The Condominium
Act is self-policing. This means that the Ministry of
Consumer Services does not intervene if there is a dispute between the
board and an owner, or between groups of owners, or between a director
against the majority of directors. These complaints are to be heard, at the parties own costs, by a mediator, an arbitrator or a judge. |
(a) |
investigate the items that the
developer is required to give to the condominium's board. |
(b) |
investigate the corporation’s records. |
(c) |
investigate the affairs of
persons who receives money on behalf of or for the benefit of the
corporation. |
(d) |
conduct an audit of the accounts and records. |
(a) |
shall require the inspector to
make a written report within a specified
time to the applicant for the order and to the corporation on the
activities that the order requires the inspector to perform; and |
(b) |
may make an order as to the costs of the investigation or audit or any other matter as it deems proper. |
Myrtle
Sousé: [doing a crossword puzzle] |
What's a six-letter word meaning "embezzlement"? |
Mrs. Hermisillo Brunch: | Prison. |
1. |
Require any person by summons to give evidence on oath or affirmation at the inquiry |
2. |
Require any person by summons to produce in evidence at the inquiry such documents and things as the person or body conducting the inquiry may specify |
3. |
Examine all the relevant corporation records. |
4. |
Examine relevant computer files and e-mails. |
5. |
Examine relevant bank account records. |
1. |
Have
sufficient evidence of the probability that the corporation is being
harmed and is in danger due to negligence, or worse, and that an
inspector is required to investigate and report on his findings. |
2. |
Show that the
application is being made in good faith. |
3. |
Show that more
obvious avenues such as going to small claims
court to get access to the corporation records, requisition meetings
and elections to the board of directors failed or were too impractical. |
4. |
Show that there is
evidence of fraud, mismanagement of funds and election or financial
irregularities. |
5. |
There has been no
audited financial statements and /or no AGMs. |
1. |
Most
likely they will have been privy to the decision-making that lead to
the accusations of financial mismanagement, fraud or the majority of
directors acting in bad faith. |
2. |
A
director has a responsibilities to the corporation and to all owners
that may be greater than his obligation to keep the board's decisions
confidential, if they were dishonesty or improperly made. |
• |
The Applicant alleged fraud but
adduced no evidence capable of supporting the allegation |
• |
He alleged improper
charging for repairs but the evidence he relied on had no probative
value. |
• |
He made allegations about
unsigned financial statements. His affidavit evidence was misleading
and the allegation had no merit. |
• |
He made allegations about a
reserve fund study and claimed the circumstances showed mismanagement.
The evidence did not show mismanagement. |
• |
In summary, the Applicant made
nine
allegations which he contended showed fraud, mismanagement and
carelessness. He failed to prove the facts concerning eight of the
allegations and the facts on the remaining issue were not really in
dispute. He failed to prove any fraud, mismanagement or carelessness. |