Part 54 published on 01/05/16
Order appointing administrator generally cannot avoid voting rights of owners
An administrator had been appointed by Court order. The lower Court had also ordered the administrator to take certain steps, even though required votes of the owners (for those steps) had not been obtained. The question was whether or not the Court’s order exceeded the authority that could be granted to an administrator.
The Appeal Court held that an administrator generally cannot be granted authority that overcomes the voting rights of owners. The Appeal Court said:
Under s. 174 of the (Strata Property Act), the court may appoint an administrator to exercise the powers and perform the duties of a strata corporation.
The powers and duties of a strata corporation are independent from the powers and duties of the owners who are members of that strata corporation.
…
The Act provides that a strata corporation, qua strata council, must obtain the approval of voters before taking certain action.
Absent specific statutory authorization, the court cannot empower an administrator to act without the approval of voters as required under the Act.
…
That said… I do not preclude the possibility that the existing dysfunction might be resolved on an application by the Administrator under section s. 165, or an application by an owner under ss. 164 or 165.