Rules about buying out a shareholder?

In case anyone who might know is as confused as I am, see http://streeteasy.com/talk/discussion/37898-buying-out-a-co-shareholder-what-happens

It depends on the building. We've done this without having the existing shareholder go through the interview process (which we felt would be insulting to the shareholder and a waste of time for everyone involved). We also didn't even require the full board package (letters of recommendation, etc.), but obviously we did need to revisit their financials.

The First Appellate Department ruled years ago that a coop must approve an existing
shareholder's application to buy a second apartment unless it has a sound business
reason for refusing consent, e.g., questions about the ability to cover maintenance

I bought another shareholder's apartment in my co-op and am selling mine to neighbors. I still had to pay the Board application fees to buy (and sell) and fill out full financial package, but the Board waived the interview, reference letters, letter from building manager confirming I was up to date on maintenance payments and the move in/move out fee. Oh yeah and they required a $101.00 credit report from Fidelifacts.

Thanks, everyone - very helpful. And to NWT -- everything was put on hold for many months for various reasons. Just wanted to revisit this issue since I'm currently going through the process again. And to rb345 - that's an interesting law, thanks. I guess I should have specified that I'm buying out a co-owner who used to live in the apartment instead of trying to buy another apt. in the building - I imagine that most of the rules you guys mentioned still apply.