Revolution in housing cooperatives. Beware of a costly mistake

An amendment to the Act on Housing Cooperatives (USM) has been in force since January 28, which changes the way the entire economic environment of cooperatives functions. The corrections apply not only to cooperative bodies, but also to entrepreneurs who have premises there, property managers, law firms and companies handling meetings and voting.

The changes are operational in nature. It is necessary to update the power of attorney templates, the regulations of general meetings and the participant verification procedures. Today, formal irregularities may become grounds for challenging resolutions.

Representative only from a specific list

The most important modification concerns the rules for granting powers of attorney by members who are natural persons. Currently, only a close person (excluding people who actually live together), a lawyer or legal advisor, or another member of the same cooperative can be a proxy.

Powers of attorney granted to company employees or permanent collaborators from outside the statutory catalog do not give the right to vote. Documents that do not meet the new requirements lose their effectiveness without the need to formally revoke them.

In the case of a close person, an additional statement confirming this status is required under pain of criminal liability. There is a fine for submitting a false declaration.

Deadline and verification of documents

The power of attorney must be delivered to the cooperative no later than three days before the general meeting or its first part. This means the need to prepare documents in advance, especially for entities managing multiple premises.

The new regulations do not cover members operating in the form of commercial companies – in their case, the rules of representation resulting from the regulations and registration documents still apply.

Incorrect authorization of the voting person may lead to the resolution being challenged as being contrary to the Act. The court first examines the compliance of the power of attorney with the regulations.

Without a representative when electing authorities

The amendment introduces a ban on voting by proxy in matters of election and dismissal of members of the management board and supervisory board. On such matters, you can only vote in person.

At the same time, cooperatives were excluded from solutions enabling remote meetings and voting in the Covid mode. This means the end of the practice of circulation voting instead of a stationary general meeting.

Transformation of premises and land

The changes also include procedures for separating premises. In the event of inaction of the cooperative, it is possible to take the matter to court, including a claim for an obligation to submit a declaration of will. This is important for entrepreneurs who own commercial premises.

The amendment also clarifies the rules for pursuing claims regarding the transfer of ownership of land adjacent to the building. In lawsuits, it is necessary to correctly identify the owners and the management board acting on their behalf.

New models of cooperation

The catalog of entities that can act as a social rental agency has been expanded. This function can also be performed by a housing cooperative under an agreement with the commune, which opens up new opportunities for cooperation in providing premises.

The new regulations require a comprehensive review of procedures, documentation and rules for managing general meetings. Greater formalism means greater importance of the correctness of documents – the legal security of cooperatives and their members depends on it.