In Rego Park Gardens Assoc. v. Rego Park Gardens Owners, Inc. (174 AD2d 337 [1991], app den 78 N.Y.2d 859 [1991]), the sponsor retained the right to designate three of the five directors while it owned 50% or more of the shares of the cooperative corporation, two directors while it owned between 25 and 50%, and one director while it owned less than 25%. The sponsor was precluded from exercising voting control over the board once it owned less than 50% of the shares. The First Department ruled that the latter restriction did not prevent the sponsor from voting its shares to fill vacancies on the board, other than those which it had a right to fill by designation. In so holding, the court stated, "the mere fact that new directors may be elected with the votes of the sponsor cannot, without more, be equated with exercising voting control as a matter of law." (id. at 339).