If a recoupment plan is in effect, the effect may be to require future shareholders to absorb expenses of the fund incurred during prior years.

These special needs require current shareholders in brownstone co-ops to screen prospective buyers to make sure they have enough time to fulfill their obligations and will not be constantly finding excuses for not doing their share of the work.

Mr. Shmulewitz said that another provision requires new shareholders who buy an improved apartment to assume all the obligations and responsibilities of the shareholder who originally made the improvement.

However, said Mr. Nardi, since such an agreement is only as good as the shareholder's ability or inclination to abide by it, some co-op lawyers are recommending that boards require shareholders who need replacement documents to furnish a bond.

But requiring shareholders to pay regulators' penalties certainly adds insult to injury.

But it should be noted that the AB structure requires shareholders, a Board of Directors and regular meetings of both, together with complete audited accounts once per year.

Some fund charters protect management by requiring shareholders to approve a conversion by more than a simple majority.

The mining rules required working shareholders in a mine to pull their weight.

Moreover, he said, boards might also consider requiring shareholders who are selling, subletting or renovating their apartments to obtain an inspection for lead-based paints as a condition of board approval.

In time, several union-sponsored cooperatives wavered over whether to continue requiring shareholders who were moving out to sell their shares back to the co-op at the original price - or whether to allow them to test the open market and potentially make a huge profit.