Part 17 published on 01/02/07
Mandate of administrator suspended
An administrator had been appointed to govern the affairs of the condominium corporation. See Condo Cases Across Canada, Issue No. 10, May 2005). During the administrator’s mandate, a meeting of owners was held to elect a new board of directors. The owners also voted overwhelmingly in favour of terminating the mandate of the administrator. Following the meeting, some of the owners made application to the Court for an Order approving the election of the new board and discharging the administrator.
The Court ordered that the mandate of the administrator be suspended and that governance of the condominium corporation should be turned over to the newly elected board on an interim basis, subject to further reporting requirements and Court review. The new board would have to satisfy the Court that it had established “realistic and achievable plans” to address the challenges faced by the condominium corporation. The Court would review such plans on January 31, 2007. At that time, the Court would decide whether or not to reinstate the administrator.
The Court said: “It is time for this new board to demonstrate that it can provide (realistic leadership for the condominium)”.
[Editorial Comment: One factor that particularly impressed the Court was that the new board had secured advisory services of an experienced condominium manager. This helped persuade the Court that the newly elected board should be given a chance to take on control of the condominium corporation.]