21/09/2017 – Jurisdiction British Columbia
Part 60 published on 01/12/2017
Court dismisses strata corporation’s Application for approval of winding-up resolution
The strata corporation sought to follow new procedures to wind-up the corporation with the involvement of a liquidator. The Court explained as follows:
There are two possible routes available to strata corporations seeking to wind themselves up voluntarily: they may do so either with or without a liquidator. The advantage of using a liquidator is that the individual strata lots and common property are vested in the liquidator, who is then empowered to sell them. The process without a liquidator results in the dissolution of the strata corporation and the cancellation of the strata plan with the owners becoming tenants in common, but no sale.
The strata corporation had chosen the second procedure – winding-up with the assistance of a liquidator. As part of the process, an 80% resolution of owners was required, followed by Court of approval of that resolution. The strata corporation had arranged for the resolution to be passed, and now applied for Court approval.
The Application was opposed by an owner and a tenant.
The Court dismissed the Application. The Court held that there was a fundamental problem with the required 80% resolution, namely a deficient interest schedule.