Part 25 published on 01/02/09
Condominium corporation’s promotional fund within corporation’s objects and duties. No oppression
This commercial condominium – a retail mall – established a promotional fund for marketing and promoting the mall for the benefit of the unit holders. For many years, owners were not forced to pay into the fund. In 2005, the condominium board began to treat the promotion fund as a common expense, applying to all unit owners in accordance with their proportionate shares. The applicant unit owner (having a proportionate share of approximately 26%) argued that this was oppressive and unfairly prejudicial.
The Court held that the promotional fund was a proper common expense. There was nothing in the condominium corporation’s governing documents that would prevent the condominium corporation from incurring expenses for promotion and marketing. The Court said: “Such expenditures are consistent with its duties to manage and administer the corporation.”