutive board have no liability for the acts or omissions of the masterassociation with respect to those powers expressly so delegated in accordancetherewith.
D. The rights and responsibilities of proprietary lessees with respect to theassociation set forth in §§ 55-460, 55-465, 55-466, 55-467 and 55-469 applyin the conduct of the affairs of a master association only to those personswho elect the board of a master association, whether or not those persons areotherwise proprietary lessees within the meaning of this chapter.
E. Notwithstanding the provisions of subsection F of § 55-460 with respect tothe election of the executive board of an association by all proprietarylessees after the period of declarant control ends, and even if a masterassociation is also an association as described in § 55-458, the certificateof incorporation or other instrument creating the master association and thedeclaration of each cooperative, the powers of which are assigned by thedeclaration or delegated to the master association, may provide that theexecutive board of the master association must be elected after the period ofdeclarant control in any of the following ways:
1. All proprietary lessees of all cooperatives subject to the masterassociation may elect all members of that executive board.
2. All members of the executive boards of all cooperatives subject to themaster association may elect all members of that executive board.
3. All proprietary lessees of each cooperative subject to the masterassociation may elect specified members of that executive board.
4. All proprietary lessees of the executive board of each cooperative subjectto the master association may elect specified members of that executive board.
(1982, c. 277.)