Part 30 published on 01/05/10
Court orders that requisitioned meeting be deferred pending hearing of application to appoint administrator (but imposes terms)
The Court ordered that a requisitioned meeting (for the purpose of electing a new board of directors) be restrained “until and after the hearing of the application for appointment of an administrator”. The Court said:
“…the financial problems of the corporation, coupled with the factionalism amongst unit owners and significant governance difficulties, clearly indicate that a serious question exists as to whether the appointment of an administrator would be appropriate.”
“The holding of a meeting to elect a new board of directors has the potential to add further instability and uncertainty to an already difficult situation.”
“In my view, one simple question faces the unit owners of MTCC 710 – should the court appoint an administrator of the corporation’s affairs, or do the unit owners have a viable plan to return the corporation to financial stability?”
“I am imposing a two week “cooling off period”. I encourage the unit owners to put aside their personal disputes and obvious differences and to use the next two weeks to meet informally to try to come up with a realistic plan to address the real financial problems that are staring them in the face. Hard decisions must be made – either significantly cut expenses, or significantly raise common fees, or both. Inaction is not an option. If the level of distrust amongst the unit owners is too high to permit reaching a solution, then perhaps they should think about appointing an administrator who can make the tough decisions for them. I will give the unit owners two weeks to engage in this kind of “reality check” and to explore a common solution.”