The board
“These
office-seekers are a curse to the country; no sooner was my election
certain, than I became the prey of hundreds of hungry persistent
applicants for office, whose highest ambition is to feed at the
Government's crib.”
—Abraham Lincoln
The condominium has 897 units in three high-rise buildings and had an
income of over $4 million a year. It has a five-member board of
directors.
For this entire ten-year period, the sitting board faced a series of
requisition meetings. The board was deadlocked by these political
battles lead by different factions struggling for control that was made
worse by a refusal by many owners to face the financial and political
crisis’s
that was rocking the corporation and the determination by some to make
money off the corporation.
Larry
Lee
In December 1999, Larry Lee and two others were successful in
requisitioning an owners meeting to replace the board. Larry and his
two confederates became directors and being in the majority, they
controlled the board. Larry was appointed president and he assumed the
property manager’s position.
In 2001, as his corruption was being uncovered, Mr. Lee unsuccessfully
tried to replace three of the directors at the AGM. Instead, Mr. Lee
and his remaining sidekick lost their positions on the board.
Anver
Karim
Mr. Karim was on the board of directors from 1997 to 1999. While he was
a director, Anver persuaded the board to sign a five-year contract with
AK Vending to supply the washers and dryers for the laundry rooms in
the three buildings.
Later, the board learnt that Anver Karim was the owner of AK Vending.
They had the corporation lawyer write him a letter saying that this was
a conflict of interest.
Replacing
carpets
In 2001 and 2002, the corporation had a special assessment to pay for
extremely expensive construction projects that were mandated by several
city work orders.
The property manager proposed that $300,000 of the money raised by the
special assessment to pay for the construction work be used to replace
the hallway carpets.
The majority of the board voted to buy the carpeting. Due to the
fighting over this issue, the board majority started making decisions
outside the board meetings.
Another
split in the board
As a result of being froze out of the decision-making, Aimin Li, a
minority director, talked with a couple of owners about the
difficulties the corporation was in and formed a political group to
oppose the majority directors.
They were successful in getting a special meeting to replace the entire
board but were not successful in getting a quorum at that meeting.
At the 2002 AGM, two new directors joined Aimin Li on the board. Now
Aimin Li belonged to the majority of the board. They voted to
replace
the property management company who recommended that the board use part
of the special assessment money to buy the carpeting.
Another
division on the board
The board once again split due to unconfirmed rumours that one director
was getting $2,000 a month kickback from the new property management
company and that he had is unit renovated for free.
This director also wanted to cancel the contract with the contractor
that was renovating the parking garage.
The
return of Anver Karim
After a director resigned in 2003, Anver Karim was appointed to the
open position on the board. However, Aimin Li demanded an
assurance
that Karim would cancel his coin laundry contract with the corporation
as a condition of his returning to the board, as this would be a
serious conflict of interest. A verbal assurance was given.
However, once he was on the board, Anver Karim did not cancel the
contract. In response, three of the directors passed a resolution
removing Karim from the board and replacing him with Hameed Shah.
The
lawyers battle
Prior to the 2003 AGM, Silva Gnanapandithen, one of the directors,
hired Brian Horlick. Mr. Horlick gave the opinion that the board did
not have the authority to remove Anver Karim from the board and
therefore Anver Karim was still a director, not Hameed Shah.
Based on this legal opinion, three directors met and passed a
resolution deposing Aimin Li as president and named Silva
president,
Anver Karim treasurer and Fareed vice-president.
These three directors also passed a resolution giving themselves
signing authority for the corporation’s bank accounts.
Freezing
the accounts
The signing officers then gave Brian Horlick a $20,000 cheque for a
retainer. Once this cheque was cashed, Mr Horlick froze the
corporation’s
bank accounts.
With the bank accounts frozen, the corporation could not pay the
utilities, insurance premiums, employee wages or any of its bills.
In response, Aimin Li hired Elia & Associates to assist him
and his
two directors in battling against Silva and his two directors.
At this point the corporation had two sets of directors, both
represented by law firms, who claimed to be the majority of directors.
They were:
Board
members |
Board
members |
Amin Li |
Silva
Gnanapandithen |
Tariq Kayani |
Anver Karim |
Hameed Shah |
Fareed |
|
|
Lawyer |
Lawyer |
Elia &
Associates |
Brian Horlick |
Elia commenced a court application to have the board membership
determined and to have the bank accounts unfrozen. During the
litigation, the bank agreed to pay the corporation’s utility bills and
the employee wages. (There were no signatures on the cheques because it
was not clear who could sign on the corporation’s behalf.)
First
administrator
After along legal battle, both sides agreed to install Robert Gardner
as an interim administrator. The administrator fired the property
management company and hired a new property manager.
During the summer of 2003, Mr. Gardner wrote two reports giving
suggestions for required changes at YCC #42.
2003
AGM
Silva Gnanapandithen resigned as director and Anver Karim did not run
for reelection while Hameed Shah and Chouldry Latif were elected.
So after forcing the corporation into a long and very expensive battle
for control of the board, the two main protagonists just stepped aside.
The
winners?
The two law firms as the legal bills for both sides totaled over
$200,000.
The
losers?
The losers were the condo owners who picked up the tab.
A
change of mind?
Shortly after the 2003 AGM, Silva started another requisition to remove
the entire board of directors. That requisition failed.
In June 2005, Silva led another group of owners in an attempt to
requisition a special meeting to remove the board of directors. That
attempt also failed.
While the board of directors and the various political factions battled
away, the corporation was sinking in a red sea of debt and neglect.
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